So, it is clear that in order to succeed in China, you will have to focus on e-commerce, but you will also have to plan your marketing campaigns according to China’s festivals and specific events. In order to help you understand the importance of adapting and planning your marketing campaign beforehand, we have made this short article reuniting 12 of the most important events that every marketer should be aware of when doing business in China.

The 12 most important dates for FMCG brands in China

1. Chinese New Year
2. Valentine’s Day
3. Qingming Festival (Tomb Sweeping Day)
4. Labor Day
5. Dragon Boat Festival
6. Summer shopping season in Hong Kong
7. Qixi Festival: China’s Valentine’s Day
8. Golden Week
9. Mid-Autumn Festival
10. Single’s Day – 11.11
11. Double 12 Festival
12. Christmas

Why should you plan your China marketing strategy with key dates in mind?

In China, besides universal traditions like Mother’s or Father’s Day, and Christmas, China has its own holidays and festivals. They allow brands to launch promotional campaigns in order to attract as many consumers as possible. To explain the importance of these promotional campaigns, you have to know that Chinese consumers are particularly tempted to purchase products if they can benefit from discounts. So, you will have to plan which period and event is the most suitable to send vouchers and apply discounts.

Chinese society is benefiting from a growing purchasing power. Thus, people are able to afford and buy even more products, especially on e-commerce platforms. China is in fact the fastest growing country in the world in terms of e-commerce, registering a 44% growth as of 2020. However, if you want to be profitable and attract Chinese consumers, you will have to adapt your strategies according to events and festivals that are specific to China. By doing this, you will be able to increase your ROI. 

Want to get started with eCommerce in China, but you are feeling overwhelmed with the info available? head out to our China eCommerce Guide, we compiled the most important information about each platform in the shortest form possible, so you don’t get lost in the mass!

Shopping Events and Holidays to Increase your ROI

For almost every kind of business in the world, the goal of a company is to increase its ROI (Return On Investment). However, as many companies have settled their business and expanded their activities in China, the competition is tougher than ever. In order to increase your ROI, you will not only need to be creative to stand amongst your competitors, but you will also have to take advantage of festivals like the 11.11 festival, which is one of the most lucrative days of e-commerce companies in China.

The 12 most important dates in China

1. Chinese New Year – Between January and February

The Chinese New Year is the most important event in China and also one of the biggest shopping festivals, comparable to our Christmas. In contrast to western countries that are using a solar calendar, China is using a lunar calendar. This period of the year marks the beginning of China’s holiday, which is a period during which they have to honor their household, heavenly deities as well as ancestors. It is also an opportunity to bring the family together for feasting. During the Chinese New year, almost everyone returns to their hometown in order to celebrate this particular day with their relatives.

During the few weeks before the Chinese New Year there’s a rise in consumption as people buy presents and bring them to their family. Then, firms will begin to wind down their business a week or so prior to the first day of the festival.

To have an effective campaign for Chinese new year celebrations you need to start advertising early so that potential buyers know what products are available or promoted at some point between Christmas and when festivities begin.

Many brands use Chinese new year as an opportunity to show their understanding of the Chinese culture through thoughtful video clips and short movies, others for instance launch limited new years collection or packaging, while other have special discounts and vouchers.

Being aware of Chinese Festivals and celebrations is unfortunately not enough to meet a great success. We wrote 5 Tips for successful Chinese new years campaigns which should give you a great idea about the do’s and don’t do’s of special days campaigns in China.

Finally, you will have to ensure that you have a detailed schedule of opening and closing dates in advance, in order to organize and prepare your stocks of products. After all, Chinese New Year is also a particular time of the year for businesses in China, as it is the time to re-group, re-strategize, and re-staff for the new year to come.

The few last days of the Chinese holidays are also important because it is the Lantern Festival, which lasts for 4 days. It symbolizes a family reunion and people are able to release some lanterns in the sky.

2. Western Valentine’s Day – February 14th

Even if China has its own Valentine’s day, young people tend to follow western countries’ traditional Valentine’s day. During this day, you will have to promote your products intensively, with colorful packaging, or you can also offer a product for one product purchased so they can give the other one to their loved one. You will also have to focus on social media, such as WeChat, Weibo, and Douyin, by promoting campaigns celebrating love and care.

3. Qingmingjie 清明节 (Tomb Sweeping Day) – Between April 4th – 6th

The Qingming Festival (translated as “Pure Brightness Festival”) is the day when Chinese families visit the tombs of their ancestors to clean the gravesites, pray for their ancestors, and make ritual offerings. Your marketing campaigns should start around the middle of March and you have to know that promotions involving travel-related packages are really popular during this period of time.

4. Labour Day – May 1st

The Chinese Labour Day is celebrated in China on the 1st of May. It started as just a day off but has become 5 days where people are able to spend time with their children, do the shopping and other things for themselves or others who may not be so fortunate. The longer vacations typically correspond with an increase in consumption which benefits all sectors including retail stores that depend heavily on consumer spending

5. Dragon Boat Festival – June 14th (as for 2021)

The Dragon Boat Festival is one of the most important Chinese festivals as it celebrates the life of Qu Yuan, a famous Chinese scholar. During this day, people eat Zhongzi (rice dumplings) and it is now common to give gifts. Gifts such as e-coupons, vouchers, high-tech products, and luxury products are highly popular. For example, you can create some WeChat H5 brochures with Zhongzi on them, and create mini-games allowing people to win prizes.

6. Summer Sales and shopping season in Hong Kong – July – August

Just like in a lot of countries summers sales are very successful with customers always looking at finding the best deals.

In Hong Kong during the summer shopping season, July and August are marked by events that allow shoppers to find products with rebates. These opportunities have been a major lure for mainland Chinese consumers who love high-quality items at lower prices!

7. Qixi Festival: China’s Valentine’s Day – August 14th

Did you know that China had its own Valentine’s Day? In fact, even if Valentine’s day (Qixi) is not considered as an official festival in China, Qixi has grown to become one of the most important giftings (and shopping) festivals in China, with luxury brands doubling up on their digital marketing efforts to boost their online sales during this period. For example, these past few years many brands were able to boost their sales thanks to the release of limited-edition products on their website. It was also a way for consumers to engage with their favorite brand on social media.

Over the years, the Qixi festival is increasingly turning into a shopping festival, so you will definitely have to consider integrating buzz-generating campaigns in your marketing strategies. By doing this, it will be a  great opportunity for you to drive e-commerce conversions.

8. Golden Week – October 1st – 7th

Considered as the National Holiday, it is also known as the Golden Week. This week is one of the longest Holidays in China after the Spring Festival holidays. Many people decide to travel during this Golden Week and consumption usually skyrockets during that week.

Here are some figures from 2020:

• From Oct. 1 to 8, duty-free sales in Hainan more than doubled from 2019— rising 148.7%—to a total of 1.04 billion yuan ($155 million)
• Chinese e-commerce giant Tmall Global saw 79% spike in sales during the golden week 2020 (compare to the same period in 2019).

9. Mid-Autumn Festival – September/October

Mid-Autumn Festival (中秋节) is also one of the family-oriented holidays in China and the most important after the Chinese New year. Also known as the Moon Festival or Mooncake Festival is a traditional holiday celebrated by many East and Southeast Asian people. It can be traced back to 3000 years ago at a time where peoples where celebrating the moon in hope for good harvest.

The festival is linked to mythological story personas such as Chang’e and her husband Hou Yi (and of course the full moon) that are often represented in companies’ communication at that time for the year. The festival sees family coming together and exchanging gifts such as fancy moon cake and snacks boxes.

The mid-autumn festival has become an important day for companies who uses the meaning and esthetics of the holiday to sell gift box and limited edition. A celebration such as the mid-autumn festival is also an excellent way to leverage emotions such as nostalgia and create a stronger engagement with your target audience. It is a good opportunity for an international brands to show they care about the Chinese culture.

10. Single’s Day “11.11” – November 11th

Single’s Day or “Double Eleven”, on November 11th, is a 24-hour super discount period initially launched by Taobao (Alibaba) and followed by all the other major players of E-commerce. It can be compared to Black Friday in the United States. “Single’s Day” has now become a very anticipated and highly appreciated event in China, which can lead to amazing sales if you have a strong marketing plan.

11.11 has become an unmissable date for companies in China and they start prepping the field month ahead to make sure they will be ready on time for the big day! Chinese eCommerce apps offer a plethora of marketing tools, such as special deals or discount, pre-purchases, and so on, to merchants who want their brand and products hyped up enough for the biggest day of the year.

Double 11, is a good time to launch new collections but it’s also a great opportunity to sell out-of-season stock.

NB: On 11.11 consumers not only purchase products they would not in normal time but the practice of purchasing a year’s worth of common daily life items such as toilet paper and shampoo is pretty mainstream.

11. Double 12 Festival

“Double Twelve” on December 12 is a sequel to “Double Eleven”. Originally launched to support smaller Taobao vendors that could not compete against huge brands on 11.11, the event has rapidly become another popular shopping festival in China although on a much smaller scale.

Still, an event that comes with a few advantages to smaller sized vendors, for instance in 2016, there were no commission fees for sales made during the event.

Although the event is not as big as 11.11 in China, the Double 12 takes takes place in pretty much all Asia, and it is substantial.

12. Christmas

As in many western countries, Christmas is also a synonym of festivities in China, even if it is not a traditional festival in China. Young people are especially fond of the Christmas atmosphere around snow and Santa Claus. You will be able to apply kind of the same marketing strategy in China as you have here.

Understanding 520: (May 20th )

The Chinese Love Code and it Impact Brand Campaigns

The number “520” in China has a special significance, particularly among the younger generation. It is widely recognized as a numerical expression equivalent to saying “I love you.” The pronunciation of “520” in Mandarin, “wǔ èr líng,” sounds phonetically similar to the words “wǒ ài nǐ,” which mean “I love you.” This association has turned May 20th (5/20) into an unofficial love-themed holiday, akin to Valentine’s Day, where couples express their affection, propose, or give gifts.

Brand Campaigns Leveraging 520 in China

Given its popularity, many brands have strategically used “520” as a part of their marketing campaigns to tap into the emotionally charged buying behavior of consumers during this period. Here are key aspects of how brands can and have leveraged 520 in their campaigns:

1. Limited-Edition Products: Brands often release special “520” themed products, which might include exclusive or limited-edition items designed to appeal as gifts. For example, jewelry brands release “love-themed” collections, and tech companies might offer gadgets in special colors or with romantic motifs.
2. Special Promotions and Discounts: Retailers and online shopping platforms usually run promotions and discounts to encourage gift purchases. This can include everything from fashion and beauty products to electronics and household items, all marketed as perfect gifts to show love.
3. Social Media Campaigns: Brands often create interactive social media campaigns around 520. These might involve hashtags (e.g., #SayILoveYou520), contests, or user-generated content initiatives where participants share their love stories or post pictures with their loved ones for a chance to win prizes.
4. Influencer Collaborations: Leveraging KOLs (Key Opinion Leaders) and influencers to spread the word about 520 promotions can amplify reach and credibility. Influencers might share how they celebrate the day, showcasing branded products as part of their celebrations.
5. Experiential Events: Some brands take 520 beyond digital and print campaigns by organizing events or pop-ups that offer unique experiences for couples. These can range from themed dinners to romantic getaway contests, often in partnership with travel companies, restaurants, or even local governments.

Impact of 520 Campaigns

The effectiveness of 520 campaigns can be significant in China due to the cultural resonance of the number and the wide participation in celebrating love on this day. Brands that successfully tap into the emotional and cultural aspects of 520 can see a notable boost in sales, customer engagement, and brand visibility. As with any culturally specific campaign, the key to success lies in authentically connecting with the audience’s sentiments and offering real value that aligns with the occasion’s spirit.

Adapting your advertising campaign according to specific events

During these events and festivals, Chinese consumers will be more actively looking for products, brands, and deals. During this time, you should use content to build buzz, using keywords and hashtags to ensure that consumers will click on your ad.

Hiring a KOL

It is important to underline the fact that if you want to advertise your products as well as your brand in China, you might probably want to hire a KOL (Key Opinion Leader) who acts as an influencer. However, you will have to take into account that there are some promotion periods in China. So, you will have to contact them at the appropriate time, not too early nor too late, in order to be prepared and be up-to-date. To know when you should contact KOLs, you can look at the recap at the end of this article.

A short recap

5/ Our services

As specialists in the Chinese Market, Gentlemen Marketing Agency’s experts can help you to export your products in China, as well as establish a powerful marketing strategy. We know all the subtleties of the Chinese market and how to engage an audience during different kinds of festivals. Contact us to discuss your projects in China and we will help you enter the Chinese market and benefit from the advice of our experts.

Get to know us:

• 100% digital marketing
• Team of 60+ people based in Shanghai
• More than 1000 projects
• Many successful projects and collaborations (Case studies available)

Despite this, not many brands have been able to achieve successful campaigns on these emerging platforms compared to more established social media platforms like WeChat and Weibo.

This article is dedicated to giving you an overview of China’s short video market as well as strategies for brands to capitalize on this trend.

in China, all Brands use Short tiktok Video. ALL

While it might be an exaggeration to say that all Chinese companies use short videos for communication, it is true that short video platforms have become a highly popular and effective communication tool in China. The rise of platforms like Douyin (TikTok’s Chinese counterpart), Kuaishou, and Bilibili reflects a broader trend towards visual and digital communication strategies in the business landscape. Here’s why short videos have gained such prominence in China:

1. High Engagement Rates: Short videos capture attention quickly and can convey messages in an engaging and memorable way. This makes them particularly useful for marketing, branding, and consumer engagement.
2. Wide Reach: Platforms like Douyin have massive user bases, offering the potential for significant reach and visibility. This is attractive for businesses looking to expand their audience or penetrate deeper into the market.
3. Mobile-First Consumers: China has a vast number of mobile internet users, and short videos are tailored to mobile consumption. This aligns well with the lifestyle of Chinese consumers who prefer quick and convenient access to content.
4. Versatility: Short videos can be used for a wide range of purposes, from internal communications and training to advertising and customer service. They can be easily integrated into various parts of a business’s communication strategy.
5. Innovative Features: These platforms continually introduce innovative features like augmented reality (AR) filters, live streaming, and interactive elements, which companies can leverage for more engaging and interactive content.
6. Algorithmic Targeting: Platforms use sophisticated algorithms to deliver content to users who are most likely to find it relevant. This helps companies in targeting specific demographics and increasing the effectiveness of their communication campaigns.

China’s Generation Z is Hooked on Short Video Apps

Short videos are delicious, bitty snippets of content that China can’t get enough of. It has become an increasingly important component of Chinese users’ leisure.

Chinese people averagely spend more than 60 minutes daily on short video apps, becoming an important component of the Chinese social media landscape.

Short video apps are even more prevalent than online payment tools. 80% of China’s netizens use short video apps, according to a report from the China Internet Network Information Center.

In March 2023, the number of monthly active users of short videos in China amounted to 941 million, up 1.7 percent compared to the same period of last year. On average, Chinese internet users spent about 57 hours on short videos per month during the spring of 2023, which was four hours more than a year prior.

Douyin, the original Chinese version of TikTok developed by Bytedance, remained the leader in China’s short-formed video scene, being one of the most popular social media platforms in the country. As of November 2022, the app boasted to have 731 million active users across the country. Its closest rival, Kuaishou saw a rapid active user growth reaching 529 million.

The rise of short-form video is in line with the content consumption behavior of China’s mobile-driven internet users.

As their time has become more fragmented, they long for something short that contains enough entertaining information. Also, because they are mostly consuming content via their mobile devices while they’re on the go, the shorter the content is, the better.

Who are the viewers?

Short-form video apps have been around since early this decade in China, but their popularity has exploded over the past three years thanks to a growing new segment of consumers known as Generation Z.

The main users of China’s short video apps belong to the post-90s generation. Over half of the users were 24 or younger. And those under 35 made up more than 85%.

Approximately 45 percent of the short video users in China were above 46 years old, up from about 41.3 percent compared to the same month in the previous year.

In terms of regions, 66.9 percent of the total comes from third-tier and below-third-tier cities in China. The top 3 provinces for viewer numbers are Guangdong, Henan, and Shandong.

Celebrities on the mainland use Chinese social media apps and short videos to engage with their fans, while many Gen Z users had adopted the format as a way to express themselves. Consumers like to access these entertaining videos to fill in short breaks during the day and between other activities.

Short Videos – an Excellent Way to Engage Customers

Brands are turning to short video platforms as a cost-effective way to engage with their target audience. These platforms, like Douyin or Kuaishou, offer brands the opportunity to create quality content and connect with users.

Short videos can be used for various promotional purposes, such as product reviews, showcasing products, and promoting brand culture.

By delivering creative and meaningful content in just 10-15 seconds, brands can effectively communicate their messages to their target audience.

Even stars use it

Show how to do something

Showing your fans how to do something, for example, solve a problem/ challenge or use your product is perhaps one of the easiest ways to jump into creating short video (and live-streaming) content.

You can provide followers with creative ways to use your products or situations where your products can be applied which are uncommon to think of.

Showcase an event

When a popular event or celebration is coming up on the calendar, it’s likely that others in your industry will be looking for relevant content to share. Clever brands get the jump on a season, event, or celebration by posting short video content that’s primed for sharing.

There are film companies that published movie trailers in short video form and attracted great attention.

Reveal a new product

Revealing a new product on short video apps can be an effective and engaging way to capture the attention of a wide audience. With the popularity of platforms like Douyin and Kuaishou, these apps provide a perfect opportunity to showcase your latest offering in a creative and visually appealing manner.

By creating a short video that highlights the unique features and benefits of your product, you can generate excitement and curiosity among viewers. Whether it’s a sneak peek, a demonstration, or a captivating story, the power of video can leave a lasting impression and drive interest in your new product.

So, if you’re looking to make a memorable impact and reach a large audience, consider utilizing short video apps to reveal your new product in an engaging and visually stunning way.

Go behind the scenes

A short video is a fun way to let your fans see the people behind the business—to show what happens behind closed doors.

Whether it’s a tour of your office, an event you’re attending, or just some behind-the-scenes downtime, showing the fun side of your business can be more effective than just hawking your wares.

Interactive campaigns

Another option is inviting followers to create and upload their own videos, possibly for the chance to win a reward or prize.

In addition, brands can choose to collaborate with KOLs who can export their high-quality content or help spread the word.

The Most Popular Short Video Platforms in China

Among the most popular platforms is Douyin, known internationally as TikTok. Douyin short-video app allows users to create and share short videos, showcasing their creativity and talents.

Another prominent platform on the Chinese social media scene is Kuaishou, which focuses on user-generated content, ranging from funny skits to heartfelt moments.

These popular social media apps have not only provided a source of entertainment but have also become a hub for influencers, allowing them to gain fame and followers through short video clips. With their addictive nature and vast user base, it’s no wonder that these short video platforms have become an integral part of Chinese pop culture.

Comparison of Douyin and Kuaishou

Douyin and Kuaishou are two popular short video platforms in China. While they have some similarities, they also have distinct features that set them apart. Here’s a comparison between the two:

User base

Douyin, also known as the TikTok short-video platform outside of China, has a larger user base compared to Kuaishou. It attracts a younger audience, with a focus on creative and entertaining content. Kuaishou, on the other hand, has a diverse user base, including both urban and rural users, and is known for its emphasis on real-life moments and authenticity.

Content style

Douyin is known for its trendy and viral content, often featuring lip-syncing, dance challenges, and creative video editing. Kuaishou, on the other hand, showcases a wider range of content, including daily life, travel, hobbies, and talent performances. It encourages users to share authentic moments from their lives.

Algorithm

Douyin’s algorithm is more sophisticated and personalized, using artificial intelligence to recommend content based on user preferences and behavior. Kuaishou’s algorithm focuses more on the social connections between users, recommending content from friends and family.

Monetization

Both platforms offer opportunities for content creators to monetize their videos. Douyin provides various advertising options and offers virtual gifts that users can purchase and send to their favorite creators. Kuaishou allows users to receive virtual gifts from their followers, and it also offers e-commerce features, allowing creators to sell products directly within the app.

International reach

Douyin has expanded globally as TikTok, gaining popularity in many countries outside of China. Kuaishou, however, has mainly focused on the Chinese market and has a limited international presence.

Two account types on Kuaishou

Individual creator accounts

These accounts are meant for individuals who want to create and share content on Kuaishou. With an individual creator account, you can interact with friends, follow other users, and use the platform as a standard non-commercial user.

This type of account is suitable for artists, sportsmen, key opinion leaders (KOLs), key opinion consumers (KOCs), and anyone who wants to create content for personal or non-commercial purposes.

Business accounts

These accounts are specifically designed for brands and businesses. With a business account, brands can promote their products, raise brand awareness, and communicate with potential customers on Kuaishou.

Business accounts provide additional features and tools for businesses to effectively market their products or services to the Kuaishou community.

Two Account Types on Douyin

Individual creator accounts

This type of account is meant for personal use. It allows users to create and share short videos, follow other users, like and comment on videos, and engage with the Douyin community.

With an individual account, you can enjoy the full range of features available on the platform.

Business accounts

A business account on Douyin is designed for brands, companies, or organizations that want to promote their products or services on the platform. It provides additional features and tools to help businesses reach a wider audience and engage with potential customers.

Business accounts have access to analytics, advertising options, and other marketing tools to enhance their presence on Douyin.

Both individual and business accounts have their own benefits and features, depending on your purpose and goals on the platform.

Bonus: WeChat Channels

Although WeChat is far more than a short-video platform, a few years ago it introduced WeChat Channels, which are a dedicated sub-platform of WeChat for short video content and live-streaming, in a need of answering the demands of the market.

WeChat Channels is a dynamic feature within the comprehensive WeChat ecosystem, serving as a social media and content creation platform for users and businesses. With an interface akin to popular platforms like Douyin and Kuaishou, WeChat Channels allow for the creation, sharing, and engagement with a variety of content types including videos, images, and texts.

WeChat Channels last dats +80% time spend

Through this feature, users can explore a wide range of content, follow their favorite creators, engage with posts via comments, and express their appreciation through ‘likes’. By making its foray into the sphere of short video and social media platforms, WeChat Channels leverage the platform’s vast user base to foster interactive communication and content dissemination, subsequently driving user engagement and growth.

Tips for Short Video Marketing in China

• Short videos are more suitable for brands in certain categories. According to their users’ characteristics (most of the users are young people), they’re particularly effective for brands in the FMCG (fast-moving consumer goods) category, fashion, cosmetics, and IT.
• There are numerous short-video apps to choose from – take time to browse through the features and select the one most suitable for your business.
• Remember that users love and appreciate creative content. Content quality is the key to successful campaigns.
• Celebrities and KOLs now produce the most popular content. Campaigns that cooperate with celebrities and KOLs can achieve better results.
• Through audience interactions with short videos, brands can better understand their preferences, rapidly improve their user experience, and come up with effective marketing plans quickly.
• Share your videos through other platforms such as social media and your website. Attaching hashtags on popular topics may also prove useful for spreading the word.

Case studies

L’Oréal & Meipai

Taking advantage of the female-dominated demographics of short video platforms, L’Oréal conducted a Halloween campaign on Meipai, encouraging users to upload and share their Halloween makeup videos for a chance to receive a free gift from L’Oréal.

More than 11,000 users uploaded videos and the campaign videos got more than 60 million views.

Shanghai Disneyland & Meipai

Shanghai Disneyland launched a short video campaign on Meipai, where users were encouraged to upload short videos of happy moments at the park using the hashtag #The Most Beautiful Moment in Disney Shanghai (#最美上海迪士尼#).

The purpose was to drive more traffic to their new park. Then Shanghai Disneyland randomly chose participants and sent them gifts and free tickets. This campaign attracted attention from families and young consumers helped increase park visitor numbers and promoted sales.

Short Videos Reinforce the Social Commerce Trend

Most of the social media in China are linked to e-commerce in some ways since browsing on those platforms is a big part of the customer buying journey. Consumers discover new products, read product reviews, and interact with brands on social media before making purchases.

As short video platforms also play as social media where people socialize, have fun, explore content, and interact with brands. These sites have started to expand into the e-commerce business.

Douyin and Kuaishou are now selling products within the platforms.

Kuaishou is allowing selected users to open up what it calls “little shops” within its platform, where users and merchants can link to products from e-commerce marketplaces such as Alibaba’s Taobao as well as WeChat shop platform Youzan within their media posts.

Meanwhile, Douyin launched e-commerce features within their app earlier this year that also allows users to link products on Taobao to their postings.

Not only is video content eye-catching, but it also provides a channel for customers to see how a product looks and feels in real life. This shortens the customer journey, and customers are more likely to make impulse buys.

Short video platforms are giving their young users direct access to online shopping while they watch fun, entertaining videos.

Another advantage to sell on short video apps is that their young users tend to focus less on price comparisons, making monetization easier. For example, if they trust this KOL (key opinion leader), if they can afford this, and if that’s what they need, they buy it.

During the Double 12 Festival (December 12), Douyin’s short videos drove over 200 Million RMB in sales for Taobao.

KOL Zhang Dayi prances along a street in Japan with her friends while wearing a polka-dotted yellow dress, which can be purchased through a Taobao link.

So brands can not only gain significant exposure by interesting and meaningful short videos, especially ones created in collaboration with KOLs but also generate direct sales from these efforts.

We Can Help You Promote Through Short Videos! Contact us!

Short videos have become a powerful tool for brands in China to drive sales and engage with consumers. Platforms like Douyin and Kuaishou have provided brands with new ways to showcase their products in a creative and entertaining manner. These videos have the potential to go viral, reaching a large audience and generating buzz for the brand.

Moreover, short videos seamlessly integrate e-commerce, enabling consumers to make purchases directly within the platform. This combination of entertainment and e-commerce has been highly effective in capturing the attention and purchasing power of Chinese consumers.

Consequently, brands are increasingly utilizing short videos as a key marketing strategy to boost their online sales in China’s competitive e-commerce market.

We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.

Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.

During the festival, customers can find a wide range of products at discounted prices, including electronics, fashion, and home appliances. The event has become popular for shoppers to stock up on their favorite items or try out new products.

Whether you’re looking for a great deal or simply want to indulge in some retail therapy, the 618 Shopping Festival is definitely worth checking out.

In this article, we’ll provide a comprehensive overview of the 618 Shopping Festival and its significance in Chinese e-commerce. So dive in as we unravel the secrets behind one of China’s biggest shopping events!

Quick Summary

• Origins and Significance: The 618 Shopping Festival, initiated by JD.com on June 18th to celebrate its anniversary, has evolved into a major national shopping event in China, rivaling the Singles Day (11.11) festival. It marks a period of significant consumer spending across various product categories, from electronics to fashion.
• Impact on E-commerce: This festival has become a crucial part of China’s e-commerce calendar, significantly boosting sales and consumer engagement on platforms like JD.com, Taobao, Tmall, and Pinduoduo. It’s noted for its ability to recover post-pandemic, indicating resilience in China’s retail sector.
• Consumer Behavior: The festival has influenced Chinese consumer culture, encouraging spending and participation in various cultural and promotional activities. It reflects changes in consumer buying habits, with a growing trend towards mindful spending and a preference for quality products.
• Sales and Promotions: The event is characterized by extensive sales promotions, including exclusive deals, flash sales, and live-stream shopping, aimed at attracting a wide audience and encouraging spending. E-commerce platforms and brands offer significant discounts and innovative marketing campaigns to capture consumer interest.
• Challenges and Opportunities: Despite its success, the festival faces challenges such as fluctuating consumer confidence and the need for retailers to adapt to changing market trends. However, it continues to offer substantial opportunities for both local and international brands to engage with Chinese consumers and expand their market presence.
• Strategies for Success: Successful participation in the festival requires brands to employ strategic marketing campaigns, leverage influencer partnerships, offer exclusive products, and ensure a seamless customer experience. Personalized recommendations and value-added services are also key to attracting and retaining customers.

How Did the 618 Shopping Festival Started?

The 618 Chinese Shopping Festival is an important event in Chinese consumer culture. It was created by JD.com, one of China’s top e-commerce platforms, and is named after June 18th, which is JD.com’s foundation day.

The festival aims to boost sales by offering steep discounts during this period. It was originally created as a response to a similar event by the rival platform Taobao.

Over the years, the festival has become a nationally celebrated shopping event that starts on June 1st and ends on June 18th.

It has had a significant impact on Chinese culture, influencing buying habits of Chinese people across various categories.

Today it’s not only about discounted sales but also involves various cultural activities promoting engagement between businesses and consumers making it the second most important shopping spectacle in China after Singles Day (November 11 or “1111”).

Key figures show a post-pandemic recovery highlighted by the resurgence enjoyed by the festival following Covid-19 peaks – an important data point that indicates China’s resilience amid global uncertainty.

Overview of the 618 Shopping Festival

An essential annual event, the 618 Shopping Festival has significantly etched its place in China’s e-commerce calendar. The festival, celebrated from June 1st to June 18th, offers an opportune time for brands to maximize sales and expand their consumer base.

JD.com is known for its ability to create a successful shopping extravaganza that attracts a large number of customers year after year. It is considered the second-largest online retail shopping event after Single’s Day in November.

The festival has a significant impact on China’s e-commerce industry, with each iteration boosting consumer confidence and resulting in high sales on JD and other e-commerce platforms. However, not every year experiences the same level of success.

In 2022, both merchants and consumers felt that the festival was less exciting compared to previous years due to the limited growth witnessed by JD.com.

How does the festival look?

The 618 Shopping Festival is a whirlwind of sales, promotions, and events that will leave your head spinning. Check out some of the exciting activities you can expect during this online shopping extravaganza:

• Promotional campaigns: Get ready for an onslaught of eye-catching advertisements and marketing strategies aimed at capturing your attention. Brands pull out all the stops to showcase their products and lure you in with exclusive deals and massive discounts.

• Exclusive deals: During the festival, e-commerce platforms offer jaw-dropping discounts on a wide range of products. Whether you’re in the market for electronics, fashion, or home goods, you’ll find unbeatable prices that are sure to make your wallet smile.

• Livestream shopping: Livestreaming has become a popular tool during the festival, allowing brands to connect with consumers in real-time while showcasing their products. Tune in to watch influencers and celebrities promote their favorite items and take advantage of special offers available only during these livestream sessions.

• Record-breaking sales: The 618 Shopping Festival is known for shattering records year after year. Keep an eye out for news headlines boasting about astonishing sales figures as consumers eagerly scoop up deals left and right.

• Flash sales: Blink and you might miss them! Flash sales are a thrilling part of the festival where limited quantities of high-demand products are offered at incredibly low prices for a short period of time. Be quick on your feet to snag these unbelievable bargains!

• Enhanced user experience: E-commerce platforms go above and beyond to ensure a seamless shopping experience during the festival. They simplify promotion rules, streamline logistics processes, and curate richer product lists so that customers can easily explore various options without any hassle.

Key Players and Performance during the 618 Shopping Festival

The 618 Shopping Festival features top e-commerce companies such as JD.com, Taobao, Tmall, and Pinduoduo. These key players have consistently achieved record-breaking sales figures year after year during the festival.

Here are brief profiles of some of the top e-commerce companies that dominate this event:

JD.com

Founded in 1998, JD.com is one of China’s largest e-commerce platforms. It offers a wide range of products, including electronics, fashion, and home goods. With a strong logistics network and vast customer base, JD.com has been a major force during the 618 Shopping Festival.

Taobao

Launched in 2003 by Alibaba Group, Taobao is an online marketplace known for its extensive selection of consumer goods. It allows individuals and small businesses to sell their products directly to consumers. Taobao has played a crucial role in popularizing online shopping festivals like the 618 Shopping Festival.

Tmall

Also operated by Alibaba Group, Tmall is another prominent player in China’s e-commerce landscape. Unlike Taobao, Tmall focuses on brand-name products and authorized sellers. Many international and domestic luxury brands have set up official flagship stores on Tmall to reach Chinese consumers during events like the 618 Shopping Festival and other shopping festivals.

Pinduoduo

Pinduoduo is a relatively new player in the Chinese e-commerce market that quickly gained popularity since its launch in 2015. It differentiates itself from other platforms by offering group buying deals that encourage users to invite friends and family to enjoy discounts together. Pinduoduo’s social commerce approach has resonated with younger consumers during the 618 Shopping Festival.

Sales figures and record-breaking achievements of 618 festival

The 618 Shopping Festival has seen consistent growth over the years, as reflected in sales volume. JD.com, in particular, has experienced remarkable sales growth. By exploring diverse categories and catering to the ever-evolving consumer demand, both companies have managed to break records during the festival.

Impact and Challenges of the 618 Shopping Festival

Impact on Chinese retail and global suppliers

The 618 Shopping Festival has had a significant impact on the Chinese retail industry and global suppliers alike. The festival, which is the second largest and most important shopping event in China, offers tremendous opportunities for businesses to boost their revenues for the year.

With the struggling retail sector in need of a revival, manufacturers and retailers are heavily depending on the 618 Shopping Festival to drive sales and customer engagement. Moreover, this mid-year sales extravaganza not only impacts domestic businesses but also holds great significance for global suppliers seeking to tap into or strengthen their presence in the Chinese market.

It serves as a test for COVID-affected shoppers in China, providing insights into consumer behavior trends and preferences that can help shape future marketing strategies. Ultimately, leveraging the popularity of this online shopping festival can prove highly beneficial for both local and international brands looking to thrive within the dynamic Chinese retail landscape.

Consumer behavior and market trends: changes in consumer buying habits due to the festival

During the 618 Shopping Festival in China, there have been notable changes in consumer buying habits. One significant trend is the growing awareness among Chinese shoppers about their spending habits.

Despite attempts by e-commerce platforms to attract cautious shoppers, many consumers are now more mindful of their purchases, especially during many shopping festivals (especially Singles Day, the biggest shopping event in China).

Another noteworthy trend is the increased spending in certain categories such as sports and outdoor products.

This festival has seen a surge in these areas, making them appealing opportunities for brands and online retailers that want to take advantage of this trend.

The 618 Shopping Festival is a time of both challenges and opportunities for businesses. Consumers have become more selective during this period and are looking for high-quality products at competitive prices.

Businesses need to recognize this trend and adjust their strategies accordingly to meet the demands of these discerning customers.

Competitive landscape: strategies used by successful brands

Here are some key strategies used by successful brands utilize during the 618 Shopping Festival and other Chinese shopping festivals:

Innovative Marketing Campaigns

Successful brands understand the importance of creating marketing campaigns that are tailored specifically for festivals. They utilize various digital marketing channels, including social media, influencer partnerships, and live-streaming, to engage with consumers in a unique and compelling way.

Exclusive Products and Bundled Deals

During festivals, brands often release exclusive products or create bundles of popular items to attract customers. This strategy aims to create a sense of urgency and exclusivity, which encourages consumers to make purchases.

Pre-Festival Hype

Successful brands understand the importance of generating excitement and anticipation for upcoming festivals. They achieve this by releasing teasers, sneak peeks, and pre-sale promotions. These strategies help to build brand awareness and ensure that consumers are eagerly awaiting their offerings.

Personalized Recommendations

Brands utilize data analytics to gain insights into consumer preferences and offer personalized recommendations during festivals. This helps improve the shopping experience for consumers and increases the chances of converting them into customers.

Collaborations with Key Opinion Leaders (KOLs)

Partnering with Key Opinion Leaders (KOLs) in China is an effective strategy for brands to expand their reach and establish credibility. KOLs can help promote products through various means such as live-streaming sessions, product reviews, and endorsements. This allows brands to tap into a wider audience and benefit from the influence and trust that KOLs have built with their followers.

Seamless Customer Experience

Successful brands ensure a seamless customer experience from browsing products to checkout and delivery. They invest in logistics infrastructure to handle high order volumes efficiently, ensuring timely delivery despite challenging circumstances.

Value-added Services

Brands offer value-added services such as extended warranties, free shipping, easy returns, or additional discounts on future purchases during the festival period. These incentives help attract customers and increase loyalty toward the brand.

Customer Engagement

Brands actively engage with customers during the shopping festival through social media interactions, customer service support, or interactive games and contests. This fosters a sense of community around the brand and encourages repeat purchases.

Case Studies

During the 618 Shopping Festival and other popular shopping festivals in China, many brands implemented successful promotions and campaigns to attract customers and drive sales. Here are some examples:

1. JD.com’s Grand Promotion: JD.com, one of China’s largest e-commerce platforms, has introduced their Grand Promotion during the 618 Shopping Festival. They offer substantial discounts on various products, including electronics, fashion, beauty, and more. This promotion has been highly successful in driving traffic and generating sales.
2. Tmall’s Super Brand Day: Tmall, another major player in the Chinese e-commerce market, organizes Super Brand Day events during the festival. This initiative allows selected brands to showcase their products with exclusive discounts and special offers. These well-curated events generate excitement among consumers and result in increased sales for participating brands.
3. Pinduoduo’s Group-Buying Deals: Pinduoduo is known for its group-buying model where customers can team up with friends or family to get even larger discounts. During the 618 Shopping Festival, Pinduoduo offers exclusive group-buying deals on a wide range of products. This innovative approach attracts bargain-seeking consumers and drives significant sales.
4. Livestreaming Campaigns: Many brands leverage livestreaming as a key marketing strategy during the festival. Influencers and celebrities host live broadcasts on various platforms, showcasing products and offering exclusive deals to viewers. Brands such as Xiaomi and L’Oréal have successfully used livestreaming to engage with consumers directly and achieve impressive sales growth.
5. Cross-Platform Collaborations: Some brands collaborate with multiple e-commerce platforms during the festival to maximize their reach and exposure. By partnering with popular platforms like JD.com, Taobao, Tmall, and Pinduoduo simultaneously, brands can tap into different customer segments and increase their chances of success.
6. Limited-Time Flash Sales: Brands often utilize limited-time flash sales to create a sense of urgency and drive immediate purchases. These short-duration sales, with deep discounts on popular products, generate high demand and attract a large number of customers during the festival.
7. Innovative Marketing Campaigns: Brands have used innovative marketing campaigns to stand out from the competition. For example, Huawei launched a “Treasure Hunt” campaign where customers had to find hidden discount codes on their website for additional savings. This interactive approach not only created buzz but also increased customer engagement and participation.

We are your local partner in China! Contact us!

The 618 Shopping Festival has evolved into the second-largest and most important shopping event in China, offering huge discounts to shoppers from June 1st to June 18th each year. With its origins rooted in JD.com’s desire to boost e-commerce sales, the festival has become a significant indicator of consumer behavior and trends in the Chinese market.

Despite recent lackluster performance due to low consumer confidence, the future of the festival holds promise as it adapts to technological advancements and continues to attract both local and international brands seeking business opportunities during this annual retail extravaganza.

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Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.

As a matter of fact, Chinese eCommerce is expected to represent 64% of total retail sales in the country. There are 800 million Chinese online shoppers (as of 2022) and the Chinese eCommerce market is expected to reach 1,556.2 billion dollars in revenue by 2024.  

A big chunk of these transactions are happening through the Alibaba Group marketplaces: Tmall (B2C) and Taobao (C2C), as of 2022, the group holds almost 50% of China’s e-commerce market share.

Although competition is rising, Alibaba still is the uncontested leader of the Chinese market, and its local and cross-border version of Tmall is all of the rages with buyers and merchants!

Today we are digging more in-depth into Tmall and more specifically Tmall vs Tmall Global. After this read, you should have a good idea of which of these two Chinese online marketplaces is the right one for your business and what are the main distinctions between Tmall and its cross-border eCommerce counterpart.

Quick Summary

• Tmall’s Positioning: Founded in 2008, Tmall is a B2C platform that allows Chinese consumers to buy products from local and international merchants, emphasizing strict quality standards to combat counterfeit issues.
• Introduction of Tmall Global: Launched in 2014, Tmall Global is a cross-border e-commerce platform that enables foreign businesses to sell goods directly to Chinese online shoppers without needing a Chinese business license, making it the largest Chinese cross-border B2C platform.
• Differences Between Tmall and Tmall Global: The main differences lie in their business models, logistics, and costs. Tmall requires merchants to have a Chinese corporate entity, while Tmall Global allows foreign brands to sell without a physical presence in China.
• Costs and Fees: Both platforms have various costs, including security deposit requirements, sales commission rates, and annual technical service fees, which vary depending on product categories and logistics.
• Logistics and Supply Chain: Tmall products are usually stored in mainland China, offering faster delivery times, whereas Tmall Global allows storage in bonded warehouses or overseas, which may prolong delivery times due to customs clearance.
• Merchant Requirements for Tmall Global: Merchants must own an overseas company entity, be the brand owner or have brand authorization, and meet specific product requirements, including authenticity and labeling in Chinese.

China’s e-commerce market

The Chinese market is the biggest e-commerce market in the world, accounting for 1,412.2 billion US dollars in 2022. According to Statista, it is predicted that in 2025 it will grow up to 1,625.8 billion US dollars with an annual growth of 15% in the forecasted period.

Alibaba Group owns almost 50% of the market shares, so now you can get a better idea of how many Chinese customers you can target by entering one of its online marketplaces.

China accounted for over 37% share of the global e-commerce market, in terms of payments value in 2021.

Main trends in the Chinese market to look out for

There are two core pieces of information for companies wanting to sell imported products in China;

• Most Chinese e-commerce nowadays is happening on mobile phones. In fact, according to Statista, The number of mobile shoppers in China grew steadily in the past decade and reached 905 million in 2021. Projections showed that China’s mobile shopping service users will continue to grow to about 1.14 billion by 2023.
• According to China’s Ministry of Commerce, online retail sales in rural village communities increased by 35.3% year-on-year in Q1 2021. This means that companies wanting to sell their products and reach Chinese consumers, need to stop focusing only on first-tier cities and prepare marketing strategies that will have in mind people from all regions of China.

Tmall: the most popular e-commerce platform in Mainland China

Tmall was founded in 2008 as a subsidiary platform of Alibaba’s other online marketplace: Taobao. Tmall is a B2C platform, where Chinese consumers can buy products from local China entities as well as from international merchants. Tmall was launched as an answer to Taobaos’ problem with product quality.

Taobao is a C2C platform, where everyone can sell their products, therefore there are a lot of fakes on the market. Tmall stands out from competitors mainly thanks to strict standards regarding quality, to avoid problems with counterfeits.

Tmall Global: Alibaba’s nod toward international brands

In 2014 the Alibaba Group launched its new cross-border e-commerce sub-platform: Tmall Global. Tmall Global enables foreign businesses to directly sell goods to Chinese online shoppers without needing a Chinese business license.

Tmall Global is the international version of China’s leading online marketplace: Tmall. It is THE most famous and largest Chinese cross-border B2C platform.

Tmall Global, as a cross-border eCommerce platform, allows international merchants to save some time and money by avoiding the legal regulations and difficulties known to international brands that don’t have a physical presence in China yet.

Differences between Tmall and Tmall Global

Although both Tmall and Tmall Global belong to the same mother company, those two giants on Chinese e-commerce market differ in three main aspects; business model, logistics and supply chain and in costs.

Business model differences

Both platforms operate on B2C model, but the main difference is that Tmall operates by requiring its merchants to have a Chinese corporate entity and having products registered under local authorities. Tmall is a good choice for larger Chinese brands with corporate entities in the country, or international companies that are already present and well-set in domestic trade.

On the other hand, foreign brands are eligible to set their owh Tmall Global stores without an actual presence in China. Those companies can store their products in Chinese free trade zones and they don’t need to partner with local authorities to sell products to Chinese shoppers on the platform.

Costs

It’s hard to tell the exact costs of both platforms for international merchants, as those costs vary depending on product categories of imported products, logistics costs and so on. You can have a look at our comparison to get an idea of annual service fee of both platforms and all the other costs;

Alibaba found the perfect compromise between the growing demand of Chinese online shoppers to buy quality international goods and the will of overseas businesses to sell directly to the huge Chinese consumers without having to register in China. Since the opening of Tmall Global, More than 29000 foreign companies already opened an online shop on the platform.

Logistics and supply chain

When it comes to Tmall flagship stores, products are usually stored inside Cainiao (Alibaba logistics) warehouses in Mainland China. It’s a good option for bigger brands, as they can sell online to customers and deliver products much faster thanks to Alibaba’s logistics system. There is no need for customs clearance and all the other actions that prolong the delivery process.

International brands wanting to sell on Tmall Global can store their good in bonded warehouses within Chinese free trade zone. They can also be stored in one of the warehouses in Europe, the US, Hong Kong and more, but it will prolong the delivery process, as it requires the products to go through customs clearance.

Although it is easier for merchants to sell on Tmall Global, you need to keep in mind that processing return orders is much more complicated, as sellers need to find a solution for sending products back from China.

Conditions to become a merchant on Tmall Global

• Owning an overseas company entity
• Be the brand owner / have a brand authorization, and provide complete product purchase certificates from the brand side.

Merchants’ requirements to sell on Tmall Global

Businesses must be registered outside of China with trademarks in any country but China. The merchants must be qualified to retail overseas and have good operating conditions. They must also be able to certify that their stock is located outside of China market.

Foreign merchants have 3 different possibilities to open a store on Tmall Global:

1. The first possibility for the foreign merchant is to open a Tmall flagship store if they are trademark brands.
2. The second one is for merchants who possess authorization from the brand to distribute and sell their products in China; they can then open a specialty Tmall store.
3. The third and last option is to open a franchise shop; this is possible for merchants who have brand-licensed goods.

Products Requirements to be sold on Tmall Global

Products must be authentic, and provide origin and Chinese custom certificates. Products also have to be labeled with product information in Chinese. Their delivery should be completed within 5-8 workdays and their returns must be possible in mainland China.

Want to start selling on Tmall/Tmall Global?

GMA is a certified Tmall & Tmall Global Partner, we have solutions to help you register and increase your sales/conversion rate on the marketplace!

We have more than 10 years of experience in digital marketing. We’ve worked with over 600 brands, helping them establish their presence in China.

Here are our Tmall services:

As a certified Tmall Partner, we accompany you through your eCommerce journey in China. Contact us today to learn more about the solutions we have for you!

Today we are taking a deeper look into Alibaba’s Tmall (天猫) aka China’s biggest eCommerce platform in terms of revenue).

We hope our years doing e-commerce in China and our experience as a Tmall Agency will help you understand better the importance of Tmall in the market, as well as the eCommerce best practices.

Quick Summary

• Tmall’s Dominance: Tmall (天猫), a subsidiary of Alibaba and originally part of Taobao, is China’s largest e-commerce platform in terms of sales value. It targets the B2C market, allowing both local and international companies to sell products in mainland China, Hong Kong, Macau, and Taiwan.
• Market Share and Popularity: Tmall holds the majority of China’s e-commerce market shares, with about 50.8% of all transactions on B2C platforms, significantly ahead of competitors like JD.com and Pinduoduo. It is renowned for its strict quality and brand reputation standards.
• Consumer Engagement: Chinese consumers spend an average of 7 minutes per day on Tmall, which is more than twice the time spent on JD.com. This high level of engagement underscores Tmall’s importance in the Chinese e-commerce landscape.
• Significance for Businesses: Tmall is crucial for businesses aiming to tap into the Chinese market, with more than 780 million consumers having made purchases through the platform. It is especially noted for its sales events, like the 11.11 (Single’s Day), which generates significant revenue and offers a vital opportunity for brands to maximize sales.
• Luxury Brands Platform: Tmall Global and Tmall Luxury Pavilion cater specifically to international and luxury brands, offering a premium and unique user experience with features like AI and AR to attract and engage consumers.
• E-commerce Growth in China: The Chinese e-commerce market continues to grow, driven by increased internet penetration, rising purchasing power, and the expansion of platforms like Alibaba.
• Selling on Tmall: To sell on Tmall, companies must demonstrate potential and comply with strict requirements, including having official Chinese documents and product registrations. The platform’s fees can be high, but it offers significant visibility and access to a vast consumer base.
• Increasing ROI on Tmall: Success on Tmall requires more than just listing products; brands must actively work on traffic acquisition, conversion, and especially e-reputation. Chinese consumers heavily rely on reviews and word-of-mouth, making a brand’s online presence and reputation critical for attracting new customers.
• Advertising and Marketing Strategies: Effective advertising on Tmall and other Chinese e-commerce platforms requires a tailored approach, with options ranging from homepage displays to banner ads. Brands must focus on creating engaging content that resonates with their target audience to succeed in the competitive Chinese market.

What is Tmall 天猫?

Founded in 2008 under the famous Alibaba group, Tmall (天猫), is the biggest Chinese e-commerce website in terms of sales values. It is a subsidiary of the e-commerce website Taobao (淘宝网). Its target market is primarily B2C (Business-To-Consumer). Tmall’s concept is ambitious and wise as it allows both local Chinese and international companies to sell their products through the platform in mainland China, Hong Kong, Macau, and Taiwan. Tmall stands out from its competitor’s thanks to its strict standards in terms of quality and renown.

If we look at the ranking of top Chinese websites based on traffic volume, it is clear that Tmall leads the way, even compared to the most popular search engine in China, Baidu. In terms of time, Chinese consumers are spending on average 7 minutes per day on the app, which is more than twice the time spent on JD.com.

Tmall: The Most Popular Chinese E-commerce Website

Over the years, Tmall was able to grab the majority of china’s e-commerce market shares, establishing itself as the most popular Chinese e-commerce website and becoming the best online gateway for local and international retailers.

As of 2021 Q1, Tmall accounted for around 50.8% of all transactions on B2C platforms, far ahead of the 2nd e-commerce platform JD.com with 15.9% of the transaction share and Pinduoduo with about 13%.

Why does Tmall matter for businesses?

It is estimated that more than 780 million consumers in China have purchased at least once through Tmall, thus, explaining why a growing number of international brands are joining Tmall Global. Even if you are not quite familiar with Tmall, you have probably already heard of it these last few years, during big sales events. Tmall is indeed famous for its multiple sales record such as the 11.11, which can generate 74.10 billion dollars within 24 hours!

Over the years, Tmall’s gross merchandise volume increased from 847 billion yuan to 3 202 billion yuan in 2020 (more than 3 times higher)!

Single’s Day: The Biggest Commercial Event

Known as “Single’s Day”, or 11.11 (双11) this 24 hours-event has become the largest physical retail and online shopping day in the world. It is the biggest sales event for e-commerce platforms such as Tmall, JD.com, and Taobao. This event is now nearly four times the size of America’s biggest shopping days, Black Friday and Cyber Monday. Thus, if you want to do business in China, you will have to focus particularly on this big day, in terms of communication and marketing, but also in terms of advertising.

China loves festivities, and each of them is a great occasion for brands to launch specific campaigns, Read more about Important dates for eCommerce in China. We introduce you to the most important celebrations and shopping festivals in China, illustrated by examples of brand campaigns.

Tmall: A Powerful Platform for Luxury Brands

For international companies, Tmall can be a useful e-commerce platform to help increase their sales as well as to promote their brand. Luxury brands not only have access to Tmall and Tmall Global but also to Tmall Luxury Pavilion. This pavilion is an “app within an app” that enables top selected clients to get access to the most premium and luxury brands with dedicated flagship stores. They also benefit from a unique user experience such as AI and AR, which can be a determining factor to attract consumers and make them spend more time on your web page.

Is Tmall necessary to sell goods in China?

You have to know that Tmall is indeed the most popular e-commerce website in China, but not the only one! There are plenty of e-commerce websites that can be more suitable for your company, in terms of marketing strategies, but mostly in terms of price. As the leader in the Chinese market, selling products on Tmall can be quite expensive, and even unaffordable for many smaller companies. However, if your company/brands have the resources to start directly on Tmall, we strongly suggest you do it. With work on your store, on-site, and off-site marketing, your journey will be rewarding.

E-commerce in China

If you are interested in expanding your activities in China, you probably already know that e-commerce is the quintessence of business. To export and sell your goods in China, it is undeniable that you will probably want to open a store on leading e-commerce platforms such as Tmall, which attracts every minute thousand consumers. Nonetheless, platforms like JD.com and Tmall only accept high-quality products and brands that already have a good reputation in China.

Given all these conditions, it can be difficult to know which platform suits a company’s needs in terms of sales, audience, marketing, and even advertising. Before getting started, running a market survey is a great idea. It helps with understanding the potential of your product in China and defining a pricing& marketing strategy.

China’s eCommerce landscape is varied and dynamic and can be overwhelming even for locals. But don’t worry we wrote a simple eCommerce in China Guide with the most important information on each of the most popular apps, so you don’t have to do the research yourself!

China eCommerce: An ever Growing Market

With a shift toward new technologies and internet-related tools, the Chinese population is one of the most connected in the world, from purchasing products on the internet to paying for their cab. Thus, it is no surprise that e-commerce platforms were increasingly able to attract Chinese consumers that don’t want to spend time in brick-and-mortar stores.

As seen in the above graphic, the number of online shoppers in China keeps increasing, reaching more than 782 million online shoppers in 2020, following the Covid-19 pandemic. As a matter of fact, with the Covid pandemic, consumers have shifted from offline to online purchases on e-commerce platforms. Moreover, in order to alleviate the tough competition, many brands are sending e-vouchers to their followers through social media, which attracts even more Chinese consumers.

Some of the factors contributing to the e-commerce growth are increased internet penetration, and always increasing spending power, but also the expansion of the e-commerce giant Alibaba Group.

How to sell your goods on Tmall?

In China, the possibility to open a shop on an e-commerce website does not only depend on your motivation but mostly on how your brand appears and the potential, it will have on its platform. If you want to get the opportunity of selling your products on one of the most consulted e-commerce websites in the world, you will need to show what you have to offer, and convince Tmall that you have the potential to attract Chinese consumers interest.

What company can apply to register on Tmall China?

To register your company on Tmall, you have to know that Tmall requires its merchants to have official Chinese documents as well as to have your products registered with the local authorities. This is the reason why most of the foreign brands you’ll see on Tmall tend to be international and F500 brands that already have an entity in China (We can help you register your company in China and get a license for your products categories!).

Learn more on Tmall Registration Process: How can brands register on Tmall? – In this post, you’ll learn what is the requirement to start selling on Tmall, the types of stores as well as the fees.

Tmall Registration and running fees:

If you want to sell your goods on Tmall, be aware that the fees are quite high (although, in most cases and with the right strategy it is totally worth it)

• A Tmall Flagship store costs between 50,000 RMB and 100,000 RMB

• Marketplace: between 100,000 RMB and 150,000 RMB

• In terms of technical services, you will have to pay between 30,000 RMB and 60,000 RMB per year

• Sales commission for Tmall can represent 0.5% to 10% of sales (although most of the time it will be around 2% and 5%).

• Finally, as a subsidiary of Alibaba, Chinese consumers are purchasing with Alipay, so it will represent 1% of your sales.

How do you increase your ROI on the Tmall Marketplace?

Although Tmall is the biggest Chinese eCommerce platform in the world, it won’t magically create money. You’ll have to work hard to get those sales and be more visible than your competitors. Once you’ve managed to open your store you’ll have to think about traffic acquisition and conversion. The good news is the more you sell, the more visibility you get and the higher your conversion rate gets. The hard part is to get initial traffic and sales but there are solutions for that.

The importance of e-reputation in China

Driving traffic to your store won’t be the issue, but getting those first sales can be tricky. In order to do so, you’ll have to work on your online presence and reputation. Indeed, Chinese consumers are extremely suspicious of products and brands that they have never heard of before. They will most of the time rely on other users’ experiences, recommendations, looking at reviews.

Word-of-mouth is actually one of the best ways to attract new customers, and this is why your brand e-reputation is essential when it comes to entering the Chinese market. You will also have to be careful when it comes to consumers’ feedback on your products, as it will influence potential consumers and even e-commerce platforms such as Tmall. Get a few hundred sales, encourage your customers to let review and you’ll be set for success.

• Social Media: Wechat, Red, Weibo, Douyin, Kuaishou… there are plenty you can join. They are great to build a following and improve customer loyalty. They allow you to interact directly with your target audience and run paid advertising for traffic acquisition and even get customers’ detailed reviews (red). Some of them also tend to rank quite high on Baidu which is great for credibility.
• Kols & Influencers: They are well trusted and highly influential. There are many ways you can collaborate with Kols offering you some flexibility in the way you wished to promote your brand.
• PR, forums, and Q&A: The best way to build brand credibility. Third-party recommendations for your brand will always be more effective to increase conversion than official brand communication. Just like social media posts, they rank high on Baidu.

Advertising on Tmall

Advertising in China requires a different approach from what we are accustomed to, especially on Chinese e-commerce platforms such as Tmall. However, some tools of advertising are quite similar to ours.

Banner ads

Depending on your budget and reputation, you will be able to display your products on Tmall’s homepage, and even advertise your brand on a banner ad, as you can see in this ad for the French company Sisley. If you want to have more pieces information about advertising on Tmall, feel free to contact us.

We are Tmall Partner – Contact us to get started

The Chinese market is one of the most promising in the world in terms of opportunities, both for smaller companies like startups, but also for larger international companies. However, in order to succeed, you will need to local e-commerce websites, such as Tmall, the leader in e-commerce in China. To do so, you will need to do a lot of research beforehand as well as be prepared to complete quite a long procedure in order to sell your goods on the platform. That’s why working with specialists in the Chinese market can be the key to success.

Working with an agency that has both western and Chinese points of view like Gentlemen Marketing Agency can help you overcome the pitfalls of the Chinese market. As a Tmall Partner, we have accompanied many companies entering the Chinese market through Tmall. Proud of the success of the companies that contacted us, our experts are ready to help any company willing to do business in China. So, if you are interested in doing business in China, do not hesitate to contact us and we will reply within 24 hours.

With over 95% of brands present on WeChat mini-programs, WeChat E-Commerce is rapidly gaining popularity among both domestic and foreign brands. In this blog post, we’ll explore why WeChat is good for business and how you can leverage its features and capabilities to enhance your brand’s online presence and drive sales.

So let’s dive into the world of WeChat eCommerce!

Quick Summary

• WeChat’s Evolution into a Powerful E-commerce Platform: Initially launched in 2011 as a messaging app, WeChat has transformed into one of China’s leading e-commerce platforms, integrating social networking and shopping to cater to the Chinese market effectively.
• High Brand Adoption Rate: Over 95% of brands are present on WeChat through mini-programs, indicating the platform’s critical role in both domestic and international brands’ marketing strategies in China.
• Multifaceted Platform for Businesses: WeChat serves not just as a messaging app but as a comprehensive ecosystem offering payment systems, e-commerce integration, and various services for businesses and consumers.
• Broad User Base and Versatility: With its vast user base, WeChat provides businesses access to a large audience, combining messaging, social media, e-commerce, and mobile payments into a single platform.
• Integrated Payment System: WeChat Pay facilitates seamless transactions, enhancing consumer purchase experiences and potentially increasing sales conversions.
• Official Accounts and Mini Programs: These features allow businesses to build brand presence, engage with users, and offer advanced e-commerce functionalities within the WeChat ecosystem.
• Customer Relationship Management (CRM): Direct interaction with customers through WeChat enables personalized marketing and improved customer service.
• Location-Based Services and Data Analytics: These tools help businesses target promotions more effectively and gain valuable consumer insights for data-driven decisions.
• Significant Role in Social Commerce: WeChat dominates over 90% of the total market share for social commerce in China, underlining its importance in the e-commerce landscape.
• Benefits for Brands: WeChat e-commerce offers brands powerful digital marketing tools, customer engagement strategies, and opportunities for cross-border e-commerce without requiring a physical presence or Chinese business license.

Introduction To WeChat

WeChat is not just a messaging app, it’s a multifaceted platform that businesses can leverage to drive sales and engagement. From WeChat Official Accounts to Mini Programs and advertising, the possibilities are endless for brands looking to tap into this growing eCommerce market in China.

What truly sets WeChat apart from other social media applications is its vast range of features and capabilities that have evolved since its inception. Serving not only as a messaging app but also incorporating payment systems, eCommerce integration through Mini Programs (sub-applications within the WeChat ecosystem), and several other services tailored for both businesses and consumers alike.

Why Is WeChat Good For Business?

WeChat, often referred to as China’s “app for everything,” provides numerous advantages for businesses, particularly given its large user base and extensive range of functionalities. Here’s why WeChat is good for business:

• Broad User Base: As one of the most popular social media platforms in China, WeChat gives businesses access to a vast audience.

• Versatility: WeChat isn’t just a social media app; it’s a multi-purpose platform that combines messaging, social media, e-commerce, mobile payment, and more. This means businesses can use it for a wide range of operations, from promotion and marketing to sales and customer service.

• WeChat Pay: WeChat’s integrated mobile payment system, WeChat Pay, enables seamless transactions for businesses. This secure and widely-used payment system makes it easier for consumers to make purchases, which can increase sales conversions.

• WeChat Official Accounts: These allow businesses to build brand presence, share content, interact with users, and even sell products or services directly to followers.

• Mini Programs: WeChat’s Mini Programs are ‘sub-applications’ within the WeChat ecosystem. They allow businesses to provide advanced features like e-commerce, task management, and coupons without requiring users to leave the app.

• Customer Relationship Management (CRM): WeChat allows businesses to interact directly with customers through messages, which can be automated for frequently asked questions. This opens up opportunities for personalized marketing and improves customer service.

• Location-Based Services: Businesses can use these to send targeted promotions to users in a specific geographical area, improving the relevance of their marketing efforts.

• Data Analytics: WeChat provides businesses with valuable consumer insights, which can help in understanding customer behavior, tracking marketing campaign performance, and making data-driven decisions.

Remember, however, that while WeChat offers vast opportunities, succeeding on the platform requires a well-thought-out strategy that understands the unique characteristics of Chinese digital culture and consumer behavior.

WeChat is Becoming One of The Most Important E-Commerce Platforms

The growth and influence of WeChat in the eCommerce landscape have been nothing short of phenomenal, thanks to its seamless fusion of social media, mobile commerce, messaging apps, and online transactions.

One cannot ignore how group-buying initiatives and WeChat-based social commerce have come to dominate over 90% of the total market share for social commerce. Furthermore, as the largest social network in China with growing global popularity, WeChat continually adapts to user needs through innovative product strategies.

For instance, consider their role in facilitating nearly $250 billion in eCommerce transactions or how they’ve emerged as “the king of apps” within China’s digital ecosystem.

Benefits Of WeChat ECommerce For Brands

You’ll be happy to know that WeChat eCommerce offers many benefits for brands. Not only does it allow for social and mobile commerce, but it also provides powerful digital marketing tools like customer relationship management and targeted advertising options. There is also an option for cross-border e-commerce for all the brands without the psychical presence and Chinese business license.

WeChat Mini Programs are particularly beneficial for brand engagement as they offer a streamlined shopping experience that is highly convenient for WeChat users.

With features such as WeChat Pay, purchasing products has never been easier. There are also opportunities to use influencers in the form of Key Opinion Leaders (KOLs) who can help promote your brand on the platform.

Best WeChat Features and Tools for eCommerce

WeChat eCommerce offers a range of features and capabilities, including WeChat Official Accounts for branding and engagement, Mini Programs for seamless shopping experiences, Channels for short-video engagement, secure transactions with WeChat Pay, targeted advertising through WeChat Ads, and influencer marketing through KOLs.

WeChat Official Accounts For Brand Presence And Engagement

WeChat Official Accounts can elevate your brand presence and drive customer engagement. There are two types of accounts to choose from: subscription accounts and service accounts.

Subscription accounts are ideal for delivering daily or weekly content updates, whereas service accounts are better suited for brands seeking more advanced functionality such as API integrations, e-commerce capabilities, and customer relationship management (CRM).

By creating a business WeChat account and optimizing its features for your target audience’s preferences, you can establish a strong brand identity on the platform and foster meaningful relationships with potential customers.

Additionally, WeChat offers extensive analytics tools so that you can track WeChat followers engagement levels and refine your strategy accordingly.

WeChat Mini Programs For Seamless Shopping Experiences

WeChat Mini Programs offer advanced features for e-commerce and seamless shopping experiences. With over 1 million mini-programs across more than 200 industries, including e-commerce, these programs are gaining popularity among users.

WeChat Mini-Programs can be categorized into six distinct groups, with e-commerce being the largest at 18%. These programs aim to make WeChat even more practical for its hundreds of millions of users.

Its convenient purchasing options such as in-app purchases provide an excellent user experience while ensuring secure transactions using WeChat Pay.

The most beneficial WeChat mini-programs are WeChat Stores and WeChat H5 Brochures. A WeChat shop enables brands to sell products directly to consumers, without the need of investing in big e-commerce platforms in China. On the other hand, WeChat Brochure is an interactive presentation of your brand and products, that can be easily shared between WeChat friends or in WeChat groups.

WeChat Channels For Short-Video Engagement

WeChat Channels is an exciting feature that allows brands to engage their audience using short-form videos. You can leverage this feature as part of your content marketing and social media marketing strategy.

With WeChat Channels, you can attract users through engaging video content that tells the story of your brand in a simplified way. The platform grants access to individuals and companies to start a WeChat video channel and shop directly from an advert.

This feature positions Tencent for further growth.

International brands stand to gain significantly by tapping into the capabilities of WeChat channels, which is quite similar to Facebook’s timeline. In July 2022, WeChat started adding video ads on Channels that users can share with friends on WeChat, thus improving user engagement with short-video advertising strategies.

WeChat Pay For Secure And Convenient Transactions

WeChat Pay is an in-app payment feature that allows users to pay for transactions quickly on their mobile phones.

It offers secure and convenient transactions through its payment gateway and has a similar transaction fee structure to AliPay. WeChat Pay also allows users to link their bank accounts or credit cards, making it easy for them to make payments online.

Best of all, WeChat’s eCommerce platform accepts payments made through WeChat Pay, allowing businesses to offer seamless shopping experiences for customers.

WeChat Advertising For Targeted Advertising

WeChat advertising is a powerful tool for brands looking to reach their target audience on the platform. With options such as displaying targeted ads in users’ timelines, mini-programs, and official accounts, WeChat allows businesses to showcase their products or services to potential customers.

These ads feature the brand’s logo and account name and appear at the bottom of messages created by official accounts. Marketers can also define their target audience based on age and other factors, thanks to high-quality user data obtained from WeChat Moment ads or WeChat article ads.

WeChat KOLs And Influencer Marketing For Brand Promotion

WeChat KOLs are influential individuals or groups with large followings who can promote brands and products through sponsored articles and product reviews.

They have considerable sway in informing their followers about a brand’s campaigns and products, which can influence consumer behavior toward purchasing decisions.

WeChat influencer marketing is highly advisable for brands looking to reach their target audience in the Chinese market. WeChat offers KOL advertising, which enables brands to place banner advertisements within the content of KOL’s posts for maximum exposure.

Leveraging WeChat ECommerce For Business Success

Learn how to create a WeChat Official Account, open a WeChat store, optimize your WeChat H5 Brochure for enhanced user experience, and start leveraging the power of WeChat eCommerce to take your business to new heights.

How To Create A WeChat Official Account?

Creating a WeChat Official Account for business is a crucial step in enhancing brand visibility and engagement within the platform’s ecosystem. To get started, one needs to determine which type of account best aligns with their goals (subscription or service account).

The subscription account is ideal for sharing bespoke content and building a loyal following, while the service account provides more extensive functionalities like customer service, eCommerce solutions, and CRM integration.

After selecting the account type, and going through the registration process, creating captivating content should be prioritized to attract and engage followers effectively. The key elements include an appealing profile picture, a concise bio that captures your brand identity, relevant keywords for search purposes, and consistent posting schedules optimized to target peak hours when users are most active on the platform.

How To Open A WeChat Store?

Firstly, it requires creating an optimized WeChat Mini Program that enhances user experience and offers a seamless shopping experience. To create a mini-program, you can either use a third-party provider or hire an agency to do the job for you.

This means choosing the right name and description for your program, providing compelling images and videos, product descriptions with pricing information clearly indicated, integrating convenient payment options like WeChat Pay or Alipay, and ensuring speedy page loading times.

For example, Nike’s successful launch of their Tmall global flagship store in China resulted in an increase in sales thanks to its intuitive design that provided social sharing buttons throughout the platform for easy sharing on various social media sites.

How To Create A Good WeChat H5 Brochure?

WeChat H5 brochures serve as a narrative of your brand and are a great representation of your services and products. Creating a brochure works the same as creating a store, as they are both done in mini-programs.

To grab the viewer’s attention, you need to create engaging content that showcases your brand in an interactive way. Keep in mind that H5 pages rely heavily on user input, which WeChat is great at collecting.

To create an effective WeChat H5 brochure, start by telling a story through visual elements such as images and videos. Use short sentences and bullet points to highlight key features or benefits of your products or services.

Emphasize customer satisfaction by using testimonials or success stories from previous clients.

One example of an effective H5 page is Airbnb China’s promotion of Lijiang Old Town in Yunnan Province. Their page combines stunning imagery with the ability for users to book unique accommodations directly from within the WeChat app.

Case Studies And Success Stories

As WeChat continues to gain massive popularity in China, more international brands are taking notice of its potential for business growth. Many foreign companies have already started leveraging the platform to expand their brand and products to China through WeChat marketing.

For instance, luxury retail giant Burberry has created a mini-program on WeChat that allows Chinese customers to shop online and view collections directly from their smartphones.

Another example is BMW, which partnered with WeChat’s parent company Tencent to launch a voice-enabled digital assistant for car owners in China via the app.

Another example is that of L’Oreal Paris who collaborated with top beauty influencers on the platform through Keypersona marketing campaigns, which helped them reach out to millions of users in China.

Ultimately, these case studies demonstrate how WeChat enables businesses to be creative, authentic, and engaging while gaining new customers or increasing sales revenue in the Chinese market at large.

We are a China-based WeChat Marketing Agency

WeChat eCommerce is a powerful platform that offers businesses a plethora of opportunities to connect with consumers in China and beyond. With features like Official Accounts, Mini Programs, Channels, Pay, advertising, and KOLs/influencer marketing at its fingertips; WeChat can be leveraged by businesses to achieve success in Chinese eCommerce.

One of the biggest advantages of selling on WeChat is gaining access to China’s massive consumer market. Selling through this platform can help businesses overcome common barriers like language and cultural differences.

Additionally, WeChat’s tightly integrated services with simple and unified design make it a popular choice among users, offering both confidence and social benefits. Moreover, by leveraging influencers and KOLs on the platform for targeted social media marketing campaigns, businesses can enhance customer engagement while driving sales growth.

We are a China-based marketing agency specializing in digital marketing and e-commerce solutions. We offer cost-effective solutions to Western brands and WeChat is our core specialty. Here are some of our services on the platform:

Don’t hesitate to leave us a message or contact us to discuss your options. We offer a free consultation with one of our experts, that will learn about your brand and show you the best possibilities for you on WeChat.

This type of e-commerce allows Chinese consumers to purchase foreign products from international companies online, often at lower prices than they would find in domestic stores. The popularity of cross-border e-commerce is due in part to the wide selection of imported goods available, as well as the ease and convenience of online shopping.

In this article, we take a closer look at China’s cross-border e-commerce and discuss some key trends and challenges for enterprises in the United States and Europe facing this growing sector.

Quick Summary

• Rapid Growth of Cross-Border E-Commerce: In China, cross-border e-commerce has experienced significant growth, driven by the rising middle class and increased internet access.
• Popularity Reasons: Chinese consumers are attracted to cross-border e-commerce for better-quality products, the appeal of big international brands, and greater market access for sellers.
• Market Leaders: Key players in China’s cross-border e-commerce market include Alibaba (37.4% market share), NetEase Kaola (26%), JD Worldwide (17.8%), Vipshop Global (8.8%), and Amazon Global (3.7%).
• Booming Sectors: Popular sectors in cross-border e-commerce include cosmetics & care products, baby products, food & beverage, fashion, and jewelry.
• Export Methods to China: The main methods are the Universal Postal Union (UPU) for small parcels, Import through B2C for products like food and cosmetics, and In-bond import model for consumer goods and heavy goods vehicles.
• Taxes and Customs Regulations: Cross-border logistics in China are subject to import taxes, VAT, and consumption tax, with different rates for various product categories.
• Chinese Transaction Methods: WeChat Pay and Alipay are popular cross-border e-commerce payment options in China, offering convenience and integration with local payment systems.
• Cost Considerations: Cross-border e-commerce in China involves costs like platform fees, website design, marketing, warehouse management, shipping, and customs trade costs.
• Storage and Logistics: Storage in cross-border e-commerce zones and logistics management are crucial, with options like JD Worldwide offering storage services.
• Need for Local Partner: Depending on business size and goals, a local partner in China can be beneficial for logistics and market understanding.
• Choosing the Right Platform: Options include creating a Chinese website, using large e-commerce platforms like Tmall or JD, or setting up a WeChat shop with mini-programs.
• Trademark Protection: It’s advisable to register trademarks in China due to the “first to file” system and to protect against copying.
• GMA’s Assistance: GMA offers services to help with choosing the right platform, launching and managing cross-border e-commerce, customer service, and digital marketing strategy in China.

What is cross-border e-commerce?

Cross-border e-commerce is a type of online shopping that allows customers to buy foreign products from sellers in other areas of the world. Unlike traditional e-commerce, which is limited to domestic transactions, cross-border e-commerce takes advantage of global marketplace integration by connecting buyers and sellers from all over the world.

Cross-border e-commerce in China is an industry with rapid growth, and cross-border trade is worth billions of dollars annually. With the rise of the Chinese middle class and the growth of internet access, cross-border e-commerce has become an increasingly popular way for Chinese consumers to purchase goods and services from international companies.

There are several reasons why cross-border e-commerce is booming in China

First, many Chinese consumers search for better-quality products than they can find on domestic e-commerce platforms.

Second, big international brands are becoming increasingly popular with young, affluent urbanites in China.

Finally, for sellers, cross-border e-commerce offers much greater access to new markets and potential customers to which they can sell products without leaving their countries.

China’s cross-border e-commerce market

In China, many online platforms are operating in cross-border e-commerce but according to data, the key players in the China market are as followed:

• Alibaba: Owns several different platforms such as Taobao and Tmall Global: 37.4% market share
• Net Ease Kaola: 26% market share (recently purchased by Alibaba Group)
• JD Worldwide: 17.8% market share
• Vipshop Global: 8.8% market share
• Amazon Global: 3.7%
• Pinduoduo: Relatively new player but making waves

The biggest player in the market, Alibaba Group recorded sales revenue of RMB 205,555 million (US$30,689 million) and remained stable year-over-year as of 30 June 2022. A big part of these sales is of course cross-border e-commerce purchases.

In China, you can sell almost anything through cross-border e-commerce. Some sectors are particularly booming:

• Cosmetic & care products
• Baby products
• Food & beverage
• Fashion (including luxury goods)
• Jewelry

What is the process for product exports to China?

There are a few different ways to export products to China, depending on the type of product and the intended market.

There are 3 main methods to export your goods in China:

1. Universal Postal Union (UPU): It’s an informal technique that allows you to send small parcels in China, which is a good method for small and medium-sized enterprises. It doesn’t require an import permit from the general administration, but products may be subject to a customs tax of up to 15/30/60% according to your product. The total product value must not exceed 1000 RMB for 6 products and needs to be checked by customs clearance concerning the restrictions and prohibitions on terms of import in China (cf. FedEx website).
2. Import through B2C: It’s a formal export model in which the package is declared via a platform to alert customs clearance of its shipment. This is a good way to ship products such as food, cosmetics, and high-end consumer products.
3. In-bond import model: This one is a bit more complicated, as it requires the storage of exported products in a location such as Hong Kong or special areas for cross-border eCommerce. This type of shipment corresponds to products such as consumer goods, low-value goods, or heavy goods vehicles.

China Cross-Border E-Commerce taxes & customs regulations:

Keep in mind that for the last two methods mentioned above, cross-border logistics are subject to import taxes payments, VAT, and consumption tax (product tax is about 11.2% for the largest category of products or 25.5% for high-end cosmetics, luxury care, and perfume).

You can also ship your products to the Chinese border (Hong Kong for example) where they will be stored before being fulfilled to the customer. The good part is that if nobody in China buys it, you can still sell it through other cross-border e-commerce platforms in Asian countries.

Since 2016, a “positive” product list has been approved, resulting in a preferential import customs tax of 11.9% tax rate for certain goods. Those goods are also exempt from the additional time at customs clearance and don’t require an import license or other certificates and regulations.

“Positive” Products from this list are as followed:

• Furniture
• Spices / healthy dry food
• Cosmetics-related products (brushes/cotton pads and other things)
• Clothing
• Selection of dairy products (milk/cheese)
• Vitamins
• Baby food
• Wine/beer
• Fitness related products

For all the other things not mentioned in the previous list, the following documents will be required:

• An import permit for any cross-border eCommerce actions
• Registration form (such as CFDA permit for nutrition products)

For customs regulations, you can either deal with it by yourself or hire some logistics company to help you deal with the multiple steps during the logistics and customs procedure which include:

• Customs registration
• Declaration and inspection of products to import
• Payment of taxes and exchange control
• Customs clearance and regulations fulfillment

A certificate of quarantine from the local inspection & quarantine authority in the country will still be required for alcoholic beverages, cosmetics, seeds, foodstuffs, and plants.

Understanding Chinese transactions methods for eCommerce

Fluctuating exchange rates can lead to a significant impact on the company during all China cross-border e-commerce-related activities. To facilitate these transactions, you can use cross-border eCommerce payment options from WeChat or Alipay that are available in China. Both methods require a business license, but there is no need for a Chinese bank account.

WeChat Pay

WeChat Pay is a mobile payment service developed and released by Tencent in China market. It uses WeChat, a messaging app with over 1 billion active users, to allow users and companies to pay for goods and services with a WeChat Pay QR code.

WeChat Pay is popular in China because it’s convenient and easy to use with a lot of available tools. All you need to do is scan the QR code at the checkout counter with your phone, and the payment will be processed instantly. There are no additional fees or charges for cross-border e-commerce transactions associated with using WeChat Pay.

Key information to take into account when planning a sales strategy:

• “Pay account” is free
• Cost of transaction: 3% of the total amount
• Transaction agreement for a minimum of $5,000 (if less, may be additional fees)
• Transactions allowed between RMB and Euros, US Dollars, Japanese Yen, Pound Sterling, Australian Dollars, Singapore Dollars, Hong Kong Dollars, South Korean Won

Alipay

Alipay is an online payment platform that was launched in China in 2004. It is operated by Alibaba Group, Chinese multinational e-commerce, retail, Internet, AI, and technology conglomerate. Alipay currently has over 600 million active users in China market and is used by merchants on AliExpress, Taobao, Tmall Global, and other Alibaba e-commerce platforms.

Alipay provides several different payment options available for all cross-border eCommerce trade including credit card payments, bank transfer payments, and cash-on-delivery payments.

Alipay also offers some security tools such as buyer Protections which guarantees refunds for buyers if they do not receive products and so on.

Key information to take into account when planning a sales strategy:

• Alipay account: $1,000
• Transaction cost: 3% (reduced if the transaction is bigger than 1 million RMB)
• Transaction agreement for a minimum of $5,000 (maybe negotiated per week/month/quarter)
• Supports all WeChat payments and supports foreign currency making it easier for foreigners to sell goods

What is the cost of cross-border e-commerce – CBEC in China?

The cost of cross-border eCommerce – CBEC in China is relatively low compared to other countries. This is because of the many policies and regulations that the Chinese government has put in place to encourage trade and commerce development.

For example, the Chinese government has eliminated sales tariffs on numerous products, established special economic zones for cross-border eCommerce, and developed a national platform for online payment and logistics for easier integration of foreign and domestic segments.

Main fees & costs of foreign trade in China:

• Creation and maintenance of Internet cross-border eCommerce platforms (fee-related to the platform: Tmall Global / Taobao / Kaola, etc.),
• Design, updates, websites integration and optimizations (designer fees),
• Generating traffic to boost sales (the more competitors, the more expensive it is),
• Warehouse management system and data management,
• Enterprise Resource Planning,
• Transportation management system,
• Shipping, logistics, and customs trade costs,
• Advertising and marketing campaigns (WeChat, Weibo, XiaoHongShu, etc.),

Budgeting your project will be very important to import products into China. A poor plan may lead to failure or very few results for any industry. If you want to start cross-border eCommerce in China, you need to consider all related costs to successfully import your goods to this market.

What about product storage costs?

If you involve yourself in China’s cross-border e-commerce, the question of storage will soon be very important. You’ll have to consider investing in a storage area in a cross-border eCommerce zone.

You first have to be sure that you’ll make product sales, otherwise, you’ll end up losing a lot of money on this trade. But as soon as you grow big enough to have a detailed forecast of your future sales and an understanding of consumers’ needs in China, having a warehouse to store your products will be a wise idea.

For logistics, be careful of “hidden costs”, such as packing costs:

• Blister wrap
• Cardboard
• Box at the right size
• Tape
• etc.

When it comes to delivery, you can operate with China cross-border eCommerce platforms such as JD Worldwide which offers storage services or you can also store in a bonded warehouse in a free trade zone (in Mainland China or Hong Kong) which can also serve as an order data management platform.

Companies wanting to trade in China market need to be aware of all those solutions, that are not present anywhere else in the world. Successful cross-border eCommerce requires proper research of Chinese foreign trade, and the collection of all the data and statistics, that you won’t need to worry about if you contact us.

Do you need a local partner for Chinese cross-border business?

This depends on your business size and your cross-border e-commerce goals. China is a huge place, and setting up a logistics system covering up large territory will require a significant investment.

Without a reliable logistics network, it will be hard to guarantee good delivery services to your Chinese customers, which will directly impact the trust the Chinese have in your company and cross-border purchases.

If you want to sell your products to the Chinese people, you need to gain their trust first and work on your e-reputation and public relations, so that when they search the web for any information about your brand, all they find are positive comments.

Regulatory and technical barriers in China’s cross-border eCommerce may increase your need for resources. An on-site partner can help you implement your selling and marketing strategy in China. They have deep knowledge of the Chinese market, and engines to optimize, and can help you improve your objectives.

Although, if you’re a multinational company with important investment capacities for all cross-border e-commerce actions, having a local partner won’t be needed, it’s advisable to hire a marketing and PR China agency.

What’s the best Chinese Cross-Border E-Commerce platform for your shop?

When developing a website for your cross-border e-commerce business, there are different options available for you:

• Creating your website (if you want to sell to Chinese netizens, the website needs to be in Chinese, on a Chinese domain)
• Using a large E-commerce platform like Tmall or JD (good visibility, reliable and good environment for your business but high competition and important financial investment)
• Creating a WeChat shop with mini-programs (integrated into the WeChat APP and offering you freedom of content/ design/ prices/ etc.)

The first step to implement before launching your China Cross-Border E-commerce business:

Making a start in the Chinese market is not an easy task. You have to do your research and find out what people want and what they search for before you can even think about selling them anything!

The first step would be attracting attention around your company so that netizens trust you as a business owner, which will make it easier for any future China cross-border e-commerce actions you take on together with our clients or partners who are also looking forward to success.

Social media marketing is VERY important in China to get the most visibility possible. In recent years, social media marketing in China has become an increasingly important way to get your message out there.

The immense population and fast-paced culture of this Asian country mean that it will be difficult for any company or individual without a strong presence on these platforms – even those with no plans whatsoever! Here are the most used social media platforms you should try:

• Weibo: it’s a Chinese Twitter, a brand mass marketing tool that will help you to increase traffic on your page.
• WeChat: Chinese Facebook, allowing close integration with users. You can also implement an interactive campaign with your followers.
• RED: Aka the Little Red Book/ Xiaohongshu is a social e-commerce app that focuses on high-end imported products, especially in the fashion and beauty industries (as well as more local products as time goes on). Nowadays, it’s becoming the best China cross-border e-commerce platform, as it relies on users’ recommendations and opinions, that Chinese people value when shopping online.

These are probably the three most important social networks you must use to increase your brand awareness. Other networks are available to develop your company’s reputation: Douyin, Toutiao, or Zhihu.

Does your brand require a trademark specifically for China?

Copying is unfortunately still present in China, but innovating can help you differentiate your brand from competitors. Promoting on social media will also protect the success of any products or brands that are promoted through these channels- making them essential for marketing strategies for your cross-border e-commerce to succeed.

Chinese government works with the “first to file” system, meaning that the first applicant to file the trademark will be assimilated as the real business owner.

We advise you to cooperate with an agent of the trademark office at the state administration for the industry and commerce of the People’s Republic of China. Once the trademark is done, don’t forget to register your patent/ designs as well.

How can GMA assist you with Cross-Border E-commerce in China?

At GMA, we can offer you different cross-border e-commerce services to optimize the launch of your brand in the biggest market in the world. We can help you to:

• Choose the right cross-border e-commerce platform for your brand,
• Launch your cross-border e-commerce platform.
• Build the best customer experience
• Make the delivery and customs clearance process as smooth as possible.
• Improve customer service
• Develop a strong digital marketing strategy on Chinese social media
• Organize monthly reports to analyze your results and performances, following what we’ll plan a new cross-border e-commerce strategy for the months coming

Drop us your request, and let’s have a chat about your cross-border e-commerce goals in China. We have over 10 years of experience in the Chinese market with a team of 60+ professional marketers. We help brands build trust and brand awareness in the Chinese market.

Check more than 200 case studies in China’s cross-border e-commerce. And contact us for further information. We believe hard work is the key to success in China!

Being one of the biggest Cross-Border E-Commerce Marketplaces, JD is an online marketplace you should have on your radar. The following post will provide you with crucial information from setting up your account to tips for managing your store and getting more sales.

With this guide, you’ll be able to start selling on JD Worldwide in no time!

Quick Summary

• JD.com’s Market Position: JD.com is the second-largest B2C e-commerce marketplace in China, holding a 20.1% market share. It has over 1400 warehouses and a sophisticated logistics network, including autonomous vehicles.
• JD Worldwide: This is JD.com’s cross-border e-commerce extension, enabling foreign companies to sell online products in China. It targets a variety of product categories like fashion, personal care, beauty, and electronics.
• Sales Models on JD: JD operates three sales models – JD direct sales, JD marketplace, and JD worldwide, each catering to different types of sellers and products.
• Benefits of Selling on JD Worldwide: It offers international merchants access to the Chinese market without a physical presence in China, global shipping and warehousing solutions, and a platform open to brands, franchisees, retailers, and traders outside China.
• Basic Requirements for Entry: Sellers must be established non-Chinese companies, brand owners or licensees, have a USD bank account, and provide Chinese customer support and Mandarin product descriptions.
• Types of JD Stores: JD Worldwide allows for different types of stores including Brand Flagship Store, Outlet-Type Flagship Store, Franchised Store, and Exclusive Store, each with specific requirements.
• Application Process: The entry process involves contacting JD Worldwide Business Development Manager, preparing documents, and following a registration and approval process.
• Cost of Investment: Opening a store on JD requires an initial deposit of US$15000 (refundable) and a yearly fee of US$1000 per store, plus a 2-8% commission fee on sales.
• Strategic Considerations: Building a strong online presence and reputation in China is crucial before entering the marketplace. JD offers an alternative to Tmall Global, particularly for household appliances and consumer electronics.

What is JD (Jd.com)

JD.com is the second-largest B2C e-commerce marketplace in China, with a 20.1% market share. While Tmall Global is getting a lot of attention from cross-border e-commerce companies, few are aware of JD’s own cross-border program: JD Worldwide. Tencent, Walmart, and Google are partners. The group has developed a warehousing and delivery infrastructure with supply chain technology.

JD in Numbers

As of 2023, the company operates more than 1400 warehouses across China. Its logistics network uses high-tech tools and in particular: autonomous vehicles. Since 2017, JD has grown rapidly with an increase in revenue of 32% between 2018 and 2019 and 47% from 2019 to 2020. In 2021, JD reported net revenue of RMB 951.6 billion (about US$149.3 billion) which is an increase of 27.6% from 2020.

Despite a net loss of around 4 billion yuan in 2020 linked to a decrease in government support due to the COVID-19 pandemic; JD remains today one of the e-Commerce giants in China. Additionally, the company ranked 46th on the 2022 FORTUNE Global 500 list released on the 3rd of August 2022, moving up 13 places from last year and making its debut among the Top 50 biggest listed companies in the world. Overall, selling on JD.com can be a great way to reach more consumers and grow your business.

JD has pre-provision for the sale of certain examples of products, such as household appliances. Indeed, when a Chinese consumer goes to a site, he often has a predefined idea of what he wants to buy, for example on the contrary: few Chinese people will buy food products that they find in their daily life on a platform of cross-border e-Commerce. On these platforms, certain criteria are expected, notably in terms of quality, scarcity, or even current trends that influence purchasing behavior.

What is JD Worldwide?

JD Worldwide is the cross-border e-Commerce extension of the JD.com Chinese marketplace. Its function is to enable the sale of online products from foreign companies. In 2018 Jingdong officially upgraded its “Jing Dong Global” to “Haitun Global”, and then in 2020, JD came back to JD Worldwide.

It is one of the biggest B2B2C Chinese markets, especially in the field of audio products, entertainment products as well as electronic products, and household appliances. Other big examples of popular product categories present on the website are:

• Fashion Products
• Personal Care Products
• Beauty Products
• Paper Products
• Fresh Food
• Pet Food and accessories etc.

JD Worldwide offers Chinese customers a user experience of exemplary ease and convenience. This is the reason why today Jing Dong has more than 301.8 million active customers per year and 1400+ warehouses and is China’s Second-Largest eCommerce marketplace. 

On JD Worldwide, the majority of users belong to the Y and Z generation, mostly younger and well-informed consumers.

The platform is open to franchise brands, retailers, and legally registered Foreign (non-Chinese) brands that sell products to overseas companies and customers. 

How to Sell on JD Worldwide?

The Different Sales Models of JD

JD operates 3 sales models which are JD direct sales, JD marketplace, and JD worldwide.

• The direct sales model: JD.com sources products directly from brands and suppliers and then sell them directly to customers through the company’s online stores and mobile channels. JD can be characterized as one of China’s largest B2B2C platforms and dominates in home appliances and consumer electronics. The direct sales model guarantees that Jingdong provides its users with a faster and better consumer experience. It is open to well-established, reputable brands and merchants with operations in China.

• JD marketplace: It enables well-established, reliable third-party sellers to set up stores and sell products directly to customers. Approved sellers may also use JD.com’s industry-leading fulfillment infrastructure, marketing, and customer targeting services, financing, and other value-added services.

• JD Worldwide: It is JD.com’s cross-border ECommerce platform, which enables Chinese customers to purchase products from foreign sellers with the ease, and convenience that they expect from JD.com. Similar to Tmall, Jing Dong Global operates as an online mall where the organization hosts foreign brands’ online stores.

Examples of Product Categories in Hypermarkets:

JD Worldwide also hosts several national and regional pavilions.

What are the Benefits of Selling on JD Worldwide?

JD Worldwide offers international merchants the ability to tap into the Chinese market even if they do not have a physical presence in China.

• JD Worldwide provides global shipping and warehousing solutions that ensure products from foreign merchants are delivered to the doorsteps of customers in China with ease thanks to its partnership with international logistics companies such as DHL, Australia Post, and YAMATO and its own nationwide logistics network.

• JD Worldwide is open to brands, franchisees, retailers, and traders that are legally registered outside China and selling products that originate from outside China.

• Payment is also a fairly easy process for a foreign seller, or at least for someone with a registered USD bank account. In fact, only US dollar transfers are made for now.

• Chinese consumers generally do not buy from independent stores on their own. JD is considered a springboard for brands, particularly in household appliances. Thanks to this robust platform, there is an alternative to Tmall Global for market entry, as being a Tmall Partner is quite pricey, especially for small and medium-sized enterprises. 

• One of the main benefits for merchants is that thanks to JD it is possible to develop your e-Commerce export more easily due to the restrictions of the Chinese government. Indeed, even if your website is translated into Mandarin, going through a Chinese cross-Border e-Commerce platform will offer you much more visibility through promotion solutions on the site. As a freelancer, the chances of a Chinese stumbling across your site are unlikely.

• JD reduces the risk of problems related to sales support such as refunds, exchanges, logistics costs or even accounting with the different payment methods in China.

JD Tools and Features for Marketing Strategy

• Banner ads on the different pages of the website
• Pay-per-Click: this method consists of using sponsored links which are most often ads in the form of text, placed near the search results. The advertiser pays for each click of the Internet user.
• It is possible to find the most trendy products from famous brands based on the SEO referencing of the JD.com website.
• Promotions are displayed on the main page.
• There is a coupon system to have money on the site.
• There is a recommendations page.

Basic Requirements to Enter JD & JD Global

• You need to be an established non-Chinese company (you need products and a track record before you can start selling).
• You need to be a brand owner or at least license a brand. Thus, you must be able to provide trademark registration documents or licensing agreements.
• You need to have a USD bank account.
• Further, you must also provide business registration documents, the ID of the major shareholders and directors, and so on
• Chinese customer support representatives must be provided, and you should have proper product descriptions written in Mandarin with professional product images and all additional product details listed. 
• Products must be dispatched within 72 hours after order placement.
• Product return centers must be available in Mainland China.

Furthermore, JD Worldwide targets well-known overseas brands, brand agents, or well-known retailers and B2C websites that have not yet entered the Chinese market in the following kinds of products: mother and baby, health products, food, clothing, bags, and cosmetics.

The Different Types of JD Stores

The Brand Flagship Store

• The products shall have the relevant trademark registrations overseas.
• If Merchant is a brand owner, he shall provide the trademark registration certificate for their products.
• If Merchant is an exclusive authorized dealer, he shall provide the trademark registration certificate for the products and the letter of authorization for selling his products.

Outlet-Type Flagship Store

• Merchants shall have or have applied for a Class 35 trademark (the “Service Mark”) overseas for their brand.
• If a Merchant is the owner of the Service Mark, the Merchant shall also provide its trademark registration certificate.
• If Merchant is not the owner of the Service Mark, the Merchant shall provide the Service Mark and evidence of their exclusive authorization to use or operate a store on JD Worldwide Website using the Service Mark.

Franchised Store

• The products shall have their trademark registration overseas
• If Merchant is not the owner of the trademark of its products, he shall also provide evidence of his authorization to operate a store on the JD Worldwide platform.

Exclusive Store

• Evidence of product source, and invoice of the products purchased.
• The name of the shop shall not infringe the legitimate rights of others.
• Special store types may sell products of up to two categories

JD Worldwide Application Process

The entry process for JD Worldwide differs somewhat from the JD Domestic Marketplace as you are required to seek contact with the JD Worldwide Business Development Manager for the particular product category in which you wish to sell.

JD worldwide company registration process will resemble the following:

• You must prepare all the documents which were aforementioned and send them to the relevant Business Development Manager.
• After an initial check, you will receive a registration link (you must closely follow the directions provided as the system is in Chinese).
• Approval process.
• After approval, you must pay the regular deposits and platform service fee.
• After payment is received the shop status will be changed to ‘open’.

More about materials preparation here (In Chinese).

Cost of investment when opening a store on JD

Once you have been approved, JD requires that you pay an initial deposit of US$15000. This is not a fee, but a refundable deposit.

In addition, JD.com also charges a yearly fee of US$1000, per store. And, a 2-8% commission fee based on the order value, for each sale. While this may change in the future, JD Worldwide is so far charging significantly less than Tmall Global and the commission rates are lower.

In Conclusion

Opening an online store on JD Worldwide is a great way to start selling your products to Chinese consumers. It offers an alternative entry strategy from Tmall Global, that is also a bit cheaper. This alternative is especially suitable for merchants wishing to sell household appliances and consumer electronics. However, a downside is that creating a storefront on JD also requires significant capital.

The best way to start selling on Jing Dong is to create a reputation for your brand on the Chinese Internet and social media before you enter this marketplace. This way you will have a community that allows the company to have the first resources to finance advertising.

Subsequently, the platform can only simplify the customer experience around your company on a lot of points which will have cost a lot of time and money with a classic independent store. In addition, thanks to these different sales and store models, there is a wide choice in the way of distributing its products, which remains personal to the entrepreneur.

With the help of our guide, you can have your store up and running in no time! Have you started selling on JD Worldwide? What has been your experience so far? Let us know in the comments below.

We can help you start selling on JD.com and JD Worldwide!

We are a growing E-Commerce agency of Chinese and foreign marketers passionate about China’s e-commerce and digital. We are constantly looking for new projects in order to renew our solutions and always be on top of the market trends.

With 10 years of existence, we have gained significant experience in the field. Contact us to get a free consultancy and a quote.

What can we offer you?

E-COMMERCE PROJECT AUDIT JD/TMALL (for New Comer)

• Market Survey
• Estimation of your best solution  (project /budget)?

REGISTRATION OF JD ESTORE +  DESIGN

• Paperwork and store development don’t have to be a burden. Hand it to our dedicated team and get done with it.

E-SHOP MANAGEMENT & CLIENTS ACQUISITION

• Upload, update & manage social media & e-Commerce content following your guideline
• Setup KPIs for Acquisition, and running e-Commerce campaigns.

PROMOTION & LOYALTY PROGRAM

1. Create & manage campaigns following the various events of the China E-commerce Calendar.
2. Work on Branding, because in China Branding is everything

MULTI-CHANNEL DIGITAL MARKETING CAMPAIGN

• Boost Brand Awareness with PR, influencers, Baidu SEM & SEO … We make sure consumers know who you are.

PERFORMANCE

• We offer our customers performance Marketing
• We are Results Driven and are focused on real results

After conducting extensive research and finding effective solutions, we’re here to guide you through every step of opening a Tmall store. From eligibility requirements to optimizing your store for mobile users, this article will provide you with all the information you need to succeed. Get ready for an exciting journey into the world of Tmall!

Quick Recap Of Tmall, China’s Biggest B2C Online Marketplace

Tmall is one of the largest online marketplaces operated by Alibaba, a leading e-commerce company in China and globally.

It provides an excellent platform for brands to establish a strong online presence and connect with the massive consumer base in China. With its dedicated luxury pavilion, Tmall offers a unique shopping experience for high-end consumers.

Tmall Global, which falls under the cross-border e-commerce sector, allows retailers to sell their products directly to Chinese consumers through certified warehouses located in China’s free trade zones.

This presents a great opportunity for foreign brands to enter the Chinese market without complicated logistics or establishing physical stores.

By opening a Tmall flagship store, you can effectively manage your own sales, product offerings, and branding within the dynamic landscape of Chinese e-commerce. As more global brands are opting for branded stores on not only Tmall but also JD properties (another major player), it showcases the increasing popularity and demand among both businesses and consumers.

Benefits of Opening a Tmall Store

Opening a store on Tmall or Tmall Global provides an excellent investment opportunity due to the fast-growing nature of China’s e-commerce industry.

With Tmall Global, international brands can reach millions of Chinese consumers directly, without the need for physical stores or local distributors. This means significant cost savings and increased control over brand messaging.

Tmall Global is particularly relevant for international brands and retailers looking to open a brand flagship store. By establishing a presence on Tmall, foreign companies can tap into China’s growing middle class and expand their customer base significantly.

Moreover, with Tmall Global’s focus on attracting more global brands and expanding its international reach, there are plenty of growth opportunities available.

The platform also offers various advantages such as cross-border logistics support and access to powerful marketing tools provided by the Alibaba Group. These resources help foreign brands build brand awareness in the Chinese market and drive targeted traffic to their stores.

Tmall vs. Tmall Global: What’s The Difference and Which is More Suitable for Your Business

The decision to choose between Tmall and Tmall Global depends largely on the nature of your business and your target market. Both platforms offer unique opportunities and benefits, but there are key differences that you should consider.

Whether Tmall or Tmall Global is more suitable for your business depends on your business model, product categories, and target market. A thorough understanding of these two platforms will help you make.

How to Open a Tmall Store

To open a Tmall store, you need to understand the different types of stores available and meet the eligibility criteria as a foreign brand.

Three Types of Tmall Stores

The journey to opening a Tmall store starts with understanding the three options available: Tmall Authorized store, Tmall Specialty store, and Tmall Flagship store. Deciding on the type of store is determined by your brand’s status and plans for expansion in China.

For businesses testing waters, it’s advisable to start with a Tmall Global Store as it allows market testing for two years before transitioning into an established Foreign Brand Store on Tmall.

Each store type caters to different business needs and offers unique benefits. Below is a succinct breakdown of the three primary types of Tmall Global stores:

Your voyage towards establishing a brand presence across China’s expansive e-commerce landscape takes further shape once your application gets approved. Be prepared to pay both the security deposit and annual fee required by Alibaba Group as part of becoming a registered brand on their platform.

Eligibility Criteria and Requirements for Foreign Brands on Tmall

Being well-informed about the eligibility criteria and requirements for opening a Tmall Store is essential for foreign brands. Let’s delve into what you need to know:

Foreign brands can open a Tmall Store provided they meet certain eligibility criteria. This includes having strong brand recognition and a successful track record in e-commerce.

The Tmall Store owner must either be the brand itself or an authorized agent. To prove your brand’s authenticity, documents such as copyright or trademark certificates are required. Make sure these are ready before initiating the application process.

The application process on Tmall Global involves a series of steps, including setting up an Alibaba Group account and submitting business licenses, product certificates, and other relevant documents.

When selling on the main Tmall platform, you need to have a physical presence in China with a valid Chinese retail business license, while you don’t need to be present in China to sell on Tmall Global.

Ensuring that your products are genuine is paramount to selling on Tmall. You might need to submit origin certificates or other forms of proof to verify their authenticity. Product descriptions should comply with standards set by Tmall – they must be accurate, clear, and informative about product features and benefits.

Creating an Alibaba Group Account: Step-by-step Guide

To create an Alibaba Group account and get started with opening a Tmall Store, follow these simple steps:

1. Visit the Alibaba Group website.
2. Click on the “Sign In” or “Join Free” button located at the top right corner of the homepage.
3. Fill out the registration form with your personal information, including your name, email address, and password.
4. Click on the verification link sent to your email address to verify your account.
5. Once verified, log in to your Alibaba Group account using your email address and password.
6. After logging in, go to the Tmall website (tmall.com) and click on the “Open a Tmall Store” button.
7. Choose the type of store you want to open based on your business model and target audience: Tmall Store for brands based in Mainland China or Tmall Global Store for foreign brands.
8. Prepare all required documents such as company registration details, product information, brand authorization certificates, etc., as specified by Tmall.
9. Complete the online application form provided by Tmall, providing accurate and detailed information about your business and products.
10. Pay any necessary fees required to open and maintain your Tmall Store.
11. Set up your store by adding product listings, optimizing descriptions, uploading images/videos, setting prices, etc., following Tmall’s guidelines for store setup and operations.

Designing and Customizing Your Tmall Store

Designing a user-friendly and attractive Tmall store is crucial for success in the competitive e-commerce market. Here are some tips to help you create an engaging and easy-to-navigate store that will attract more customers:

Focus on Visual Appeal

Use high-quality product images and videos to showcase your brand and products. Visuals play a key role in capturing the attention of potential buyers, so make sure your store design is visually appealing and reflects your brand’s identity.

Optimize for Mobile

In China’s mobile-first market, mobile optimization is of utmost importance for businesses looking to establish a successful presence on Tmall. With the majority of Chinese consumers relying heavily on their smartphones for online shopping, having a website that is optimized for mobile devices is crucial.

It not only ensures a seamless and user-friendly browsing experience but also improves your chances of attracting and retaining customers.

Mobile optimization goes beyond simply having a responsive design that adapts to different screen sizes. It involves optimizing page load speed, minimizing unnecessary elements, and simplifying navigation to accommodate the limited attention span of mobile users.

Keep it Simple but Highlight Key Features

Avoid cluttering your Tmall store with excessive information or too many product options. Simplify the navigation by categorizing products logically and making it easy for customers to find what they’re looking for.

Showcase your best-selling products or new arrivals prominently on your Tmall store homepage. This will grab customers’ attention and encourage them to explore further.

Leverage branding opportunities

Customize the look and feel of your Tmall store to align with your brand identity. Use consistent colors, fonts, and logos throughout the store to reinforce brand recognition.

Enable customer reviews

Positive reviews build trust among potential customers, so make sure to enable customer reviews on your Tmall product pages. Encourage satisfied customers to leave feedback, as this can boost sales conversion rates.

Offer excellent customer support

Provide clear contact information and response times for customer inquiries or support issues within your Tmall store layout. Timely and helpful customer service contributes to positive shopping experiences.

Effective marketing and promotional strategies for Tmall

Effective marketing and promotional strategies are vital for ensuring your Tmall store stands out and draws in a broad audience. One such strategy is leveraging Search Engine Optimization (SEO) to boost your store’s visibility in Tmall’s search results by optimizing product listings with relevant keywords.

Making the most of Tmall’s marketing tools, such as banner ads and flash sales, along with digital marketing campaigns on social media platforms like WeChat and Weibo, can further enhance your brand’s visibility and customer engagement. This, coupled with a focus on exceptional customer service, can help build trust and loyalty among customers.

Creating exclusive promotions and leveraging user-generated content can generate buzz around your brand and incentivize customers to make purchases. Collaborating with key opinion leaders (KOLs) in your industry can also significantly enhance brand awareness and credibility.

Build Brand Awareness to Attract Chinese Consumers to Your Store

To effectively build brand awareness in the Chinese market, it is essential to optimize your presence on Tmall and leverage its marketing strategies. Here’s how you can accomplish this:

• Customize your Tmall store: Create a unique and visually appealing store design that resonates with Chinese consumers. Optimize your store for mobile devices as China is a mobile-first market.

• Utilize Tmall’s marketing tools: Take advantage of various marketing tools and campaigns offered by Tmall to increase your brand visibility. Participate in brand zone ads and utilize other promotional opportunities within the platform.

• Collaborate with Key Opinion Leaders (KOLs): Influencers play a crucial role in the Chinese e-commerce market. Partnering with KOLs can help promote your brand on Tmall and reach a wider audience.

• Cross-promotion on social media platforms: Promote your Tmall store on popular Chinese social media platforms like WeChat, Weibo, RED and Douyin to drive traffic and increase brand exposure.

• Leverage forums and online communities: Engage with potential customers on Chinese forums like Zhihu and Baidu Tieba to establish credibility and foster relationships with your target audience.

• Enhance logistics and customer service: Efficient logistics and excellent customer service are vital for success in China’s e-commerce market. Ensure timely delivery, hassle-free returns, and provide personalized customer support.

• Participate in Tmall shopping events and festivals: Tmall regularly organizes shopping events and festivals like Singles Day, which attract a massive number of shoppers. By actively participating in these events, you can increase your brand exposure and generate significant sales.

Logistics and Customer Service

Logistics plays a crucial role in China’s booming e-commerce market. From warehousing and categorization to packaging and transportation, a well-managed logistics system ensures efficient fulfillment of customer orders.

In fact, according to statistics on Tmall Global and cross-border e-commerce in China, fast and reliable delivery is one of the top factors influencing consumer purchasing decisions. As a marketing manager looking to tap into the Chinese market, it’s important to understand the cost and risks associated with logistics in cross-border e-commerce.

By prioritizing supply chain management and optimizing your logistics processes, you can enhance customer satisfaction, build trust, and ultimately drive sales success when selling to Chinese customers online as a cross-border business.

Customer Service in the Chinese Market

Providing excellent customer service in China is essential for building trust and loyalty with your customers.

In the Chinese market, timely dispatch and delivery of products are highly valued. It’s important to ensure that your logistics system runs smoothly and efficiently to meet these expectations.

Additionally, offering free returns within seven days without any explanation is becoming a standard practice among Chinese retailers, so it’s worth considering implementing this policy as well.

Another important aspect of customer service in China is providing Chinese language support for Tmall Global customers. Being able to communicate effectively with your customers in their native language helps build rapport and streamline the buying process.

Moreover, having a reliable team that can handle inquiries promptly will enhance the overall customer experience.

By taking these customer service considerations into account when operating on Tmall, you’ll be able to provide an exceptional shopping experience for your customers while building a positive reputation in the market.

We are a Tmall Certified Partner!

Are you looking to open and optimize a Tmall store? Our agency, as a certified Tmall partner, is uniquely equipped to guide you through the process. We not only help you navigate the complexities of the Tmall platform but also offer strategic guidance on leveraging the numerous opportunities available.

Our dedicated team of experts, experienced in the Chinese market, is adept at designing tailor-made strategies to ensure your brand stands out in the crowded marketplace. From store setup to implementing marketing campaigns, we cover all aspects of running a successful online store on Tmall.

We work closely with you to understand your brand’s unique requirements, ensuring that the Tmall store aligns with your overall business objectives. With our data-driven approach, we optimize your product listings, leverage Tmall’s marketing tools, and implement customer engagement strategies that are proven to attract and retain customers.

Furthermore, we offer insights into Chinese consumer behavior and leverage our network of key opinion leaders (KOLs) to bolster your brand’s reputation and visibility.

Don’t leave your success to chance. Trust the experts that helped multiple brands in the Mainland China market. Partner with us and let our expertise pave the way for your successful journey on Tmall. Reach out to us today to start optimizing your Tmall store for success.

Whether you have a small business or a large-scale company, you might benefit from this guide our E-commerce Agency has put together. This article will go through the basics of Chinese eCommerce and give you as well some tips and advice on how to successfully enter the Chinese market as a foreign brand.

E-commerce in China: a tough competition

In recent years, being present on Chinese eCommerce platforms has become a must for both local and foreign brands that want to succeed in the market. In fact, brands are ready to invest a lot of money in order to be on the most popular Chinese eCommerce platforms such as Tmall or JD.com. The majority of the Chinese population regularly purchases products online, as it is now incredibly easy and convenient do to so notably thanks to great user experience and digital payment platforms.

The graphic below shows the incredible growth of the Chinese e-commerce market: From 108 million online shoppers in 2009 to 842 million online shoppers as of 2021. Now the numbers exceed 900 million. China’s digitalization and the daily use of smartphones connected to the internet have greatly contributed to this growth as consumers spend a lot of time on their smartphones.

Following the Covid-19 global pandemic, the recorded growth of Chinese eCommerce platforms was even more significant.

It is estimated that by selling on the Chinese eCommerce market, companies can increase their sales by 20%. In China, E-commerce is not only essential for businesses, but also for the country’s economy.

Now, if we look at the projected increase in e-commerce sales worldwide, China is by far the leading country with 862.6 billion dollars as of 2019 and is expected to reach 1,556.2 billion dollars in 2024. It’s expected to represent more than 60% of total retail sales in the country.

As with anywhere else in the world, selling goods on e-commerce platforms is not always as rewarding as expected. Because the Chinese domestic market is in constant evolution, attracting the world’s biggest companies, there is tough competition comprising both Chinese and international businesses.

Chinese eCommerce platforms are not for small players

If your brand is already well-known in China, it is quite easy to be invited to join Tmall or JD.com. But if you’re just starting, it’s better to start generating online sales elsewhere (for example on WeChat).

But on the other hand, it is much harder for small companies to be accepted on big Chinese eCommerce platforms (and even impossible in some cases). The majority of foreign companies expanding their activities in China have already at least an online presence in China. (This is set to change as more and more platforms are trying to become attractive for all types of brands.)

Why is it hard to make it if my company does not have strong brand awareness in China?

In reality, Chinese consumers are kind of reluctant to buy products from companies that they have never heard of before. So, it is necessary to sell your products through renowned Chinese eCommerce platforms such as Tmall or JD.com, but at the same time, it is almost impossible for small companies to do so because of the strict rules and conditions each platform has set up.

Chinese eCommerce platforms want to be sure that your business will be lucrative and reliable enough, in order for them to get their commission while offering their users an ultimate shopping experience.

Do I need a physical store in China?

No, and yes. Chinese eCommerce platforms would be reassured that your customer base is able to directly look at your products before buying them on their platforms. Having a physical store on the mainland is also proof (to both consumers and eCommerce platforms) that you are not a scam and of your success. Chinese consumers do like to see a product before buying it online where they can find good deals. The practice has become more mainstream notably with high-end brands. But it’s not necessary to have a physical store to succeed in China.

Can I create my own website to sell my products instead of using Chinese eCommerce platforms?

You can, but note that it’s going to be extremely difficult for you to be profitable. Indeed, as mentioned earlier, Chinese consumers only trust renowned Chinese eCommerce platforms because they know that brands are selected and that merchants are subjected to strict rules when it comes to customer service. In case of any issue, they will be refunded. A company website does not offer this guarantee.

Having a website in Chinese however, is a critical step to your success in China. Having a website means you can be visible on the internet, being visible means you are credible.

ROI (Return On Investment)

For many people, ROI (Return on Investment) is a taboo topic. You might be wondering how much money brands can make thanks to e-commerce and what percentage of local and international brands succeed on Chinese eCommerce platforms. Well, according to some Tmall employees, it is estimated that 20% of the brands that are on Tmall make profits, 20% do not make profits but are not losing money either, and 60% are losing money.

How is it possible for 60% of brands to lose money on Chinese eCommerce platforms?

• Products are not adapted to the Chinese market

The products are not competitive enough, not unique enough, too expensive, not advertised enough, lack visibility, etc. If you are not familiar with the subtleties of the Chinese market, it can be hard to plan and adapt your marketing and advertising strategies t compete against local brands.

• Fees are too expensive for the company’s budget

In order to sell your products on Tmall or any other big large Chinese eCommerce platform, you will need to pay some fees, pay for your online store, advertise your store, redesign your webpage, etc. Moreover, it is not enough to just spend money on eBranding to gain Chinese consumers’ trust. So in order to be profitable, companies need to work in general with 3 specialists: a designer, a web traffic specialist, and someone who will manage all your marketing strategies.

How to optimize your ROI from eCommerce platforms in China

You should conduct market research beforehand. The data will help to plan the budget and strategy to open your store and succeed on the Chinese eCommerce platform of your choice. Need market research? Feel free to ask us, we have a dedicated team.

Discounts on Chinese eCommerce platforms

Chinese consumers are the best when it comes to bargaining. Even though their purchasing power has increased these last few years, Chinese consumers still want to bargain for everything in order to pay as little as possible (well, who does not…). And this does not only happen in real life but also online!

If you want to attract consumers, you might need to give some vouchers and e-coupons to your WeChat followers for example. These promotions and exclusive offers will push them to buy your products.

Some of the most popular Chinese eCommerce platforms have become specialists in the art of discounts. We can think of Taobao and Pinduoduo for instance (these two platforms also happen to be great for companies with limited budgets). The cheapest your products will be, the more you will be able to sell. Don’t forget that Chinese consumers are ready to compare your products with others, even by asking their friends or on Q&A platforms like Zhihu (知乎).

Some tips and advice to succeed on Chinese eCommerce market

• Be proactive: A brand’s success is tied to how active on e-commerce websites as well as on social media it is. JD and Tmall require businesses to be active, by optimizing and redesigning their online store, managing their ads, optimizing their traffic, etc. It is also important to take part in special events (Single’s day, Golden Week, Valentine’s Day, Christmas, etc) in order to boost your sales and gain visibility.
• Be responsive: the majority of Chinese consumers like to ask questions about your brand or your product, so you need to be ready to reply to them. For example, it is essential to have a WeChat official account, so that they can discuss with you via online chat (make sure to optimize the live chat available on every single Chinese eCommerce platform). You must also encourage them to purchase your products by giving them vouchers or e-coupons.
• Be creative: whether it is for advertising or marketing your products, you will need to be creative in order to stand out amongst your competitors. If you want a cost-effective solution, you can start by creating an H5 brochure on WeChat to present your company. There are many ways to create one, however, you can contact us and we’ll create a personalized and creative H5 brochure for you.

What are the most popular online marketplaces in China?

The Chinese e-commerce landscape is diverse and each of you should be able to find one that fits your needs and business goals. Each and every Chinese eCommerce platform has its pros and cons depending and who you are. Let’s have a look.

Tmall: China’s #1 e-commerce platform

Founded in 2008 under the famous Alibaba group ( Chinese tech Giant founded by Jack Ma), Tmall (天猫), is a subsidiary of the e-commerce website Taobao (淘宝网) and China’s largest eCommerce platform in terms of revenue. Tmall stands out from its competitors thanks to its strict standards in terms of quality. Indeed on Tmall customer experience comes first.

Tmall was able to grab the majority of China’s e-commerce market shares, establishing itself as the most popular Chinese eCommerce platform and becoming the best online gateway for local and international retailers as it added a whole advertising ecosystem at the disposition of its merchants.

Tmall is China’s eCommerce leader with the majority of the market share. It is also the leader in the Chinese Cross border e-commerce market with its Tmall Global Platform (天猫国际).

In short, Tmall is an excellent online channel to reach out to Chinese customers as it enjoys their trust, however, because of entry requirements and high fees it is best suited to high-end and niche international brands.

Taobao: The mother of all Chinese eCommerce platforms

Taobao was one of the first Chinese eCommerce platforms out there and in terms of mobile devices traffic is still one of the leaders. It has almost become a product search engine for Chinese consumers. Unlike Tmall which operates on a B2C model, Taobao operates on C2C, where customers and small entrepreneurs can sell their products directly to consumers in China.

Many innovations come from Taobao before being adopted elsewhere. For instance, Taobao was the first Chinese eCommerce platform to play with the concept of social e-commerce with its integrated social media Weitao in 2014 way before anyone else.

Alibaba-owned Taobao is Tmall’s sister app. It differs from Tmall mainly by its entry requirements but also some of the features on the platform such as Taobao live. Taobao live is integrated live streaming and Kol features that merchants can utilize for promotion.

When scrolling on Taobao, users can be redirected to Tmall, the contrary is not true. For online retailers, that already have a Chinese business license and limited resources, Taobao is a great way to enter the market.

JD.com: the biggest Tmall competitor

Founded in 1998 by Liu Qiangdong in Beijing, JD (which stands for Jingdong 京东) was at the beginning only a magneto-optical store, which diversified over the years with electronics, computers, mobile phones, etc.

In 2004, it opened its online retail platform and quickly became one of the two massive B2C online retailers in China with its competitor the Alibaba-run Tmall. Now, JD.com is partly owned by the giant Tencent, which has 20% of its stake. JD.com has over 500 million active customers and is China’s second-largest e-commerce platform.

JD.com has set its standards for online shopping through its commitment to quality, authenticity, and the variety of products it offers, covering everything from fresh food and apparel to electronic appliances and cosmetics.

JD offers a cross-border option JD Worldwide to foreign businesses that have yet to settle in China but still want to reach out to Chinese customers.

Xiaohongshu: social e-commerce business model

Founded in 2013 by Charlwin Mao and Miranda Qu, Xiaohongshu (小红书) also known as ‘The Little Red Book’ and ‘RED’, is a social media and one of the world’s largest community Chinese eCommerce platforms. Over the years, it has grown from a lifestyle-sharing platform to become China’s foremost shopping platform for beauty, fashion, and luxury products.

As of 2023, Xiaohongshu is boasting over 300 million registered users and 85 million monthly active users.

In its beginning, Xiaohongshu was a social media platform focused on user-generated content on which users were able to review products and share their shopping experiences. However, in order to expand its activities and monetize, it has become a sort of combination of Pinterest and Instagram, with e-commerce features. RED also created its own cross-border eCommerce platform: ‘Fulishe’ (福利社).

On Xiaohongshu, people are able to post and share product reviews, travel blogs, and lifestyle stories via pictures and short videos. Xiaohongshu is also running RED Mall, a platform on which Chinese consumers are able to purchase international products.

Although RED is not a major eCommerce player, it has its benefits as a secondary selling channel for brands in the lifestyle and beauty industry. Its integrated eCommerce program, offers, a smooth customer experience when purchasing an item.

Pinduoduo: low-cost e-commerce in China

Pinduoduo, despite its huge monthly traffic, is one of the latest players that has made its way into the Chinese eCommerce world and is experiencing rapid growth. Founded in 2015, Pinduoduo quickly became the fastest-growing tech company in the world.

If you want to export your fresh products in China, you should definitely choose Pinduoduo, as it is the largest agriculture-focused e-commerce platform in China and its business model differs from the competition. It directly connects farmers and distributors with consumers. Pinduoduo has revolutionized e-commerce, becoming a social commerce platform as well as a consumer-to-manufacturer (C2M).

On Pinduoduo, consumers can discover and purchase products from a wide range of sellers. What sets Pinduoduo apart is its social aspect, because users can easily share what they have browsed or purchased with their social network.

They can also invite them to join teams within 24 hours, in order to benefit from lower prices. Thanks to Pinduoduo, consumers can enjoy a group tariff while receiving the product individually directly at home.

It is also important to know that Pinduoduo is very low cost for both consumers and merchants, thanks to its policy of “no commission”. In fact, you will just have to pay a 0.6% service fee to the payment function supplier. Now you might wonder how does Pinduoduo makes profits?

Pinduoduo mainly monetizes through advertising, with 90% of its revenues coming from online marketing services such as affiliation programs, flash sales, and so on. This explains why Pinduoduo really revolutionized Chinese eCommerce platforms, with an innovative marketing strategy, and its low-cost system and fast process.

Moreover, another asset of Pinduoduo is that you can directly advertise and promote your products on the app. For example, you can use live streaming to explain the benefits of your products. You can also hire KOLs to attract a wide audience.

China Social eCommerce: Douyin flagship store

With more than 730 million daily active users in China as of 2023, Douyin, known as Tik Tok in other parts of the world, is one of the most lucrative and promising apps in China. In March 2021, Douyin launched its flagship stores, available for brand accounts on its platform, marking a major step into e-commerce.

Until now, Douyin was just a way to promote new products and popular items to consumers through short videos and live-streaming. Moreover, it was also possible for companies to send vouchers to their followers and add links to e-commerce platforms such as JD.com and Taobao. However, the novelty of these flagship stores is all about marketing.

Brands are now able to create their own flagship store directly on Douyin, which allows them to increase their conversion rate. This feature also includes the possibility to create campaign banners, send vouchers and recommendations, and offline store information. Consumers are then able to claim these vouchers, which can be used both online and offline.

More Chinese Cross-border eCommerce platforms

• Suning: Offers both local and cross-border platforms. Ideal for home appliances and electronics brands.
• Kaola: Kaola is China’s largest cross-border eCommerce platform with most of the market share. The Alibaba Group bought the platform.
• VIP: China’s biggest flash sales app. Focuses on beauty and lifestyle product categories.

How to succeed on Chinese eCommerce Platforms as a foreign Brand?

The important thing to understand is that just being present on Chinese e-commerce platforms is not enough to generate sales in China. The competition is big and you need to stand out from the crowd for Chinese shoppers to notice you. To do so, you need to take care of your marketing strategy, so that people start to recognize your brand.

Websites, Baidu SEO & SEM for traffic & credibility

To succeed in China, you will need to increase your visibility. How? You can start by focusing on the most popular search engine in China: Baidu (百度). As a matter of fact, more than 70% of online research is conducted through Baidu.

After creating your Chinese website (in Mandarin), you will have to focus on Baidu to increase your visibility and e-reputation. Baidu SEO is one of the most cost-efficient ways of not only gaining traffic but also controlling your online brand reputation. In short, it’s one of the best investments for the traffic you can make that will subsite in the long term.

To develop your visibility on Baidu, you can use different marketing solutions such as:

• Pay Per Click advertising (PPC)
• Search Engine Marketing (SEM)
• Search Engine Optimization (SEO): you will need to create qualitative content, and shareable information, use keywords to increase your online presence on Baidu, etc.

Use the top Chinese social media platforms

With the country’s digitalization, the way of advertising and promoting products has shifted to social media. Chinese users are very active on social media platforms and are used to commenting, sharing their purchasing experience as well as giving purchasing advice.

WeChat 微信: #1 social networks

With more than 1.26 billion monthly active users, WeChat is the most popular app in China. Even though it was at first a messaging app, the app released under the giant Tencent in 2011 quickly became a vast ecosystem of services. Nowadays, WeChat is a must-have for every citizen and business as it became a new player in the e-commerce industry.

One key point for successfully promoting your brand through WeChat is to create a WeChat Official Account. Don’t worry, if your brand is still not present in China, we will help you find and reach your target audience by improving your brand awareness as well as creating your WeChat official account.

Then, to successfully promote your brand, we can launch campaigns to create buzz, as well as create an H5 brochure in order to promote your brand. There is also a possibility of launching a WeChat store, one of the most efficient marketplaces in the Chinese e-commerce market in 2023.

Weibo 微博: The place to be commercial

Weibo is one of the most popular social media apps in China with more than 600 million monthly active users. 94% of its user base uses the mobile app. Weibo is an open social media, and just like Twitter, is one of the most efficient platforms to create buzz and gain visibility.

Contrary to Wechat, which is private, Weibo is open to advertising and its users are as well. That is the place to advertise and engage in a commercial way with your followers.

The social media platform attracted more than 150 000 companies wanting to develop their e-reputation. Brands have to create Weibo Official Accounts to improve their presence in China by attracting followers.

It is estimated that more than 62% of Weibo users follow at least one brand on Weibo.

Our favorite Weibo marketing tools are:

• Weibo Paid Ads
• Weibo Influencers
• Weibo Lucky draw & lottery
• Weibo #hashtag

When compared to other social media platforms in China, Weibo’s relatively cheap advertising options, as well as its open nature, make it an interesting platform for foreign players. The app audience is also varied and reaches users in many (most) Chinese cities.

KOLs in order to promote your brand

In China, one of the best ways to promote your brand and your product is to collaborate with KOLs (Key Opinion Leaders). They act like influencers who are able to sell hundreds (or millions) of products in a short amount of time. If you want to hire a KOL, do not hesitate to contact us as we have a list of KOLs.

Focus on your branding

Branding is one of the most important aspects in order to conquer the Chinese market, even for pure e-commerce players. Most Chinese consumers want to buy a product because of its brand. Thus, they want to buy premium and reputable brands.

E-reputation to increase your sales on Chinese eCommerce platforms

In China, brand reputation is the key to success. You have to do everything you can to always have a good image. If you lose your reputation, you will lose everything.

You need to make sure that you get good comments for your brand on forums, social media, and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms.

If we look at the main sources of new brand discovery, word-of-mouth is the most effective way to get new clients. It is even more powerful than search engines and brand websites.

Encourage conversation about your brand to develop traffic, good comments, and recommendations.

If you want to successfully manage your brand image in China, you can contact us and we’ll take care of everything.

Need an E-Commerce Agency in China? Contact us to get started

It is clear that China has become the market to conquer for brands that want to expand their activities worldwide. However, the Chinese market is completely different from what you might be accustomed to. In order to successfully enter this competitive market, you will need experts who fully understand the subtleties of China.

GMA is a digital marketing and eCommerce agency based in Shanghai, with experts all around the world. Depending on your needs and the scope of work, we will adapt our marketing strategy in order for you to get the most out of e-commerce in China. Feel free to ask for a free consultancy session, we will be happy to discuss your china project no matter the size of your company!

• Digital Marketing
• SEO and SEM
• Online Reputation
• Social Media Marketing
• Kols & Live streaming
• Lead Generation
• E-Commerce

Tmall Certified Partner

We are certified Tmall Partners. Collaborate with us for a smooth journey on Tmall.

Get in Touch with us to get started. We offer a free consultation with one of our experts, where we will learn about your brand and present the best e-commerce solutions for your China strategy. Let’s keep in touch!

Their rising influence reflects China’s growing middle class and their appetite for foreign products, making the understanding of Daigou operations essential for brands aiming to connect with this lucrative market.

Who is a Daigou?

Imagine having a personal shopper who lives abroad and sends you cool stuff that you can’t find at home. That’s what Daigous are for many people in China. They are like shopping agents who buy and send products from overseas. People love them because they bring in foreign goods that are hard to find, more authentic, or just better quality than what’s available locally. They’re not just buying things; they’re carefully picking out products that their customers in China really want.

The Hot Items Daigous Buy

So, what are people in China asking their Daigous to buy? A lot of the time, it’s fancy stuff like designer bags and high-end makeup, or things for health and babies. Luxury goods are a big hit because they’re often seen as more genuine and fancy if bought from abroad.

For health supplements and baby products, it’s more about trust and quality – people feel these items are safer and better if they come from overseas. Makeup and skincare from other countries are also super popular, especially brands you can’t get in China.

Who Loves Shopping with Daigous

The people who use Daigous the most in China are usually those who have a bit more money to spend and know a lot about global trends. They’re young, smart with technology, and really think about what they buy. They often check out what’s popular and what other people say about products online.

For these shoppers, a Daigou is not just a shopper but a guide to getting the best from all over the world. Understanding what these customers like and want is super important for Daigous to keep them happy and coming back for more.

Step-by-Step Guide to Becoming a Daigou

1. Finding Your Niche and Knowing What’s In Demand

If you’re thinking about becoming a Daigou, the first step is figuring out what you’re good at buying. Maybe you’re a wizard at finding the coolest sneakers, or you know all about the best skin creams. See what products are hot in China and what people really want to buy from abroad. It’s all about matching what you’re good at with what people are looking for.

2. Getting Your Hands on Products and Keeping Track of Them

Next up, you need to get those products. This means finding reliable places where you can buy them – like stores or online shops in the country you’re in. You also need to keep track of everything you buy and send. It’s like being a treasure hunter and a careful planner all in one. You don’t want to end up with too much stuff that nobody wants, or run out of the things that everyone’s asking for.

3. Making a Splash Online and Sorting Out How You’ll Get Paid

Now, let’s talk about getting noticed and making sales. You’ll need to set up a way to show off the cool stuff you can buy – think Weibo, WeChat, or a little Chinese website. Plus, you need a way to get paid. Setting up safe and easy payment methods favored by Chinese people (namely Alipay and WeChat Pay) is super important. It’s like opening your own little shop on the internet where people can browse and buy.

4. Being Awesome at Customer Service and Listening to Feedback

Lastly, but super importantly, you need to be great at talking to your customers. This means answering their questions, helping them out if they’re not happy, and just being really nice to them. Also, listen to what they say. If they tell you what they like or what they’re not so happy about, it can help you do even better in the future. Think of yourself as a friendly guide in the big world of shopping – you’re there to help and make sure everyone’s happy with what they buy.

Legal and Regulatory Considerations

Chinese Import Laws and Rules

If you’re stepping into the shoes of a Daigou, one of the first things you need to get smart about is China’s import laws. These laws decide what you can and can’t send into China, and how much of it. It’s like knowing the rules of a game – if you don’t know them, you can’t play well. And these rules can change, so you have to keep up-to-date to stay on the right side of the law.

Taxes and Customs

Then, there’s the money part. When you bring goods into China, there are taxes and customs duties to think about. It’s like a fee for your products to enter the country. You need to understand how much this will cost for the different items you’re sending because it can affect your prices and how much your customers have to pay. Doing this right means your business can run smoothly without any tax trouble.

Here is an example of a pre-import license you need to obtain:

International Trade Laws

Lastly, don’t forget the laws of the country where you’re buying your products. Each country has its own rules about selling and exporting goods, especially when it’s on a large scale. It’s like knowing the local customs – what’s okay and what’s not. You need to be sure that buying these products and sending them to China is all good where you are. This way, you avoid any problems with the law, both at home and in China.

Building a Business Model

Creating Connections with Suppliers and Handling Logistics

When you’re starting as a Daigou, one of your first big tasks is to build a network of places and people where you can buy your products. Think of it like making friends in the right places – these friends are your suppliers.

You also need to figure out how to get these products from there to your customers in China, which is all about logistics. This can mean working out shipping methods, times, and costs. It’s like putting together a big puzzle where all the pieces need to fit perfectly to make sure your products travel smoothly from point A to point B.

You can team up with Chinese distributors, who will help with all logistics, but it will be profitable for you only if you work on a bigger scale:

Growing Your Customer Base: Drawing in and Keeping Buyers

Next, you need to attract people who want to buy what you’re selling. This means showing off your products and letting people know why they’re awesome and worth buying. Once you’ve got customers, you’ve got to keep them happy so they come back for more. This could mean offering great service, having a cool loyalty program, or just being super responsive to their needs. Think of your customers like guests at a party – you want to make them feel welcome and give them a good time so they’ll want to come back.

Figuring Out Your Prices and Keeping Your Business Profitable

Finally, you need to get smart with your pricing. This isn’t just about how much you bought something for, but also includes the shipping costs, taxes, and your own profit. You have to find that sweet spot where your prices are good for your customers but also good for your business. It’s a balancing act – like trying to keep all the plates spinning without letting any of them drop. Getting this right means you make enough money to keep your business going and growing.

Marketing and Promotion

Using Social Media and Online Platforms for Marketing

In the world of Daigou, social media and digital platforms are your best friends for marketing. This means using sites like WeChat, Weibo, or Xiaohongshu to show off what you can offer. You can post pictures, share stories about the products, or even do live streams to talk directly to potential customers. It’s like having a digital storefront where people can see and learn about your products from anywhere. The trick is to be active, engaging, and creative to grab people’s attention.

Building Trust and a Good Name in the Market

Trust is a big deal in the Daigou business. You need to show your customers that they can rely on you for genuine products and good service. This can mean sharing customer reviews, providing proof of authenticity for your products, or just being transparent and honest in your dealings. It’s like building a good reputation in a new neighborhood – once people know they can trust you, they’re more likely to do business with you.

Ways to Reach More Customers

To grow your business, you need to reach more people. This can involve different strategies like collaborating with influencers who can talk about your products, offering special deals or promotions, or targeting specific groups who might be interested in what you’re selling. It’s about spreading the word in as many ways and places as you can. Think of it as casting a wide net – the wider you cast, the more customers you’re likely to catch.

We Can Help You Become a Daigou in China!

In the dynamic and lucrative world of Daigou in China, navigating the market effectively demands expertise and a strategic approach. Gentlemen Marketing Agency offers comprehensive solutions and insights to help you establish and grow your Daigou business successfully.

At Gentlemen Marketing Agency, we specialize in:

• Market Analysis and Strategy Development: We provide in-depth analysis of the Daigou market, helping you identify the right products and niches. Our strategies are tailored to meet the evolving market demands and consumer preferences in China.
• Digital Marketing and Social Media Expertise: Utilizing our extensive knowledge of Chinese social media platforms like WeChat, Weibo, and others, we help you create impactful marketing campaigns. Our team ensures that your products are showcased effectively to attract and engage a broad customer base.
• Building Trust and Reputation: We understand the importance of trust in the Daigou market. Our agency assists in developing a trustworthy brand image, leveraging customer reviews, authenticity proofs, and transparent communication strategies.
• Customer Reach and Engagement Solutions: Our innovative approaches to expanding your customer reach include influencer collaborations, targeted promotions, and personalized engagement tactics. We help you cast a wide net to attract diverse customer groups.
• Compliance and Legal Guidance: Navigating the legal aspects of the Daigou business can be challenging. We offer guidance on compliance with Chinese import laws, international trade regulations, and tax implications to ensure your business operates smoothly and legally.
• Logistics and Supply Chain Management: Our expertise extends to managing efficient logistics and supply chains, crucial for the success of a Daigou business. We help streamline your procurement and delivery processes to ensure customer satisfaction.

Partner with Gentlemen Marketing Agency, and leverage our expertise to build a thriving Daigou business in China. Our holistic approach and tailored solutions are designed to navigate the complexities of this market, ensuring your success and growth. Contact us today!

In this article, we dive into the results of Single’s Day 2023, examining the numbers and trends that defined this year’s event. From soaring sales figures to emerging consumer behaviors, we’ll provide a comprehensive overview of how this day unfolded in the Chinese market, offering insights into the economic and cultural impacts of this shopping phenomenon.

Sales and Revenue Overview

Single’s Day 2023 in China marked another record-breaking year, showcasing the event’s massive appeal and continued growth. The total sales figures for this one-day shopping event were astounding, with revenues reaching 11.38.6 billion yuan, representing a 2.08% year-on-year growth.

Even though the growth is not as big as it used to be in the past, given the fact that Chinese economy is having problems and people don’t want to spend as much as they used to during this shopping holiday, it’s still a win.

You can see the results from previous years on the graph below;

This year, same as last year, e-commerce giants like Taobao, Tmall, and JD.com decided not to report gross merchandise value after Single’s Day (as well as other shopping festivals). It was already evident last year during the 11/11 shopping festival, but also during this year’s 618 festival.

Sum up of some key statistics:

• traditional e-commerce platforms earned 923.5 billion yuan GMV, with Tmall ranking first, followed by JD and Pinduoduo
• Live-streaming e-commerce platforms such as Douyin, Kuaishou, and Dian Tao reached 215.1 billion yuan in sales
• The top categories generating sales, in descending order, were: Household appliances/electronics, Phones/Electronics, Clothing, Personal Care & Beauty, Shoes/Luggage, Computer & Office, Furniture/Home Building Materials, Foods/Drinks, Pregnancy&Baby/Toy, Sports & Outdoors.
• The household appliances and electronics category recorded sales of 152.6 billion yuan, which is an absolute winner

Low prices strategy of eCommerce platforms

This year, leading platforms like Taobao, Tmall, and JD.com focused on offering low prices to appeal to more budget-conscious consumers. Taobao and Tmall highlighted products with “the lowest prices online,” promising compensation if customers found cheaper options elsewhere. They also introduced straightforward discounts, such as a direct 15% off without minimum order requirements.

JD.com, on the other hand, offered deals like 50 RMB (6.86 USD) off for every 299 RMB (41.02 USD) spent, along with 20 RMB (2.74 USD) coupons, and eliminated presales to commence the event with readily available stock.

Despite these aggressive pricing strategies, both Taobao and Tmall, as well as JD.com, reported year-on-year sales growth and broke new records in several metrics. Taobao and Tmall Group saw increases in Gross Merchandise Volume (GMV), the number of orders, and participating merchants.

By the end of November 11th, 402 brands had achieved over 100 million RMB (13.72 million USD) in GMV, and more than 38,000 brands experienced over 100% sales growth. Similarly, JD.com hit new highs in transaction volume, order volume, and user numbers.

Opinions on this performance vary. Some, like the state-owned Global Times, view this growth as a sign of a complete recovery in consumer spending. Others, however, interpret the continued non-disclosure of GMV figures by e-commerce companies as an indication that consumer confidence has yet to fully rebound to pre-pandemic levels.

Chinese consumers’ perception is changing from excitement to fatigue

The buzz around China’s Singles’ Day sales on November 11th, a highlight of the online shopping calendar, noticeably cooled this year. Baidu’s data indicated a significant 60% drop in peak searches compared to last year, while a trending Weibo topic questioned the event’s declining appeal.

A Bain & Company survey echoed this sentiment, revealing that only 53% of 3,000 surveyed consumers were excited about Singles’ Day, a decrease from 76% in 2021. Additionally, 77% planned not to increase their spending, signaling a shift toward more cautious consumer behavior.

Even though China’s consumption has rebounded (as shown in the graph below), the excitement about the 11.11 shopping festival is far from reaching the levels seen a few years ago.

E-commerce giants, facing this “cooling” trend, simplified their sales approach. Taobao advertised “the lowest prices on the internet,” JD.com boasted of being “so cheap,” and Pinduoduo launched a hefty subsidy to compete on price. This shift in strategy, from intricate discounts to straightforward price wars, marked Singles’ Day’s 15th anniversary with a sense of consumer and marketing fatigue.

Reflecting broader economic trends, China’s National Bureau of Statistics reported only a modest increase in October’s retail sales, attributed to the previous year’s low base. Social media platforms like Xiaohongshu showed a move towards frugality among young people, with less focus on luxury and more on savings. Shopping habits also visibly changed, with more people opting for lower-priced options in food stores and supermarkets, away from the upper levels of shopping centers.

But, what’s interesting is the fact, that even though the consumption in China during the event is falling, Single’s Day is becoming more and more recognized worldwide, with many global brands offering discounts and special offers abroad.

Who Gained The Most During This Year’s Single’s Day?

As we mentioned above, the household and electronics category was the biggest winner, recording sales of 152.6 billion yuan. But other categories, like skincare, personal hygiene, cooking ingredients, and outdoor or health supplements were performing very well, as expected.

Household appliances and electronics

This category is always a big hit during Single’s Day, but it’s a similar situation with Black Friday deals. Those products are usually the ones that people save for, and they are also offered at great discounts, so consumers wait to purchase them during the event. The share in volume (152.6 billion yuan) was divided between JD.com (61%) and Tmall (31%). The biggest winners in this category were Haier, Midea, Xiaomi, Little Swan and TCL.

For example, folding screen mobile phone transaction volume increased more than +300% in comparison to the previous year. More than 2,000 home appliance and home product brands’ transaction volume increased +100% year-on-year Transaction volume of 10+ brands, including Midea, Haier, Gree, Hisense, and Xiaomi, reached RMB1 billion (US$139 million).

Beauty products and fragrances

In the beauty and skincare sector of this year’s sales, Chinese brand Proya significantly outperformed on JD.com with a 120% increase, joining global favorites like L’Oréal, Lancôme, and Estée Lauder on both JD.com and Tmall.

The guochao trend, favoring domestic brands, was evident as Chinese skincare labels topped Tmall’s Singles’ Day sales, a notable change from the international brand dominance of previous years. L’Oréal still led in the fast-moving consumer goods category on Tmall, but Proya took the lead in beauty. The top 10 list also included Olay, Vichy, La Mer, and others.

In perfumes, Jo Malone London, Tom Ford, and Yves Saint Laurent surprisingly topped the category, reflecting a shift in Chinese consumer preferences towards niche perfumeries over traditional luxury brands. Niche labels like Byredo and Diptyque also appeared in the top 20, further indicating this trend.

Fashion and luxury sector

For the first time, Gucci joined Tmall’s Double 11 event along with over 200 luxury brands. Big players like LVMH, Richemont, Kering, Hermès, and Chanel launched 100,000 new products, including exclusive and co-branded items.

During the first hour of Singles’ Day, sales for Gucci, Burberry, and Ralph Lauren surpassed their entire last year’s Double 11 sales. On JD.com, brands like Dior, Tiffany and Co., and Bottega Veneta saw their turnover increase by over four times compared to the previous year.

Valentino emerged as a standout performer on the platform, with sales increasing over six times compared to last year’s festival. The brand had launched a special Double 11 campaign on October 24, featuring celebrity Guan Xiaotong and showcasing items from their Fall/Winter 2023 collection.

Health, wellness, and outdoor sports

Amidst China’s growing enthusiasm for winter sports, sparked by the Beijing Winter Olympics 2022 and the rising fame of athletes like Eileen Gu, there was a notable surge in sales of ski-related gear on JD.com. Products such as ski goggles, jackets, and pants saw their sales double, witnessing a 100% increase. Brands specializing in skiing equipment like Nitro, Terror, and Flow Theory experienced a remarkable growth, with sales multiplying by more than seven times.

The health, wellness, and outdoor lifestyle sectors also showed impressive performance. Global brands like Nike and Lululemon were among the anticipated top sellers, reflecting the growing trend towards fitness and outdoor activities. In the initial hours of the sale event, Alibaba recorded a staggering 300% increase in road bike sales, highlighting the rising popularity of cycling as a fitness and leisure pursuit.

Lululemon, in particular, stood out on JD.com, where transaction volumes for their products skyrocketed, showing a 260% year-on-year increase. The demand for both men’s and women’s down jackets similarly soared, doubling in sales compared to the previous year.

However, the health supplements category didn’t match this upward trend, with sales reaching only 14.8 billion yuan. Despite the modest overall performance, brands like Swisse, by-health, GNC, Blackmores, and Move Free emerged as notable winners in this sector. Their success indicates a selective yet significant interest among consumers in health and wellness products, even as the broader category faced a slower growth rate.

Future Outlook: Will The 11/11 Shopping Festival Survive?

As we look ahead, the trajectory of Single’s Day in China seems poised for evolution rather than a straightforward continuation of past trends. The growing trend of year-round discounts and live-streaming sales is changing how consumers view Single’s Day, with many no longer seeing it as a once-a-year opportunity for unique savings.

According to a recent Bain report, a majority of consumers are planning to either maintain or reduce their spending levels in the coming years. However, the luxury segment still shows robust growth, as seen with brands like Valentino, indicating that premium products continue to attract significant consumer interest.

How Businesses Might Adapt Their Strategies

Businesses, particularly e-commerce platforms, will likely need to innovate and refresh their strategies to keep up with changing consumer attitudes and maintain the excitement around Single’s Day. With luxury brands still performing strongly, there’s an evident shift towards quality and exclusivity, suggesting that future events might focus more on premium products and unique offerings.

For brands, participating in Single’s Day is increasingly about reaching new potential buyers and engaging with them, especially in lower-tier cities where Tmall reported a significant growth in new buyers and orders this year. This suggests a potential shift in focus towards these emerging markets in future strategies.

E-commerce platforms might also look into integrating more experiential and interactive elements into the event to rekindle consumer interest. This could include exclusive launches, interactive campaigns, and personalized shopping experiences that go beyond just discounts. As China’s biggest shopping festival matures, its success will hinge on how well these platforms and brands can adapt to the evolving landscape of consumer preferences and market dynamics.

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Single’s Day 2023 highlighted key trends in China’s e-commerce landscape: a shift towards quality over quantity, the resilience of luxury brands, and the changing perceptions of the event among consumers. The festival’s evolution from exclusive discounts to a more diverse and engaging shopping experience reflects these shifts.

For the global market, these trends underscore the importance of understanding and adapting to the evolving preferences of Chinese consumers. The shift towards premium products and experiences signals new opportunities for brands looking to enter or expand in this market.

At Gentlemen Marketing Agency, we specialize in navigating these dynamic market conditions. Our expertise in digital strategy and consumer insights can help your brand successfully leverage events like Single’s Day to connect with the Chinese audience and make a lasting impact in the global market. Contact us to start collaborating with the best marketing agency in China!