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China cross-border eCommerce

China cross-border eCommerce

There seems to be no limits to the growth in China’s online trade. In 2017, China’s online retail value was about $ 500 billion, and it is estimated to close to $ 600 billion in 2018. That makes China the biggest eCommerce market in the world, leading even USA where estimation for 2018 retail eCommerce value is $ 500 billion.

A major factor in the development of e-commerce in China is the share of e-commerce in the entire retail trade. In the United Kingdom that is the leader of retail eCommerce in Europe, around 17% of retail sales take place online, when in China already close to 30%. The forecast is that China’s online stores will already account for more than 35% of China’s retail trade by 2020, so companies planning to enter China with their products should already consider eCommerce as part of the core strategy in market entry plan.

Access to China market has become easier

China has been a difficult market for European companies to access, and particularly access to China’s retail online market has been challenging. Now, the so-called cross-border e-commerce has become the most promising alternative to access China.

– In a cross-border eCommerce, a foreign seller sells the product directly to a Chinese consumer. The product is delivered either from a Chinese customs warehouse or from abroad directly to addresses of consumers, explains Flying Lynx’s Marko Kangaskolkka.

From the point of view of the manufacturers, the biggest advantage of the cross-border model is that no Chinese import license is required for the products sold. Another advantage is that the packaging of the product is not required to be localized to the Chinese market. This means, in practice, that no Chinese texts are required in the packaging.

– However, for example, in foodstuffs, it is good to have a Chinese language sticker on the packaging for product ingredients to reinforce consumer confidence on the product quality, “says Kangaskolkka.

Chinese consumers appreciate the quality

Cross-border trade is also beneficial to the Chinese consumer, for number of reasons. Many Chinese consumers prefer to buy foreign foodstuff to ensure quality, and the same trend is already visible in other product groups.

That is why cross-border eCommerce in China for foodstuff has a particularly great potential for European companies. Cross-border e-commerce is also taxed in China by less than traditional imports, so products purchased online from abroad are often cheaper for Chinese consumers than in local stores or online stores.

Flying Lynx takes your business to the Chinese market

The China cross-border eCommerce market with enormous potential is, in the end, quite easy to access and demand is growing all the time. To succeed in the market, however, companies need to be able to find the right marketing and sales channels to reach the Chinese consumers with the correctly localized message. Flying Lynx takes your business to the Chinese market, please contact us!

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