How China is rewriting the book on e-commerce marketing: FAME 2013

Moderated by Tony Chen, president of GroupM Interaction China, the FAME 2013 panel included Beck You, manager of marketing communication sales and marketing for Mercedes-Benz and Karen Ho, head of Interaction for MEC China.

You and Ho shared their successful e-commerce online campaigns for Mercedes-Benz, which sold more than 200 Smart cars in 3.5 hours and 398 Mercedes E-Class cars within 2.5 hours on Taobao. (Consumers didn't actually purchase the cars online, but rather committed to a transaction that was finished through a dealership.)

From their experiences, both You and Ho stated that by selling limited editions and limited quantities, brands can avoid their e-commerce efforts leading to damaging price wars. For example, early-bird purchasing opportunities with special gifts can draw die-hard fans, as well as gaining free media coverage and online buzz.

Chen said that e-commerce players like Tmall are hoping brands will execute their e-commerce businesses not just on a campaign-by-campaign basis but in a sustained fashion.

Asked whether its online successes mean Mercedes would consider launching its own online store, You said it is unlikely as Benz legally cannot sell cars themselves and needs to go through its dealerships. There is also the issue of pricing, as retail prices may be different in different cities, and for expensive products like cars, online payments are still not feasible.

You said that e-commerce activities can help brands drive sales and brand awareness, especially if their products and services fit those customers who tend to be younger and more open-minded.

"We are not just delivering products, but also service and brand communications," You said.

Morever, e-commerce marketing campaigns generate lots of sales leads and rich customer data information for their CRM and call centre teams.