Tmall + Taobao hit 19.1 Billion Sales in 24hours

Thursday, November 15, 2012

Is there a typo? Nope. Is this even possible? You bet, this is China, fastest growing market for e-commerce in the world fueled by 200 over million online shoppers.




Some quick facts released by Tmall.com (note: all currency is in RMB, 1 USD approx. 6.2 RMB)
  • 0001:- 10 million people logon to Tmall.com 
  • 0023:- 3 merchants break 10 Million sales 
  • 0800:- 53 merchants break 10 Million sales
  • 0816:- 5 Billion transacted on Alipay
  • 1118:- 7.9 Billion transacted on Alipay (already exceed US cyber monday sales 2011)
  • 1200:- In just 12 hours, 109 merchant break 10 Million sales
  • 1338:- 10 Billion transacted on Alipay - A new record is born
  • 1847:- First Tmall merchant hit 100 Million sales (http://jackjones.tmall.com/)
  • 2400:- In just 24 hours, sales in both Tmall.com + Taobao.com hit 19.1 Billion 
    • Tmall sales total 13.2 Billion
    • Taobao sales total 5.9 Billion
    • Total order qty is 1.058 Billion, avg order size is 180





Like Cyber Monday, 11th Nov (known as 双11, or "singles day" in China) has become a super sales day for every etailer in China, Tmall (天猫商城), Taobao (淘宝网), Dangdang (当当), 360buy (京东商城),  Suning (苏宁易购), Amazon China (亚马逊中国) all taking part in this super sales day.

There are 5 merchants in Tmall.com did more than 100 Million RMB sales each in a single days! They are:
  • http://jackjones.tmall.com/ (119 Million RMB)
  • http://quanyou.tmall.com/
  • http://luotuo.tmall.com/
  • http://ripfs.tmall.com/
  • http://gxg.tmall.com/






Impressive? Of course, consider this mind blowing sales is done in a single day! Then again, this is China, you need to take a pinch of salt as integrity still a main issue, see this report from ebrun already discovered some merchants actually boost their own sales by buying up their own merchandize.

Tmall (Previosuly known as Taobao Mall) is the undisputed no1 B2C ecommerce website in China, it position itself as the goto place for high-quality, brand-name products from quality merchants offering customer-service guarantees. Spun off from Taobao in 2008, Tmall has a different business model that acquire higher-quality branded merchants, including multinational companies like Forever21 and Uniqlo. They emphasize on 100% genuine products (unlike Taobao.com, the sister C2C site, is rigged with counterfeit products) and aim to create the most trusted place to shop online for chinese consumers.

See the chart below showing top 10 B2C China eCommerce site in 2011. (note: emarketer has another estimation here on china's ecommerce market)





After this world record setting events, Jack Ma, the legendary founder of Alibaba, declared that the war of etailers vs traditional retail has already begun. 









How Lazada failed to ship my iPod in 73 days

Friday, August 31, 2012

For those of you who know me personally, you may already know I that bought an ipod nano (16GB, Graphite Color) from Lazada.com.my.

Here's how the whole online shopping experience unfolded with Lazada, in chronological order.

1) Early June 2012 -  Lazada had a promotion by distributing a discount code via some blogs like Saraawak Bloggers- BLOG150, it promised a discount of RM150 if you had a minimum order amount of RM400. Imagine a discount as high as 37.5%, which is amazingly high for electronics products and you can bet Lazada loses for orders using this code. Anyway, this is a pretty common tactic for merchants to sell products at a loss to acquire customer base.

2) Given that my 1st order with Lazada (2x Kingston Thumbdrive with Cash On Delivery payment fulfilled by Yamato TaQbin) arrived in a timely manner, it motivated me to place another order for ipod nano with the said discount code! (hey, it works!). Some other famous tech blogger like liewcf also tested the lazada coupon out!


I am very impressed with the timely delivery by Lazada on my 1st order,
check out the happy Yamato TaQBin sales driver posing next to the jedi master! 

So I proceeded to make another order (first experience counts, positive first purchase experience always breeds more repeat orders), this time I checkout and paid with my credit card.




3) So I waited enthusiastically for my ipod to arrive - I started dreaming about how cool I will look listening to my favourite music with this tinny sexy device and I can have my fingers all over it... (confession: I am a PC guy and I wanna look cool)



4) 19th June 2012, just 3 days after my order, Lazada's customer service rep called me. I thought they were going to tell me that my ipod is no longer in stock. To my surprise, that's not what happened, instead, the rep told me that they only have 3 colours available for my ipod nano 16GB - Either Green, Pink or Graphite (Grey).

I found it a bit amusing since I did place an order for the Graphite (Grey) color. Somehow Lazada's cart system did not capture the color option details so I just said I wanted to go with Graphite color. He said ok, double confirmed on the details and told me they are shipping my ipod to me asap!

Then they followed up with an email (nice gesture). If you noticed, this was sent from a ticketing system (Zendesk). This means they are investing in a proper customer support system to better support and service the customer (since every customer request can be traced, tracked, and followed up upon). Such a system is a must have if you were going to serve a big customer base via email.


5) 2nd July 2012, I had not get my ipod yet. If you check Lazada FAQs, it normally takes only 4 to 7 business days for customers to receive their orders.



So I emailed Lazada asking "When will my order arrive?". They replied on the 3rd of July stating that they have ran out of stock! WHAT? Previously Lazada called me telling me they have existing stock, promising fast delivery, confirms the colors of my ipod and now they are telling me that same piece of thing I ordered has "ran out of stock" !?


This was my expression after the "bad news".




6) 4th of July 2012 (America Independence day) - Of course as a consumer, I am not happy. So this is my reply.


and this is Lazada's reply:


I really thought they somehow regret not fulfilling my order as promised and realize that it was a mistake feeding the customers with so much bullshit.


7) 17th July 2012 - so another month just passed by, my ipod was still no where in sight. Thus another email. At this point in time, I was still hopeful, since Lazada was working so hard to ship my ipod, we must give some credit where credit is due.



7) 1st August 2012 - nothing happened, I emailed, no one replied. I resent another on 3rd of August, no one replied too. (no screenshots for these 2 since they were just short email asking my order status). I patiently waited, and i finally received a reply on the 9th August (yes, still working hard).




8) 24th August 2012 - More than 2 months now. Stilll nothing had happened, so another email was sent.





I received a reply on the same day from Lazada acknowledging that the delay is indeed too long (conscience?) and Lazada was trying hard to "persuade" me to take refund.


my reply, on why I do not want a refund.




9) 27th August 201273 days later after my ipod order, Lazada supplied me my final puzzle - my ipod nano 16GB is officially an End of Life (EOL) product.


Funny isn't it? EOL is not a common terms for consumers. Apple still sell it, at that point of time, Lazada still happily sell it.



So I decided to SKYPE Uncle Steve.

You do know this one is a joke, don't you?



10) If some of you are wondering why I look like a vampire for the past 2 months, I think you already know the answer by now.


This shot was taken after learning that my ipod is already EOL (End of Life), 73 days later. RIP my dearest.



So this sums up my ipod purchase experience on Lazada.com.my. Am I pissed? Not really, even though they screwed up my life for 2 months plus now (no music, no life, but luckily i got wowloud). Basically, I'm curious as to how far they will go in screwing up an order, and it's no secret they are notorious for not fulfilling customer orders.

These are just some of the post from the people i know...

luckily she bought 2 shampoos... else the bf would have dumped her

2 weeks over waiting for baby diapers... I scolded her for putting her baby ass at
GREAT RISKS 
buying diapers online at Lazada


If Lazada pull this stunt in US, UK, Australia, etc, i'm sure they would have drowned in lawyers letter by now. I think Lazada needs to start treating Malaysian Consumers with some respect and please don't assume we all are ignorant fools who doesn't even know how to use a pair of binocular (and our rights as  consumers)



But I think, most importantly, there are great lessons we can all learn (Both as consumers and as  eCommerce merchants) from this screw-up big time order experience. It has inspired me 2 of my upcoming posts, the temporary titles are:

"What Lazada can teach us about what NOT TO DO when it comes to selling online"

"What Lazada can teach consumers about buying things online."

Updated: 6th Sept 2012

There has been a new development since my Lazada's Ipod Shopping Experience post was published. I received a call from Lazada on the 5th of Sept, at 13.01. The lazada rep over the phone promised a prompt refund... and... they would give me my ipod as complimentary as a token for the screw up.

I updated this on my facebook status, as usual, there's always skeptic:


John was Lazada Top Ambassador until one of his order got screwed up big time... 


Just hours later, both Thomas Judge (Director of Global Venture Dev, Rocket Internet)and Anna (PR, Lazada) were here, they basically just dropped by to say hi and sincerely apologized for the bad experience I had. I'm humbled. They told me that they are fixing everything they could, beefing up supplier chains, building a bigger warehouse, actively removing products which they no longer carry stock etc.

Also, if you are wondering...  Nope, in the whole conversation, they never hinted, implied, nor asked me anything about removing or "touching up" this blogpost.

Before they leave, they handed over my ipod, and they invited me over to Lazada's office for some coffee and to share my feedback and suggestions. (Normally in Malaysia, only policeman will invite you (to police station) for some coffee...)

Yes John, EOL product did rise from the grave, as always, there's something "magical" about apple products... (PC Guys, still don't get it?)

So here's my long lost iPod. The phones are censored in respect of their privacy.



Note:
1) Lazada insisted my ipod nano is out of stock by their supplier and will proceed to refund my order (5 to 10 working days promised, but let's give it another 73 days shall we?)
2) I also placed an order for Philips Bluray DVD player (model BDP3200/98) and it arrived 30 days later. Due to having no stock, they replace it with another model BDP3300/98.
3) Until now I have yet to personally call lazada customer service phone line.


Rakuten invades Malaysia

Thursday, May 24, 2012

Rakuten, Japan's no 1 e-commerce player (founded by Hiroshi Mikitani - nickname Mickey),has been expanding their empire like crazy in recent years, it's cited as the biggest e-commerce company outside US you probably never know.

Of course, they have been scouting around in Malaysia for years too, doing detailed market study and ground work by talking to almost everyone (From gigantic enterprise like Maxis, Berjaya Group who also owns MOL and 7-eleven to blogger-wannabe like me) in the market.

And finally, they are coming in. This time is for real, no more rumors. Here's the spy shot.


Good news is, You don't have to work so hard to spy on them like what I did, just follow them on fb now

Just take a look at a few Rakuten's acquisition, they bought Buy.com (now competing with Amazon on 3rd party sellers marketplace) in the U.S. for $250 million, Play.com from the UK for $38 million, and e-reader company, Kobo (Kindle wannabe) for $315 million. Yes, they are buying up e-commerce companies like the way Malaysia Uncles and Aunties are buying up properties.



Apart from acquisition, they also enter market via forming joint ventures with local giants. Eg they entered Taiwan market by partnering with the President Chain Store Corp (Taiwan Largest Retailer controlling 7-11 stores and multiple franchises like Starbucks Taiwan), they entered China (but recently just pulled off) by partnering with Baidu.com (China's no 1 search engine), and they entered Indonesia by partnering with PT Global  Mediacom (Indonesia largest Media Company). On these 3 JVs, rakuten owns 51% of the JV while remaining 49% owned by the respective local partners.

For South East Asia expansion, it started way back in the year 2009. First, they acquired Tarad.com (founded by Pawoot Pongvitayapanu, which I met up and exchange insights with at 2011's Asia Ecommerce Expo), then followed by the entry to Indonesia with Mediacom with the launch of Rakuten Belanja in June 2011.

So, are they entering Malaysia market via JV? No, they are NOT. Actually they been in talks with major telcos, media companies (media prima) on forming JVs. But none of it bear fruits.Why is it so? Isn't it better if you can find a local partner who understand the local cultures, I suspect below 2 reasons are the stumbling blocks to the JV talks.

1) None of them want to become minority stake holder (means the party who owns only 49%)
2) "Potong Stim" (Malay words, mean lost interest and enthusiasm) after knowing it will at least take an average of 3 to 5 years to break even! (come on... can't blame corporate CEO for it as short terms KPI is what most professional managers care about and what the shareholders demand!)

One of the keen suitors is Berjaya Group led by Billionaire Tan Sri Vincent Tan, which own MOL.com, 7-11, Starbucks etc. They were serious on forming a JV with Rakuten but eventually it fell shorts. I believe main reasons is about controlling stakes too, neither party will settle for 49%. And reason why Berjaya is pursuing this is simple, They want to copy 7-11 Taiwan success story (You can buy online, pay cash at your nearest 7-11 counter and even have your goods delivered there!)




A few things on Rakuten Malaysia which I predict will unfold 
- They are pure platform play (don't sell direct, don't carry products), will remain so.
- Thus, they will see other platform player as their competition (Think Lelong, Gmarket aka Qoo10, Trosworld etc)
- They will have big size local partners, NOT JVs, but mainly to promote to mass consumers (Think telcos, banks or even airlines which own mass consumers or members info)
- They will promote and highlights on their superpoints (AEON aka Jusco, another retail giant Malaysian are familiar with with, have a very successful membership and point system too)
- They will probably focus on 3C products (Computer, Communications & Consumer Electronics) as a start, this put them head to head competition to Lelong's Superbuy and Rocket Internet's Lazada
- They will acquire branded or medium to large-size merchants instead of small businesses
- They will work closely with Yamato + PosLaju.

But will all the efforts be enough? Can it make more Malaysians buying online? As Malaysia is a notoriously fragmented market (read my post with PCHome Founder and CEO on top 3 Challenges facing Malaysia e-commerce).

Also, do take note not all ventures are successful, the latest news has revealed new challenges they are facing in the emerging market like China competing with the incumbent like Taobao.com
http://it.chinabyte.com/101/12308601.shtml

But if there's one apparent winner, to be certain, it's almost certainly Google. Almost all of them will place advertisement on Google Adwords! (Same goes for China, Lot of ecommerce site burn cash advertising where lot of them wind up when funding runs dry).

E-commerce is a marathon, not a sprint. Only the one with stamina will have the last laugh.

PS: Something offtopic, Rakuten also breeds billionaire, GREE founder - Yoshikazu Tanaka, japan largest mobile social network founder, is an early employer of Rakuten. Respect.





Reference:

http://articles.businessinsider.com/2012-03-26/tech/31238863_1_business-insider-small-businesses-business-class

http://www.bangkokpost.com/tech/computer/279881/click-till-you-drop

http://www.bangkokpost.com/tech/computer/282114/opportunities-without-borders

http://www.satudetik.com/internet-jurnal/rakuten-provider-toko-online-gratis/

Learn more about Rakuten Business Model


Gmarket (Qoo10) enters Malaysia

Wednesday, March 28, 2012

Gmarket, the Korea #1 e-commerce marketplace has step foot Malaysia. 

Actually, they were here since early April 2011. (follow ck's tweet), but not only until recently they were getting charged up. Start by sending out frequent newsletter promoting merchandises by their sellers, recruiting new staffs (acquire more sellers) and had just undergone a major rebranding exercise - to Qoo10.com.my!

 

Ok, so what the heck is Qoo10 (pronounced as QTen) ? Doesn't Gmarket sound better?

According to what i understand so far... this is what it supposed to mean
Q = Quest aka Search
oo = Eyes (yes... don't ask me why, it means your eyeballs)
10 = SKY ( as in chinese - 天 !? Yes, 天 is pronounced as "TIEN"

In short, it says "Everything you look for under the SKY - is available at Qoo10"

Sounds good? or WTF?

IMHO, not too bad, my only complaint is, I have a hard time distinguish "O" and zero (0), and i think most people can't pronounce it correctly too.

Similar rebranding exercise will span across Gmarket Singapore, Gmarket Indonesia and Gmarket Japan. The Global Hub will be Qoo10.com. One intersting note: we actually discovered that Qoo10.cn (Gmarket China) online just weeks ago, but now they have taken it offline again.

Gmarket claims they are the most buyer-centric site you can ever find. Well, how so? First of all, selling at Gmarket is totally FREE (Zero Upfront Fee, no subscription, no listing fee), Secondly, all payment are made directly to Gmarket first (yes, they keep the money first), You will only be entitled for the payment after the buyers confirmed the delivery (they need to update the status of the order as "received"). The settlement process is illustrated as below and your seller grading  (normal / good / power ) will actually determine how fast you get the $ and how much it will cost you too (Max is 12%)!

Gmarket / Qoo10 Settlement Process

Seriously, the flow chart a bit complicated and confusing, they have to do a better job at it as this flowchart has to just explain itself at first glance.




A quick overview of Gmarket International (Qoo10.com)
- Gmarket (Korea) is Korea's #1 online maketplace and founded by Young Bae Ku
- Gmarket International, is a new JV setup between ebay + Gmarket founder
- Ebay owns 49% while Young owns 51% initially, with USD $20 million as Start Up capital 
- Gmarket Int Goal is to become Pan-Asia no 1 emarketplace by 2015.
- Gmarket Int appear to have strong strategic tie-up with Yahoo
- Their banner ad / search box / shopping link appear on Prominent Placement on Yahoo Homepage


 - We are not surprised at such close ties between Gmarket and Yahoo, their relationship goes way back earlier when Yahoo sells Gmarket Korea shares to Ebay
- They are fashion and accessories focused (Ladies love it!)
- They have iphone apps
- They have android apps too!
- They have something called a QStore - 3M singapore is on it, and it seems like it can power up individual domain too as this site shows - http://eindrastore.com/
- They have aso something called Qsafe program for brand owners to counter infringement (necessary evil considering all C2C marketplace eg Taobao.com are flushed with pirated goods)
- They also have something for website owners to make money too - Q-Affiliates, 2% Commission for referral link turned into sales.
- Latest public move by the the Gmarket founder, is on product search engine in china.
- Last but not least, some sellers feedback to me that their user interface is very complicated (Are you a gmarket sellers? do you agree? What's your take?)


2012 will mark the dawn of E-commerce Marketplace Battle for Malaysia. Starring Lelong, Gmarket, Rakuten, Trosworld, Newegg, eBay and more! which I will cover in more details in coming post. 

Watch out for the dark horses too, with thousands of merchants already in hand, Groupon, Living Social (everyday.com.my), Mudah (classified driven now) or Zalora (Rocket Internet) might just launch yet-another marketplace or transform itself into a 3rd party marketplace too?

Any thoughts or juicy tips? I would love to hear from you, please leave a comment below!