Unit 4 E-Commerce
Text A Impact of E-Commerce onChina
As a new business, the E-commerce, In China, has a rapid increase in recent years. In some parts of China like Beijing, Shanghai and Guangzhou, E-Commerce is becoming a part of people’s life. With the development of E-Commerce, it brings some changes to people’s life.
Changes in People’s Life Style and ShoppingFashion
Nowadays, a young man in a modern city in China like Shanghai may have a totally different life way from their parents’lives 10 years ago. He could book the flight ticket online with a lower price in a momentwhen he decides to go somewhere. If he wants to view a pop concert, he just needs to select a superstar’s show from ticket service website, and the ticket will be sent to his place in days.Simultaneously, changes have happened in people’s shopping fashion. When they want to buy something like customer electronics, the first thing they must think about is thatthe feedbacks online from other people. These feedbacks from large shopping direction websites are usually more popular because they update information instantly. Otherwise, this first idea from people could eventually become a custom of themselves. With the help of E-Commerce, people never need to walk to a great many different shopping malls again. The only thing they need to do is to decide to accept which suggestions. Furthermore, if people living in cities have something needless but still valuable, they could put them on the C2C websites and get money from auctioning items.
Changes in Different Types of Companies
In recent years, the E-Commerce technology has been widely used between companies. It helps different kinds of companies cut down their cost and expand their market shares. For SMEs in China, the most important way to get more profitsis to control costs. Via E-mail, most companies could communicate with each other immediately without any cost. They could also set websites for their companies, and it could be a cheaper way to propagandize themselves rather than making advertisements. It is hard for SMEs to find cooperation partners in traditional ways. Now the B2B E-Commerce websitecould help SME to get information about other SMEs and provide a conversation channel to them. It could greatly benefit for the development of SMEs. For retail enterprises in China, how to find high-quality suppliers is always a problem. The B2B websites could provide a large number of suppliers to retailers. The retailers could know all the information about suppliers online and it could help them to select suitable suppliers. Another great change for retail enterprises is that they can open B2C websites online directly to expand their market shares. Customers will be interested in shopping on these famous retailers’ websites because they have high-quality and safe services. For post companies in China, the E-Commerce could also provide a superexcellent chance to them. Chinese post industry has been broken up for more than ten years because less and less people use post service. However, with the development of B2C and C2C E-Commerce, the post companies could get much more business since most of the B2C and C2Cbusiness should be finished by posting. For logistics enterprises in China, the E-Commerce requires high efficiency logistics management. The enterprises in China usually have their own logistics and transportation at before. Nevertheless, these departments from enterprises were not professional. The modern logistics in the E-Commerce environment should be done by the third-party logistics.
Changes in Advertising and Promotion
The online advertisinghas been established as a new type of advertisement model by Internet. Online advertisement is quite different from traditional advertisement. It is a combination of different kinds of mediums’ advertisement. The online advertisement also has its special characteristics. The objects of online advertising are Internet users. They not only receive the information of the advertising but also engage in the advertisement. They could show their own opinions through the advertisement. For instance, the online advertisement could be like a vote, people could submit their selections to the advertisement link. By encouraging people to participate in the advertisement, the advertiser could achieve the purpose of advertising. Another important new method is E-mail. Since almost Internet users have their own E-mail, the E-mail advertisement could be widely received. Nevertheless, it should be noticed that people do not like useless advertisements being sent into their E-mail. As a result, advertiser needs to collect personal information from objects and provide different information to different people.
The methods of promotion have also been changed by E-Commerce in China. One significant change is that transforming the promoting strategy from ’how to promote my products’ to ‘how to satisfy the customer’s demands’.
(785words)
Text B Trends of China E-Commerce in 2010
With gradually establishment and improvement of domestic logistics, payment and credit system, further development of information infrastructure, increasingly exploitation and cultivation on network access demand of enterprises and individual users, practicing and innovating of a number of business websites, as well as the international capital favoring China E-Commerce market again, the development of China E-Commerce market obviously picks up, market vigor of E-Commerce market significantly strengthens.
On January 19, the China National Network Information Center (CNNIC) issued "statistics report of the 15th China internet development condition" in Beijing. The report showed that, the users access to internet is totally 94 million in China, increasing 8% compared with half year ago, in which the users access to internet on broad band is 42.8 million, the computers access to internet is 41.6 million, increasing 14.6% compared with half year ago.
At present, the domestic E-Commerce websites, such as online store, online commercial platform, speciality shop, online auction website, online tickets reservation, online traveling, online education, online health care, as well as those provide various electronic commerce information and transaction, emerge continuously, E-Commerce application is deepening, and service patterns are also innovating. E-Commerce is expanding from large cities such as Beijing, Shanghai and Guangzhou to coastal and inland big cities.
With sharply growth of domestic Internet users, China E-Commerce demonstrates accelerating development potential. Generally speaking, the China E-Commerce market contains huge commercial opportunity, the development prospect is extremely broad. Third party based in Hangzhou, China Electronic Commerce Research Center non-profit organization recently released “2010 (A) monitoring report in the Chinese e-commerce market data,” said the first half of 2010 Chinese e-commerce industry advanced by leaps and bounds, and shown a ten trends.
(1) Industry gradually sought after by the venture. According to statistics, in the first half of this year, domestic e-commerce companies have completed 23 financing transactions, the total financing amount of the 331 million dollars. And in the record in 2008, there are a total of 36 transactions with a total financing amount of 337 million yuan. In June, a total of nine companies received venture and the total size reached more than 100 million dollars.
(2) Companies set off a self-built logistics wind. Logistics system has become the bottleneck which has limited the development of electronic commerce. Many companies are considering self-built e-commerce logistics system. Jingdong Mall and VBNDL have announced to set up self logistics companies to ensure the quality of delivery.
(3) Mobile e-commerce becomes the new hot market. After the fight in online advertising, SP, online games, vertical search, WEB2.0, B2C e-commerce and with the advent of 3G era, Alibaba, Lenovo, Baidu and other leading enterprises have already have snatched market share of mobile payment , industry portals, mobile IM, mobile search and other mobile e-commerce market.
(4) Personalized service becomes the future trend of e-commerce. Network service systems provide customers with real-time interactive tools around the clock to meet the needs of modern customers personalized features. Small e-commerce businesses will increasingly focus on the customer’s personal information.
(5) Business e-commerce application tends to be a whole flow. Posting opportunity to find customers, negotiate orders, online payment, issuing electronic invoices, EDI and electronic tax payment and other business processes can be completed through e-commerce platform. E-commerce can apply to the procurement, development, production, investment, marketing, retail, planning, administration, finance, human resources, design and other regular departments of a company, and can cover a trade or industrial chain.
(6) E-commerce legislation gradually improved. SAIC promulgated the “Network behavior of commodity trading and related services Interim Measures,” and the central bank issued a “non-financial institution payment service management approach”. These regulations can effectively ensure the healthy development of e-business.
(7) Online business platform is integrated with entities platform. E-commerce companies, such as Dangdang and Jingdong Mall, began to expand to entities platform. This makes e-commerce platform change from being unitary to multiple. While the manufacturers and providers of traditional industry, such as Skyworth, Hisense, Gome, Suning, begin to build their online market.
(8) The talented person of electronic commerce restricts the industrial development. The statistical data shows, that at present although nearly 1000 university opened e-commerce, the graduate employment professional just 20 percent, while China's e-commerce talent gap will reach 200 million in the next 10 years. How to develop the comprehensive ability of electronic commerce talented persons is the crying need of e-commerce development, also the big embarrassed of the obtain employment and careers fair.
(748 words )
1