In 2013, the world’s e-commerce sales accounted $889 billion and China was the largest e-commerce market with $314 billion. During 2013 online spending per shopper was $1,040 and in 2018 it expected to increase it until $1,880.
E-commerce has become the most popular and effective way to penetrate in the Chinese market for those Western retailers who want to have presence in China
Many brands have already opened an online store on the most important e-commerce platforms in China, however there are others brands which have decided to launched their own e-commerce site such as H&M.
H&M is a Swedish multinational retail-clothing company which entered into the Chinese market in 2007 and nowadays is owner of 228 stores across the Asian giant’s country.
H&M is very popular among Chinese fashion shoppers and because of that, the company always has gotten high revenues in China. However, the brand has to adapt its strategies due to the changing Chinese market.
The boom of e-commerce platforms
Nowadays, the e-commerce platforms are booming in China and increasingly more shoppers are willing to purchase items via online. In China, only having offline presence is no longer enough it is necessary also have online stores.
Usually, smaller brands open their online shops in Alibaba or JD.com. Nonetheless, the popular option among foreign brands is Alibaba’s Tmall which has already more than 2,000 international brands.
In 2016, online sales in China are expected to increase up to $US356.1 billion in comparison to the past year when the total online sales accounted $US169.4bn.
Australian brands have been slow to tap the advantages of the Chinese e-commerce and therefore have lost market share in China.
Companies that want to be part of the Chinese market must seek the support of marketing and logistics companies based in China. Those companies have a deep and extensive knowledge about the Chinese market and consumers and they’ll be helpful to guarantee them a successful entry in the Asian giant market.
The Chinese market is often hard to understand
On the other hand, brands that decide entry in the Chinese market by themselves have more probabilities to use an incorrect marketing strategy and therefore won’t be able to reach their potential Chinese consumers.
Logistic is maybe the most important part of the e-commerce. Brands have to develop an efficient logistic chain in order to satisfy Chinese shoppers. If the transport of the products is slow, as a result, your customer will go and try another platform, with a faster delivery service.
Many brands have failed in their attempt to adapt their business model from offline to online platforms. To avoid those situations, brands need a strategy focused in the Chinese market.
The truth is that local companies have proved be more effectives than their foreign counterparts during the adaptation of their business to the online world.
Outsourcing the logistic service?
Ecargo is a logistics company based in HonKong which helps retailers to develop their e-commerce business in China. Due to their experience in both offline and online logistics, many companies have trusted in their services to develop their logistic chain. The company is already linked to Alibaba’s Tmall and they are negotiating with JD.com in order to do the same.
As we see, e-commerce plays a vital role in the Chinese market. Chinese consumers are increasingly more willing to purchase online and this tendency will continue growing.
E-commerce has become the way to enter in the Chinese market. In addition, brands that already have presence in China must integrate online platforms in their strategies in order to boost their sales.
Brands need a marketing strategy in order to support their e-commerce platform and guarantee a successful entry in the Chinese market. We are a Marketing Digital Agency specializing in the Chinese market, so if you are interested to improve your presence in China, contact us.
- How will China’s online boom impact e-commerce?
- All you need to know about e-commerce market in China.
- What you have to remember when doing e-commerce in China
- E-commerce is THE way to do business in China