Running an e-commerce website can be overwhelming. From the inception of ideas to checking out inventory to marketing, building SMART (Specific, Measurable, Attainable, Realistic, and Time-bound) goals for your business is indispensable regardless of your industry.
This is the reason why many companies are venturing out in the e-commerce sector. In the global market, the total retail sales will reach $22.049 trillion in 2016. Asia-Pacific region remains the biggest retail e-commerce market. It’s not surprising at all as the bulk of e-commerce records come from China where sales are expected to reach $899.09 billion.
The trillion-dollar industry is expected to grow in China. In fact, online shopping itself is part of every Mainlander’s life, whether it’s ordering an appliance on Taobao or imported infant milk on Haitao, the
online shop for imported products. Believe it or not, you can almost buy anything on Taobao. From cars to travel agency services, if you think of a product right now, it’s probably posted there.
5 Things You Need To Know About China’s Single’s Day Shopping Frenzy
If you’re running an online shop and you have plans in the future to expand in China, these questions might help you for long-term.
- How unique is your product? Is it something that a consumer would demand and use every day? Won’t they find it in China?
- Are you offering premium and high-quality raw materials?
- Have you done your homework and made research on your target audience? China is big, and so there’s diversity of consumer behavior on the domestic level.
- Do you have a local partner who’ll be doing the groundwork for you, especially help you build arobust logistics?
- How much are you willing to spend on your digital assets, especially your website? Website translation, localization, and marketing from the ground up?
And this where things become more exciting. Having an online shopping website translated into Chinese can be your first step to tap your target market. But of course, we want to inform you, too, of the current situation in cross-border e-commerce.
Cross-border e-commerce industry is facing policy uncertainties, yet middle-class are contributing to the growth
According to South China Morning Post, “Dubbed Haitao in Chinese, the 120 billion yuan in cross-border online trade propelled by demand for global brands and facilitated by an explosion of online
market places in China is now plagued by policy uncertainties over tax, product safety and logistics issues, according to a report issued Thursday by consultancy Oliver Wyman.”
The changes of regulations only show the booming cross-border e-commerce market that the government needs to release tax and logistics reforms. Because Chinese consumers prefer to buy luxury goods in exchange for high-quality and food safety, many e-commerce companies overseas are taking advantage of this trend, especially the purchasing power of upper and middle-class consumers.
According to Goldman Sachs, there is 770.4 million working population; 11% of them are considered middle class.
From desktop to mobile: you can’t ignore the statistics on m-commerce in China
There was a big shift on e-commerce in China for the past few years. Most consumers are on the go and smartphones have become part of their lives; browsing is done on mobile phones. According to
eMarketer, “Analysys International Enfodesk reported that nearly two-thirds of retail and consumer-to-consumer (C2C) e-commerce sales in China in Q4 2015 occurred via mobile.”
“That was up from 55.5% the previous quarter—the first time mobile accounted for a majority of ecommerce sales in the country.” Most online shopping are done via mobile phones in China, and this is the reason why a responsive and mobile-friendly website is indispensable. It’s the lifeblood of your business, without it, you’re going to lose a lot of money.
In 2015, China’s mobile users hit 1.3 billion, as if almost everyone owns a mobile phone. 29.6% of the mare 4G users. Did you know 71% of Alibaba’s Single’s Day sales came from mobile devices? So, mobile commerce should never be underestimated.
And companies still continue to tap the Chinese market despite the uncertain government policies
Many overseas e-commerce companies are not taking the records lightly. This is the reason why small businesses beyond China’s borders are taking steps to attract this huge market. Macy, the largest department store in the US, will launch its own e-commerce website in Chinese next year.
Sweet Mandarin, a UK-based company run by two sisters also launched an e-commerce site to sell Chinese condiments. Walmart teamed up with JD.com to expand online shopping options. It’s because, despite the challenges, China market itself is worth to venture out. No one can’t ignore the world’s largest e-commerce market. It may not be done as quickly as you plan, but slowly, you can scale your business for long-term if you’re willing to risk and you have a unique product proposition.
So, let us know if you want to be the next in line to expand your e-commerce business. You can checkour localization and translation services for more information. Some companies also build their own WeChat marketing strategies to promote their products on smartphones. Check out our
social mediamarketing services page for more details.
If China is not in your e-commerce strategy, you must have been out of your mind.