E-COMMERCE

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China’s online sector is the biggest in the world and FMCG is a significant portion of this, with 40% of Chinese buying groceries online. Lightning-fast payment solutions, same day temperature controlled deliveries and 24-7 customer service support give consumers instant access to any product across the globe.

The big trend in 2016 & 2017 was online to offline. Chinese now make 88% of their online purchases from their mobile phones. This means constant access to purchases, and a broader customer reach.

Another significant shift in consumer behaviour is the weight customers are placing on quality, now ahead of price as the highest ranked criterion when shopping, particularly in categories like food where health and safety come into play.

WHAT IS IMPORTANT FOR ONLINE RETAILERS IN CHINA?

  • LOGISTICS. Can you meet the expected delivery times and forecast sales months in advance?
  • RESPONSIVENESS. Are you prepared to have someone at the consumer’s beck and call around theclock?
  • CONTENT. Can you consistently deliver high-quality content with story-telling aspects.
  • QUANTITY: Do you have the capacity to meet stock demands?

TIPS

  • Choose an agent to help you set up online stores if you are aiming for the bigger, Chinese-focused sites
  • Provide as much information as possible to build trust with your consumers. Shoppers are savvy and will check expiry date, ingredients and 90% will read product reviews.
  • Chinese customers are highly active participants in brand creation and communication and should be treated as precious resources in building your brand.
  • Make sure your content is localised - you need translated information and social media content as well as a strong relationship with the platform as they are in the driver seat of the site’s traffic.

HARD DATA MATRIX

ANNUAL GMV (Gross Merchandise Volume) FOUNDED HOLDING REGIONAL HQ
TMALL / 天猫 2612 billion 2008 Listed Hangzhou
JD / 京东 2085 billion 1998 Listed Beijing
PinDuoDuo / 拼多多 1006 billion 2015 Listed Shanghai
Kaola / 考拉海购 546,800 2015 Private Hangzhou
Little Red Book / 小红书 10 billion 2013 Private Shanghai
Dingdong Maicai / 叮咚买菜 5 billion 2017 Private Shanghai
Miss Fresh / 每日优鲜 10 billion 2014 Private Beijing
vip.com / 唯品会 148 billion 2008 Listed Guangzhou
Fruit Day / 天天果园 0.5 billion 2009 Private Shanghai
Yunji / 云集 CNY 35 billion 2015 Listed Hangzhou

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