Transcript E-Commerce in China

E-Commerce In China
Liang Chen & Xu Li
Definition of E-Commerce
1.
Too Generalized Definition
2.
Too Restrictive Definition
3.
Definition in between
Reasons of E-Commerce Development
1.
Development of IT Industry in China
2.
China’s Entry into WTO
IT Industry In China
20% GDP in 1998
Fuel current economic growth
Set solid foundation for development of
E-C
China’s WTO Entry
1. Its commitment to liberalization in the
telecommunication and financial
service sectors
2. Open market to foreign investment
3. Create competitive environment
Two Models
B2B(earlier development)
B2C(wide range of goods)
Two Aspects
1. Avoid the overly aggressive
investment
2. Be prepared to follow the wave
Development Prerequisites
Online Population (103 million by 2005 up
from 87m in 2003)
Estimated 7m credit card holders in China
The population of PC users
Information Structure (ISP cost & service
quality)
Development in E-commerce
1.
2.
3.
4.
5.
In March 6, 1998, first online sale
In the early 1990s, adoption of EDI
Golden Bridge & Golden Card Project
(Infant Stage) 1999-2001
Robust development in 2005
Statistics
Value of online transaction
350 bn in 2004 to 553 bn in 2005
2. 95% of the market was B2B
3. Up 37.1% year-on-year
4. Number of items online exceeds 60m
1.
Limitations
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E-commerce in its infancy stage
Transactions representing 0.87% of GDP
Constraints
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High internet access cost
Lack of a nationwide credit card system
Slow and uncertainty delivery
Lax network security
Government interference
Low speed and high cost online
access
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Service charges for renting frequency bands
of sufficient width for websites high
Access charges high: 10% of monthly
income
Payment online
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The share of online payments remaining
below 50%
Banking services expensive and inefficient
Banks imposing restrictions on e-payments
Average fees equal to 5%--10% of each
credit-card transaction
Problems in the realm of supply and
delivery system
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Traditional labor-intensive delivery system
Weak logistic system
Online security
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Companies’ worrying about the e-business
system from hackers
Commercial credibility: counterfeit and lowquality products
Figures: 20%, 40%, 80%
Government interference
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Censorship
Strict control of internet
Government’s Role
1.
2.
3.
Provide more efficient high-level
guidance
Create a better environment
Issue appropriate laws and
regulations
Resolutions of Chinese
Government
1.
2.
3.
4.
inter-departmental responsibility coordination
should be emphasized
Strengthen the capital support policy
Relax constraints
Continue its reform of intellectual property right
References
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China's E-Commerce Development,Jiacheng HE,perspectives, Vol. 2,
No. 2
E-Commerce In China,John WONG & NAH Seok Ling
Is E-Commerce ready for China? By Keith Regan,E-Commerce Times ,
China E-Commerce 2000 conference
http://www.ultrachina
http://www.scmp.com(South china Morning Post)
http://www.ecommercetimes.com
www.sina.com
www.yahoo.com
www.alibaba.com
Thank you
谢谢！