With his digital market-boggling, and his great appetite for foreign products, the China dream online vendors. But building an e-commerce strategy cross-border or cross-border, in the direction of this country, demand a great knowledge of these characteristics and a solid strategy.
China is by far the world leader in e-commerce. According to the specialist of the market research eMarketer, online sales have reached in the country $ 900 billion in 2016, which is… almost half of the e-commerce world. In 2018, they are expected to rise to more than 1500 billion. The annual growth to two digits are the norm, drawn by the double boom of the middle classes and access to the internet. And the scope for growth remains huge: for now, at least a third of the population buys online.
Among the purchases, a growing share outside of the borders. Still according to eMarketer, 181 million Chinese (40% of e-shoppers in the country) have made at least one online purchase from a foreign vendor in 2016. They could be 292 million in 2020. Such a market has what to do dream. But is China really an eldorado of e-commerce cross-border? A seller French, european, can it really get a foothold?
The price, availability, quality
first, it is necessary to understand the motivations of the chinese consumer to turn to a foreign vendor. Three reasons dominate. In the first place, the availability of the assets: number of western products, of which the middle classes are fond of, are not sold on site.
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Then, the price. “This is a market very driven by the price, says Stéphane Rouquette, referring to the France of Azoya, a company that develops web sites for e-commerce cross-border to China (with clients such as La Redoute, 1001pharmacies.com…). If a French product is sold, 100 in China, but 50 here, plus 10 shipping, many consumers will come from France, left to wait a little longer.”
Finally, the quality. Since the scandal of cow milk adulteration in 2008, the issue has become sensitive. And many Chinese prefer to buy certain types of products abroad, where their authenticity and traceability is guaranteed. In the light of these three criteria, some families of French products have more potential than others: pharmacy, cosmetic, food and delicatessen, fashion…
reputations form and break very quickly
Still it is necessary to grasp the specificities of the chinese market. “Culturally, the Chinese do not have online shopping like us,” explains Stéphane Rouquette. On the one hand, they use much more the mobile. On the other hand, they place a lot of importance to photos, social networks, recommendation. Do not send them a newsletter, they will open not even! To address this market, it is necessary to reset everything one knows in the western world.”
In China, the reputation of an e-trader can be done very quickly… but also to get rid of. “If the experience is positive, the consumer will not hesitate to do so know in their network, on specialized sites, etc., continues the specialist. But they will do the same if it is negative… Everything can go very fast, in both directions.” Hence the importance of keeping promises, and caring for the customer experience and after-sales service.
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For Stéphane Rouquette, regulatory and customs, “the current trend is rather favourable to e-commerce cross-border”. But achieving a foothold in this huge market demand in all cases a real strategy. “Develop the site alone in the corner, this is the assured failure. After that, it is necessary to study the various proposals of value, between having recourse to a company such as ours, and pass by a market place like Alibaba (which operates Tmall, a platform leader in China], or JD.com where be good place to pay very expensive. It all depends on the type of product being sold, the reputation, if you’re a brand or a distributor… It is a case-by-case basis, and this can be very complex.” China, an eldorado? Yes – but access is not given on a first come basis.