As it primarily proposes group deals, vouchers, and coupons, Meituan Dianping, participates in the e-commerce landscape by referring to other shops, even though its key websites don’t sell products directly. A very protected market, China has spurred the development of multiple local players who are fighting for domestic market share and gearing for global expansion. After the first store opening, Aldi launched a mini-program on WeChat. Online consumers have changed their e-commerce consumption habits as a result of the COVID-19 pandemic. The core value proposition of these e-commerce platforms is similar – more products, offered at better prices, delivered through a compelling user … Asyou can imagine, that’s a significant reduction in red tape. Revenues from online sales continue to record double-digit growth. It probably comes as no surprise that e-commerce has also been hugely affected by the global pandemic in 2020. Tmall is a leading business-to-consumer retail platform that allows multiple local Chinese and international brands to sell their products to consumers online. The percentage of female shoppers, age, education, income and time spent on specific platform will play a crucial role for brands. Website: vip.com – Estimated monthly traffic: 6.1 Million visits. Minimum monthly sales volume of the store: One million RMB +. Vipshop is an e-commerce platform specialized in discount sales. When entering China’s E-commerce space, both the platform’s business model and your brand’s business model should be “on the same page”. Become the first e-commerce market in the world in 2013, the Chinese are at the forefront of online shopping. The same goes for AliExpress, the group’s retail export site, as it does not allow customers in mainland China. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C). Local businesses will be expected to pay 1000 RMB /150 USD as a monthly platform usage fee, whereas foreign enterprises will be paying 1000 USD per month. Flagship means “branded” and requires a trademark. Brands have multiple options to choose from with regards to Chinese E-commerce platforms. Platform size: The platform’s audience size matters. Founded in 1996 as Suning Commerce Group Co., Ltd, it operates more than 1,600 stores in China, Hong Kong, and Japan, and has now renamed to Suning.com Ltd to embody its expansion to e-commerce. This blog post was originally published by Melchers’ Partner Hi Com, an international communication and localisation agency. Copyright 2019 @ Melchers | All Rights Reserved, Discover the evolution of e-commerce: China in 2020, 100 Questions and Answers on China Business 2020. It will cost 300 RMB annually to use this platform. Website: dangdang.com – Estimated monthly traffic: 5.95 Million visits. The estimated monthly traffic from the top 10 e-commerce platforms previously listed shows the lead of C2C platform Taobao with about 450 million monthly visits, before the two B2C platforms JD.com and Tmall, which stand around 200 and 150 million visits per month respectively. As such, China’s e commerce sector is more than three times the size of the US market, which ranks second. Besides these platforms that provide products from multiple categories, one company can also be remarked for particularly standing out, even though it is not purely in the e-commerce market. As a result, iiMedia Research claims that China’s online grocery market can expect to grow 62.9% in 2020 to 264 billion RMB compared to a 29.2% growth last year. Marketing: To try and reach one million US dollars in sales per year, it is likely that you will need to spend at least $10,000 USD each month on marketing. Tmall is an Integration of the Taobao app. Within our Emerging Internet cluster, our largest portfolio exposure is to e-commerce, where we have invested in e-commerce platforms in China, Latin America, and Southeast Asia. Foreign brands often struggle when coming to China as they are unfamiliar with local tastes, shopping habits. E-commerce livestreaming has became a phenomenon in China since the outbreak of COVID-19. Kongfz.com is an online marketplace specialized in books. The €100 billion mark was reached in 2019. The original post can be found here. Whilst 84%, took the opportunity to try out new programs and services during isolation and quarantine. And even though China has not yet reached the high-income economic status, it is well on its way, with the largest cities already enjoying income levels that are similar to the most advanced economies. They offer instant delivery to customers within three kilometers of the Shanghai locations. E-Commerce in China: The COVID-19 Impact. Founded in 2003 by Alibaba Group, it follows a model that is similar to its American counterpart eBay as a marketplace where goods can be sold with a fixed or negotiated price, or by auction. The #Magnumpleasurestore# hashtag on Weibo received 530 million views, and over 10,000 discussions. Jingdong, commonly known as JD.com, is China’s second-biggest ecommerce retailer, holding about 17% of the market in 2019. Whilst the safety deposits are also very low, with a maximum payment of 10,000 RMB/1500 USD. The most popular sales platforms such as Taobao, Douyin, Kuaishou, all have their own star live streamers. It’s driving by the increase in the number of buyers and the frequency of purchases, as well as the development of new offers and new services for customers. This requires a Local ID. It jointly opens an artistic pop-up Pleasure Store with famous designers such as CÔMME des GARÇONS, Rei Kawakubo and Alexander Wang. The Chinese leader in e-commerce, Alibaba Group is however present through various other websites below: notably Taobao, Tmall, and Alibaba1688. Many experts agree that consumer behaviour has changed significantly in the first quarter of 2020 as a result of Covid-19. Besides its founder’s (Liu Qiangdong) 15% stake, JD is owned at 20% by the Chinese tech giant Tencent, and 12% by the American retail giant Walmart. In 2018, Aldi launched an online flagship store on its site. By making easier, promoting, communicating and online purchasing. Furthermore, the country’s appetite for technology only pushes the e-commerce market forward, making it already a leader in certain categories, especially in mobile commerce and payments. Suppliers provide products that are sold on Tmall, JD mall, Tmall’s membership store, Alibaba’s Hema and many other markets. Known for its innovative and dynamic nature, the market is estimated to be worth more than 1000 billion dollars by the end of 2020.Let’s look at five e-commerce … Therefore, they decrease activity on social networks. During China's Singles' Day festival last year, Alibaba's Taobao Live contributed around 20 billion Yuan (US$2.86 billion) gross merchandise volume, or about 7.5% of the company's total sales . Since then, mobile channels have continued to grow and now account for 22% of e-commerce site revenues. Livestream e-commerce has been covered by our team here and is a clear trend that will be around for a while. Whilst many companies also understand the importance of localizing content in order to appeal to and to be understood by their target customers. Here are the hottest e-commerce live streamers from each platform in 2020. The world’s second-largest market for e-commerce, China has the world’s largest population that is also very tech-savvy. Implications for brands: China’s lucrative cross-border e-commerce market is projected to reach $164 billion in 2020, according to Statista. For Tmall it would be a TP (Tmall partner) and would require a brand’s letter of authorization. It probably comes as no surprise that e-commerce has also been hugely affected by the global pandemic in 2020. On PingDuoDuo with group buy priority, brands will need to consider a special price structure for different group sizes. More than $106 billion is expected to be invested in this infrastructure in 2020. After creating brand recognition and a strong marketing image, Aldi opened three different stores in Shanghai. The Group was founded by Jack Ma, who stepped down from his position of chair during the recent milestone. On Xiaohongshu, a review and advise platform brand should work closely with content creators in order to generate traffic and sales. –  Exclusive Distributor: similar to a local enterprise, an exclusive distributor is a representative of one or two brands that have an exclusive distributorship right with those brands. China's fast-moving consumer goods (FMCGs) suffered flat sales in 2020 following three straight years of growth, as the average selling prices (ASP) declined an average of 2.1% in … The safety deposit is around 20,000 RMB/3000 USD. Most brands tend to approach one of China’s most popular platforms, Tmall. Published by Yihan Ma, Sep 17, 2020 The emergence of China's e-commerce market inaugurated a new era of the country’s economy. Your email address will not be published. According to the projections, by 2020 e-commerce market in China will be bigger than American, British, Japanese, German and French e-commerce markets combined. This will equate to almost 20% of total e-commerce sales in the country this year ($832 billion as estimated by Statista). A very protected market, China has spurred the development of multiple local players who are fighting for domestic market share and gearing for global expansion. Now, the growth of China is fueled by e-commerce. Save my name, email, and website in this browser for the next time I comment. Foreign goods remaining popular with Chinese consumers compared to brands from home. E-commerce is already a well-established field in mainland China, but in the wake of the COVID-19 crisis, it's more important than ever. Top 30 companies of China in the Shanghai Composite index 2020, The most transformative products for your work and business, World Top 30 best-funded Fintech startups 2020, Top 30 largest US financial companies 2020. Have you ever bought goods or services from them? Amazon China is an online shopping website focusing on selling imported products to Chinese customers. Reasons like convenience and cost-savings are prompting people to adapt ecommerce, while fact… The Chinese government has supported the growth of the e-commerce market during the outbreak as a way to maintain domestic consumption and boost cross-border trade, introducing a number of new policy initiatives in the first half of 2020 – including a near-doubling of the number of e-commerce pilot zones. Suning.com is a chain of department stores providing electronic products and home appliances, general merchandise, household commodities, cosmetics, and baby care products, or even car parts and financial services. Cross-border e-commerce in China holds a specific distinction.International companies are allowed to sell certain goods to Chinese consumersonline, through platforms such as Alibaba’s Tmall Global and Kaola, atpreferential duty rates and without a license to operate a business in China. With more than 850 million internet users, the Chinese market is by far the largest in the world. The opening of new online businesses often encourages e-commerce companies to adapt their digital strategies according to their target sector and preferential region. JingDong requires strong marketing on its platform, as well as knowledge on PPC type of advertising. China's e-commerce and food delivery giants are reaping the benefits of an increasing number of consumers shopping online and businesses trying to digitize, a … However, despite the strict restrictions, it is clear that e-consumers have now adapted to the current global situation. Do you have any queries or comments about our website, our products or any of our services? –  Personal store: a personally owned store where anything can be sold, usually a small business/DIY type of store. Website: tmall.com – Estimated monthly traffic: 153 Million visits. The Chinese market has developed lots of successful E-commerce platforms. Most countries will still see strong growth, but two large markets, India and China, will decelerate substantially compared with recent years. Website: 1688.com – Estimated monthly traffic: 49.8 Million visits. Those who set up their store on this platform without fully researching if there is a demand for their product will struggle. If you continue to use this site we will assume that you are happy with it. Required fields are marked *. Enterprises will have a commission of 4-6%. Website: kongfz.com – Estimated monthly traffic: 5.1 Million visits. Many experts agree that consumer behaviour has changed significantly in the first quarter of 2020 as a result of Covid-19. Founded in 2002, it has become one of the leading books platforms in China, and also selling abroad, both for new and vintage books in Chinese. E-commerce has evolved a lot since it was first introduced. It is also important to consider the Millennials (also commonly known as Generation Y or the people born in the 1980s and early 1990s) as they too are key consumers. Alibaba1688 is a business-to-business marketplace focusing on domestic trade in China. The Hottest E-commerce Live Streamers in China 2020. With such a large and sophisticated market, the competition in the Chinese e-commerce market is one of the world’s fiercest. However, the brands that target top tier cities may find their competition to be much more ambitious. Here are some models to choose from: –  Regular Local Enterprise: registering on a platform as one of the local businesses (even fully foreign-owned corporations), requires a Chinese business license. The gaining popularity concept of pop up store solves many problems for brands and improves their online performance providing a new topic of discussion and buzz around the brand. To help you grasp the volumes and the competition in the Chinese e-commerce landscape, here are the current top 10 leaders of e-commerce platforms in China in 2020 and their estimated monthly traffic from SimilarWeb, as of August 2020. –  Flagship store: available for Local and Overseas Enterprises on various platforms. This can vary from working abroad, to working with local partners or hiring a local team. JD.com, which stands in Chinese for Jingdong, is a B2C online retailer. There is a large percentage of males searching for high-end electronic products. Consumers standing in the long queue are encouraged to subscribe to Magnum’s WeChat account and uploading photos on Weibo for the chance to get a full refund for their purchase; at the same time, authorizing Magnum to obtain consumer information with the aid of social media that could be managed for future customer care. Beijing, Shanghai, Nanjing and Chengdu, are the chosen locations of the brand for a spring-summer time. Observers forecast that Alibaba’s Hema and JD.com’s 7Fresh supermarkets, that offer 24/7 deliveries for online orders, will continue to battle for space within the online grocery market throughout 2020 and beyond. Website: jd.com – Estimated monthly traffic: 198.5 Million visits. This number was at 1.32 billion in 2014 and is estimated to reach 2.14 billion by 2021. China: Revenue in the eCommerce market is projected to reach US$1,117,204m in 2020. With more than 20 million visits per month Dianping.com, is the leader in online deals, and the second website, Meituan.com, which was acquired by Dianping, also reaches about 10 million visits per month. This presence also makes Meituan Dianping a notable player of online shopping in China. Resources, tools and data for business, money, tech and finance. Your email address will not be published. E-commerce is a booming sector that offers a completely different customer experience to any physical store. The Chinese internet and e-commerce landscape which now counts hundreds of millions of users is now one of the world’s most mature and advanced, as the Chinese have become well-accustomed to using their phones and computers to buy almost anything and pay for it online. May 6, 2020. However recently, brands are reporting more and more that their sales are decreasing dramatically on Tmall. Which as a result, has created interest from foreign brands seeking new opportunities to enter the Chinese market. That is plus 27% year over year and a quarter of China’s total retail sales volume. Website: amazon.cn – Estimated monthly traffic: 11.2 Million visits. In 2018, Kantar Media released a whitepaper to show which businesses best suit the different types of E-commerce platforms: The Platform’s audience is often a deciding factor for brands to join a certain marketplace. Launched in 2008 by Alibaba Group’s Taobao as Taobao Mall, Tmall sells a broad range of products including fashion, clothing and shoes, cosmetics, jewelry, home and baby products, and packaged foods in mainland China, Hong Kong, Macau, and Taiwan. The China e commerce market is the largest in the world with a volume of 1.94 trillion USD in 2019. Managing a business on JingDong (JD.com), can be as expensive as Tmall, or even more. Thanks to social networks, e-commerce has been able to develop more and more. E-commerce revenue through livestreaming is set to double in 2020 to $135 billion, according to iiMedia Research. Baozun's third-quarter 2020 results speak to this fact. Jing Tian and Ming Xi were invited to share their in-store photos prior to the grand opening of the pop-up store, to trigger people’s curiosity and stimulate fans’ willingness to retweet and preheat the offline event. Website: suning.com – Estimated monthly traffic: 17.2 Million visits. However, the store design template is free. Different E-commerce platforms in China require different levels of investment. Dangdang is an online B2C department store. As from 2013 Magnum is experimenting with pop-up locations in China. This growth also benefits from the increase in mobile purchases. It is important to understand local shopping and product searching habits. Over the years, the Chinese e-commerce market has become a source of inspiration for Western brands and retailers. Website: xiaohongshu.com – Estimated monthly traffic: 16.8 Million visits. 07 Number of employees in the e-commerce segment China 2012-2017, by type 08 Listed companies in e-commerce China 2018, by category B2B e-commerce 10 Transaction volume of B2B e-commerce in China 2012-H1 2018 11 Revenue of China's B2B e-commerce market 2012-H1 2018 12 SME B2B e-commerce platforms revenue in China 2012-2020 Alibaba, JD.com and Pinduoduo will command 83.6% of the retail ecommerce market in 2020, compared with 80.3% last year. The world’s second-largest market for e-commerce, China has the world’s largest population that is also very tech-savvy. Alibaba and JD: the e-commerce giants dominating China 1) Alibaba Group. But its two main websites deserve a mention as they still reach a large portion of the market. Unsurprisingly, the development of e-commerce has altered the way in which consumers shop online. 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