Overview of china cross-border e-commerce situation
Most popular overseas products in China
Domestic products are often considered to be inferior quality products by Chinese consumers due to many scandals happened in the past. Even if there are also some good local brands in China, Chinese people has still a kind of adoration for abroad stuffs. Especially when it concerns healthcare or skincare products, Chinese people prefers to turn towards foreign products. Moreover, for categories like cosmetics, baby products and food supplements, the price in China is relatively similar between foreign and local brands.
Japan and Korea are most appreciate for their cosmetics and serums as their products characteristics match with Asian skin and style. Besides these two countries, French cosmetics products has also a very good reputation among Chinese customers.
Characteristics about cross-border Online Shoppers
Most cross-border online shoppers are quite young and the largest group is about 30 years old. We can also notice that, according to the China E-commerce Research center, males are the main shoppers. They represented 62,2% of cross-border e-commerce shoppers.
Chinese people are seeking for a safe and quick way to get overseas products. They are also very connected between them and rely a lot on words of mouth before to purchase. For foreign brands who want to enter in China market, promotion and branding are the two major tasks.
Platforms for Cross-corder E-commerce
There are a lot of e-commerce platforms in China. Each of them have become very popular among Chinese customers. Take a look on our previous article on Tmall and JD.com, the two giants of e-commerce in China. We will introduce to you some other popular platform this time :
NetEase Kaola 考拉海购 (kaola.com)
With 21,4% of the market share, kaola is the largest player in Cross-border e-commerce platform in China. Kaola was launched by NetEase Company and provides global imports : imported makeup, clothing and bags, daily use products, vitamins and health care supplements, overseas fresh products and so on. Its purpose is to bring 100% genuine products, fast delivery services, low prices every day and massive overseas commodity to consumers. Kaola is hoping to help users to have a “better life with less money”.
Kaola became hot suddenly through its adversiting in many programs. In fact, the role of media is still strong. Many people tried after the exposure of Kaola and then the power of the word of mouth did its job.
One of the first overseas shopping platform in China, YMatou was founded in 2009 (洋yang means western and 码头 matou means wharf). It has the first « sweepings good broadcast » channel on its mobile app. YMATOU provides another special channel Ju Yang Wu, which is a collection well-known brands all over the world, Certified merchants can also provide group purchase items.
In order to ensure that overseas products can be safely and quickly delivered to Chinese consumers, YMATOU has built a cross-border logistics system. At present, the global layout of YMATOU has been completed. 10 major international logistics storage centers have been established overseas (New York, San Francisco, Los Angeles, Chicago, Melbourne, Frankfurt, Tokyo, London, Sydney, Paris), and cooperated with a number of international airlines. More than 40 flights per week, greatly shortening the time for China domestic consumers to receive their parcels.
(Yes, another red color brand in China …) Xiaohongshu is a little bit different from the previous cross-border e commerce app as it is a online community. It is also a sharing platform and a word of mouth database. The users of Xiaohongshu are both consumers and sharers, representing good partners for the industry and for other users. For the past four years, it has become an essential “shopping note book” for more than 50 million young consumers. This app only relying on users “consumption notes” or “consumption feedback”. Moreover, Xiaohongshu also conveys a more beautiful lifestyle which is meeting the need of nowadays Chinese people.
As of may 2017, XiaoHongshu’s subscribers exceeded 50 million, and grew to become the world’s largest community for e-commerce platform. It is already ranking the number 1 among shopping Apps in the Apple store. On June 6, 2017, for the 6th year and 6th month anniversary of XiaoHongshu, it sold 1 billion yuan only in two hours of selling.
China is a huge market with its own culture and way to function and e-commerce is already unavoidable here. Want to start a business in China? Do not hesitate to contact us if you need some information. Over the years Gentlemen Marketing Agency has developed knowleges and skills on e-commerce in China. Our experts specialized on digital marketing keep following and adapting to the Chinese market in order to bring the most efficient help and tools to our clients. Nowadays, concretely our team can help your business to set up on Tmall and Jingdong’s platforms. We are also providing newservices on the little Red Book.
Give your project the means to success 🙂