Cross-border e-commerce in China holds a specific distinction.International companies are allowed to sell certain goods to Chinese consumersonline, through platforms such as Alibaba’s Tmall Global and Kaola, atpreferential duty rates and without a license to operate a business in China. Many experts agree that consumer behaviour has changed significantly in the first quarter of 2020 as a result of Covid-19. This number was at 1.32 billion in 2014 and is estimated to reach 2.14 billion by 2021. Ecommerce as a whole has already shifted away from the West and will continue to do so even as China’s previously hot consumer economy cools a bit. Brands have multiple options to choose from with regards to Chinese E-commerce platforms. A website also extends Xiaohongshu’s activities to internet-connected computers. Xiaohongshu, also known as Red, is a social media and e-commerce platform focusing on the fashion and shopping community. E-commerce livestreaming has became a phenomenon in China since the outbreak of COVID-19. Founded in 2003 by Alibaba Group, it follows a model that is similar to its American counterpart eBay as a marketplace where goods can be sold with a fixed or negotiated price, or by auction. JD also has a lower safety deposit (10,000 – 100,000 RMB dependent on the industry, and 100,000 RMB applies for high-risk products such as cars, electric bikes, etc.). Research has shown that 35-50 year-olds are today’s premium online customers. China: Revenue in the eCommerce market is projected to reach US$1,117,204m in 2020. However, the store design template is free. And even though China has not yet reached the high-income economic status, it is well on its way, with the largest cities already enjoying income levels that are similar to the most advanced economies. Resources, tools and data for business, money, tech and finance. Here are some models to choose from: –  Regular Local Enterprise: registering on a platform as one of the local businesses (even fully foreign-owned corporations), requires a Chinese business license. Here are the top e-commerce platforms in China. Asyou can imagine, that’s a significant reduction in red tape. Top 10 e-commerce sites in China 2020. On PingDuoDuo with group buy priority, brands will need to consider a special price structure for different group sizes. The most popular sales platforms such as Taobao, Douyin, Kuaishou, all have their own star live streamers. Alibaba1688 is a business-to-business marketplace focusing on domestic trade in China. The Chinese government has supported the growth of the e-commerce market during the outbreak as a way to maintain domestic consumption and boost cross-border trade, introducing a number of new policy initiatives in the first half of 2020 – including a near-doubling of the number of e-commerce pilot zones. Suning.com is a chain of department stores providing electronic products and home appliances, general merchandise, household commodities, cosmetics, and baby care products, or even car parts and financial services. This blog post was originally published by Melchers’ Partner Hi Com, an international communication and localisation agency. By making easier, promoting, communicating and online purchasing. It probably comes as no surprise that e-commerce has also been hugely affected by the global pandemic in 2020. Published by Yihan Ma, Sep 17, 2020 The emergence of China's e-commerce market inaugurated a new era of the country’s economy. Copyright 2019 @ Melchers | All Rights Reserved, Discover the evolution of e-commerce: China in 2020, 100 Questions and Answers on China Business 2020. Their online purchases indicate that they plan to stay in their homes for the foreseeable future, therefore making it even less likely that consumers will change their shopping habits and resort back to physical stores in the post-virus world. / 9 minutes of reading. Platform size: The platform’s audience size matters. Within our Emerging Internet cluster, our largest portfolio exposure is to e-commerce, where we have invested in e-commerce platforms in China, Latin America, and Southeast Asia. Over the years, the Chinese e-commerce market has become a source of inspiration for Western brands and retailers. Local businesses will be expected to pay 1000 RMB /150 USD as a monthly platform usage fee, whereas foreign enterprises will be paying 1000 USD per month. Furthermore, the country’s appetite for technology only pushes the e-commerce market forward, making it already a leader in certain categories, especially in mobile commerce and payments. Whilst many companies also understand the importance of localizing content in order to appeal to and to be understood by their target customers. E-commerce is already a well-established field in mainland China, but in the wake of the COVID-19 crisis, it's more important than ever. The same goes for AliExpress, the group’s retail export site, as it does not allow customers in mainland China. Reasons like convenience and cost-savings are prompting people to adapt ecommerce, while fact… The percentage of female shoppers, age, education, income and time spent on specific platform will play a crucial role for brands. Therefore, they decrease activity on social networks. Founded as an online book store in 1999, Dangdang has diversified to a wide variety of products including beauty and personal care, home decoration and furniture, clothing and accessories, baby and maternity products, and electronics products. It is important to understand local shopping and product searching habits. E-commerce is a booming sector that offers a completely different customer experience to any physical store. Revenues from online sales continue to record double-digit growth. Retail e-commerce sales in China is accounted for more than half of the global retail e-commerce sales. This presence also makes Meituan Dianping a notable player of online shopping in China. It’s driving by the increase in the number of buyers and the frequency of purchases, as well as the development of new offers and new services for customers. Leading e-commerce players have focussed more on bargain-conscious consumers. All of which, cater to the needs of the consumers and products. Jingdong, commonly known as JD.com, is China’s second-biggest ecommerce retailer, holding about 17% of the market in 2019. Enterprises will have a commission of 4-6%. The Group was founded by Jack Ma, who stepped down from his position of chair during the recent milestone. Livestream e-commerce has been covered by our team here and is a clear trend that will be around for a while. Amazon China is an online shopping website focusing on selling imported products to Chinese customers. Launched in 2013 by Alibaba Group, it is the domestic counterpart of Alibaba.com which focuses on overseas sales. During China's Singles' Day festival last year, Alibaba's Taobao Live contributed around 20 billion Yuan (US$2.86 billion) gross merchandise volume, or about 7.5% of the company's total sales . The world’s second-largest market for e-commerce, China has the world’s largest population that is also very tech-savvy. So Amazon decided to disengage from its Chinese activities, only using the amazon.cn website to sell foreign products and a limited offer of services, including Amazon Prime, to Chinese customers. On Xiaohongshu, a review and advise platform brand should work closely with content creators in order to generate traffic and sales. JD.com, which stands in Chinese for Jingdong, is a B2C online retailer. It still continues to grow as a result of advanced technology and social network growth. Therefore, meaning that e-merchants must also adapt to these customer needs and requirements, in order to get more business and to remain relevant online. For example, Millennials are more difficult to retain because they have a strong tendency to cross-border shop. Interview with Mike Hofmann, Managing Director of Melchers China in Beijing, on Sales and Marketing in China, Melchers appointed as Sales Agent of Iacobucci HF Aerospace in China, The digitalisation of the Chinese retail experience, Discover how localization can impact your SEO ranking, Retail Technology in China: Latest Trends and Applications. As it primarily proposes group deals, vouchers, and coupons, Meituan Dianping, participates in the e-commerce landscape by referring to other shops, even though its key websites don’t sell products directly. Observers forecast that Alibaba’s Hema and JD.com’s 7Fresh supermarkets, that offer 24/7 deliveries for online orders, will continue to battle for space within the online grocery market throughout 2020 and beyond. Last year, it began construction on a drone airport and unveiled its first autonomous truck. Do you have any queries or comments about our website, our products or any of our services? It is also important to consider the Millennials (also commonly known as Generation Y or the people born in the 1980s and early 1990s) as they too are key consumers. They are embracing new online shopping habits. Here are the hottest e-commerce live streamers from each platform in 2020. Many experts agree that consumer behaviour has changed significantly in the first quarter of 2020 as a result of Covid-19. Minimum monthly sales volume of the store: One million RMB +. But also with its advanced features, offering faster online exchanges to enrich the customer’s experience. Some Chinese E-commerce platforms take a commission from the sales you make and also charge for platform usage fees, template feels, marketing tools fees and take deposits. Foreign goods remaining popular with Chinese consumers compared to brands from home. Website: amazon.cn – Estimated monthly traffic: 11.2 Million visits. Bonded Warehouses Bonded warehouse is a popular CBEC model adopted by some businesses to sell to Chinese consumers. Known for its innovative and dynamic nature, the market is estimated to be worth more than 1000 billion dollars by the end of 2020.Let’s look at five e-commerce … Your email address will not be published. The platform is a great tool to test the local needs in those second and third-tier cities. Website: taobao.com – Estimated monthly traffic: 454 Million visits. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C). The original post can be found here. 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