Chinese tech companies are developing completely new business models that are totally different from those born in the Western world. It is also true that it is more difficult to have information on the digital market in China, closed behind the firewalls that isolate it from the rest of the world and make it an ecosystem in its own right.

Angela Wang – BSG consultant on retail in China – clearly conveys how the retail of the new millennium is being born in China more than in Silicon Valley or Seattle. The mega tech companies from China like Alibabaa and Tencent are integrated groups that mix retail, content, platforms, gaming, communication, messaging and social media. They are also the main Chinese venture capitalists, and are funding dozens of new Unicorns. These companies that only existed a few years ago are the next candidates to become trillion dollar companies after Apple and Amazon.

Middle class takes the digital world

This is also the case because China is experiencing a unique moment on earth that at the same time combines the birth of a gigantic middle class with the massive digitization of the economy. Everything is happening very quickly: within the last 5 years, 500 million consumers have started buying online in China. A number that is equal to the sum of the population of USA, Germany and UK combined.

The HEMA case

Alibaba is banking on its New Retail model, where online and offline retail are integrated, and the Hangzhou-based company’s chain of Hema Supermarkets is perhaps the most advanced condensed thing this means. There are no speakers: buying from home, from the metro, in a chat session or at the point of sale are exactly the same process. Purchases are always and only with a click on the app or a scan of the barcode to the store. The points of sale are logistic and experiential centers where the salespeople simply help the customers, collect the goods and complete the packing list. Each shop serves a radius of a couple of kilometers and orders are delivered within 30 minutes regardless of whether they happened in the store or on the move. Alibaba chief executive Daniel Zhang said :

“Alibaba has evolved its mission in a new environment, a new era, Alibaba uses big data, analytics, machine learning and artificial intelligence to create value from data, to help businesses and partners improve operations.” 

Shoppers are using their gadgets to snap up a wide array of goods and services.

But above all it is a new generation of consumers who are mobile only and pay exclusively digitally. Nearly half of all China’s e-commerce sales, totaling $505.7 billion, are made with mobile devices, versus roughly one-quarter in the U.S., according to eMarketer. By 2019, China’s mobile sales will account for 71 percent of those sales The point of entry and exit for each purchase is the screen of a smartphone. This phenomenon has impressive implications on the buying experience and the experience that customers have with products, but also has a heavy impact on logistics and production itself.

How to become a successful brand in the Chinese e-commerce platform?

More and more international brands are choosing the way of e-commerce rather than opening a real store, and with the data previously collected seems to be the right choice to win over Chinese consumers. Here are some points you need to follow to make your business grow

Knowing the Market

Whether selling to Chinese customers or selling to international ones, it is a good idea to understand the market and the product on offer. In some cases, the offering may need to be adjusted to fit the customer’s requirements.

Improving the SEO ranking of your e-commerce

The SEO optimization for an e-commerce is substantially different from that of any other site, but some peculiarities typical of online shops must make us pay more attention to certain aspects, rather than others. When it comes to SEO for e-commerce, some things must necessarily be prepared and optimized, and others must be checked and corrected. Among the aspects to be taken into consideration as a priority:

–  Creation of original descriptions for the individual products
–  A correct choice of keywords: product names, categories, and location
– “Speakers” URL: with an indication of category and product name

Don’t forget the power of Chinese Social Media

To promote your brand, it is necessary to go through Chinese social networks. Social networks are part of the daily life of Chinese. Chinese spend at least 25 hours a week online and 30% of that time is spent on social networks.
The most important thing is to spread content qualities about the brand and the Tmall store. To draw attention to a maximum of Chinese consumers, you have to share your content on the two most used platforms in China Weibo and WeChat. The brand must have an official account to gain consumer confidence

Deal with Key Opinion Leaders (KOLs)

When you need to rapidly bring your image mindfulness up in China, you should collaborate with key opinion leaders. A key opinion leader is a known person with a solid online nearness and in particular, an effect on various Chinese citizens. A portion of these KOLs are performing artists, artists, or just online VIPs. Analysis International, a local consultancy, projected that the China influencer economy will be worth over $15.5 billion by the end of 2018.

Forums and Public Relations

To assemble mark mindfulness, the brand must be available on the different Chinese forums. Without a doubt, the Chinese truly value the word of mouth exchange and like to get notification from different consumers. It should in this way have positive inputs about your image that Chinese consumers need to purchase your item.

At last, a standout amongst the best instruments is the press connection to chip away at the picture of your image, to control your notoriety. In China, PR are for the most part on the web and are vital to communicate data to Chinese purchasers. The brand must keep up an association with its clients and recognize what they think about the items and administrations.

GMA – Gentlemen Marketing Agency is based in Shanghai. Our team of digital marketing experts can help you with your business in China. Contact us for more information

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