E-commerce Platforms in China

December 7, 2021

 The Chinese economy has grown at an extraordinary rate in the last three decades. New buying patterns have been shaped by social progress, technology advancements, and rising disposable personal incomes. 

With this growing economy, it’s no surprise that Chinese e-commerce platforms are booming. Live-streaming e-commerce, social e-commerce, and cross-border e-commerce are only a few of the new e-commerce modes that have evolved in the market. 

According to a report released by China’s Ministry of Commerce, national e-commerce transactions totalled 34.82 trillion yuan in 2019. There were 10.63 trillion yuan in online retail sales, up 16.5% from the previous year, with physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market, and online retail sales of physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market.

 

E-commerce during the Pandemic

However, the global pandemic has had a significant impact on e-commerce. Many experts agree that Covid-19 has had a big impact on consumer behaviour in the first quarter of 2020. However, by 2021, it is obvious that e-consumers have adjusted to the new global environment, with China’s numbers increasing by 17%.

E-commerce has been able to grow as a result of social networks, which have made promotion, communication, and online purchase easier. Furthermore, Chinese apps such as WeChat have made it easier for consumers to buy things directly from manufacturers.

 

How can brands leverage e-commerce platforms?

To vary their marketing, brands are increasingly developing a mix of daily short videos and live streams within their own social e-commerce platforms. Unlike traditional out-of-home advertisements, where brands are limited to the number of products advertised, e-commerce platforms may now successfully use social media to quickly showcase a variety of different products in order to attract a larger audience.

Using e-commerce platforms in China can be beneficial to a wide number of enterprises. This has become crucial for businesses as a method for generating organic traffic, accurately identifying a targeted customer audience, standing out from competitors with exclusive discounts, and reducing advertising costs.

In China, there are numerous e-commerce platforms. So, which platform is ideal for you if you want to sell your products online?

 

Some of China’s leading e-commerce players

 

  • TMall TMall, or Taobao Mall is a B2C (business-to-consumer) platform.The majority of its merchants are professionals with a legal entity in China’s company registration system. Because all of the goods on Tmall are official and authentic, the average price is higher than on Taobao.The number of international brands and merchants on Tmall Global expanded by 60% year over year as of December 31, 2020. At the same time Paid GMV on Tmall Global increased by 37%.

    This platform is ideal for luxury brands, apparels, electronics, cosmetics and skincare sectors.

 

  • TaobaoTaobao is China’s largest consumer-to-consumer (C2C) e-commerce platform. The website is owned by Alibaba Group, a Chinese internet and technology corporation based in Hangzhou. According to a 2020 report, the platform’s monthly active mobile users reached 902 million, with a rise of 22 million in a single quarter, and yearly active consumers reached 779 million.

    This platform is ideal for all kinds of online businesses.

 

  • PinduoduoPinduoduo is a new but competitive e-commerce platform in China. It was formed in 2015, yet it only took four years to attain a trillion-yuan gross merchandise volume.  Its main benefit is social e-commerce, where consumers invite their friends to buy things and receive discounts.According to Pinduoduo’s most recent financial report, the number of active purchasers on the platform reached 788.4 million at the end of 2020, up 35% from 585.2 million at the end of 2019.

    This platform is ideal for the agricultural and food sectors.

 

  • JD.comWhen comparing Taobao to eBay, JD.com, the second largest B2C platform is comparable to Amazon. It primarily sells 3C products, including cell phones, laptops, and home appliances. They source products directly from brands and suppliers, who then distribute them to clients via JD.com’s official courier.JD Daojia, JD.com’s grocery services. With a total GMV of RMB 21.3 billion in 2020, it grew 102.9% from the previous year.

    This platform is ideal for apparel, electronics and fresh food sectors.

Social commerce

  • DouyinOne of the most popular social media networks, Douyin, the Chinese version of TikTok, is working on an e-commerce website. Since June 2020, ByteDance, the company that owns Douyin, has established an e-commerce department as the first level business unit.Douyin E-GMV commerce’s topped 500 billion yuan in February 2020, more than tripling that of 2019.

    This platform is ideal for the cosmetics, accessories, clothes and food sectors

On our blog, we’re also covering e-commerce on Kuaishou. You can also learn how niche perfume brands are accelerating on e-commerce platforms.

Conclusion

The Chinese internet market is by far the largest in the world, with over 850 million subscribers. Even though China has not yet achieved high-income economic status, it is well on its way, with income levels in the largest cities now approaching those of the most advanced economies. 

Furthermore, the country’s technological thirst propels the e-commerce business ahead, making it a leader in a number of categories, including mobile commerce and payments.

The current situation today in the Chinese eCommerce market is exciting. Because platforms are competing to be the most appealing to customers and companies. This competition not only implies more tools for merchants and consumers, but it also means less stringent registration criteria for companies looking to register on these platforms. 

Hence, this is an ideal way for international companies to reach the Chinese market. If you require further support with setting up your account please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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What Are the Most Important E-commerce Festivals in China?

September 28, 2021

China is not just the world’s most populous country, but it also has the most internet users. And with about one billion online shoppers, the country has the world’s largest and fastest-growing e-commerce market.

The Chinese e-commerce business has evolved significantly over the years, revolutionizing the traditional system for both customers and sellers. Needless to say, the e-commerce market exploded in 2020 as a result of COVID-19, particularly in China, causing an increasing number of firms to want to start selling online. 

And one of the market’s driving forces is the China shopping festivals, which is a massive retail event where firms slash prices in honor of Chinese culture, history, and plain old consumerism. Therefore, all international firms looking to grow their sales in 2021 and beyond should learn about China’s biggest and most important e-commerce festivals.

 

Here at the top 5 e-commerce festivals in China:

 

  • National Day/Golden Week

Golden Week, which commemorates the founding of the People’s Republic of China in 1949, begins on October 1st with National Day and lasts until October 7th. It is China’s longest public holiday, and it generates huge business for international brands.

The total sales for overseas brands on Tmall increased by about 80% last year and several international cross-border e-commerce platforms also reported a significant rise in sales. Luxury brands in particular perform well during this time, with several companies reporting a 60% boost in sales in 2020.

 

  • Double 11 Shopping festival

The Double 11 shopping festival, also known as Singles Day, is the king of all global retail events. During the festival periods in November 2020, Alibaba and JD earned $155 billion in sales.

With more than 250,000 brands and 800 million consumers participating, last year’s sales were recorded as more than RMB 372.3 billion (US$56 billion).

 

  • 12.12 Shopping Festival 

Alibaba introduced the 12.12 or Double 12 Shopping Festival on November 12th in 2010 for customers who were still looking for good deals after Singles Day. The Double 12 shopping festival is one of the largest in the South Asian online buying marketplace and it is that time of year when careful planning and organisation can pay off handsomely for a seller.

Due to rising customer interest, the event resulted in a 4-5 fold increase in online traffic, 60% unique visitors, and a 2 second average order rate. Last year, 18,000 orders were placed in a single day, with an average spend of 125 SGD per customer.

 

  • Nian Huo Festival 

The Spring Festival, also known as Nian Huo, commemorates the Chinese Lunar New Year, which falls in the month of Jan-Feb

Since Chinese New Year is such a popular festival, discounts are available across a variety of platforms, though market giants like Alibaba and JD tend to attract significant crowds. This famous holiday brought in more than $155 million in retail sales in 2019, and sales of imported goods climbed by 2.3 percent year over year in 2020.

 

 

  • International Women’s Day

International Women’s Day, observed on March 8th, has become a lucrative shopping festival in China for female-oriented brands in China.

According to the Chinese Research Centre for E-commerce, 70% of Chinese women prefer to shop online rather than offline. As a result, this is an important e-commerce festival to participate in. Last year, Tmall’s “Own Yourself, Love Yourself” campaign aided female empowerment, garnering more than 600 million hashtag views on Weibo and 2.12 million comments.

 

Conclusion

Online shopping is an accepted part of life in China. Everything from fresh produce and seafood to appliances and automobiles are being purchased online.

Due to the high demand in the market, e-commerce platforms work hard to encourage online shoppers, resulting in China’s numerous shopping festivals. If you want to increase your brands e-commerce sales, you need to be aware of the major e-shopping festivals and plan your marketing strategy accordingly. This is why selling on Chinese e-commerce platforms is the most efficient way to increase sales among the Chinese audience. 

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The Accelerating Growth of Niche Perfume Brands in China

July 8, 2021

Introduction to Niche Perfume Market in China

According to research put forth by Forward, the global perfume market in 2017 consisted of only 1% Chinese consumers. Even though it would seem like a small number, the Chinese perfume market has been growing by more than 15% annually – a rate far higher than any other category in the beauty sector. The report also forecasts the sales volume of China’s perfume industry growing from 25.2 billion RMB (3.7 billion USD) to over 50 billion RMB (7.4 billion USD) by 2023. That is double the revenue in a span of under 7 years which is extremely impressive by all standards.

 

Foreign brands dominate in China, and the big beauty companies you’d expect to see are all leaders in the arena: LVMH, Chanel, Coty, L’Oréal, and Estée Lauder. Today, many Chinese consumers have since developed the habit of using perfumes and consider it an essential part of their daily routines. Let’s look at the market factors that are accelerating the growth of niche perfume brands in China.

 

Gen-Z Perfume Trend Preferences

When fragrances first started gaining popularity in China back in the 2000s, consumers were most attracted by the classics (Chanel’s No.5, Yves Saint Laurent’s Black Opium). But a few years ago, a different opinion started emerging from China’s younger, more discerning generation – Gen-Z. Fragrances by luxury brands were viewed as too pedestrian and common. Many young consumers referred to them as “街香” (which literally means “street scents”). The traditional marketing method for perfumes – beautiful, glossy ads and endorsements by A-list celebrities – also started coming across as passé to this consumer group.

 

According to industry experts like Allie Rooke (beauty consultant and the founder of Clean Beauty Asia), post-90s generations are driving the demand for niche names, and Gen-Z trends are shaping new perfume preferences. Furthermore, they are using it as a way to express their identities, and gender-nonspecific scents are particularly appealing.

 

Online Opportunities

Online platforms like Tmall and JD.com are key outlets for fragrances. Hermès Fragrance opened up recently, along with the launch of Gucci Beauty, featuring fragrances. Both of these were seen in 2021 itself. Cartier added itself to the category by offering names like Panthère and Carat.

 

Popular niche brands to drop on Tmall Global during the pandemic were Replica and L’Artisan Parfumeur. These two brands were backed up by social media, which was vital for their amplification. Baidu optimization is also essential for brands to improve their visibility.
Perfume KOLs and bloggers are on the rise too. Weibo’s top KOLs include names like Sunillusion, Initialscent, and The Perfume World of CC (CC的香水世界).

 

Home Fragrance Market

Home fragrance is booming in China. There are more home fragrance choices than ever before and the marketing strategies for perfume and fragrances has been very strong lately, with lots of celebrities and KOLs sharing their decor and candle purchases on Chinese social media. Not to mention The Chinese have burnt incense ever since the Han Dynasty.

 

Chinese luxury consumers only bought perfume and fragrance because of their brand names. These purchases were less about the scents and more about the status quo provided by the brands. But now, Gen-Z consumers want to know how to change their interior fragrances as part of their holistic luxury lifestyles. This demand continues to grow thanks to social media platforms like Douyin. Find out more about how to leverage Douyin for your brand.

 

What To Infer

It is safe to say that Chinese consumers today no longer desire to smell like cookie-cutter bottles of designer perfume. Many of them are looking for something a little more personal and complex – be it in the form of their favourite tea, or the scent of freshly cut grass. They need variety to pick the right one that suits their needs. While it remains to be seen if this category will continue to grow exponentially, it is certainly one to watch.

 

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E-commerce on Kuaishou

October 9, 2020

Kuaishou is one of the most famous short video apps in China having more than 200 million daily active users. 80% of the users were born after 1990, among which the average usage time can be around 60 minutes per person per day. Moreover, 19 million people have started to earn regular cash flow from Kuaishou. Looking at the overall user distribution, users in first-tier cities only account for 10%, while users in second and third-tier cities are the main users of Kuaishou.

 

People record, edit and share their lives through photos, short videos, and live streaming almost every day. E-commerce focuses on turning offline sales into online ones, so Kuaishou has made it possible to turn offline operation mode online with the help of live streaming and short videos.

 

The rise of short video e-commerce on Kuaishou benefits from three factors:

 

  • Social Participation

People on Kuaishou make high-quality videos and regular quality live streams that receive a lot of social support that turns into profit. There are 4 ways to enable people to participate on the platform: 

    1. Advertising on short videos, which is a consistent way of generating income but does not guarantee audience interest in the product or conversion.
    2. Short video e-commerce, which provides value to the products, instigating people to make a purchase just on the product merit. This ensures conversion but lacks a little bit of customer retention and resale.
    3. Live streaming profits, which are probably the most effective way of conversion, customer interaction and trust-building, which in turn also increases the chances of resale.

 

  • Transparency of Products

With the help of short video and live-streaming, consumers can get a better look at the goods and their source, while sellers can show the characteristics of different products in the videos or streams. Kuaishou always insists on promoting activities related to brand traceability so the buyer is satisfied with the seller and the product before making the purchase.

 

  • Sales Platforms

Kuaishou can connect itself with third-party e-commerce platforms like Taobao, Pinduoduo, and JD by taking advantage of the platform’s interoperability. This helps leverage an already existing e-commerce platform on Kuaishou to enforce a better and more familiar user interface while cutting down on the maintenance and development time.

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An Overview of the E-commerce Market in China

September 18, 2020

China is at the top of the e-commerce market with its big players like Alibaba and JD.com.

It has more e-commerce activity than any other country in the world. In the year 2017, China’s e-commerce expenditure was more than $750bn online – more than the UK and US combined.

While some sectors of the economy struggle for survival in a sudden, new, harsh reality, e-commerce is faced with massive demand. Since many of us are confined to our homes, we mostly rely on online shopping, leading to great innovation in e-commerce. There are two key trends that are transforming e-commerce in China by adding entertainment to the mix: social buying and live commerce.

(more…)

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How WeChat boost E-commerce in China?

February 9, 2018

WeChat is one of the most widely used apps in China. With over 900 million users, the app has been making waves in China with their constant innovations and updates!

 

It’s only natural that the most popular app has somehow affected the purchase behavior of users online.

 

Let’s see how WeChat has impacted the Digital consumer trends –

 

Mobile

 

Mobile has become the most popular device for online shopping in China. Around 84% of consumers have made their purchases from a mobile device in 2017 whereas it was 71% in 2015.Since the majority of the sales are made on mobile, brands must be able to advertise and engage with users on the platforms they frequent the most.  

 

Social Media

 

In an era where social media is everything, it plays a huge role in affecting the purchase behavior of users. Brands are starting to understand the true potential of social media and they are focusing their energies towards reaching out to potential customers on digital. 51% of consumers open push notifications sent from a brand’s official WeChat account. 27% consumers indicate that they tend to buy more after receiving those notifications.

 

E-commerce

 

The demand for E-commerce in China has been increasing rapidly and acts as a key catalyst for retail. Infact, the growth in E-commerce has been surpassing the growth in offline retail. Last year, online sales grew by 28% whereas, offline sales only increased by 5%.

 

E-commerce across borders

 

E-commerce is not only seeing an increase within China, but also in international purchases. The percentage of customers that buy from overseas website have risen from 34% in 2015 to 64% in 2017. Young shoppers from 18-35 years are the leading force behind this surge.

 

With this huge untapped potential for rise in E-commerce, it would be interesting to see how brands are leveraging WeChat to achieve their goals.

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