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Presentation notes
OPEN THE CHINESE MARKET TO THE UK
&
PROVIDE THE CHEAPEST PRICES ON THE MARKET
Slide 2
The problem - Currently UK consumers have no direct access to the massive Chinese market, which
means that they have to buy their products from third parties. Frankly this makes these imported
goods more expensive for the consumer because the retailers increase the prices. Further a lot of
products are not marketed in the UK at all. Current Chinese products suppliers are:
Expensive - UK retailers mark up with 50% or more, making the products very expensive.
Limited - A lot of new products and inventions are not yet accessible in the UK market.
Unreliable - Goods take long time to arrive to the UK and they are not covered by money
back guarantee.
Slide 3
TARGET MARKET - The target market of Taobao UK is very similar to the one of eBay and Amazon. It
is consisted of 40% woman and 60% man from low to middle class. Over 36% of this consumer’s
research for the best price, which means that the target market is very price oriented. Further more
than 50% of online shoppers use smartphone apps to do their shopping. The market size of e-
commerce was £586.3 billion in 2017. The primarily research that was undertaken also suggests that
70% of online shoppers buy a few times a month or more.
Slide 4
The solution - Taobao UK will be able to open the Chinese market to the UK consumer, the company
will work together with the Chinese e-commerce giant Taobao to do so. Taobao UK will sell all of the
products sold on the Chinese website, however they will be translated on English. Further the
delivery cost will be added automatically to the prices and consumers will be able to pay with all of
the popular payment methods available in the UK.
Affordable - The prices offered by Taobao UK will have only 15% markup compared to
competitors’ 50% plus.
Reliable - The service offered by the company is reliable - the consumer is protected with
money back guarantee
Easy to access - Accessible on laptops, computers, tablets and smartphones
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Slide 5
Unique selling points - Taobao UK is taking advantage of the low labour and products cost in China.
This enables the business to offer products cheaper than any of the UK competitors.
Cheaper prices Access to new market The latest fashion New technology
trends
Because the business Taobao UK allows UK China has a booming New technology which
is selling products consumers to have fashion industry which isn’t available in the
made in China it is direct access to the attracts international UK yet – it is well
able to offer them at Chinese market. This attention. This means known fact that China
much lower prices. means that consumers that consumers will be is the leader in the
This undercuts the will have secure way able to shop the latest tech world. Gadgets
competitors’ prices to buy products what trends at affordable fans will be able to get
and will attract may be hard to buy in prices. (Luquetta, their latest gadgets
consumers the UK. 2017) before they become
widely available.
Slide 6
Revenue model - The planned net profit for the first year of operation is £80 700 and the business
should break even during the fourth month (please refer to the next slide). Taobao UK will be able to
undercut the prices of all competitors due to the fact that the company works directly with Chinese
retailer. This is very important USP having in mind that the target market is very much price driven.
Slide 7
Cash flow forecast for first year of operation.
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Presentation notes
OPEN THE CHINESE MARKET TO THE UK
&
PROVIDE THE CHEAPEST PRICES ON THE MARKET
Slide 2
The problem - Currently UK consumers have no direct access to the massive Chinese market, which
means that they have to buy their products from third parties. Frankly this makes these imported
goods more expensive for the consumer because the retailers increase the prices. Further a lot of
products are not marketed in the UK at all. Current Chinese products suppliers are:
Expensive - UK retailers mark up with 50% or more, making the products very expensive.
Limited - A lot of new products and inventions are not yet accessible in the UK market.
Unreliable - Goods take long time to arrive to the UK and they are not covered by money
back guarantee.
Slide 3
TARGET MARKET - The target market of Taobao UK is very similar to the one of eBay and Amazon. It
is consisted of 40% woman and 60% man from low to middle class. Over 36% of this consumer’s
research for the best price, which means that the target market is very price oriented. Further more
than 50% of online shoppers use smartphone apps to do their shopping. The market size of e-
commerce was £586.3 billion in 2017. The primarily research that was undertaken also suggests that
70% of online shoppers buy a few times a month or more.
Slide 4
The solution - Taobao UK will be able to open the Chinese market to the UK consumer, the company
will work together with the Chinese e-commerce giant Taobao to do so. Taobao UK will sell all of the
products sold on the Chinese website, however they will be translated on English. Further the
delivery cost will be added automatically to the prices and consumers will be able to pay with all of
the popular payment methods available in the UK.
Affordable - The prices offered by Taobao UK will have only 15% markup compared to
competitors’ 50% plus.
Reliable - The service offered by the company is reliable - the consumer is protected with
money back guarantee
Easy to access - Accessible on laptops, computers, tablets and smartphones
Downloaded by: johnprice |
Distribution of this document is illegal
, Stuvia.co.uk - The Marketplace for Revision Notes & Study Guides
Slide 5
Unique selling points - Taobao UK is taking advantage of the low labour and products cost in China.
This enables the business to offer products cheaper than any of the UK competitors.
Cheaper prices Access to new market The latest fashion New technology
trends
Because the business Taobao UK allows UK China has a booming New technology which
is selling products consumers to have fashion industry which isn’t available in the
made in China it is direct access to the attracts international UK yet – it is well
able to offer them at Chinese market. This attention. This means known fact that China
much lower prices. means that consumers that consumers will be is the leader in the
This undercuts the will have secure way able to shop the latest tech world. Gadgets
competitors’ prices to buy products what trends at affordable fans will be able to get
and will attract may be hard to buy in prices. (Luquetta, their latest gadgets
consumers the UK. 2017) before they become
widely available.
Slide 6
Revenue model - The planned net profit for the first year of operation is £80 700 and the business
should break even during the fourth month (please refer to the next slide). Taobao UK will be able to
undercut the prices of all competitors due to the fact that the company works directly with Chinese
retailer. This is very important USP having in mind that the target market is very much price driven.
Slide 7
Cash flow forecast for first year of operation.
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Distribution of this document is illegal
