Towards an innovative and profitable distribution paradigm in
Towards an innovative and profitable distribution paradigm in China market Steven (Jian) Cui General Manager License Division at PC Stars www. pcstars. com. cn www. softwarelist. cn www. baihui. com
Agenda Confidential Proprietary 1. Company overview 2. Direct Sales Works in China? 3. Current cooperation between ISVs and partners 4. Successful Distribution for Kaspersky 5. How to get a creative Win-win
Additional 15% Increase globally? Come to China! Revenue, China, 15% Revenue, Others, 85% China Confidential Proprietary Others
BIG already, bigger in future. Piracy rate: ? Piracy rate: 80% 80. 8 Billion $ 2007 already No 1 internet users, 212 million now Confidential Proprietary 30% CAGR 185 Billion $ 2010 forecasted the Ministry of Information Industry reported.
Company Overview Leading online software distributor and Saa. S provider in China. l Investor: the founder of Gemstar-TV Guide (NASDAQ: GMST) l Board of Directors in Hong Kong l 7 offices in China Mainland l 276 employees Confidential Proprietary 5
Our company Three Platforms Saa. S www. baihui. com Confidential Proprietary Enterprise www. softwarelist. cn PC Stars Home&SMB www. rj 100. com
Whether direct sales work in China Microsoft, Symantec, Autodesk, Adobe, those software vendors have already used channel sale, even more rely on channel. PTC, SPSS, Tripos, those vendors used direct sale before, have changed to channel sale. Confidential Proprietary Channel Sale Direct
Whether direct sales work in China Successful publishing model Resellers SIs Software Vendors Value Added Partners VARs Retailers Service Providers Confidential Proprietary End Users
Current cooperation between ISVs and partners VAP or only Distributor Interacting not smoothly Bad mutual understanding Different thinking of China culture Not localized pricing and product Confidential Proprietary Are we understanding each other properly?
Current cooperation between ISVs and partners What vendor concerns? Ø Ø Ø Tend to develop various types of partners to maximize the marketing share Avoid the risk of over depending on partners Partner’s qualification Company’s image and reputation Save time and improve efficiency Take the advantage of cooperating with real players Confidential Proprietary
Current cooperation between ISVs and partners What their Chinese partners care for? Ø Ø Ø Stand out from the group of partners Pricing competition with the other partners Vendor cutting in and closing the deal Build trust with vendor Commission and support from vendors Confidential Proprietary
Current cooperation between ISVs and partners Current Partnership Right Partnership Kaspersky Most ISVs Global Market, China, , 0%, 1% 0% Revenue, China, 15% China Others Confidential Proprietary Global Market, Others, 99% Revenue, Others, 85%
Find a right partner Solution &Service Trust-worthy Investor background Proved recognitions Technical Support Training center Online consultancy system Technical team Distribution Network Online/Offline channel Logistic capacity Proved performance Confidential Proprietary 24*7 toll-free line Call Center Onsite deployment Right Partner Localized Experience Chinese version Localized pricing Customer base Proved Integrated Marketing Ads, PR, Event, SEO Affiliate marketing Email marketing
How to get a creative Win-win Decision Shared Vision maker Long-term Partner -ship win-win Mutual Understanding Both sides’ Mutual Benefit Commitment Confidential Proprietary
How to get a creative Win-win Reseller Distributor Exclusive distributor Publisher Online sales (E-commerce) X X Online consultancy X X X Service Sales Technical Support Marketing Training Local software downloading Call Center telesales X X X Sales channels System Integrators sales system Telephone support E-mail support X X X X Online consultancy X X On-site service X X X Search engine advertising X X X Chinese official website X X Public relations Website marketing Media advertising Market activities Event marketing Affiliate Marketing Industry seminars X X X X Certification Training Center X X Product localization strategy X X Pricing localization strategy X X X Localization Confidential Proprietary
How to get a creative Win-win Easy with one Guaranteed Commitment Worry about various evaluation variables? Trust-worthy? Technical team? Customer base? Channel fit? …… Confidential Proprietary VS
Additional 15% is possible! China/Global= 15%? PC Stars can help you achieve it! Confidential Proprietary
Welcome to contact me Jian. cui@pcstars. com. cn Confidential Proprietary
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