Finally, e-commerce will account for an ever increasing share of China's foreign trade. It is responsible for formulating policy on foreign trade, export and import regulations, foreign direct investments, consumer protection, market competition and negotiating bilateral and multilateral trade agreements of the Mainland China. Among emerging economies, China’s e-commerce presence continues to expand every year. In China all activities by foreign companies must squarely come within the scope that is permitted by local law regulating foreign companies. As the e-commerce market in China is set to expand long-term, new shopping platforms like livestreaming apps are growing," Peng Lihui, secretary-general of the China Electronics Chamber of Commerce Consumers, told CGTN. China’s decisions to boost foreign trade and e-commerce Setting up 46 new cross-border e-commerce zones. That compares with a 5% growth rate among emerging-middle-class and middle-class consumers. Foreign goods remaining popular with Chinese consumers compared to brands from home. foreign firms in Asia to tap into that market. The Company mainly offers color televisions (TVs), audio and video (AV) players, disc players, refrigerators, washing machines, digital and information technology (IT) products, small household electronics, air conditioners, telecommunications products, and other products. China has continued to open up and expand imports by promoting the rapid development of the digital economy and cross-border e-commerce, making it an attractive global brand market for overseas companies. Setting Up an Online Shop in China After opening up a physical shop in China, a foreign investor can Become the first e-commerce market in the world in 2013, the Chinese are at the forefront of online shopping. Cool thanks for the update. To be clear, as of January 1 st of 2019, all foreign companies starting a business on an E-commerce platform in China must have a Chinese business license. In Zhengzhou, capital city of central China's Henan Province and one of the second batch of such pilot cities, total foreign trade via e-commerce channels in the Zhengzhou Xinzheng Comprehensive Bonded Zone surged by 114 percent to 4.45 billion yuan (about 642 million U.S. dollars) in H1. This statistic shows the retail sales value of cross-border e-commerce in China in 2017 and estimates up to 2022. Roughly half of all China’s eCommerce sales are made on mobile devices. This article is adapted from “Cross Border e-Commerce in China.”In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC.We begin by introducing the market landscape, before diving in to the sector’s legal and regulatory framework. Online wallets are the top payment method, nearly 33% of Chinese shoppers use it to complete transactions. In 2018, the value of China’s cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. Foreign websites must go through the country’s censorship system, which is referred to as the “ Great Firewall of China .” While cross border e-commerce (CBEC) is an attractive channel for foreign businesses to sell to China, misunderstandings over how CBEC in China works frequently end in costly disappointments and retreats from the market. On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. I share it as well. Foreign investors wishing to establish an e-commerce operation in China, however, need to consider several significant commercial, practical and legal issues before investing. Alibaba-owned Taobao is no unknown to the e-commerce industry. Over the years, the Chinese e-commerce market has changed a lot, revolutionizing the traditional system for both consumers and sellers. Truth be told, most foreign SMEs in China have no chance of succeeding, or being competitive, as an employers in such a shark tank, that is, tier 1 cities. We will talk about it later in the post, don’t miss out. In China, you cannot open an e-commerce business unless you get approval from the Chinese Government. Taobao Marketplace is a China’s largest C2C shopping destination. In fact: The app has recently launched its affiliate program: Taoxiaopu. As the number of mobile users rises, the importance of social media has increased. For instance, L’Oréal took the chance and evaluated its digital sales with “very good e-commerce results” (L’Oréal 2017, p. 51). We seek to form long-term partnerships with serious projects. The demand for fashion is growing much faster than other consumer demands. The thriving digitalization in China offers opportunities for foreign companies to break the fences and penetrate the market or access resources with new business models. The Little Red Book app displays product photos and videos posted by users as soon as it starts up. In particular, live-streaming sales events on e-commerce platforms and social media are increasingly popular. Other platforms like Meituan, JingDong, WeiPin, Tmall, eLeme, Baidu NuoMi, and DianPing all play an active role in the market, but none are nearly as popular as Taobao in terms of active monthly users. Because the platforms are racing the be the most attractive to customers and brands, we see the development of new marketing tools that we are full of opportunities. India on Tuesday blocked 43 more Chinese mobile apps, including Alibaba's e-commerce app AliExpress, in a fresh wave of web sanctions amid its border standoff with China. The China International Import Expo (CIIE) is one of the world's largest trade fairs, offering a big stage for overseas brands and a "fast lane" for Chinese online companies to introduce more goods to the market. top online marketplaces 2018 in China? Alibaba Group Holding was founded in 1999 and is based in Hangzhou, China. Learn more about our JD.COM services just clicking here. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. We have observed a trend from social media apps to turn toward eCommerce in the last few years. With the development of new technologies, building a beautiful and dynamic website is not a big deal. There are many ways to sell online in China. According to the China E-commerce Report, in 2017, the total value of Chinese online trading had reached 29,160 billion CNY, which occupied 40% of the global e-commerce market and up 11.7% compared with 2016. what opportunities does it offer to brands? The transition for products from the booth to the online shopping cart is getting faster and faster. Different platforms dominate each market. Foreign investment in the telecommunications industry has been strictly regulated and restricted in China. The biggest ecommerce company in China, Alibaba, handled more transactions than Amazon and eBay combined in 2013, totalling more than $240bn. In this issue of China Briefing Magazine, we cover the current laws pertinent to the e-commerce industry in China, as well as introduce the steps involved in setting up an online shop in the country in order to help provide foreign investors with an overview of the e-commerce landscape in China. The fast growth of cross-border e-commerce in recent years has become a new highlight in the country’s foreign trade. In a reliability survey of cross-border e-commerce companies in the first half of 2017 conducted by China’s iiMedia Research, Kaola.com topped the ranking, followed by Amazon.com and Xiaohongshu. Source Statista; Retail e-commerce sales in China from 2016 to 2022 (in million U.S. dollars), projected an incremental rise in sales figures over this 6-year period. We Build your Store, We Promote your Business and You Make it Thrive. The online retailer partners with over 1,000 brands to bring certain amounts of items at a lower price for consumers. China is a challenging market for foreign brands and Chinese netizens are difficult to please. Suning e-commerce platform categories include physical merchandise, such as home appliances, 3C products, books, general merchandise, household commodities, cosmetics, and baby care products, content products, and service merchandise. For example, over 79% of consumers said they planned to participate in Double 11. You may even be envious of this new cashless-based system after returning to your home country. Alibaba’s e-commerce sales are now growing slower than the overall e-commerce growth rate of 34.3% with Alibaba’s sales forecast to increase just 22.8%. The company also provides installation and repair services for electronic appliances. Foreign investment in the value added telecom services (“VAT Services,” including e-commerce operations) must be in the form of a Sino-foreign joint venture (“JV”), and the foreign investor is allowed to take only up to 50 percent equity interest in a VAT Services JV. But if you take a festival like mid-autumn, consumers look for gifts for family reunions, Your email address will not be published. The Study is a very useful tool as it provides a basic … East Asia and the Pacific, China The spread of COVID-19 has generated new approaches to serving China’s 1 billion adult consumers. Background. This solution is considered as the new revolution of distribution in China because major companies like Alibaba have started to find ways to arrange this market. Shopping festivals are great to run unique campaigns, sell limited editions China’s expanding e-commerce market and drive to increase cross-border transactions has created opportunities for foreign businesses (often with the support of their governments) to work with e-commerce companies to promote their products to a Chinese audience. Back in 2017, e-commerce sales outpaced estimates by $44.41 billion, driven largely by sales from leader Alibaba’s Taobao and Tmall. During the same period, the value of online retail reached 7,180 billion CNY in China, up 32.2% compared with 2016. We are the top and most visible Web & Marketing Agency for China you will find on the web. China’s ecommerce market is the largest in the world and internet use is already widely prevalent, continuing to expand with big investment from the government. The middle- to upper-class consumers are now increasing their demand for goods that are not available domestically. Is the brand is new to China, then the priority is Brand Awareness Taobao.com, the most popular online shopping site in China, is a platform for small businesses and individual entrepreneurs to open online retail stores. Any source 2019? Due to the varied nature of CBEC models and platforms, this can be a… Unfortunately, without first registering a legal entity in China, a foreign company is not allowed to hire an employee in China and chances are you won’t get away with calling this person an independent contractor either. China is the world’s leader in e-commerce with the largest number of online shoppers, reaching Thus, technologies allowing users to exchange business information and do electronic transactions mark the era of electronic data exchange and the beginning stage of China’s E-commerce … Cross-border e-commerce is an increasingly important part of this expanding sector, valued at US$26 billion. It features a fast delivery service and guaranteed product quality. contact and confirm with the platform for product entry, It is more high-end than Taobao and the requirement to enter as a seller is high. It draws lessons from the experience of small enterprises in China working together in order to achieve the efficiency and competitiveness in the country; explores the barriers and solutions for developing e-commerce between Asian firms and China. JD Mall offers direct sales of electronics products, general merchandise, books, home appliances, digital communications, apparel, food, and other goods. It features a variety of items and cheap prices. The possibility of showing the total of sales outside the platforms (great to increase conversion). With the development of new technology, one seems to overshadow the rest: Video. "Because of COVID, the real implications and benefits of the free trade agreement have not been explored," said Muhammad Irfan, trade and investment counselor for the Consulate General of the Islamic Republic of Pakistan in Guangzhou. China has enabled foreign investors to fully own e-commerce companies in Shanghai’s free trade zone. China has the largest market (see Figure 1), with gross merchandise value of e-commerce sales expected to grow by 11.2% from 2019 to 2024, faster than the expected 6.6% U.S. growth over the same time period. 1. A great question to which the answer differs greatly depending on how famous the brand is. Taobao.com, the most popular online shopping site in China. Feel free to contact-us, we’de be happy to schedule a call with you and talk more in-depth about the best strategies for luxury, Super good article. The Chinese legal entity can either join an existing Chinese platform or create its own, or even create and manage a third-party platform in mainland China. For this reason, the number of Chinese online platforms and cross-border shopping sites where high-end and niche international brands are growing in popularity and are also driving the consumption updating movement. Consumption among the upper-middle-class is still growing so fast, over 17% per year, and, by 2020, will account for $1.5 trillion in urban China. In the summer of 2019, many things happened in the Chinese eCommerce world, including Pinduoduo beating JD.com has the second-largest e-commerce platform behind Tmall. An app that works with rival giant Tencent and that is promoting social eCommerce. Founded in 1998, JD.com is the largest B2C online retailer in China and one of the biggest competitor to Alibaba. The proportion of consumers who had recently made a cross-border e-commerce purchase reached 67% in 2017, compared with only 34% in 2015. This platform allows significant gains for all participants (the final customer, as well as the intermediary distributors) and therefore the success of the product and its brand in China. Live streaming by KOLs has of course a huge impact on sales conversion but short video ads are also part of the game with unicorn app such as Douyin. Overseas consumer markets have been plagued by the COVID-19 pandemic and cross-border e-commerce has paved the way for foreign brands to enter China. In 2018, the number of digital buyers in China surpassed 560 million with the total number projected to reach 634 million in 2020. Beijing ICP prepared NO.16065310-3, CIIE: Cross-border e-commerce helps foreign brands enter China. Everything revolves around the ICP license, a document issued by the Chinese Ministry of Industry and Information Technology (MIIT) that allows your e-commerce business to operate in China. Currently, in China, online players are taking the initiative to drive this integration. Accelerating digitalization can help small and medium-sized enterprises withstand the pandemic's affect on trade activities. Thanks to various online platforms, such as Kaola.com, Tmall Global, and JD Global, Chinese consumers now can have broad access to products from overseas. It is in charge of the administration of Mainland China's foreign trade pursuant to the Foreign Trade Law. VIPShop focuses on discounts and flash sales. We have 7+ years’ experience in providing an invaluable online strategy to companies looking to penetrate or develop their activity in the Chinese market. WeChat allows retailers to feature online stores and has a convenient third-party payment function (Wechat pay). Copied. E-Commerce in China. Required fields are marked *. Cross-border e-commerce sales made via Shanghai's Free Trade Zone jumped by nearly 60 percent year on year in the first half. For large brands and product launches with significant funding, these are great platforms in terms of the traffic they drive, however they are not a ‘magic bullet’. WeChat Store. Let’s take a look at some of the most popular Chinese eCommerce platforms and understand their specificities. Alibaba got 168 billion RMB in sales and 39% growth on Singles’ Day. (Laywer, IT Software, Consulting, Agency ...) - SEO China Agency, How to Sell Vitamins in China in 2021? The company has the largest fulfillment JD Logistics which provides business partners with supply chain solutions, including warehousing, delivery, and after-sales service. JD.com, achieved RMB 127 billion during this same period, with over 50% growth. Is an e-commerce business viable? In 2018, China’s online retail transactions reached $1.33 trillion and are forecasted to reach $1.99 trillion by the end of 2019. China is the world’s leader in e-commerce with the largest number of online shoppers, reaching China, being the world’s largest e-commerce market, exceeding $ 1.15 trillion (Acolink.com 2018; Vc.ru 2018), will continue significantly contribute to the growth of global retail e-commerce sales - including desktop and mobile commerce, which made up to 10.2% of total retail sales worldwide in 2017 (in 2015, this figure was 7.4%; Emarketer.com 2018). The important thing that really matters is building a website that is relevant to your target customers. In 2019, B2B e-commerce contributed two-thirds of the total e-commerce transaction value in China. - Ecommerce China, Sell Maternity and Infant Care in China – 2020, Live streaming new regulations- Marketing to China, Pinduoduo: The Second Largest E-commerce Platform in China 2020. to use the internet daily to do any type of business from chatting to buying items. Its principal businesses include Taobao, Tmall and Alibaba.com. The C2C giant sells almost everything,  from pets to vehicles. The engine of growth in consumption is the new generation of Chinese consumers which is characterized by the fact of: Over the past 10 years, many platforms have developed, improved to adapt to the demanding and ever-changing needs of Chinese consumers. Benefits of China’s New E-commerce 2019 Regulations; Models to Start a Business in China’s E-commerce; China’s E-commerce Platforms Comparison; How to Start an E-commerce in China Without a Legal Entity; Summary. We Setup Stores and run smart Digital Marketing Campaigns in China. This concept involved the integration of online and offline retail elements, including products, services, logistics, big data, marketing, management, and so on. Since the term “new retail” was used by Jack Ma in 2016, it has been an important topic for manufacturers and retailers alike. In fact: the products are usually offered by small business owners. In 2020, according to statistica “the revenue is expected to show an annual growth rate (CAGR 2020-2024) of 6.9%, resulting in a market volume of US$1,309,535m by 2024.”. by Sheng Lu China has one of the most lucrative and rapidly growing retail markets in the world. This affiliation program worked so well that Taobao’s later launched it’s own affiliation program know as taoxiaopu. Looking at it from a market perspective, tier 1 cities are a horrible place to build and sustain a capable and long lasting team. Related services. The requirements are still quite high. 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