The future trends of Chinese e-commerce B2C market : a case study of 8848.net | |
| Author | Chen, Nan |
| Call Number | AIT RSPR no. SM-02-50 |
| Subject(s) | Electronic commerce--China Internet marketing--China |
| Note | A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-02-50 |
| Abstract | China as a developing nation has maintained a remarkable growth rate of at least 5% greater than Europe or the United States over the past five years. The combination of market size and explosive growth make China one of the most promising places in the world for Internet products and services. E-Commerce has become a buzzword in China, and the whole world has suddenly woken up and taken notice. With the increasing number of Internet users in China, E-commerce seems to play a significant role in the development of Internet. B2C e-commerce also has grown quickly with the growth in Internet usage. On-line sales of books, electronics, and gifts are becoming more popular. Younger generations are eager to learn and catch up with new technologies. All these factors fuel B2C growth. However, four obvious constraints are facing Chinese B2C e-commerce: China's commercial banking, credit card utilization by the general public, and purchasing behaviour of consumers are still in a developing stage, the under-developed transportation infrastructure, the low speed and the high cost of online access, and online security and opportunistic business practices. 8848.net (the height of Mount Everest is 8848 meters) is the largest e-Commerce company in China. It owns and operates the most versatile and powerful service support system in the nation. 8848 provided a full selection of B2C and B2B e-Commerce services and solutions to a variety of expanding enterprises before its separation. 8848.net's success depended on its first move advantage, flexible strategies, and suitable ways to overcome the obstacles from China's limited infrastructure. It explored and established e-Commerce patterns that were specially suited to China's technical and legal situation. However, 8848.net (my8848.net) failed in B2C market. This failure was caused by the conflict between shareholders, lack of clear core competence, and high cost of operations. These reasons of failure will be the good lessons for future B2C e-commerce companies. Today, there are many new generation B2C e-commerce companies joined into the competition of Chinese B2C market. All of them want to share this big cake of B2C market in China by different e-commerce strategies and different niche market. Lastly the successful companies will be those that have long-term business plan and investment, with clear core competence and target market, low operation cost, and those that achieve high brand awareness and brand loyalty. According to these requirements and based on Chinese specific B2C environment, "Clicks plus Bricks" will be most appropriate strategy for future B2C e-commerce companies. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-02-50 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C. S.; |
| Examination Committee(s) | Singha Chiamsiri;Sununta Siengthai; |
| Scholarship Donor(s) | Lee In-Tong; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2002 |