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Who Is Moving The Cake? A Flection Of B2B Service
The 7th China (Guzhen) International Lightingg Fair (GILF) was held October 18-23, 2008 in Guzhen, which is renowned as the "China Lighting Capital". The 2008 fair featured hundreds of exhibitors from mainland China who specialize in the manufacture of lighting. China Team-buying Union was in the spotlight.Under her management, a "thousand-business team" enjoyed a special visit. They visited the Golden Exposition Room and Tianlang Company's modern workshop, subscribing a transaction of about 0.6 million RMB.
It's the first large-scale team-buying in the history of International Lighting Fair and China lighting industry, which drawed much attention from e-commerce business. This "team buying & team selling" mode, called "new B 2 new B" by China Team-buying Union herself, provides a platform for manufactures and marketers, reducing buying costs and creating a new sales and profit-earning mode. However, this also arouses controversy and some argue its value.
According to iResearch, a professional organization specializing in in-depth studying of customer behavior in internet media, e-commerce and other economy fields and providing data products and consulting services to customers in both internet industry and traditional industries, e-commerce has great potential. The market scale of B2B E-commerce (being in the leading position of various E-commerce types in China) reached RMB 644.6 billion in 2005, accounting for around 95% of total E-commerce transactions. Datas also show that only 11% of the SMEs are using Internet for transaction and business development in China, while in Japan and South Korea, companies who use e-commerce more usually have higher transaction amount by 1 to 2 percentage points. And in China, 98% businesses are SMEs, so the B2B marketing cake is big.
Can China Team-buying Union move the cake? In marketing, a common sense is that,the brand is first while the channel is the first of all. So a large number of businesses are lead by their channels, not their brands, in deed, Coca Cola, Dell, Haier are not exception. By building a national marketing platform, boasting as a "Net Wal-Mart", China Team-buying Union realizes " online transmission, off-line transaction and service" - a solid new netmarketing mode.This greatly reduces buying cost, ensures quality, and enhances communication and credit. "It is no doubt that 'team buying & team selling' mode represents innovation, catering to the enterprise marketing transformation trends-retailer-focused, flatness,internet transactiov" marketing experts say. It also adapts to the B2B developing trend, that's, individuation and diversity.It is to meet the demand generarion of E-commence.
This gives us a reflection to China e-commence business, especially B2B E-commerce (being in the leading position of various E-commerce types in China). iResearch believes that the economic depression of US and the reduction of export in China will result in the slow growth of online B2B operators revenues in the coming 2008Q3. Recently, to face the world economic depression and international financial crisis, many businesses and B2B companies fighting to gain or even to survive. "NetSun" puts her finger into B2C to help herself out, and then many B2B companies move their headquarters to Hangzhou,to creat a "headquearters economic effect", and some b2b companies try to merge "Cost for Action" mode (ECVV - www.ecvv.com is considered the first and successful one to have adopted it in the world) with exact service.All these actions prove that b2b companies and other businesses all plan to seize chance to taste the big b2b market cake.
Syllabus:
1. Chinese Team-buy Union showed at the 7th International Lighting Fair-a new model of b2b-called "new B 2 newB"-a new sales and profit-earning mode
2. the b2b market cake and the developed market -analysis (enclosed: graph)
3. can Chinese Team-buy Union eat a share of the cake?
4. a reflection of B2B- B2B service should be of diversity, indiviation, subdivision
About the Author Jasonlaochen: e-commerce researcher focus on China's b2b (Business-to-business) market.
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