The consumption pattern of Chinese has completely changed in recent years, they are more aware of the quality of what they acquire as a product whether in point of sale (store) or online (e-commerce platforms), with strong growth in online shopping reaching $ 390 billion in one year! The Chinese are increasingly connected and do not hesitate to shop online, it is estimated that there expenses will increase to 950 billion dollars in 2018.
What boosts the Chinese e-commerce market?
One of the most obvious reasons is the increase of the average salary of the Chinese, of course the purchasing power increases, the purchases are made more and more through virtual blinds, the Chinese consume more: what boosts the Chinese e-commerce market enormously.
Aside from the average monthly salary, the Chinese consumer dreams of a better life, he wants to follow trends and change his lifestyle to meet his deepest needs! He is therefore constantly in search of quality products, and foreign products becomes the best for him … But why? Simply because the Chinese no longer trust local products, because they have been betrayed, whether in terms of quality or the gap between what has been promised and what has been respected as to the sale products on the market.
No more trust between Chinese sellers and their usual customers! E-commerce platforms have understood customer behaviour, to bring them back they started to buy products from abroad to resell them to the Chinese consumer on platforms like Tmall Global, which is a very well known website in China.
Sales stores are unreliable …
To sell retail in China, it is necessary to have a particular strategy given the size of the country, actually in terms of logistics it is difficult to meet a huge offer, when the supply in stock is 1000 km from the store!
In addition, there is no guarantee as to the reliability of the products purchased, merchandising and sales techniques fall in the water, since the promises are not respected and the trust of the customer is lost therefore.
The e-commerce sites are much more honest in terms of promises, more they offer customers a range of choices, unlike retail stores.
The competition and regulations between the different platforms have made it less likely to come across a product of poor quality.
The customer service on the e-commerce sites is more developed and intuitive, allowing a better interaction with the customer in case of change of order , with a delivery time not exceeding three hours in large cities like Beijing or Shanghai. The complaints are more fluid which facilitates the acquisition of products for the Chinese, which makes the e-commerce offer even more attractive for the Chinese.
So the classic store in no more than a showcase that serves the consumer benchmark: he knows that on his return home he can connect and acquire what he could spot in the shop window!
These e-commerce sites that have understood the needs of Chinese people
The (Word Of Mouth)
The e-commerce sites are familiar with the Chinese behaviour, and understand that if a customer is not satisfied, he will talk with ten others and so on until lose their credibility … So they have mastered consumer consumption trends and have known how to attract and retain customers to build a strong customer relationship and well mastered. This is how Tmall, has filled the overwhelming majority of Chinese with a market share exceeding 50%.
Online commerce: reliability and integrity
Tmall or Alibaba (the most famous platforms in China) are reliable in offering quality products, with a customer service that allows them to interact with the customer and promise continuous satisfaction.
Access is limited to platforms, only the brand official sellers is allowed to make changes to the displayed products, so that promotes the sellers commitment , and ensures proper positioning of the brand thus respecting the 4P’s (price, product, place , promotion).
On JD.com, it is even stricter since all the products put on sale must be tested beforehand, before the setting on line!
Mobile marketing: is the marketing future
Nowadays, all Chinese are connected: there are more than 700 million users, not on their computer … but on their phone. Well now nothing escapes them, they follow the news, pay their bills, chat with their friends share content or make purchases! In 2013 online shopping in China reached a growth of 165%. Alipay’s method set up by Alibaba has facilitated the act of buying online, knowing that the picking is done after receipt of the package at home!
Mobile marketing strategies are becoming more efficient, enabling relevant targeting and segmentation. The increase in the number of users of e-commerce platforms in China is a boon for the holders of international brands and known around the world. The luxury market is joining the online sales, which will push all social categories to make online purchases and to be more and more connected!
We are a team of native digital experts based in Shanghai, we have a deep insight into this fascinating market and stay ahead of the curve.
If you have a serious project for the Chinese market you can consider news app ads, contact us for a meeting with one of our consultants.
We also work extensively in the following area’s:
- Baidu SEO/PPC
- WeChat Development
- Weibo Marketing
- Chinese Content
- PR/Media Exposure
- Targeted Forums & Blogs (niche markets)
- Ecommerce set up & branding
- Lead Generation Services on Multiple Platforms
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