Dangdang.com: The Amazon.com of China

            
 
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Case Details:

Case Code : BSTR099
Case Length : 8 Pages
Period : 1997 - 2004
Organization : Dangdang.com
Pub Date : 2004
Teaching Note :Not Available
Countries : China
Industry : Online Retailing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Promotions

When the Website was launched, minimal advertising was done. However, dangdang took care to keep interest alive among its visitors. In March 2000, a 'Lucky Time Activity' was started for a fortnight. A lucky hour was chosen randomly each day, and books ordered during that hour were given free to the buyers.

In June 2000, a contest was started to promote the Web site. The users of the Website were jointly working on the book 'An E-Love Story.'

The visitors wrote stories about a fictitious character, Mei. At the end of the day, three professional editors would select the three best stories and add them to the novel. In 2003, a new membership system was established, to reward the repeat customers.

The registered users were divided into Ordinary, Gold, and Platinum members on the basis of points earned. The members were awarded points depending on the money spent...

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Future Outlook

Dangdang featured books published only in China as distributors were not allowed to circulate foreign books. However, in the future, it aimed at selling books published outside China. It also planned to create a B2B business platform on which publishers, retailers, and even paper manufacturers could do business with each other.

By 2000, only 8.9 million people in China used the Internet. According to statistics provided by CNNIC (China Internet Network Information Centre), by the end of 2001 there were 33 million cyber-surfers with over 6 million of them having purchased either books or AV products online. About 34 per cent of the total visitors made online purchases in 2002. Slowly the number of Chinese using the Internet for shopping was increasing. The Chinese government was spending millions of dollars to improve the nation's telecommunications infrastructure. Online access rates were also improving. Telecom infrastructure was being converted to fiber optic and ISDN, DSL and ADSL connections were gaining popularity in major cities...

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Exhibits

Exhibit I: Offline Book Industry


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