Local eCommerce – Lessons for JustDial / Entrepreneurs from Baidu Local Express

Baidu Local ExpressChinese Internet Giant, Baidu has had Keyword based bidding on the lines of Google AdWords for sometime codenamed as Phoenix which Local service platforms still find the bidding system complicated. In October 2015, Baidu launched Local Express, a new simpler marketing platform for local merchants. Its key advantages include:

  1. Ease of use of the marketing interface, without the hassles of choosing keyword price.
  2. Geo-targeting to customers within 5-30 km from merchants, making the marketing campaign more effective
  3. One-stop ad placement displaying across three key traffic platforms on Baidu: Baidu Mobile, Baidu Map, and Nuomi apps. In the past, Baidu search and Baidu Nuomi had separate marketing and services channels
  4. Infrastructure support. Merchants can rely on Baidu Nuomi’s landing page support, and do need to set up their own website.

Local Express currently targets eight local service sectors, including (1) cosmetics, nail polishing, manicure, and pedicure, (2) gym and yoga, (3) talent training, (4) electronics repair, (5) auto services, (6) photography, (7) moving and housekeeping services, and (8) plumbing services. These are also existing categories on Nuomi’s platform. We note that restaurants, KTV, and tourism, are not (more…)

Mobile Powers Chinese Rural e-Commerce

Mobile Commerce Rural ChinaAccording to research recently released by bjbusiness, roughly 64% of netizens in rural China shop via mobile phone, far in excess of those who shop by PC (~36%). In many of China’s less developed markets, the smart phone is indeed the key gateway to internet access rather than the PC due to the lower device cost when compared with the PC. E-commerce penetration in rural areas has risen substantially, as key e-commerce players such as Alibaba and JD shift their strategic focus from top-tier cities to rural areas. Mobile usage meanwhile has come to embrace online shopping quite rapidly and seamlessly.

Roughly 74% of rural netizens indicate Taobao and Tmall as their most frequently visited e-commerce sites, while (more…)

China Mobile Commerce Hits $37 Bn up 251% YoY

China Mobile PaymentsMobile commerce has been an area of intense focus in recent years. According to a recently published report by iResearch, China mobile commerce reached USD 37 Billion in 3Q2014, surpassing overall ecommerce growth of ~50%YoY over the same period. During the quarter, mobile GMV accounted for ~33.4% of total online shopping GMV, some 2.8ppt higher than that in 2Q14. We attribute the robust growth in mobile commerce mainly to a growing profusion of mobile devices in China and an accompanying rapid evolution in buying behaviors. We envision an ever-growing mobile (more…)

How is eBay doing in Chinese e-Commerce ?

eBay China CommerceIn 2003, eBay acquired what was at the time one of the leading e-commerce sites in China – EachNet – for $150mn. And in 2004, the company began a more aggressive push into the local market. eBay signed exclusive advertising rights with major portals Sina, Sohu, and Netease and reportedly spent $100mn to build out its operations in China. But, by the end of 2006, due primarily to competition (including free listings and other promotions by a few competitors), the company folded the eBay EachNet operation into a joint venture with Tom Online. Since then, Bay’s focus in China has been on helping local sellers access eBay’s network of buyers outside of China.

Since then eBay has spoken very little with (more…)

China Reports Strong group-buying Online e-Commerce

Chinese Group Buying RisingThe Latest China Group Buying reports indicate that total transaction value in July and August reached CNY3.03bn and CNY3.69bn respectively (up 56.2% in July and 74.9% YoY in August vs +56.4% in June), creating another new high in terms YoY growth in August, last seen in January. The number of vouchers sold in August increased by 47% YoY, compared to 15% YoY growth in the same month last year. Transaction growth in the first two months of 2H13 was driven by an increase in both the number of purchasers and average deal price.

The number of group deal buyers had been somewhat stagnant since it first reached 45 million in November 2011. Yet beginning from 2013, the number of purchasers has been (more…)

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