How to succeed in exporting to China

LinkedIn Twitter Facebook
pg-7-china-city-circle.png

The rapidly growing Chinese market

 

The new global economic superpower having overtaken the US, China now accounts for almost 35% of global eCommerce sales and it is expected to account for half of the global market by 2018. With the number of online purchases growing rapidly (up 25% in 2014 compared to 2013), total online sales in China are expected to exceed one trillion dollars by 2019. This exceptional growth is largely due to the rise of eCommerce platforms, the increasing emphasis by the Government on consumption and by the lack of physical shops to fill the needs of consumers. To support this new eCommerce boom, hundreds of logistics centres, depots and delivery companies were set up. This infrastructure is now well established and has allowed marketplaces to open their doors to brands and distributors from the west. These marketplaces provide quick and effective access to the Chinese market to merchants but also given the 650 million local internet users easy access to their favourite European products. The most popular sectors among Chinese shoppers in order of preference are: ready-to-wear fashion, cosmetics, luxury goods, daily essentials and food.

 

How to take advantage of China’s best eCommerce sites

 

China is an extremely well connected country and more and more consumer-driven, which means that the sales potential for European online merchants and manufacturers is booming. However, when entering such a distant country a competitive strategy involves a significant technical, logistical, legal, marketing and financial investment. Therefore, integrating with marketplaces open to third-party vendors provides a real solution. It’s also one of the best ways to gain visibility as brands and retailers can leverage the marketing and reach these popular Chinese websites already have. However, before expanding into the Chinese market, it is essential to get the right balance between supply and demand. Each marketplace has its own integration system and way of operating, so prior to distribution on these channels, retailers must ensure that the audience, product structure, services and management systems can be managed by the business.

 

Leading marketplaces to enter China

 

Companies such as Tmall Global (subsidiary of Alibaba which controls more than 80% of the Chinese eCommerce market), allow retailers based outside of China to sell their products directly to China’s millions of consumers. Tmall offers e-retailers an innovative business model and is the leading platform for distributing quality European products to savvy international consumers. There is no need to get a license to sell in China, since the purchase orders can be filled and delivered from outside China and payments settled in the currency of the retailer’s country of origin (dollars, euros, etc.). Many local providers, partners of Tmall Global, now allow European online retailers to confidently manage their distribution in China. This includes account setup, shop design, translation of full product pages from source language to Mandarin, logistics, customer service and marketing campaigns. JD.com, which is the second biggest B2C eCommerce group in China, has more than 100 million one-time buyers on its site, and in 2014 had a growth rate of 94% and a turnover of 25 billion euros. Much like Amazon, JD.com is a real e-tailer with the group buying products for resale. The company has just opened an online store dedicated to French made products on its site to allow brands and distributors from France to export easier their products to China.

 

Other marketplaces to consider

As part of an expansion to China’s eCommerce market, there is huge opportunity for integrating with local marketplaces. Alongside Tmall and JD.com, there are many other marketplaces which stand out from competition, such as Amazon.cn, VIP.com, Suning.com and Yixun.com. By integrating marketplaces which collaborate with technical partners specialised in cross-border eCommerce and support to foreign sellers, selling to Chinese consumers becomes accessible without significant investment. Government grants also help brands and retailers to become more international. However, good preparation along with the help of experts is key to the success of cross-border development. There are more and more solutions available to online retailers wishing to take up the challenge of exporting to China. It is up to them to seize this opportunity.

 


 


Article written by Greg Zemor, co-Founder of marketplace distribution solution Neteven, discusses the eCommerce opportunities for European retail brands in China.

LinkedIn Twitter Facebook

Royal Mail Sponsor

Register today for unlimited article views, and unique insights

Register Now

Understanding the Current Global eCommerce Localisation Trends

Understanding the Current Global eCommerce Localisation Trends

Localisation has become key to success online and savvy brands and online retailers have adopted innovative approaches to localisation in order to provide the best experience for their target customers while retaining their brand identity and tone of voice in all of the markets that they operate. So how are retailers applying localisation strategies across the world and how are demands shifting?
How to ship with Fulfilled by Amazon

How to ship with Fulfilled by Amazon

If you shop on Amazon, you may often see the term ‘Fulfilled by Amazon’ meaning that you’re buying a good not from Amazon, but from a third party seller. Fulfilled by Amazon, or FBA, selling is where a third party stores their goods in Amazon warehouses, and Amazon then uses them to fulfil listings. But what does it take to sell your goods as Fulfilled by Amazon?
The legal landscape for online retail in Canada

The legal landscape for online retail in Canada

The legal situation around online retail in Canada is complicated by its general devolution from federal to province / territory level. In theory this means 13 different sets of terms and conditions needed. In practice, there is a very high degree of uniformity. This article looks into Canadas legal system from an online retailers position.
Online retail competition in Canada

Online retail competition in Canada

Canadians are amongst the most prolific cross-border eCommerce purchasers in the world - however, something to think about is that more and more local retailers, who previously were poor at eCommerce, are increasingly now getting better at it. This article looks at some of the top retailers in the Canadian eCommerce market to help you understand the competitive landscape there.
The Size of the Canada Retail Market

The Size of the Canada Retail Market

With the presence of US retailers in Canada unsurprising, some may find it hard to believe that not all northward ventures have ended in success. Therefore, you shouldn’t assume that the presence of a US giant means that other cross-border retail efforts would be hopeless. This article looks at the value of the total retail market in Canada and outlines the current competitive landscape there.
Online retail marketing in Canada

Online retail marketing in Canada

With internet and device penetration significant and online browsing behaviour fairly typical of a developed market, the landscape of online marketing looks very familiar to highly connected countries. However, retailers should be aware of the subtle but significant differences between the Canadian and the UK markets. This article looks at use of marketing methods for online retailers in Canada.
Connectivity and online behaviour in Canada

Connectivity and online behaviour in Canada

With typical online behaviour similar to other western counties, the Canadian eCommerce market can be seen as very appealing to cross-border retail. Exploring its sophisticated infrastructure, this article looks at the details of Canadian shoppers’ behaviour online, and examines some of the demographic nuances in internet access, online activity, and device preferences.
Online retail payment methods in Canada

Online retail payment methods in Canada

In different markets, shoppers can have varying preferences when it comes to making payments for orders on eCommerce sites. Canada is no exception but happily, there is more of an opportunity than a challenge when it comes to online retail payment in Canada. This article looks at the online retail payment methods within the Canadian eCommerce market.
Online shopping behaviour in Canada

Online shopping behaviour in Canada

When Canadian Shoppers buy online, how do they go about it, and what do they buy? With the use of mobile growing and the use of various devices for online shopping looking similar to trends in the UK, Canadian eCommerce has been a sleeping giant, but it’s waking up. And quickly. This article looks at the online shopping behaviour of the Canadian eCommerce market.
Online Retail Logistics in Canada

Online Retail Logistics in Canada

How should you go about planning your logistics strategy for servicing the Canadian eCommerce market and what are the options available? Canada is a spectacular 9,306 km from extreme east to extreme west so for any non-Canadian retailer looking for delivery partners to ship into the country, only large players with the scale to cover such a geography are particularly relevant. This article looks at the online retail logistics within Canada and how this impacts its eCommerce market.

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2017© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More