Avocats 57 th Congress Foreign Investment: Investing in E-Commerce - - PowerPoint PPT Presentation

39 Offices in 19 Countries

Union Internationale des Avocats 57th Congress Foreign Investment: Investing in E-Commerce for Business Expansion in China

Nick Chan Squire Sanders, Hong Kong

Nick.Chan@SquireSanders.com

November 2, 2013 Location: Hotel Conrad Macao, Macau

2

Nick Chan – Partner

• Head of Squire Sanders for Asia Pacific Technology, Media and

Telecommunications Practice covering 22 countries

• Computer scientist
• In-house with regional responsibilities at two Fortune 100 companies
• AsiaLaw Leading Lawyers
• The International Who's Who of Regulatory Communications Lawyers
• International Law Office (ILO) Client Choice Award
• Law Society of Hong Kong Distinguished Pro Bono Award
• Law Society of Hong Kong Technology Committee Vice Chairman
• Advises countries, SOEs operators, NGOs, financiers, manufacturers

and other law firms

• Honorary Legal Advisor to Hong Kong Aviation Industry Association,

Hong Kong Association of Interactive Marketing, Hong Kong Internet Service Providers Association, Hong Kong Information Technology Federation, e-Learning Consortium. Various Government panel roles

Nick Chan Partner Squire Sanders 29th Floor, Edinburgh Tower, 15 Queen’s Road Central, Central, Hong Kong Tel: +852.2103.0388 Fax: +852.2509.9772 Nick.Chan@Squire Sanders.com

www.squiresanders.com

3

What is E-Commerce?

• Electronic-Commerce is the buying and selling of products or

services over electronic systems such as the Internet and other computer networks

• Common business applications include:
• Document automation in supply chain and logistics
• Domestic and international payment systems
• Group buying
• Automated online assistants
• Instant messaging
• Newsgroups
• Online shopping and order tracking
• Online banking
• Online office suites
• Shopping cart software

4

E-Commerce: A New Medium

Brick-and-mortar approach is expensive and slow China leads the way with an e-commerce sector tipped to become the world’s largest during 2013, overtaking that of the US

5

Online Business in China

• 591 million online netizens
• 271 million online “shoppers”
• 244 million users paid online
• 79 million used mobile payment

6

Number of Online Shoppers in China Is on the Rise

1,333 591 271

2016 Forecast

866.5

China’s Population Internet Users

Online Shoppers

2016 Forecast

327.7

7

Number of Online Shoppers Is Growing Rapidly

CAGR +32%

Source: China E-Commerce Market Research Report Outlook to 2016, AM Mindpower Solutions

China’s Online Shoppers Population (Million)

8

Things to discuss with your client

• Domain names, variations, disputes and IP registration
• Internet Content Provider License
• Locating the server and the GFW
• Data centres and data security
• Terms and conditions, and invitation to treat
• Payment gateway and internet e-clearing house
• Invoicing, order fulfillment and logistics
• E-marketing/promotion, viral testimonies, white labels, lottery,

comparative advertising, unfair competition

• Forums, social media network, loyalty programmes, targeted

advertising and IP issues

• Privacy, data transmission, cookies and data mining
• Riding on 3rd party sites

9

China’s B2C E-Commerce Market Is Growing Rapidly

CAGR +120% CAGR +40%

Note: 1 RMB = 0.14 USD

China’s B2C E-Commerce Market Forecast

(US$ Million)

Source: China E-Commerce Market Research Report Outlook to 2016, AM Mindpower Solutions

10

China’s C2C E-Commerce Market Is Growing Rapidly

China’s C2C E-Commerce Market Forecast

(US$ Million) CAGR +88% CAGR +45%

Note: 1 RMB = 0.14 USD

Source: China E-Commerce Market Research Report Outlook to 2016, AM Mindpower Solutions

11

Taobao Is the Lead Player in B2C Market

Market Penetration Rate of Major Players in China’s B2C E-Commerce Market by Revenue of 2012

Source: CNNIC Report 2012

Thank You!

Nick Chan Partner Squire Sanders 29th Floor, Edinburgh Tower, 15 Queen’s Road Central, Central, Hong Kong Tel: +852.2103.0388 ; Fax: +852.2509.9772 Email: Nick.Chan@SquireSanders.com www.squiresanders.com