e commerce in china 2020
It still continues to grow as a result of advanced technology and social network growth. It is important to understand local shopping and product searching habits. Localizing your brand’s message or even brand name is also critical for the brand’s success. 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. Jing Tian and Ming Xi were invited to share their in-store photos prior to the grand opening of the pop-up store, to trigger people’s curiosity and stimulate fans’ willingness to retweet and preheat the offline event. According to a platform’s business model, brands will need to structure their marketing and sales operations accordingly. More than $106 billion is expected to be invested in this infrastructure in 2020. However, despite the strict restrictions, it is clear that e-consumers have now adapted to the current global situation. – Regular Overseas Enterprise: registering on a platform as an overseas business that wants to use a cross border channel, to be a platform supplier, or have an overseas brand marketing station (for marketing only, not for sales), also requires a foreign business license and foreign bank information. Remark that the elephant in the room, Alibaba, is not present in this list with its main website alibaba.com, as it focuses on wholesale export outside of China, and therefore has no significant traffic and sales in China. Have you ever bought goods or services from them? This can vary from working abroad, to working with local partners or hiring a local team. Alibaba and JD: the e-commerce giants dominating China 1) Alibaba Group. China has rapidly become one of the biggest retail E-commerce markets in the world, which as a result, has created interest from foreign brands seeking new opportunities to enter the Chinese market with minimum effort and maximum return. JD.com leads China’s ecommerce push toward automated and drone deliveries. According to the projections, by 2020 e-commerce market in China will be bigger than American, British, Japanese, German and French e-commerce markets combined. Bonded Warehouses Bonded warehouse is a popular CBEC model adopted by some businesses to sell to Chinese consumers. Your email address will not be published. Implications for brands: China’s lucrative cross-border e-commerce market is projected to reach $164 billion in 2020, according to Statista. Most brands tend to approach one of China’s most popular platforms, Tmall. 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. It provides a wide array of products including electronics and gadgets, home decoration products and furniture, clothing, and books. On Xiaohongshu, a review and advise platform brand should work closely with content creators in order to generate traffic and sales. 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. Vipshop is an e-commerce platform specialized in discount sales. Unsurprisingly, the development of e-commerce has altered the way in which consumers shop online. 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. Website: vip.com – Estimated monthly traffic: 6.1 Million visits. For Tmall it would be a TP (Tmall partner) and would require a brand’s letter of authorization. Copyright 2019 @ Melchers | All Rights Reserved, Discover the evolution of e-commerce: China in 2020, 100 Questions and Answers on China Business 2020. 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. But its two main websites deserve a mention as they still reach a large portion of the market. 07 Number of employees in the e-commerce segment China 2012-2017, by type 08 Listed companies in e-commerce China 2018, by category B2B e-commerce 10 Transaction volume of B2B e-commerce in China 2012-H1 2018 11 Revenue of China's B2B e-commerce market 2012-H1 2018 12 SME B2B e-commerce platforms revenue in China 2012-2020 The gaining popularity concept of pop up store solves many problems for brands and improves their online performance providing a new topic of discussion and buzz around the brand. With more than 20 million visits per month Dianping.com, is the leader in online deals, and the second website, Meituan.com, which was acquired by Dianping, also reaches about 10 million visits per month. Global retail ecommerce sales will decelerate to a 16.5% growth rate in 2020 (down from 20.2% last year). In addition to this, Chinese apps such as WECHAT, have now made it possible for consumers to buy products directly. Whilst 84%, took the opportunity to try out new programs and services during isolation and quarantine. Online consumer behaviour has drastically changed due to the explosion of social media. Leading e-commerce players have focussed more on bargain-conscious consumers. 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. We anticipate a collective $3.914 trillion in ecommerce sales this year. The original post can be found here. Brands may feel too uncomfortable and assume that people might not pay attention during this time. Taobao is a consumer-to-consumer e-commerce platform that allows individuals, retailers, and wholesalers to list freely and sell almost everything directly to buyers, from electronics and fashion to home and garden products, from sports and toys to cars and vehicles. It allows wholesalers and retailers to buy and sell in wholesale a wide range of goods, primarily including clothing and accessories, home products and equipment, electronic and mechanical parts and products, tools, and many more. When opening a flagship store on Tmall, it requires an average investment of 30,000 USD (dependent on the type of commodity, as it can vary from 20,000 to 100,000 USD). In today’s current climate, Chinese consumers are still shopping online. It probably comes as no surprise that e-commerce has also been hugely affected by the global pandemic in 2020. Website: amazon.cn – Estimated monthly traffic: 11.2 Million visits. The platform is a great tool to test the local needs in those second and third-tier cities. E-commerce is a booming sector that offers a completely different customer experience to any physical store. Therefore, by analysing, understanding and identifying customer needs, it will help you to: It is also clear to see that e-commerce is maintaining its dynamism. Also, Magnum invites celebrities and KOLs to heat-up event discussions on social media platforms, as well as encourages consumers to share their visits by uploading photos to social media. This presence also makes Meituan Dianping a notable player of online shopping in China. Although they behave slightly differently to other generations. Dangdang is an online B2C department store. They offer instant delivery to customers within three kilometers of the Shanghai locations. JD.com, which stands in Chinese for Jingdong, is a B2C online retailer. Website: dangdang.com – Estimated monthly traffic: 5.95 Million visits. 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