It is rather common for foreign brands to register on Chinese eCommerce platforms expecting to enjoy some massive sell from the get-go thanks to their international reputation, only to be disappointed by their ROI. The reality on the field however is slightly different. Indeed, if it is true that Chinese consumers do like foreign brands, the reality is that they love foreign brands that are well-known in China and have a strong online presence in China. Since investing in platforms such as JD require many resources, better to get started on the right foot and avoid common pit-fall. In this post, we will introduce you to the best way to increase your conversion rate in China.
Rapid intro to JD.com
JD.com, also known as Jing Dong, is massive B2C e-commerce, the second largest one in China. It acts as a platform for both direct sales and a marketplace. JD.com’s direct sales model is based on JD.com sourcing products directly from brands and suppliers and selling them directly to customers through the company’s website and mobile channels. While JD marketplace enables well-established, reliable third-party sellers to sell products directly to customers.
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Selling on JD Worldwide: the basics
Among its initiatives, we find JD Worldwide, which is a cross-border e-commerce platform that enables Chinese customers to purchase products from other countries with the ease and convenience that they expect from JD.com. This segment of JD is very useful because it offers international merchants the ability to tap into the Chinese market even if they do not have a physical presence in China.
JD Worldwide is open to brands, franchisees, retailers, and traders that are legally registered outside China, selling products that originate from outside China. The collaboration with logistics services, such as DHL, means that the products are safely delivered to Chinese customers. Payment is also a fairly easy process for a foreign seller, or at least for someone with a registered USD bank account. In fact, only US dollar transfers are made for now.
For a foreign seller JD Worldwide will be the best choice, not only because just Mainland China’s registered companies can own .cn domains, but above all and as previously mentioned, all the Chinese data traffic is in the marketplace and not on individual sites.
Requirements to register as a merchant on JD
Registration to sell on JD.com is not free. In fact, even if the brand is suitable, JD.com requires a deposit of $ 15,000, a fee of $ 1000, and in the case of the sale will take a commission between 2 and 5 %.
There are some other basic requirements that a foreign seller must possess in order to collaborate with JD.com:
- Be a brand owner or have a license
- Have a company establish abroad with a trademark registration
- A track record of your products
- An operational history to demonstrate that you are not a fake foreign company
- A USD bank account
- A business registration
How to get Chinese consumers on JD.com?
If JD.com has accepted your proposal you will need to attract customers and increase your brand awareness. This is possible through a digital marketing plan that includes various steps
Optimize your JD Store to appeal to Chinese Customers
Your store page will have to be adapted to the JD platform and also to the tastes of Chinese customers. You must be a little excessive in color and style, but always present your product in a clear way. It is also essential that your store page is also written in Chinese.
- Lots of pictures
- Description as detailed as possible
- Video presentations are becoming mainstream
- Visible & Catchy Promotion
- Long Tail Keywords Title
China Paid Advertising to drive traffic?
yes but not optimal, unless you follow important steps. Banner ads and PPC (Pay per click) are a great way to get initial traffic to your webpage or JD store but are not the ultimate solution for your acquisition strategy.
If you only focus on paid advertising it is very likely that your traffic goes to waste. Indeed, one of the key elements of selling online in China is eReputation. Paid advertising is great to get your traffic but not so great to build trust with your target audiance.
In order not to waste your resources, Paid ads should be part of a larger promotion strategy involving, Baidu SEO, PR, Undercover marketing, KOls, and Social Media.
Chinese Website + SEO
Since openning a store on JD is not enough to break through on China you’ll need as a very first step to create a webpage or website optimize for Baidu. From there, you’ll be able to get started with SEO in order to aquire organic traffic and build your credibility in China
Complete your SEO with Public Relation and undercover marketing by animating discussion about your brand on third party channel.
- Have journalists recommend you to chinese consumers
- Use forums & Q&A. (ex: Zhihu)
- Reviews Websites & apps (ex: RED)
Social Media: WeChat to drive traffic to your JD store
China is the world’s most active social media market. 902 million people use WeChat daily, most of them are Chinese, so this is the place to get as many clients as possible. This app will help you to have close communication with your customers, and keep them updated on your brand thanks to the sharing of interesting content. For advertising through influencers, Weibo is recommended, a platform where opinion leaders can be your open window on customers
For JD merchants Wechat also has the advantage to belongs to Tencent, meaning that Wechat Pay is integrated into JD but also that JD links work perfectly on Wechat.
Wechat users can easly find JD link via the wechat search engine.
Don’t miss out on China massic Shopping Festivals
JD usually organizes events on a national scale, such as for the Chinese New Year in which the pages are embellished with the symbol of the year. Participation in these events will give you greater visibility.
Contact us, we know how to increase your ROI in China
It is not a simple path to open your brand in Chinese e-commerce, but working with specialists in the market is the key to success. Our marketing agency is called Gentlemen, not by chance we are true lords in the field of digital marketing. Contact us for more information!