Distribution in China Fung Group（分布在中国Fung组）.pdf

Distribution in China The rise of O2O and its implications November 2014 Introduction 2 Distribution in China - The rise of O2O and its implications / November 2014 n China’s Singles’ Day, a festival celebrating “O2O” or “online and offline integration” (also Obeing singles in China which has later turned known as omni-channel strategies), aiming at into the biggest shopping day in the world, a couple providing consumers with seamless experience of weeks ago, Alibaba hit another sales record. A across multiple marketing and sales channels. total of 57.1 billion yuan or US$ 9.3 billion of sales were realised, up by 57.7% year-on-year (yoy) from To shed light on the latest developments of almost 280 million online orders. E-commerce is online operations and O2O initiatives, and the likely to be the next engine of consumption growth implications for distributors in China, the Fung in China. In fact, the Chinese government has Business Intelligence Centre, together with the officially identified e-commence as one of the six China Chain Store and Franchise Association major areas to boost domestic consumption in (CCFA), conducted a survey among traditional a recent State Council meeting. Series of policies bricks-and-mortar retailers in China earlier and measures supporting the development of this year. Apart from the survey, face-to-face e-commerce are expected to be launched in the interviews with retailers were conducted as well. coming future. In this report, we first provide the background