E-commerce in China is booming. The Chinese e-commerce market is undoubtedly one of the most profitable and fastest-growing cyber industries in the world. This makes some rational international brands understand how to intelligently approach this extraordinary electronic retail market, which is an interesting proposition. To understand the future of e-commerce, we must move Eastward rather than Westward.
China’s e-commerce market
Statistics show everything. According to the National Bureau of Statistics of China, online retail sales in 2016 reached 5.16 trillion yuan ($ 752 billion), an increase of 26.2% over 2015, more than double the overall retail sales growth rate.
The report promises that China’s e-commerce sector will be ahead of the United States and four times more in the east than the United States.
Now is the time to enter this market. First, brands must understand best practices and trends that are shaping how you tailor your approach – capturing your pie.
E-commerce is not a “first-world phenomenon”
The growth of China’s e-commerce is incredibly driven by tier-3 and tier-4 cities, which surpassed tier-1 and tier-2 cities for the first time. The emerging trend to watch for is that the rural markets in the rest of emerging Asia will also experience significant e-commerce growth.
China’s GDP grew 7% over the same period last year, resulting in rising levels of wealth in third- and fourth-tier cities. In addition, these cities do not have the physical infrastructure of high street stores, so they rely more on electronic retail.
Alibaba, China’s e-commerce giant, also thanks them for their nationwide investment in delivering infrastructure to increase access to rural areas and smaller urban areas.
China is a leading digital innovator
China now sets an innovative benchmark for this industry. China’s mobile digital payment system through WeChat and Alipay is just the tip of the iceberg. The convenience and security of electronic payments (connected to mobile banking in consumer banking) are often thought to be a key reason for the rise in e-retail spending. It is suitable for an instant, impulsive purchase is just a screen credit card.
These mobile payment systems are accepted online and offline and are highly integrated into the lives of consumers making them the preferred payment method. Almost 500 million businesses in China use Alipay, and consumers now use it overseas even while traveling.
Alipay recently launched the “face to face payment”, so you can self-certified payment methods, which is the perfect solution for Asian countries. The ease of development and speed of purchase are where the rise of modern China is.
As consumers can digitally browse through virtual reality simulations, virtual reality shopping also erupts. Alibaba shows a demonstration of a BUY + virtual store that allows shoppers to ship themselves to New York City and actually walk the walkways of the famous Macy’s department store to buy selected items.
The rise of “social business”: WeChat, Little Red Book, Weibo
We already know that about 50% of e-commerce is driven by social media in many parts of Asia. Trends are the ability to buy directly from social platforms.
Chinese social media plays an important role in daily life. Tencent’s WeChat is integrating stores into their apps. This sets the tone for a new era of social-networking shopping experience in the social network.
It is logical that shopping and buying are encouraged by the experiences that can be shared. WeChat allows instant payments via the “wallet” feature, while interacting with the official accounts through groups, IMs and, of course, sharing purchase details.
Other platforms, such as the Little Redbook, combine group chat with the ability to share purchases across user networks.
Weibo (Twitter in China) also has an impact on influencers, such as “Mr Bags” who set up hundreds of thousands of people around them. Weibo brand influence posts are now used for direct product promotion and sales, especially microblogging is acquired by Alibaba.
It serves as a conduit for traffic storage, storing pages that are optimized for mobile devices and formatted for Chinese social networks.
The result of this more social-oriented approach is that brands now offer real-time customer service to their customers via WeChat, and even place QR codes on websites to guide users to their official web pages and instant messaging services. IM services also need to be provided on the site, but WeChat is the most trusted platform.
Mobile dominates the desktop
China’s entire digital landscape is the dominant mobile. By the end of 2015, China Mobile reached 2 trillion yuan (about 289 billion U.S. dollars) in business, an increase of 2000% over the previous year.
2016 projections show that mobile commerce accounts for about two-thirds of desktop sales, but looking at.
On the day of Lebanon’s 2016 Singles Day, 82% of sales were on mobile devices, which could mean faster than expected. Undeniably, the trend is that mobile commerce will continue to grow both inside and outside China and eventually become the main way consumers buy online. Optimized store pages for mobile devices are more important than ever.
The shopping experience is more important than pricing According to a recent Kantar Retail Study, the primary motivation for Chinese consumers to shop online has shifted from “price, variety and convenience” to “quality, value, service and experience.
Chinese consumers are seeking richer “top-tier” experiences that will surely flow out of China. This reinforces the important factor in developing the importance of high-quality consumer shopping funnels in China. On average, the time to retain an online customer is 6-8 seconds.
This page must focus on Chinese consumers, with a focus on product presentation, choice, page design, navigation and call-to-action. Chinese market evolving, how will this affect international brands? The situation is quite different from last year.
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Big players can dominate here, but if your brand’s popularity or popularity in China is not high, it’s certainly not a “magic bullet.” So far this year, 15% of international brands have left the platform.