E-commerce is the new economy’s growth’s driver in China. Then, it is still progressing thanks to Chinese consumers super connected. Moreover, Chinese consumers purchased $589.61 billion worth of goods online in 2015, a 33.3% increase from a year earlier.
When you are launching your e-commerce business in the Mainland, many things are different and strategies are uneasy to adopt. That’s why, you need to inform yourself on the Chinese market. You want to develop you own local presence or work through provider to manage your sales? Creating an e-commerce platform in China is not a small issue.
Choosing the most effective e-commerce platform in China
In China, out of Social Networks platforms which enables to boost brands’ awareness. It is crucial you pass through the most of famous Chinese e-commerce platforms Tmall or Taobao which enable you to avoid some of administrative processes and import your products at low taxes.
TMALL and TAOBAO
The Chinese e-commerce market is totally different than in other countries. Indeed, there are effective key players in China which allows smaller platforms to work. However, even if they are expanding, their sells’ percentage is not enough to remain over the years except from JD.com and YHD.com.
The Alibaba Group, holds the largest Chinese e-commerce with Taobao and Tmall which both own 80% of the total e-commerce market in China and receive more over 100,000,000 a day.
Which difference?
Taobao
Taobao is a huge online marketplace on which anybody can sell his products including customers and businessmen.
Then, this platform is more cost-driven. Indeed, if you choose Taobao, you compete with thousand small local businessmen who propose different prices than yours.
Tmall
In contrast to Taobao, Tmall is exclusively devoted to professionals. Moreover, you need to have license-holders which allow you to sell your products. In addition, you need to have your own local company or work with a third-company provider with a local presence. You have to show your rights to sell your products
Tmall is brand-driven. It represents a huge opportunity for foreign e-commerce companies to launch their business in China.
Therefore, if you want to sell on Tmall, you will need to invest a lot of money. Actually, it is crucial to plan a specify strategy and money you will need. That’s why, you have to know your target, what is your long term goals and how you are going to put forward the brand in order to sell your products. Finally, you will be ready to choose the good platform.
Working with an intermediary
Launching your e-commerce business can be very long, especially procedures to follow for a Wholly Foreign Owned Enterprise (WFOE). Thus, in order to develop your Tmall presence, you will need to employ an intermediary company which will assist you in your online sales. Thus, this way gives you more time to develop your strategy and get necessary funds. However, you risk to have less control on your business. So, you have to define the rights of your business.
Then, in order to avoid this intermediary company totally takes part of your brand, you have to write up a contract regarding Chinese rules by arranging a local law office to assist you. Ensure you receive an English contract which has to be exactly the same than the Chinese contract before sign up it.
In addition, you need to know how the company put your brand forward and how it is warehoused on the website, how logistic issue is handled, how return-policy is respected for your products sales.
Selling online in China
Don’t underestimate Chinese customers. Indeed, they have different purchase skills than Western consumers. They are not scared to examine your products in details. They don’t pay anything impulsively, so you have to adapt to them and understand their expectations. Then, you will face to a new consumers’ generation who are more sensitive to the way you use in order to engage them.
Tmall, the most effective platform for foreigners companies
Tmall got it, Chinese consumers, though they are particular, can be very patient. Especially for imported products. That’s why, Tmall can have longer delivery dates.
Actually, Tmall allows companies to sell their products directly to the customers if they have adequate license. This enables to foreign companies to launch their e-commerce in China.
Nevertheless, while Tmall is a huge opportunity to promote your brand and increase your e-reputation on the Chinese market, this an important investment. You can’t launch your brand on Tmall if you don’t save enough funds.
So, save money, plan your strategy and succeed on the e-commerce market!