Cross-border e-commerce in China, how to benefit from it?
Just 3 months ago, in March 2017, Chinese authorities decided that cross-border importation would now be placed under the category of “items for personal use”. This small detail is not one because it has many repercussions for Chinese but also foreign e-commerce platforms which target the Chinese market . Some decisions include the cancellation of regulations, which should facilitate the entry procedure for brands and resellers. How to take advantage of the cross-border e-commerce boom in China?
Cross-border e-commerce in China: an exploding market
The Chinese are fond of foreign products, highly sought after for their quality . Chinese consumers sometimes even trust them more than certain local products, particularly concerning food products reserved for young children (like milk, for example). They mainly buy these products on cross-border e-commerce platforms, a phenomenon called “Haitao”.
Cross-border e-commerce in China: an exploding market
Thus, the cross-border e-commerce market in China is booming. In 2016, transactions on e-commerce platforms in China amounted to more than $3.8 trillion, or about 40% of the overall market . The trends continue to be buoyant to the extent that 2016 figures highlighted growth of almost 20% in the e-commerce market in China, Aero Leads which bodes well for the following years. The potential is enormous when we know that China currently has 731 million Internet users, including 467 million online buyers (+12.9% over one year). By 2020, a quarter of Chinese people will buy foreign products online .
This market is exploding all the more with the increase in the standard of living , due to the development of a middle class, and the increase in available supply , but also thanks to lower taxes , in particular thanks to simplification logistics and international payments. The development of mobile telephony must also be taken into account to the extent that half of e-commerce is made up of m-commerce, namely e-commerce on smartphones. Finally, this market is also very attractive due to the simplicity of the supply chain for a foreign supplier because the platforms manage practically all logistics.
What impact for French SMEs?
Enjoying a good image, French products are very appreciated, due to their reputation for quality among the Chinese public . However, French companies are rather behind their European or American competitors. To make up for this delay, French economic diplomacy, primarily Business France, is trying to establish agreements and partnerships to ensure the promotion of French brands on e-commerce platforms in China.
However, one of the difficulties for French companies Australian number data remains the identification of the main cross-border e-commerce platforms . In fact, today there are more than thirty officially registered e-commerce sites known to the general public. It’s difficult to navigate this cross-border jungle…
In any case, companies must make the effort to adapt and adapt their products to the Chinese market . It is not enough to translate a site into Chinese to be successful with the Chinese public… In more detail, it is necessary to remain attentive to market variations but also to regulatory developments which have a certain impact on the environment. business in China. For example, a law came into force in April 2016, defining ceilings for exemption from taxes on purchases of imported products. Thus, the uncertainty, due to the emerging nature of this market, is great, particularly with regard to the attitude of the Chinese statefaced with the development of this phenomenon, weighing on the business climate of French companies.
