The post – COVID19 Chinese market is welcoming to foreign brands wanting to sell cross-border
China’s e-commerce market is the largest in the world and already represents more than 40% of the total global e-commerce spending. Beside pandemic outbreak, cross-border e-commerce in China continues upward momentum. Now in 2020, the China market is welcoming to foreign brands wanting to sell cross-border.
More than ever before, the market follows a stronger set of standards, and is more organized and structured. Even if Today there are also some good local brands in China, Chinese people has still a kind of adoration for abroad goods. Especially when it concerns healthcare, baby products, food supplements or skincare products, Chinese people prefers to turn towards foreign products.
Alibaba & Kaola: The Leaders in The Chinese Cross-Border E-commerce
Hangzhou based e-commerce giant is actually the real number one in China. One example of Alibaba’s dominance was the creation of the Double 11 shopping holiday in 2009. The creation of this shopping holiday has been called by many as an “Ecommerce Miracle, but the event became now the most important shopping event in the world. Moreover, with $38 billion total revenue, “Double 11” 2019 edition has broken every conceivable record. Last year Alibaba aquired Kaola, one of main CBEC platform in China. The merger between the China’s top two cross-border e-commerce platforms created a dominant market giant.
After the entry of Kaola in Ali family, the import business of Hangzhou-based e-commerce giant had been upgraded to a “dual-brand” strategy. According to Alibaba, T-mall Global and Kaola overseas are not competing, they are cooperating with each other. Moreover, Kaola has become a new channel for global companies to develop their businesses in China. And new business opportunities are coming for both merchants and platforms. Data show that China’s imports and exports have bucked the trend this year, with cross-border e-commerce and retail up 20%. Alibaba set a five-year import target of $200 billion at the first import EXPO in 2018. After one year, 123% of the target for the first year was achieved.
JD Worldwide, the best alternative to enter in Chinese Market
JD, better known as JingDong, is the “eternal number two” in Chinese e-commerce and today Tmall and JD together account for over 80% of B2B China e-commerce transactions. Started with a focus on the direct sale of electronic products in the 90s, JD only really started to grow when it took its business online. Launched in 2015, JD Worldwide is Beijing – based e-commerce platform’s CBEC harm and has succeeded by leveraging its large existing userbase on JD.com. Impressively, the platform features almost 10 million SKUs from nearly 20,000 brands. Product categories run the gamut from nutrition and healthcare to home appliances and car-related items. JD Worldwide is divided into multiple national and regional pavilions. The global cross-border eCommerce platform currently has a strong exports focus.
Vip.com: The New Frontier of Luxury E-Commerce
VIP.com or Vipshop was founded by Eric Ya Shen and Arthur Xiaobo Hong in 2008. It is specialized in online discount sales and, currently, it is one of main e-commerce platform in China. VIP Shop is China’s leading flash-sale eCommerce platform, and this sales model largely carries over to its cross-border arm. The platform boasts 10 front-end warehouses, 9 proprietary overseas warehouses, and 4 third-party-operated warehouses. VIP International ensures 100% authenticity for products sold on the platform. The popular flash sales platform now focuses on selling international fashion to Chinese consumers at a discount. VIP.com has been working a lot to upgrade its cross-border platform by adding more high-end overseas products to its catalog and by improving authenticity, selection, price of products, and after-sales service.
Like other cross-border platforms, authenticity is paramount for VIP International, which insists on purchasing products directly from the place of origin. They employ professional buyer groups in 11 countries and regions to guarantee product authenticity from the supply chain.
Little Red Book: The Revolution of Social Commerce
XiaoHongShu (小红书), literally Little Red Book, founded by Charlwin Mao in 2013, is a social ecommerce app with over 250 million registered users as of 2019, and it bases its success on the influence and trust of information shared by the users themselves. At the moment, Little Red Book ranks as one of main cross-border shopping apps (Little Red Book launched its cross-border ecommerce platform, the “RED store” ,in 2014).
XiaoHongShu has formed strategic partnerships with many overseas brands including Lancôme, Swisse, and Innisfree (Brands can open a brand account/digital store on XiaoHongShu). As of 2017, the platform has reached 6.5 billion yuan sales.
With a focus on beauty and fashion, it acts as a platform for people to post and share shopping tips, product reviews, and lifestyle stories. How does Little Red Book new mini program work? You will need to invite at least 50 friends to be your fans before you become a “Shop Owner (红人)”. As a “Shop Owner”, you will get cash rebate when your fans place orders. The cash rebate can be up to 40% of the sales. Currently there are only 10 products listed in the shop. All of the products are already very popular on RED.
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