Dr. Kaiquan Chen TDV Inc. Board chairman 20/09/01 Dr. Kaiquan Chen TDV Inc. Board chairman 20/09/01 E-Commerce in China

EC in China Internet market develops rapidly in China The enterprises demand on EC intensively in China Enterprises’ investment in EC changes to maturity and application Market structure of E-commerce in China Mobile EC market developes rapidly The development of EC in China Agenda No.1

EC in China Basic Establishment of Communication Develops Rapidly Amounts of telephone develops rapidly in China, it will be 156 mil. by year Mobile telephone amount will be 72 mil. Source: MII, 2000 No.2

EC in China Internet customers will exceed 100 mil. by 2005, include mobile internet customers. Internet Customers Market Develops Rapidly Source: CNNIC, 2001 Internet Uesr Million No.3

EC in China Internet Customers Market turn to maturity The lastest data of IDC indicated normal Internet customers has reached 61.9% in China,but it was 36% in Source: CNNIC, 2001 No.4

EC in China Abundant,convenient and protean Mobile Terminal Mobile MP3 Player (with download function) Home stakeout and control(with system movement and report function) Digital Camera(with data exchange function) Notebook Wirlless PIM PDA World will be changed by Mobile Internet Car (with data information and entertainment system ) Icebox(with information board controled by mobil phone) Mobile Secretary Carry-home Game Player(with network play and select function) No.5

EC in China Basic conditions of E-Commerce have been built The Chinese government promote EC-market actively Byelaw of Internet and security of communication network comes on conjointly Constitute the laws of EC actively Commercial banks found bank-online and China Finance Center of Authentication (CFCA) Commerce dept. of government and large scale state-owned enterprise connect the Internet actively Little enterprise’s local IT basic construction level raise quickly Appeared new mode of EC like eMarktplace etc. No.6

EC in China The level rises promptly that the enterprises cognize electronic commerce Source: CNNIC, 2000 In condition of the in-depth market education and intense market competition, there are 92% enterprises which need EC in China,that can raise competition ability.But there are only 34% that enterprises need EC in the same research in No.7

EC in China It raised intensely that the enterprises demand EC Source: CNNIC, 2000 There are 41% enterprises that have started the market propagandistic campaign online who have their owned net-site, and there are 38% that have started the application of EC No.8

EC in China Investment in IT of enterprise has been changed Source: CNNIC, 2000 Investment in IT of enterprise has been changed in 2000 in China,it increased in software and service,which indicated the mature of IT construction of the Chinese enterprises No.9

EC in China The change of investment for electronic commerce of the enterprises For meet the development of EC in China,the emphases of investment have been changed that changed from solicitude enterprise outside to perfect the enterprise chain of supply & demand, build enterprise electronic commerce platform step by step. Source: CNNIC, 2000 No.10

EC in China Year 90 Revenue US$B eMP eP/eD eInfo There will be $133G in B2B market of EC in China by 2005,which will be implemented with eMarketplace mainly Development process of E-commerce in China Source: CNNIC, 2001 No.11

EC in China The revenue of EC in China will enlarge rapidly The revenue of EC in China will be $150G,CAGR will be 134% by 2005 Source: CNNIC, 2000 No.12

EC in China The construction of E-Commerce in China Source: CNNIC, 2001 No.13

EC in China $1,500 Internet Uesr M The income of more than 53%Chinese Internet subscribers is between 1500 － 2500 US$ $3,000$6,000$12,000 >$24,000 China VS U.S. in composing of B2C market Source: CNNIC, 2001 US Income/Y PRC No.14

EC in China The forecast of Mobile EC in China No.15

EC in China Development process of EC in China – 2005 integration additional characteristic à SCM à CRM à industry à function à Customization à individuation transaction processing additional characteristic à B to C à B to B à EDI à SCP à ERP à Self-help service i nteractive additional characteristic à Intranet à interactive à individuation à Basic Engine à Point connect Info express  Market info à Product info Source: CNNIC, 2001 No.16

EC in China Manufacturing Distribution &Order Management Logistic& Transportation Supply Chain Management Organization Enterprise Resource Planning Customer Contact Center Customer Marketing Management Sales Force Automation Customer Relationship Management SUPPLIERS CUSTOMERS Developing EC in China eBusiness No.17

EC in China The development tendency of the electronic commerce market in China Develop EC internally and externally –Enterprises should improve their internal management across-the- board for development of electronic commerce and establish adaptive operation platform for electronic commerce environment Lighthouse’s effect –The large scale enterprise will bring along medium or small enterprises to apply electronic commerce,there will come into being a new chain of supply and demand based on electronic commercial platform between the enterprises Success will come when conditions are ripe –The improvement of external environment will be a good channel for electronic commerce –Electronic commerce companies build “ cargo ship ” for electronic commerce –Electronic commerce will start by enterprises ’ s in-house requirement which like water No.18

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