Dr. Kaiquan Chen

1
E-Commerce in China

• Dr. Kaiquan Chen
• TDV Inc.
• Board chairman
• 20/09/01

2
No.1
Agenda

• Internet market develops rapidly in China
• The enterprises demand on EC intensively in China
  
• Enterprises investment in EC changes to maturity
  and application
• Market structure of E-commerce in China
• Mobile EC market developes rapidly
• The development of EC in China

3
Basic Establishment of Communication Develops
Rapidly
No.2
Amounts of telephone develops rapidly in China,
it will be 156 mil. by year 2000. Mobile
telephone amount will be 72 mil.
Source MII, 2000
4
Internet Customers Market Develops Rapidly
No.3
Internet customers will exceed 100 mil. by 2005,
include mobile internet customers.
Internet Uesr Million
Source CNNIC, 2001
5
Internet Customers Market turn to maturity
No.4
The lastest data of IDC indicated normal Internet
customers has reached 61.9 in China,but it was
36 in 1999.
Source CNNIC, 2001
6
Abundant,convenient and protean Mobile Terminal
No.5

• Mobile

Mobile Secretary
World will be changed by Mobile Internet
Carry-home Game Player(with network play and
select function)
Car (with data information and entertainment
system)
Icebox(with information board controled by mobil
phone)
7
Basic conditions of E-Commerce have been built
No.6

• The Chinese government promote EC-market actively
• Byelaw of Internet and security of communication
  network comes on conjointly
• Constitute the laws of EC actively
• Commercial banks found bank-online and China
  Finance Center of Authentication (CFCA)
• Commerce dept. of government and large scale
  state-owned enterprise connect the Internet
  actively
• Little enterprises local IT basic construction
  level raise quickly
• Appeared new mode of EC like eMarktplace etc.

8
The level rises promptly that the enterprises
cognize electronic commerce
No.7
In condition of the in-depth market education and
intense market competition, there are 92
enterprises which need EC in China,that can raise
competition ability.But there are only 34 that
enterprises need EC in the same research in 1999.
Source CNNIC, 2000
9
It raised intensely that the enterprises demand
EC
No.8
There are 41 enterprises that have started the
market propagandistic campaign online who have
their owned net-site, and there are 38 that have
started the application of EC
Source CNNIC, 2000
10
Investment in IT of enterprise has been changed
No.9
Investment in IT of enterprise has been changed
in 2000 in China,it increased in software and
service,which indicated the mature of IT
construction of the Chinese enterprises
Source CNNIC, 2000
11
The change of investment for electronic commerce
of the enterprises
No.10
For meet the development of EC in China,the
emphases of investment have been changed that
changed from solicitude enterprise outside to
perfect the enterprise chain of supply demand,
build enterprise electronic commerce platform
step by step .
Source CNNIC, 2000
12
No.11
Development process of E-commerce in China
There will be 133G in B2B market of EC in China
by 2005,which will be implemented with
eMarketplace mainly.
Revenue USB
150
100
eMP
eInfo
50
25
eP/eD
Year
10
90
95
00
05
Source CNNIC, 2001
13
The revenue of EC in China will enlarge rapidly
No.12
The revenue of EC in China will be 150G,CAGR
will be 134 by 2005
Source CNNIC, 2000
14
The construction of E-Commerce in China
No.13
Source CNNIC, 2001
15
No.14
China VS U.S. in composing of B2C market
The income of more than 53Chinese Internet
subscribers is between 1500-2500 US
Internet Uesr M
25
15
10
5
Income/Y
gt24,000
3,000
6,000
12,000
1,500
Source CNNIC, 2001
16
The forecast of Mobile EC in China 2000-2005
No.15

17
Development process of EC in China
No.16

• 2000 2005
• integration
• additional characteristic
• SCM
• CRM
• industry
• function
• Customization
• individuation

• 1998 - 2003
• transaction processing
• additional characteristic
• B to C
• B to B
• EDI
• SCP
• ERP
• Self-help service

• 1997-2000
• interactive
• additional characteristic
• Intranet
• interactive
• individuation
• Basic Engine
• Point connect

• 1996-1999
• Info express
• Market info
• Product info

1996 1997 1998 1999 2000 2001 2002 2003 2004
Source CNNIC, 2001
18
No.17
Developing EC in China
CUSTOMERS
SUPPLIERS
19
The development tendency of the electronic
commerce market in China
No.18

• Develop EC internally and externally
• Enterprises should improve their internal
  management across-the-board for development of
  electronic commerce and establish adaptive
  operation platform for electronic commerce
  environment
• Lighthouses effect
• The large scale enterprise will bring along
  medium or small enterprises to apply electronic
  commerce,there will come into being a new chain
  of supply and demand based on electronic
  commercial platform between the enterprises
• Success will come when conditions are ripe
• The improvement of external environment will be a
  good channel for electronic commerce
• Electronic commerce companies build cargo ship
  for electronic commerce
• Electronic commerce will start by enterprisess
  in-house requirement which like water

20
Q A
Thank you!

• http//www.tdv-tech.com
• Kaiquan Chen
• TDV Inc.
• Board chairman
• Tel [phone]
• Fax [phone]
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