Chinese e-commerce in 2016 !
The e-commerce face of China is changing nowadays, e-commerce sales have increased to reach 27% from 2014 to 2015. How can we explain the booming of this e-commerce in China? What are the main specificities of this trend? Here we will see that this is not a simple change with the growth of e-commerce in China but also and above all a deep change in the way to sell products to Chinese customers and new expectations from consumers.
Remember, when you are purchasing a product in a store, what do you need? Good service, find the product that you were looking for and price/quality product. You actually find all those criteria’s on an online website e-commerce and even more.
Here we will go through a deeper analysis through different points.
Focus on the service: Customer online service
Chinese people are more and more demanding of high-quality products at a reasonable price. Adding to this, they want a good service even if they are buying and choosing the online channel. They need a fast reply, reactiveness, and effective service.
You have probably seen the boom of chat online on websites allowing customers to ask questions and get fast replies. Take the example below of Forex companies
Focus on the product and price
Another trend to notice is the booming of these outbound products from overseas, the so called: “cross-border e-commerce”. Chinese people are considering the product origin as one of the main criteria in buying process. Why? Because products from overseas are good quality products. Even if you can find these products in some physical stores, most of the time it is expensive and not easy to find out.
The online website can give you the choice to compare products and have the wider choice concerning the products. You can compare quality, mains criteria’s, price…etc.
And you can find the unique product, especially concerning luxury products.
Here there is an interesting example about Alibaba and key growth drivers in Chinese e-commerce market: click here.
Focus on customer digital experience
More and more websites know how to target customer’s needs and expectations thanks to their advanced digital tools. Companies are using more analytics tools and personalized communication towards customers in order to bring them in a unique shopping online experience.
They are efficiently using data collected on personal account of users to target their needs.
A customer will buy some products using its personal account, next time you can offer him new products relating to the products that he has already purchased, and offering him sometimes promotions in order to attract him.
China is a huge market where you cannot optimize your distribution channel only through stores because the infrastructure and logistics required will be too huge and expensive.
So this is the reason why you have to optimize the online tool.
Not only owned website but also e-commerce platform
Another trend to notice is most of the Chinese people are willing to buy on those e-commerce platforms rather than brands owned websites. Why? Price, multiple choice, payment facilities and promotions…etc.
The giant player in this market is actually Tmall controlling more than 50% of the B2C market in China and JD.com is also playing a major role in it. Here there is a really interesting article about Tmall Global: Fast track to China.
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