【正文】 Presentation ?Cooperating with local institution (labor union, bank, post office, etc) ?Establishing show room/ service center ?Flexible payment mode ?Employ order collector heavily ?Special delivery service Seizing the Future: Mail Order Market Potential in China 46 Develop qualified mail order customer in area B and E by suitable media. This group, rather depressive, has the potential to bear the lion share of total turnover 2020 2020 2020Marketing 1,200,000 1,200,000 1,200,000DM 1,000,000 1,500,000 1,650,000Orders 27,500 76,800 102,500Sales Demand 5,300,000 18,288,000 27,725,000Net Sales 3,710,000 12,984,480 19,962,000DM Cost 3,700,000 5,550,000 6,105,000Contribution 3(B) 1,225,000 670,800 2,050,400Contribution 3(E) 1,820,000 1,188,250 372,500Contribution to sale(B) % % %Contribution to Sale(E) % % %Name List (B) 550,000 700,000 1,000,000Name List (E) 550,000 700,000 1,000,000?Distribute introduction material and simple catalog through renting mailing lists for test ?Establish work for supplying free catalog ?Establish multiple distribution channel ?Selected media: ?Reader ?Shanghai Style ?Overseas digest ?Youth digest, etc. Constant marketing investment Seizing the Future: Mail Order Market Potential in China 47 Move decisively to cut operation cost, and so free more resource to be invested into customer satisfaction Office Rent Editing/ Printing DM Cost Shipping cost Cost of Goods Admin. cost 35% 30% 10% 30% 35% 10% Seizing the Future: Mail Order Market Potential in China 48 Investment in customer satisfaction has many ways Improve order handling process ?Modify MIS System, optimize customer interface ?Setup Call center ?Training a professional customer service team ?Seek quick delivering logistics partner Set up a Website ?Easy to search more and detail information ?Place order online ?Broadcast promotion message Develop order collector ?Promote new product ?Execute collected order Develop agent / service center / show room ?Convenient for touch sample ?Support and manage order collector Localization of product ?Suitable style for Chinese people’s figure ?Suitable style for Chinese custom More Convenience with Mail Order Seizing the Future: Mail Order Market Potential in China 49 According to this action plan, annual revenue have to increase dramatically in 2020 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2020 2020 2020 Sales Demand Seizing the Future: Mail Order Market Potential in China 50 Financial Forecast/Budget (RMB) 2020 2020 2020Orders 82,700 173,440 234,500Sales Demand (1000) 18,120 44,368 70,025Net Sales (1000) 12,684 31,501 49,718DM Cost (1000) 7,641 10,878 12,321Contribution 3 (1000) 3,799 2,243 8,367Net Profit (1000) 12,500 8,000 0Investment (1000) 35,000 10,000 0Seizing the Future: Mail Order Market Potential in China 51 Content A. Development of Chinese Retail Market B. Mail Order Market Analysis in China C. Quelle Shanghai SWOT Analysis D. Action Plan and Sales Forecast E. Conclusion Seizing the Future: Mail Order Market Potential in China 52 Following conclusions can be draw out of our study (I) ? The China retail market will continue its trend in growth and restructuring, and open interesting opportunities for foreign retail giant. ? The China urban citizens have shown positive attitude and open mind toward all forms of direct marketing, especially mail order ? We expect a much more favorable climate for mail order business, especially as the China Post has been forc。 Culture Service Miscellaneous Commodities and ServiceSeizing the Future: Mail Order Market Potential in China 5 Shopping Mall Traditional Department Store Convenient Store, Mail Order Company etc. From the early 1990s, the retail landscape in China has changed greatly: ?Traditional Department Store has passed prosperity time ?New retail forms, especially supermarket, has bee the most attractive place for citizen going shopping. ?All giants like Carriefour,Walmart, Pricemart, Metro, Amway, Avon are present. ? Several new forms emerged almost at the same time, so the DM forms has been peting to obtain people’s attention hardly. The deregulation of Chinese retail market since 90s has given opportunities to the new retail forms, developed mainly by foreign panies sales time Seizing the Future: Mail Order Market Potential in China 6 Positive factors for development of the retail market are in overweight Favorable ?Further deregulation of retail market ?Efforts to join WTO ?Speed up of urbanization ?Consumption loan Policy ?prolong of holidays and weekend ?Time pressure feeling Unfavorable ? Deflation of Chinese economy for more than two years ?Imperfection of the social security system ?Cautious consumption ?Behavior and attitude ?Slowly increase of farmer’s ine Seizing the Future: Mail Order Market Potential in China 7 Content A. Development of Chinese Retail Market B. Mail Order Market Analysis in China C. Quelle Shanghai SWOT Analysis D. Action Plan and Sales Forecast E. Conclusion Seizing the Future: Mail Order Market Potential in China 8 The direct marketing industry in China, including telemarketing, direct mail, catalog mail, and even the inter marketing, is in the infancy Opportunities ?Rapidly expansion of middle ine class with preference for quality products ?Strong experiment interest in trying all kinds of shopping ?Reasonable parcel portage price for huge distance ?Phone peration rate over 40 percent ?TV set ownership more than 100 percent, more than 100 million TV set on cable now ?Government’s heavy investments in telemunicatio