China is a great opportunity for cross-bording e-commerce
There are more than 315 million Chinese consumers that shop online. That is 75 million more e-shoppers than there are in the United States, double the number of online shoppers in Japan, and six times more than then United Kingdom. In 2013, 7% of all online consumers made cross-border purchases (representing $12.3 billion). The penetration rate of cross-border consumerism increased day-by-day and reached 3.1% in 2015.
This continuous increase of consumer volume in the Chinese e-Commerce market, it is estimated that the penetration rate will steadily increase to an estimated 7% in 2018.
More info on: Cross-border e-commerce is luring Chinese shoppers
Black Friday, the latest shopping event adopted by the Chinese market
In 2015, promotional marketing of cross-bordering e-Commerce showed outstanding results. The same year, China saw the birth of international shopping day known as ‘Black Friday’. In order to promote this new festivity, e-Commerce enterprises invited stars and celebrities to become ambassadors and endorse their products. The introduction of this new occasion aims at promoting the industry’s development.
- In April, Jumei.com released a cross-bordering channel for maternal women and children. Renquan and Sumang both became independent directors.
- In June, Luhan became a member of the board of directors for Daling; the app’s popularity boosted significantly on search results and user feedback.
- In June, Angelababy co-operated with Ymatou.com, featuring the live broadcasting of her shopping experience.
- In July, Mia.com invited famous host Wang Han to be their spokesperson.
- In December, Ge You invested in an emerging imported-products e-Commerce platform called ou-meng.com.
Like the famous commercial ‘Double Eleven’ Single’s Day, ‘Black Friday’ too offers low prices and attractive promotions all-day long. The goal of retail companies, are to gradually cultivate the shopping habits of Chinese consumers, and to make this particular day a huge step on the Chinese calendar.
With the marketing of cross-bordering e-Commerce enterprises, this Western-originated shopping day has strongly progressed in China, with more and more e-Commerce consumers becoming enticed with the idea. The ‘Black Friday’ event has made 2015 an explosive shopping year.
Interesting read: Single day for Alibaba.com
Improvements are still needed for the Chinese e-commerce sector
There are still many aspects of cross-bordering e-Commerce that require a lot of improvement, such as logistics, costs, and consumer rights.
Logistics are still not optimised in China
Logistics is the main cause to profit shrinkage. The loss of packages and faults during transportation has been pointed out.
There is also the delivery period, which takes time. This is mainly due to the various regions abroad which do not have high-level services of logistics tracking. The most common problem however, is still damaged or lost parcels. An effective solution can be air freight, which is safer and takes less time than all other transportation channels, but at the same time package quantities and volumes are much smaller, and require higher costs.
What about consumer right protection?
Consumer rights involve national laws and regulations, with different standards for domestic and foreign goods. It has been long known that consumer protection laws in China are hard to deal with, with severe security problems.
The development of transaction frequencies has lead to an exponential increase of work volume for customs and inspection services. These services will require strong improvements in order to face the growing levels of work.