E-Commerce
eCommerce in China is a trend that will become a mega trend in the next couple of years. This trend has seen an increase from 2.1 million users in 2000 to 600 million in 2013 and with expected purchase revenue of USD 540 billion by 2015. These statistics show that the importance of eCommerce in China has a paramount potential.
In 2013, the number of eCommerce shoppers totaled 240 million, purchasing from websites such as Tmall, Taobao, Jingdong, and Tencent. Alibaba’s Tmall accounts for 50% of the market share and has become the most reliable source for online shopping.
We suggest that Stressless start selling their product line on Tmall. With this strategy, the company can increase market share and gain more costumers. Though C2C websites like Taobao command more market share than B2C websites like Tmall, the products sold from Taobao are not as genuine or authentic compared to products offered by Tmall. For this reason, Tmall is a great source for Stressless to take advantage of.
Furthermore, we recommend that Ekornes should change the Chinese website as it is only translated from the European websites. The website should be adapted to the culture and local habits. This is crucial for successful e-commerce.
