All About Starting Your E-Commerce Business in China

E-Commerce Business

Business endeavors are changing the world. E-commerce has changed the business values, notched up their game by miles, which requires a 100% commitment, planning, and the right web solutions. E-commerce in China is entirely different from the rest of the countries. With most consumers being middle class, China’s online stores keep the consumers’ disposable income in mind. After all, if consumers’ pockets are full of their disposable incomes with a variety of technological tools in their back pocket, e-commerce is bound to flourish. 

E-commerce is rather easy to deal with in foreign markets, although the world’s major e-commerce sales commute in China alone. And guess what? Major purchases are from smartphones! Chinese consumers are always eager to buy foreign products, which represent a great opportunity for international sales. 

Enter the Era of China’s e-commerce 

Pandemic has changed the world’s business order. True, most businesses were shaken badly and in the worst-case scenario had to shut down. However, the growth of online stores boosted. Starting a new e-commerce business can be a daunting task, but starting it in another country takes gut and proper planning. 

If you are thinking of breaking into China’s e-commerce market, then be prepared to follow the government’s orders, adapt cultural differences, and face the fierce rivalry of local and international competitors. You will also need Chinese translation services to eliminate the language barrier.

To stay upright in China’s market, you need to begin from the basic to complex details. 

China’s Great Firewall is Exclusive 

Much to the international e-commerce brand’s charge, internet censorship has caused a lot of trouble. It does look like a threat for international businesses, but you need to understand that the internet is quite different in China. The desire to promote Chinese interest (finished or semi-finished goods and services) is above all others. 

So your product is a Chinese equivalent which adds to the competition. You need to adhere to the internet policies strictly that will affect your e-commerce business. 

Identify the Product Need 

If you plan to enter China’s market, here are two things you need to consider;

  • Use an already established business in some other country to expand the business roots
  • Launch a brand new company in China

Pick either choice; all you need to ensure is your product is needed in the Chinese market. The need for an already existing product doesn’t have to create demands in the Chinese market. It may happen that the product in question doesn’t have the consumer demand in China at all. This brings you to the next step. 

Carefully examine the Chinese market, the evaluation will give you some conclusive results to understand whether the product is needed in the market or how you can localize the product or marketing strategy to let the product enter the bench. If you stick to the use of an already existing brand, then it’s best in the company’s interest to hire a local agency to conduct thorough market research. 

World of Market Research 

Necessary research never stops, it continues with each development stage of the e-commerce business. Gain the acquired knowledge for the target niche;

  • User personal information is based on demographics like age, gender, income, marital status, etc.
  • Size of the target industry 
  • Listing competitors, and so on

Identifying the demographics will clear any ambiguities regarding the target niche, help you understand the audience which is beneficial to reach the target goals. This stage is also most beneficial for product customization according to the local market needs. 

To have a clear idea about the size of the industry means you can set your target straight. Achievement goals do depend on how large or small the market is. This brings us to the third point; a larger market means high competition. Identifying the competitors and their marketing tactics will give the much-needed space to bridge the gap for product and market needs. 

Reroute to Marketing Domain with WeChat 

Social media is a powerful tool for e-commerce business. Online businesses are thriving thanks to Facebook, Instagram, and other social network platforms. Sadly, in China, Facebook is not operative nor is Google. Remember the Great China Firewall? This brings in the Chinese digital weapon WeChat, an active social media with over one billion users. 

It’s a cunning tool that wraps up the payment processes, QR codes, advertisements, shopping experiences under the WeChat app. 

For a practical solution, using WeChat as the marketing strategy is compulsory, as it also adds up to the loyalty programs, news, and other effective features that will keep you updated about the Chinese market.  

Developing a humble brand image is necessary to win the loyalty of Chinese consumers, so use this platform wisely to create advertisements and familiarity with the crowd. 

Let’s Talk About-Payments 

Chinese consumers are so indulged in the comfort of mobile technology that the 95% majority rely on smartphones for smart transactions. 

A speedy transition diminishes the need to visit banks or ATMs to take out the cash. There the QR payment (cashless payment) is the hottest trend for a while now. Like its internet obligations, China also differs in payment concerns as compared to other countries. 

QR codes work as an asset for the Chinese consumer, a simple cashless mobile payment app is all you need to make the transaction. For an e-commerce site, adapting a local payment method will add ease to the consumer’s experience. These bar code style payments constitute about $5.7 trillion yearly sales! Imagine the growth it will cause to the website, especially if your business is particularly relevant to mobile payments like food trucks or taxis. QR payments act as the fully transitioned form of payments. 

Do you want to sink or swim?

Urban China may emulate western methodologies, but China has an identity of its own. Eradicating the cultural differences can upscale the e-commerce business in plain sight. It’s important to remember that in a country with a population of 1.3 billion people, you can have access to your target niche if you practice the e-commerce business in a localized way.