In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC. Little Red Book, founded in 2013, has 70 million mostly young users. In 2018, China’s online retail transactions reached $1.33 trillion and are forecasted to reach $1.99 trillion by the end of 2019. China is a challenging market for foreign brands and Chinese netizens are difficult to please. So far, the total number of China’s cross-border e-commerce zones has reached 105, which are distributed in 30 provinces and cities. daily customer communication operation, and maintenance. Cool thanks for the update. The leading e-commerce platforms in China are Tmall Global, JD, and Yihaodian. Competition from foreign platforms is growing. Not only the app work directly with suppliers reducing the cost of sold items but it has focused on affiliation working hand in hand with Wechat. The Chinese internet giants have made a real run to become the best e-commerce platform in China through the development of cutting-edge technologies. buyers are very careful buying things, they check several aspects including the shop credit, customer satisfaction rate, and comments before making their final decision. Is the brand is new to China, then the priority is Brand Awareness Our solutions are designed to help you achieve your business goals in China. For more details about our Tmall services click here. For years, Pinduoduo has been focusing on smaller Chinese cities by offering the best deal and the possibility for users to work and in hand to get items at a bulk price. But if you take a festival like mid-autumn, consumers look for gifts for family reunions, Your email address will not be published. If none compare to Alibaba and Taobao yet, a  platform has been growing in the shadow of third and fourth-tiers cities and slowly eating some of Taobao’s market share. With 668 million Internet users, China’s online shopping sales reached $253 billion in the first half of 2015, accounting for 10% of total Chinese consumer retail sales in that period. The Study is a very useful tool as it provides a basic … China has continued to open up and expand imports by promoting the rapid development of the digital economy and cross-border e-commerce, making it an attractive global brand market for overseas companies. You may even be envious of this new cashless-based system after returning to your home country. A great question to which the answer differs greatly depending on how famous the brand is. For instance, L’Oréal took the chance and evaluated its digital sales with “very good e-commerce results” (L’Oréal 2017, p. 51). For large brands and product launches with significant funding, these are great platforms in terms of the traffic they drive, however they are not a ‘magic bullet’. France’s Auchan, the second-largest foreign chain in China, sold a 36 per cent stake in a joint venture with Taiwan’s Sun Art, which operates more than 400 stores, to Alibaba in 2017 for $2.9bn. optimization of promotional activities inside and outside the platform. Despite the global economic downturn, China’s retail sales hit ¥12.5 trillion ($1.8 trillion) in 2009, up 15.5 percent year on year. Gentlemen Marketing Agency is a full-service digital agency based in Shanghai, focus on the Chinese Market with expertise in designing and building eCommerce/ ebusiness with measurably great results . Pinduoduo buyers can get discounts, gifts, and even free items by promoting, sharing links, and pushing peoples to register on Pinduoduo. As China continues to transition away from a cashed-based society toward mobile payments, using WeChat and Alipay in China to pay for things can make any foreigner’s life a great deal easier. If the brand is already in China, has quite a reputation, then it’s time to try new things. CIIE: Cross-border e-commerce helps foreign brands enter China. For this reason, the number of Chinese online platforms and cross-border shopping sites where high-end and niche international brands are growing in popularity and are also driving the consumption updating movement. by Sheng Lu China has one of the most lucrative and rapidly growing retail markets in the world. Published: July 2013. Beginning with the much discussed liberalization of the investment cap for foreign entities conducting e-commerce business in China, and most recently with the draft e-commerce law, big changes are afoot. Among emerging economies, China’s e-commerce presence continues to expand every year. Back in 2017, e-commerce sales outpaced estimates by $44.41 billion, driven largely by sales from leader Alibaba’s Taobao and Tmall. Live streaming and Videos for instance. Because the platforms are racing the be the most attractive to customers and brands, we see the development of new marketing tools that we are full of opportunities. The Great Britain Exhibition at the 3rd CIIE in Shanghai, China, November 5-10, 2020. In the summer of 2019, many things happened in the Chinese eCommerce world, including Pinduoduo beating JD.com has the second-largest e-commerce platform behind Tmall. In Part Two, the guideline will elaborate on models for EU SMEs’ e-commerce business in China with local presence, i.e. Notify me of follow-up comments by email. VIPShop focuses on discounts and flash sales. what opportunities does it offer to brands? The Little Red Book app displays product photos and videos posted by users as soon as it starts up. Roughly half of all China’s eCommerce sales are made on mobile devices. Foreign goods remaining popular with Chinese consumers compared to brands from home. We Build your Store, We Promote your Business and You Make it Thrive. We help brands to sell their products on Tmall through: ©2016 Gentlemen Marketing Agency. the registration and opening of online shops. U.S. companies interested in exploring social media avenues and working with these sorts of social media players should seek to work with a local marketing partner to develop a strategy and support execution. Foreign investment in the telecommunications industry has been strictly regulated and restricted in China. With Tmall Global, Tmall’s cross border e-commerce platform, orders can be shipped directly from abroad and payments can be settled in the preferred currency. Background. Founded in 1998, JD.com is the largest B2C online retailer in China and one of the biggest competitor to Alibaba. This market is just too enormous to be ignored, so it’s important to adopt the best practices to set up your e-commerce design for China that will mean taking a big step for your brand’s success. E-commerce then was only defined as the process of execution of commercial transactions electronically. Any company looking to invest in China must first be satisfied that there is sufficient business in its market to justify the investment. WeChat and … Foreign investment in the value added telecom services (“VAT Services,” including e-commerce operations) must be in the form of a Sino-foreign joint venture (“JV”), and the foreign investor is allowed to take only up to 50 percent equity interest in a VAT Services JV. In 2018, the number of digital buyers in China surpassed 560 million with the total number projected to reach 634 million in 2020. In fact: The app has recently launched its affiliate program: Taoxiaopu. Different platforms dominate each market. We can meet the demand of the Chinese market and the preference of the customers on this new product," said Yang Chunyan, an exhibitor at the CIIE.Analysts say Chinese enterprises should focus on product quality, and maintain global market shares as well as the international supply chain to promote exports. In China, Alibaba and JD.com alone account for 80% of e-commerce, and this doesn’t include other smaller marketplaces such as Pinduoduo or Secoo. China’s decisions to boost foreign trade and e-commerce Setting up 46 new cross-border e-commerce zones. Looking at it from a market perspective, tier 1 cities are a horrible place to build and sustain a capable and long lasting team. Social media is the main platform where people come to interact with one another, what’s making it an ideal place to share and comment on products. Taobao.com, the most popular online shopping site in China. Livestreaming e-commerce is the fastest-growing area of China’s internet, which has received exponential growth from the stay-at-home economy accelerated by the outbreak of COVID-19. Background. As the e-commerce market in China is set to expand long-term, new shopping platforms like livestreaming apps are growing," Peng Lihui, secretary-general of the China Electronics Chamber of Commerce Consumers, told CGTN. "Because of COVID, the real implications and benefits of the free trade agreement have not been explored," said Muhammad Irfan, trade and investment counselor for the Consulate General of the Islamic Republic of Pakistan in Guangzhou. Taobao owes its success as the market leader in this industry by offering free registration for its users. We have observed a trend from social media apps to turn toward eCommerce in the last few years. They have a unique language, different symbolic colors, and philosophy, they face a different ecosystem and online regulations. JD Mall offers direct sales of electronics products, general merchandise, books, home appliances, digital communications, apparel, food, and other goods. Thus social media has become a crucial tool for marketing, especially when they are communicating and engaging with potential consumers. Probably, trying to move out of a tier 1 city is the first advice for foreign SMEs. Overseas consumer markets have been plagued by the COVID-19 pandemic and cross-border e-commerce has paved the way for foreign brands to enter China. (Laywer, IT Software, Consulting, Agency ...) - SEO China Agency, How to Sell Vitamins in China in 2021? Everything revolves around the ICP license, a document issued by the Chinese Ministry of Industry and Information Technology (MIIT) that allows your e-commerce business to operate in China. JD Mall’s cross-border service, JD Worldwide, allows international merchants to sell directly to Chinese consumers without a physical presence in China. To help you grasp the volumes and the competition in the Chinese e-commerce landscape, here are the current top 10 leaders of e-commerce platforms in China in 2020 and their estimated monthly traffic … GMA can help you by offering you services like: VIP.com: a Chinese eCommerce App focused on the beauty market, Suning: Online Place to sell Electronic in China. Do you know which shopping festival is the more profitable regarding e-commerce in 2020? Cross-border e-commerce (CBEC) industry is undergoing major policy changes. Related services. With the development of new technologies, building a beautiful and dynamic website is not a big deal. Contact us now to discover which solution fits your business best! We help brands: Another e-commerce platform owned by Alibaba is Tmall focused on B2C services. The China International Import Expo (CIIE) is … Foreign businesses that want to access the Chinese cross border e-commerce (CBEC) market first need to choose their model. France’s Auchan, the second-largest foreign chain in China, sold a 36 per cent stake in a joint venture with Taiwan’s Sun Art, which operates more than 400 stores, to Alibaba in 2017 for $2.9bn. This race not only means more tools for seller and buyer but also relaxed requirements to register on these platforms. Over the years, the Chinese e-commerce market has changed a lot, revolutionizing the traditional system for both consumers and sellers. The thriving digitalization in China offers opportunities for foreign companies to break the fences and penetrate the market or access resources with new business models. It is a virtual shopping center that hosts many international brands, such as Gucci, Calvin Klein, Burberry, and many others. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR. Other platforms like Meituan, JingDong, WeiPin, Tmall, eLeme, Baidu NuoMi, and DianPing all play an active role in the market, but none are nearly as popular as Taobao in terms of active monthly users. China’s F&B cross-border e-commerce. The online retailer partners with over 1,000 brands to bring certain amounts of items at a lower price for consumers. Cross-border e-commerce is now very mature in the China market. "The online economy has given us consumers more choices. We are an E-Commerce Company specialized in Tmall. Cosmetics, clothes, and bags come with reviews, ratings, and user backstories on purchases. In 2020, according to statistica “the revenue is expected to show an annual growth rate (CAGR 2020-2024) of 6.9%, resulting in a market volume of US$1,309,535m by 2024.”. Those two will still have a total of 58.2% this year, but Alibaba’s share is shrinking as the market diversifies with. 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