Digital ecosystem in China
Tapping into the vast and lucrative Chinese e-commerce market requires a strategic approach. And tailored to the unique characteristics and preferences of Chinese consumers. As China internet users are using the nation’s social media platforms such as WeChat and Douyin rather than Facebook, Instagram and Tik Tok.
How to get into China E-Market?
All entrepreneur wants a profitable return when running a business. As the uniqueness of China E-Market, you have to well-prepared in advance.
Market Research and Understanding Consumer Behaviour
No matter what business you are doing, you have to identify your target customer segments based on demographics, preferences, and purchasing behaviour. With your knowledges of your target segment, then found out their preferences. For example, China is a huge country, from North to South, East to West, they have difference cultural and habits. Your product maybe 100% perfect match one area, but totally awful for other. Furthermore, you have to know your competitors including domestic and international. As you need to know what is your opportunities between them.
Establishing an Online Presence
You are nobody to the China E-market at the moment. So, you have to let your target customers know your products. It means you have to introduce your products properly to China market via difference platforms. If your products are in China already, then you can use the dominated platforms such as Alibaba’s Tmall, JD.com, Taobao, and Pinduoduo. If you want to enter from outside, then you can try Tmall Global and JD Worldwide to entry China. Otherwise, you can try the social commerce platform like WeChat and Little Red Book for influencer marketing and community engagement.
Localization and Cultural Adaption
Even thought you are doing online business for decades, you still need to make change to adapt the new environment. For instance, you have to proper translate your website to Chinese. Also, the payment gateway needs to modify as well. Since visa, stripe or PayPal are not the popular in China. You have to connect the checkout process via WeChat Pay or Alipay instead.
Building Trust and Credibility
If you want to step in the market, you have to built a brand awareness and credibility through positive reviews, endorsements and partnerships with reputable local brands. Also, building trust is also important. But how to gain trust from the consumers? The very first step is making your products align with all the compliance and regulations. The let your customers know your goods and services are in high quality and reliable delivery. Then loyalty and trust will be established.
Marketing and Promotion
China was the first to embed live streaming using influencer and Key Opinion Leader (KOL) marketing strategies to reach your target group. Besides KOL marketing, you have to create a localized content such as clips, articles and infographics to attract your groups. China has its unique shopping events such as double-eleven Single’s Day on 11th November and Chinese New Year, you can offer discounts and promotions to drive sales.
Logistics and Fulfillment
You have to consider how to delivery your products to your customers. The delivery must be reliable, fast and cost-effective. Imagine someone purchased a merchandise from your platform, but it takes weeks for delivery. Then, it will not be an option to the Chinese market. When we are saying logistics, it is not only talking delivery, but also the warehousing and customs clearance. Therefore, you have to decide to set up a local warehouse or utilizing fulfillment centers to streamline inventory management and reduce shipping times. If you are shipping abroad, then you have to go through every customs procedure and compliance requirements for smooth cross-border shipping and clearance.
Data Analytics and Iterative Optimization
You have to use the big data to analysis your customer data, sales trends and consumer feedback. Then you can refine marketing strategies. This is not a one-off strategy. You have to continuously iterate and adapt strategies based on to market dynamics, emerging trends, and feedback from Chinese consumers.
Legal and Regulatory Compliance
Last but not the least, you have to establish a legal entity. Or utilize cross-border e-commerce pilot zones for compliance with regulations on foreign businesses operating in China. Then you have to protect your Intellectual Property. Thus, register your trademarks and patents and prevent counterfeiting and infringement. Also, ensure compliance with China’s data protection laws and regulations, including the Cybersecurity Law and Personal Information Protection Law (PIPL).
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