An introduction to China’s e-commerce market

China is the world’s largest e-commerce market – projected to reach $1.7 trillion in two years. For Kiwi export firms wanting to engage in that market it’s a daunting prospect requiring a long-term strategy and professional help.

Held in Auckland on March 13th, the NZTE-organised China Digital Marketing conference highlighted a number of facts about the China e-commerce market – primarily that it’s vast in size and complexity and constantly changing. What worked last year, may not necessarily work this year.

As one of the keynote speakers remarked: it’s time to rethink “China made easy”. Often it’s better for brands to target lower-tier cities where there is more opportunity to disrupt the market and succeed. First-tier cities such as Shanghai, Beijing and Guangzhou can be fiercely competitive and expensive to work in. Smaller cities are generally more cost-effective and, surprisingly, have a greater number of luxury spenders.

Thinking ‘big’ doesn’t always work when choosing social media platforms either – there are thousands of social media apps, and one million users is often the starting point on a single ‘smaller’ platform. 

Mobile apps are certainly where the big consumer numbers are in China. As one speaker at the conference pointed out, in China more than 95 percent of Internet users go online using their mobile device; that’s the equivalent of 695 million people – more than twice the population of the US. ‘Big’ just doesn’t describe it.

At the conference it was also pointed out that the biggest brand you’re up against in China is the “China brand”. China-made is promoted everywhere – in the subways, on TV, in neighbourhood announcements. Young people especially are incredibly proud of the country’s achievements and supportive of home brands. 

So it’s no longer enough just to take a supreme product to market – you have to bring your total A-game. Think of the intersection between what the Chinese e-consumer really wants and what your brand does best. It’s good advice.

Most of all, engaging with China’s e-commerce market requires a long-term strategy – and should be budgeted for accordingly.

An experienced Beijing-based digital marketing consultant NZBusiness is in contact with explains that China is far from an ‘impulse buy’, it’s vital that you do your research and find experienced contacts. Then talk to them and visit the country
at least twice. “China is littered with ‘quick entry corpses’,” he says. 

He also reminds us that the Chinese have always been clever traders and business people, and today they are also well educated, knowledgeable and highly demanding consumers. Remember this when you’re looking to establish your brand in this market.

And remember, too, that the culture in China is built on relationships, having friends who can advise or help. Over the centuries colleagues, peers or superiors have been relied on for advice.

You could say social media was invented for China, and WeChat, which has around 3.5 million accounts, has simply amplified this.

Chinese consumers use their WeChat circles for shopping advice. If their friends rate your product highly, they will buy it too and become loyal supporters. If not, you could be wasting your time and your money.