Accelerating e-commerce growth

IMPACT

Potential increase in e-commerce market share from 19% to
30% and a jump in e-commerce top-line revenue from 200M RMB to 800M RMB in 5
years.

THE ISSUE

China’s e-commerce market is one of the most
sophisticated and fastest-growing marketplaces in the world. The company’s e-commerce
sales team was created less than two years ago, to serve and leverage this
channel. This team now finds itself struggling to keep up with the constant
evolution in online platforms, models, and customers. Furthermore, intense
competition from local brands presents a significant challenge, particularly
outside Tier-1 cities, as their e-commerce teams are better equipped to rapidly
respond to client and market changes.

APPROACH

We performed detailed fieldwork to understand
the players in this market, their business models, and their specific service
requirements. As the market was dominated by three major online retailers, we
sought to understand how manufacturers could become Joint Business Partners – a
key account for each online retailer. Additionally, a survey was conducted with
600 online shoppers to understand their preferences and habits. Detailed
analysis provided insight into what type of company organization was best
suited to not only grow e-commerce volume but also strengthen relationships
with key accounts.

OUTCOME

For the first time, a detailed e-commerce market
forecast model was built, showing a complete picture of growth potential across
all product segments. Service requirements specific to online retailers were
mapped, outlining current service gaps. A new sales team organization structure
was created to transform the team from a horizontal structure to a transversal,
multi-functional team that supported each key account’s specific service needs,
greatly increasing reactivity and capability. As part of the new route-to-market
model, this new structure was tested and adjusted in a pilot test, led and
monitored by a client-Globalpraxis joint team.