The demand of western brands’s products by Chinese consumers is growing.
In order to satisfy their desires, Suning decided to launch its new e-commerce platform usa.suning.com where Chinese customers can purchase foreign goods.
The firm’s global expansion plan
Suning is China’s biggest appliance retailer and e-commerce which last November 11 has launched its new United States online shopping service. Multinational brands like Weleda, Revlon, Maybelline, Enfamil or Burt’s Bees are now available through Suning. In addition, the Suning company plans to launch more online stores over the world in order to continue its global business expansion.
The company’s main objective is to provide high-quality products and a diligent customer service to the Chinese e-shoppers. Suning will indeed offer home delivery in China through Shunfeng Express and its consumers will receive their orders within 7 or 10 days after ordering online. In the U.S., Suning will continue its “offline-to-online” business model. Customers who buy goods online will therefore have the opportunity to return the products to the nearest off-line stores, except for food products.
Many Chinese consumers are increasing their interest in using online platforms to buy western products. The main issues for local customers are the international shipping fees. However “The fact that there is such a strong demand for US and foreign goods, e-commerce players would be foolish to miss this chance,” said Zheng Yuhuang, a professor at the communications department of Tsinghua University.
Cosmetic and beauty e-commerce.
Chinese consumers have an insatiable desires for foreign products, especially those from the United States. Cosmetic and beauty e-commerce in China, is mainly occupied by multinational brands. As a result, the American Procter & Gamble, the Japanese Shiseido, the French L’Oréal and the English Unilever are sharing the biggest market share.
Only 31 percent of beauty brands have an e-commerce platform on their own website and 48 percent of cosmetic brands are selling products through Tmall, Amazon or other platforms. As reported by a Suning research, China’s cross-border e-commerce sales will grow by more than 100 percent next year.
For example,L’Occitane a French cosmetics company announced its desire to open a virtual store on Tmall.com, in order to expand the brand’s presence over the Chinese market.
It is a fact that the local cosmetics market is very competitive and that Chinese consumers are worried about the authenticity and quality of the products that they are purchasing. That’s why e-commerce platforms have been launched, in order to allow beauty companies to open their own online store to ensure their goods’ authenticity. However these platforms are considered more advantageous for consumers than for the brands.