seminar 1a tmall intro 2013 (vinitaly)

DIGITAL MEDIA TECHNOLOGY & WINE SERIES

E-COMMERCE: BREAKING DOWN THE GREAT (E-)WALL OF CHINA (Tmall)

#vinitaly2013 @vinitalytour

@steviekim222

• Janet Wang, Head of International Business Development, Tmall (Alibaba Group)

• Naran Andreyev, CEO, M1nt Cellars

• Jared Liu, Founder/CEO of YesMyWine

• Alvin Huang, Founder of Vinehoo

2007 2008 2009 2010 2011 2012 2013e 2014e 2015e¥0

¥500

¥1,000

¥1,500

¥2,000

¥2,500

¥3,000

¥3,500

¥56

¥128 ¥263 ¥461

¥785

¥1,304

¥1,850

¥2,450

¥3,020

113% 129% 105% 75% 70% 66% 42% 32% 23%

Transaction Size of China Online Shopping Market Transactions Growth Rate

Onl

ine

Shop

ping

Tra

nsac

tion

Size

(bill

ions

RM

B)

Ann

ual G

row

th R

ate

(%)

Total E-Commerce market size has sustained 70% AAGR over past 5 years; with total transactions breaking USD 200 billion in 2012.

Overall E-commerce Penetration and Uptake in China

Source: iResearch Consulting Group, 2013

As % of Total Retail : 1.1% 2.0% 2.9% 4.3% 6.2% 7.7% 9.0% 10.0%

Shift in Consumer Demand: The Rise of B2C

China’s B2C sector has enjoyed rapid development in recent years; reaching 350 billion RMB in 2012


2009 2010 2011 2012 2013e 2014e 2015e0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

92% 86%77% 70% 65% 59% 54%

8% 14%24% 30% 35% 41% 46%

C2C B2C

Prop

ortio

n of

Sal

es R

even

ue (%

)

China B2C Market Penetration

Tmall is Asia’s largest B2C site, with USD 32 billion sales volume in 2012

57%20%

6%

5%

3%

2%1%

1% 1% 1%

4%Tmall

360buy

Suning

Tencent B2C

Amazon.cn

Dangdang

Gomei

Vipshop

Yihaodian

Vancl

Others

Tmall


The Alibaba Ecosystem

eTao

Product Search

Chinese consumers see Tmall as destination for:

Following the latest fashion trends

Accessing the widest variety of products

Purchasing high-quality, brand-name products

Asia’s Largest Shopping Platform

B2C Market Share in China

Registered Users

Daily Unique Visitors

GMV in 2012

#1

>57%

>500 million

>40,000,000

>200 billion RMB

KEY STATS

Tmall: China’s Premier Online Shopping Destination

26%

37%

18%

9%

10%Tmall Age Demographic

18-2525-3131-3636-41>41

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

50000000100000000250000000

500000000750000000

1000000000

1500000000

2100000000

11.11 2010: $142 million11.11 2011: $525 million

November 11 “Singles Day” “Online Shopping Day”

11.11 2012: $2.1 billion

On this day each year, history is made…

$3.1 billion by Tmall + Taobao 2x Cyber Monday 2012 ($1.46B) 217 merchants broke ￥ 10M

RMB 3 merchants broke ￥ 100M RMB 10 million UV in first minute 213 million UV total (40% China)

2012

2011 $525 million

2010 $142 million

24 hours

(In USD except where noted)

International Brands on Tmall

Wine Category on Tmall

The sales volume of wine grew from USD 15 million to USD 56 million in 2012

13

500,000 bottles of wine were sold on Tmall.com’s Nov 11 Single Day

100,000 liter of wine was sold during Chinese New Year promotion

YesMyWine Flagship Store Torres Flagship Store

1

2

3

4

5

Tmall Wine Shopper InsightsFavorite Wine by Countries

15

Single Italy Wine Sales Records on Tmall.com

Favorite Wine by Types

Red Wine

Sparkling wineWhite Wine

90,000 bottles 10,000 bottles 6000 bottles 5000 bottles 7800 bottles

• Gender: 60% Male v.s 40% Female• Age: 60% at 25-34• Prefer sweet , gift-packing• Avg basket: RMB 299

Marketing Campaigns to Promote Wine

16

Featured campaigns and events to promote wine sales and connecting lifestyle & culture

Other Interesting Sales Records150 gram of Chinese green tea was sold at price

of RMB 8,800

Haagen-Dazs Sandwich, 10,000 pieces valued ofRMB250,000 were sold

3,000 boxes of Leonidas Chocolate were sold out via pre-sales channel within 2 days

seminar 1a tmall intro 2013 (vinitaly)

Business

bottles of wine

market size

comfavorite wine

liter of wine

wine category

tmall asdestination

great ewallof china

tmallthe sales volume