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WHAT ARE THE REASONS FOR SELLING ONLINE IN CHINA?

ecommerce

You will find below the 5 reasons why you should sell online in China and the best way to do it :

  • Chinese consumers still broke the world record online.
  • The prices of products are attractive on the internet which push Chinese consumers to buy online.
  • On TMall and Taobao, the Chinese have filled their “caddy” with 2.7 billion euros of goods in 24 hours, passing the US retailers 1.12 billion.

1-PaxE9KdZ7JmpR_VbbgM4Ow (1)And it’s just a taste of things to come.

You will find below five reasons why you should be on the Chinese e-commerce and you will find some rules to drive it.

  • China’s market is huge and the potential is even greater
China has become the largest market in the world.

There are more smartphones sold there than anywhere else, no more groceries …, beer …, antiques and art …

In 2015, online sales in China totaled 523 billion euros, an increase of 33% compared to 2014.

A growing share of the 1.4 billion people in China make discretionary purchases every day.

By 2020, a study predicts 280 million rich consumers in China with disposable income of 18,000 euros to 900,000 euros.

Thus, revenues will have tripled, if not more.

To conclude, no matter what you sell, it is important to take into account the Chinese market.

  • E-commerce explodes in China
By 2014, 361 billion Chinese were buying regularly online compared to 413 million in 2015. The Chinese government is implementing a policy in the hope of quadrupling the annual volumes of e-commerce from 2010 to 2015 at 2.6 million euros.
  • Chinese consumers love Western brands
Just as Chinese consumers like to buy online, they love to buy Western products.

Western brands are generally perceived as better and safer.

According to one study, 61% of Chinese would pay more for products manufactured in the United States.

In some categories, the preference is even higher.

The World Luxury Association revealed that 86% of Chinese consumers refused to buy luxury goods labeled “Made in China”.

  • 61% of Chinese have less confidence in local food than in 2011
  • 28% expect to replace domestic purchases with imports.

Reduces the risk of counterfeit products

Chinese buyers are the most suspicious of consumers because China is known for counterfeit products. (Imitation of big brands for the bags, watches, clothes …) To combat counterfeiting, the most popular site, TMall (B to C), only sells products directly to a brand owner or an authorized distributor, meaning that consumers can buy with confidence .

This bodes well for foreign brands that are much more likely to be copied.

  • Reaching a Chinese population in rural areas

75% of the middle class in China live in “small towns” you have probably never heard of, and most of these cities do not have nearby stores that store foreign brands.

Thus, they buy the products online.

There are nearly 200 cities with more than one million people in China, and online access is the simplest and most effective way to reach them.

No one will argue that China is an easy market.

That’s why you need to build a solid e-commerce strategy in China to educate Chinese consumers.

TIPS FOR E-COMMERCE SUCCESS IN CHINA

Here are some general rules if you want to sell online in China:

5-2-ecommerce-picture

  • The presence on e-commerce platforms must be part of your strategy.
  • TMall (e-commerce platform), represents 45.1% of online B2C sales

Social media such as Weibo is intimately linked to online shopping and should also be a key pillar of your plan. 

85% of consumers use social media frequently to share their online shopping experiences and 55% have participated in a discussion about a foreign brand.

  • The service is important for Chinese customers who appeal before shopping online.

It is best that you have someone to answer queries when the Chinese are shopping online – 7 to 8 am in the morning until midnight is a good guideline.

  • Fast delivery is something that online Chinese expect when shopping online.
  • Payments are not like in most western markets where credit cards are widespread.
The Chinese use “Alipay” which is a trusted online payment.

Your website is not only imperative for online sales, but also offline sales. 37.6% of Chinese consumers regularly increase their knowledge of the brand through websites.

The Chinese market is changing a lot but one thing that is certain is that selling online is a strategy to adopt.

More information about our Agency specialized in Chinese E-Commerce

One Comment to "WHAT ARE THE REASONS FOR SELLING ONLINE IN CHINA?"

  1. Reply
    Pierre
    July 12, 2017 at 2:29 am

    Great article very interesting. It is true that the Chinese market has great potential. Chinese consumers spend more than in other countries. But what is important to know is that they are very connected. Foreign sellers must promote and sell online.

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