The new long march behind ebay's China Change: payment of licences is doubtful

Behind the scenes is the establishment and further strengthening of ebay's China strategy. April 23, EBay (Nasdaq:ebay) announced the appointment of Lin as chief executive of the Greater China region, the third time in its 10-year history, from Wushishong to Liu Guangyu, after establishing a joint venture with Tom in late 2006 and handing over the Chinese consumer-to-consumer business, ebay almost disappeared in front of the Chinese public. In February of this year, Liao-Woo, who served as Standard Chartered Bank, has invested his interest and his old bank and joined Visa as the general manager of China. Before that, he quietly completed the transformation of ebay China. This transformation, simply referred to as "reverse the Earth", will be the original Consumer-to-consumer business buyers into the U.S. consumer, and the seller to "B"-Chinese enterprises. Six years, ebay has fun, according to April ebay released the latest earnings, in the first quarter of 2012, ebay achieved total revenue of 3.3 billion U.S. dollars, an increase of 29%, net profit of 570 million U.S. dollars, an increase of 19.7%. Among them, cross-border trade rose to 18% per cent of ebay's global business, while Chinese sellers ' cross-border turnover rose by as much as 70% to 80% Year-on-year, according to ebay's China data. Five years of tuition, once insight, in the real to their own resource advantages, the world's largest online auction and shopping site finally found its China position. "And my biggest difference with the Liu Guangyu era is in the direction of implementation." May 11, Lin in an interview with this reporter said. According to Lin, ebay will also expand its overall investment in China by billions of dollars. ebay is now registering for a new company in Shenzhen, where Cross-border trade with ebay has been driven by ebay's Asia-Pacific region, and is now moving ahead in the Greater China region, which accounts for 85% of revenues in the region. Following the global transformation of 2008, ebay has undergone a total transition of three years. "The success of ebay's global transformation has had a significant impact on ebay's China business and will have a significant impact on future changes in ebay's China strategy," he said. "Lin revealed. Prior to this, Lin has been the chief technology officer of ebay Asia Pacific, responsible for the products and technical work of ebay's major websites, and is one of the witnesses and performer of ebay's global transformation. Founded in 1995, ebay is the ancestor of American E-commerce, graceful more than 10 years. However, the rapid upgrading of the Internet has put it in trouble, and the sharp Wall Street gaze was subsequently attracted by the more sexy posture of Google and Facebook. After 2006 years of falling nearly 54% shares in a few months, ebay announced an unprecedented 2 billion dollar share buyback program, which, by most industry standards, is still quite impressive in terms of revenue and profit growth (39% in 2005), but it has lost its favor compared with faster companies. In the 2008, its core business growth slowed to a low ebb, leading directly to the ruling 10 years of Meg. The departure of Whitman. The successful transformation of Amazon, a veteran E-commerce company, has increasedAdd to ebay's dilemma. "Over the past three or four years, we have really been very entangled. Lin admits that ebay has been in transition for three years since 2008. At its lowest point, ebay shares were once low to $10 trillion, but after April 19 this year, ebay reported double-digit growth in revenue and net profits, exceeding market expectations, after the first quarter of 2012 's earnings. The stimulus was followed by a 7.3%-to-38.5 dollar rise in ebay's trading, hitting a 52-week high. According to Lin, ebay's "Back to the dead" is to seize four opportunities: first, from the Consumer-to-consumer image to the transformation of the image of the Business-to-consumer. In general, consumers are very difficult to change the company's brand image, in addition to television advertising, investment and website design in many places, "designer fashion Movement" is the landmark of traction ebay transformation success. "ebay distinguishes Amazon's biggest asset by being able to find all sorts of strange things rather than industrial goods, and ebay has to make the best plans without hurting the core assets." Lin says improving the user experience is a second chance. "Items" and "user experience" are the most critical differences between ebay and Amazon's business philosophy, with a strong logistics system Amazon must know what to sell, and "light operations" ebay is heavily user-experienced. The challenge for ebay in this transition is that when global cross-border business grows, it becomes more difficult to do a good job of user experience, involving multiple languages, user habits, and differences in corporate habits. Again, Cross-border business and mobile business. "The mobile business has a decisive impact on ebay's transition," he said. "The most frightening thing about a website is that customers grow old with you, and when new trends emerge, they bring new customers to the site," Lin said. "Currently, ebay is the world's largest mobile power provider, with" ebay "," PayPal "," ebay Fashion "applications. May 10, reporter inquires the app Store,ebay Mall in Apple App Store "lifestyle" category "Top free" second. Lin revealed that this year ebay also plans to launch a number of mobile applications, is expected to achieve mobile end of the transaction size of 8 billion U.S. dollars. The mystery of China's profit in China, ebay does not have its own consumer web site, which is usually the biggest cost for internet companies. "In the first two or three years, ebay had a very high interest rate, but Wall Street was not very popular with us, so we went all over the world to attract investors ' attention," he said. Lin said that when ebay itself became stronger, the strategy for the idea of "opportunity cost" changed. "Previously, there was a desire to do more to get in the financial and analyst sectors, but now there must be a high rate of investment." "This is very difficult in China's current electric-business environment," Lin said, "So we will be more cautious, which is why we have not made a comeback for Chinese local individual users to be the consumer, will ebay global businessIntroduced. "More cautious" means to play the basic formula of a business: Profit = revenue-cost. On that day, Lin said it could not disclose the current China's specific revenue figures, only to share the 2010 China region PayPal turnover reached 4.4 billion U.S. dollars, most from the ebay platform. In the period of Liu Guangyu, the figures disclosed include: 2009, ebay China for ebay to bring the turnover of 900 million U.S. dollars; in 2010, PayPal China became ebay's fourth-largest profit center, ebay China became ebay's world's fifth largest profit center, Its 1000-member ebay employees have generated more than 18,000 of their competitors ' profits, compared to 18,000, the number of employees at the time, China's largest e-commerce company, Alibaba. Cost is a lever between income and profit. To this, Lin explained: "First, the ebay business model is a high profit model, for a large company that has existed for more than 10 years, it is not easy to maintain more than 30% growth every year." Second, in China, ebay does not have its own consumer-facing Web site, which is usually the biggest cost of an internet company. "After handing over China Consumer-to-consumer business to the joint venture Tom ebay, in 2007, ebay China focused on foreign trade in the ebay business. CN Online. "This is actually a investment site, and the way the market is usually low-key." "Lin noted, in addition to ebay. CN's big driving force is from ebay's global payment tool PayPal, which is a powerful investment platform for ebay in China. "There was a time when companies began to be keen on their own network of officials, with high profits and a consistent return system, and consumers were easy to identify." Lin said, "but after a while, they will find that it is possible to sell things on their own website rather than return to ebay to sell, because PayPal and the bank is very good relationship, and many foreign buyers still do not dare to put credit card information into the Chinese site, this is an objective fact." "Global transformation and China's transformation will increase the cost control," Lin stressed that ebay would be more inclined to use existing resources to gain mutual gains, "unless it is just like moving this type of input to the cost, which is why ebay has so far not considered the introduction of global businesses to the Chinese individual users to do the reason." We judge that China's e-commerce is now very difficult to profit, but this is a set of similar models, once the environmental changes are ripe, we may also restart the market. "Vertical campaign Lin is preparing for the four major strategies include: vertical category, more active communication with Chinese sellers, data analysis support, improve logistics solutions." "The Transformation of ebay China 5 years ago is really the advantage of ebay," he said. "ebay is a real cross-border site, and the property of the world village is the most important difference between it and its competitors," Lin said. "2007 Years of China's E-commerce market, Alibaba to provide or information, not involved in trading links, new species such as the Dunhuang Web have not yet been noticed, and these factors are given to ebay. The rapid growth of CN provides an opportunity. Currently, EBay. CN for the vast majority of businesses, such as ZTE (microblogging), Fank and other enterprises have been settled in. According to the reporter understand, although every guest foreign trade income accounted for the proportion of its total income is still small, but because of the fierce competition of local electric dealers, its overseas profit is probably far higher than its domestic profits. "I have some Australian friends like every guest's things, all over the body are all people, a shirt free shipping is 8 Australian coins, and other similar regions such as the Middle East, businesses go directly to open physical stores very little, the local residents are very fond of cost-effective online shopping." "Lin said. Consumers in developed countries such as the United States have another feature, that is, curiosity is strong. "Although they are also afraid to buy things in Asia, but consumption habits can be nurtured through time, such as from small things to buy." Lin points out that an iphone condom, retailer mall in the United States for the price of 30 U.S. dollars, and from China's mobile phone sets even the freight is about 2 to 3 U.S. dollars. Lin has officially handed over the CEO business of ebay's big China since April 1, and four strategies are being prepared: vertical category, more active communication with Chinese sellers, data analysis support, perfect logistics solution. According to its disclosure, the current ebay China has reached a cooperation with the Chinese post office, will be targeted at the ebay business has specialized products and services. In addition, PayPal will be able to obtain the Chinese Payment field operating license, also affect ebay China restart for personal consumer platform services. According to ebay's China data: PayPal currently has more than 100 million active accounts, supporting 190 global markets, more than 20 kinds of currency collection and payment.