E-commerce Archives - HI-COM Translation Agency Shanghai Wed, 12 Mar 2025 07:21:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://www.hicom-asia.com/wp-content/uploads/2022/02/cropped-logo-512px-32x32.png E-commerce Archives - HI-COM 32 32 Double 11 of Year 2021. Brand Strategies to Experience Success This Year! https://www.hicom-asia.com/are-you-ready-for-11-11/ Sat, 30 Oct 2021 09:17:01 +0000 https://www.hicom-asia.com/?p=2698 chinese black friday Double 11

Double 11, Singles’ Day, Chinese Black Friday!  You may have noticed signs or banners popping up around town or on your Wechat moments, indicating something BIG is happening on this date.  What is happening and why should we care? Shopping is one of China’s national sports and Double 11 or ‘Singles’ Day’, where the e-commerce platforms […]]]>
chinese black friday Double 11

Double 11, Singles’ Day, Chinese Black Friday!  You may have noticed signs or banners popping up around town or on your Wechat moments, indicating something BIG is happening on this date.  What is happening and why should we care?

Shopping is one of China’s national sports and Double 11 or ‘Singles’ Day’, where the e-commerce platforms lay the perfect hunting grounds, is a day where records are broken.

Singles’ Day – Once a day to celebrate your singleton, Jack Ma, Founder of Alibaba, has transformed China’s ‘anti-Valentine’s Day’ into a frenzy of too good to be true online sales.

Today, Singles’ Day is the largest day of sales around the world that takes place every November 11th from midnight to midnight.

Perhaps better known as Double 11, recent Singles’ Day sales generate more revenue than America’s Black Friday and Cyber Monday combined!

In 2020, Jingdong (JD.com) total 11-day sales during Double 11 2020 grew by 32% YoY and reached 271.5 billion yuan (US$41.02 bn) in GMV. Tmall’s 11-day Singles’ Day sales reached 498.2 billion yuan (US$75.27 billion) with an increase of 26% YoY.

What’s crazy about this giant day of sales is that more and more businesses, influencers, and countries want to take part in it.

 

Double 11 2019 recap

In 2019 Alibaba pushed the boundaries ones more and achieved  10 billion yuan sales in just one minute and 36 seconds! One of the factors of such high sales volumes was the launching of Double 11 sales in few countries of South East Asia, such as Malaysia and the Philippines. Live-streaming also took place that year and brought a new note to the festivities. 200,000 brands participated in Tmall’s online shopping festiva in 2019l, of which more than 20,000 are foreign. Chinese cosmetic and fashion bands broke into the “top 5” of sales volumes in their categories for the first time.

 

Double 11 2020 recap

Tmall

250,000 brands in total participated in Double 11 in 2020, of which 31,000 are overseas brands. Tmall’s 11-day Singles’ Day sales reached 498.2 billion Yuan (US$75.27 billion).

JD

According to JD brepor, FMCG products have become the top five categories in terms of sales, while 3C household appliances such as mobile phones, washing machines, laptops and other household appliances rank first by total sales.


What to expect in the year 2021 on the Double 11 day?

As Alibaba keeps updating functions of Tmall and Taobao, this year it is all about live-streaming event! Other update on the Alibaba front: the pre-sales have started mid October, and many brands are shipping the good already! Expected to break all records, the festival is taking over offline spaces too, 90% of retailers hold 11.11 sales for all brands big and small!

KOLs (Influencers) and KOC (Key Opinion Customers) are being the busiest this season, and starting November 1st most will hold hourly sales streams. Wonder when shall you start preparing for 11.11? Our answer is: July!

Read more about KOL (influencer) marketing in China in our amazing guide!

Read more about KOC (Key opinion Customer) Marketing and how to get started with it here!

Discover 13 most popular livestreaming platforms in China!


Double 11 consumers behaviour at a glance

  • Price is no longer the most important factor when it comes to purchasing, Chinese shoppers are now focused more on quality.
  • Impulsive shopping is increasing as Chinese consumers’ have growing disposable incomes.
  • Chinese consumers remain loyal to national influencers, meaning having the right influencer can strengthen your campaign.
  • Food and Cosmetics are the top-of-mind categories for Chinese consumers.
  • Chinese consumers prefer niche products that represent their lifestyles and their ideals. 
  • Live-streaming is expected to reach new heights this year.
  • Alibaba will put even more efforts to new Ali-markets such as real estate. 
  • Improved AI of the ali apps is pushing consumers to discover products they didn’t even know they need!

You can expect to find a variety of brands utilizing technology that gives consumers the chance to see and select products that are in-store and in virtual stores. Virtual reality is being used to promote unique shopping experiences for consumers with high expectations from the day.

Whether you are planning to participate in Double 11 or not, you won’t want to miss out on the creativity that will be deployed to get consumers in the doors of shops and online making purchases.


Why shall you act now on joining the Singles’ day?

The phenomenal success of Singles’ Day is a snapshot of the times we are living in.  China’s consumers are active, captive and connected by device, with more than 82% of the online transactions during last year’s Singles’ Day taking place via mobile application.  Alibaba has intelligently capitalized on the consumer and technological trends that 21st century China has experienced over the last 10 years.

It is a culture of early adoption and rapid pace, where e-commerce is not seen as an add-on to a company’s marketing strategy, but increasingly the main event.  It should be noted that Alibaba’s platforms do not themselves sell; they merely provide the interface or platform to enable the buyer to meet the seller.

Alibaba makes money by selling advertising space to sellers and takes a commission from larger retailers.

What Alibaba has done with Singles’ Day is turn it into a celebration of e-commerce.  Celebrities, rock stars, pop stars and sports stars are flown in to help celebrate and the numbers generated from the country’s annual “spend-a-thon” are lit up on a big screen, with analysts eagerly noting down the breakdown of consumer metrics and data by industry, brand category, spending level, region etc.

Double 11 Singles' day 1 Double 11 Singles' day 1 Double 11 Singles' day 12 Double 11 Singles' day jack ma

Alibaba notes its strategy this year is to take Singles’ Day global with a stronger focus on imported products and services, as well as promoting its Chinese brands to overseas buyers. The growth won’t come without some challenges such as language barriers and compliance and trade regulations to adhere to.

However today we are seeing unprecedented levels of cross-border transactions and Singles’ Day celebrates the freedom to “treat youself” by simply swiping and clicking your way through the virtual shopping aisles of the world.

If you want to participate in Chines black Friday, you shall start looking for a TP (Tmall partner), who will represent your products on the platforms, localize your products to the Chine market and get some help from Chinese KOL using  influencer marketing!

Happy Singles’ Day!

Are you preparing for this year’s Double 11? If so, take a look at the previous marketing strategies implemented brands during last year’s Double 11.


Double 11 in 2021: Strategies Chinese brands use to reach their sales goal over the years

Perfect Diary brand strategy

Brand introduction:

Perfect Diary combines the facial and skin characteristics of the Asian population with the European and American fashion trends, to develop a series of high-quality and easy-to-use cosmetic products for the new generation of women. The brand supports China’s fashion industry and aspires to become an internationally influential Chinese beauty icon. Perfect Diary supports the younger generation and believes that they should not be bound by external labels, band should instead actively explore more possibilities in life to become the best version of themselves.

Marketing strategy:

Perfect Diary’s marketing strategy combines Celebrity endorsements with KOL corporation and KOC sharing on social media, with a goal to create an overwhelming response for the 618 and Double 11 shopping season!

Prior to 618 and Double 11, Perfect Diary launched a large number of new products and opted for celebrity endorsements and famous KOLs to help build a successful brand image and attract more interest from the public. The brand spent lots of money on KOL reviews.

Perfect Diary selected 2-3 new products, and invited small and medium-sized KOLS (with thousands of followers) to share the products on social media to attract more traffic and brand awareness. Just before 618 and Double 11, Perfect Diary invited popular celebrities to make recommendations and specifically focus on one or two products.

However, Perfect Diary needs new marketing methods to better enhance the brand’s interest and influence. So, their solution is Brand crossover. Like many brands, Perfect Diary looks for stars to better promote its products and events. The brand also takes advantage of the fashion week, with famous brands and supermodels seeking cross-industry cooperation. Perfect Diary also seeks cooperation with major international well-known IP.

For brand, this marketing approach not only helps the brand to penetrate into different consumer groups, but also expands its user circle and enhances the brand’s reputation.

Consumer review:


Three Squirrels brand strategy

Brand Introduction:

Three Squirrels Co. LTD was founded in 2012 and its headquarters are located in Wuhu, Anhui province. It is the first online food brand in China and is the largest food e-commerce enterprise with the highest sales volume in China. It mainly sells nuts, dried meat, dried fruit, pureed foods and other snacks. On December 3, Three Squirrels announced that its annual sales in 2019 exceeded 10 billion Yuan – making it the first company within the snack industry to exceed 10 billion Yuan.

Marketing strategy:

Three Squirrels is mainly internet based and uses B2C platforms to implement its online sales. This unique business model closes the gap between merchants and customers, ensuring that customers are able to enjoy fresh and tasty food. Three Squirrels pioneered online food sales in China.

Three Squirrels’ offline business is a self-run food store (200 square meters), that focuses on the consumer experience and physical display of products. The brand plans to use Alibaba’s retail channels to enter thousands of community stores. According to Zhang Liaoyuan, Three Squirrels now has 700,000 stores, with a product repurchase rate of 75%. The Three squirrel stores (cooperative shops with young entrepreneurs), rely on the owners’ IP to sell their products. As of August 10, 2019, the number of Squirrel stores exceeded 100.

With its unique sales model, the Three Squirrels came first place in the Tmall nut industry on Taobao on the double 11, 2012, with daily sales of nearly 8 million Yuan. Its rapid development made history in China’s e-commerce. In 2013, Three Squirrels sales exceeded 300 million.

Three Squirrels are transforming into a digital supply chain platform. Zhang Liaoyuan believes a large number of food producers should connect with consumers to make the two links shorter. In the end, the efficiency of the industry will be improved, costs will be reduced, the quality will be better, and consequently, there will be a higher consumer demand.


Adolphbrand strategy

Brand introduction:

Adolph is a personal cleaning and health care brand, part of Guangzhou Adolph Personal Care Products Co. LTD.  Its headquarters are located in Guangzhou. The brand’s founder, Chen Diansong, met Adolph Martins Ganning, a Spanish performer, when he was traveling in Europe. Adolph created a classic smell that evoked strong emotion, referred to as “the smell of love”. The founders hope to pass on “the smell of love” to commemorate Adolph.

Marketing strategy:

Originally, Li Zhizhen suggested experiential marketing because “Adolph products do not use spokespeople or magazine advertising, but instead share samples with a number of potential customers to reach a bigger audience.” Adolph uses money in this way to save on advertising.  Over 90% people who try the products come back to Adolph and become a customer.

The product is delivered by the manufacturer and the store agent does not have to pay for it. With this in mind, the store’s purchase price is just 3.3 percent less. There is enough profit to promote and build teams for store, which means that the brand can still be present on channels without a spokesmen or advertising.

Regarding the brand’s marketing, Adolph collaborates with popular Mobile game social platforms, variety shows so that the brand is able to receive huge brand awareness and traffic on a global scale.

 


PurCotton brand strategy

 

Brand introduction:

PurCotton is a wholly-owned subsidiary of the robust medical group, Shenzhen PurCotton Technology Co. Ltd. It has 20 years of professional technology and production experience within the medical cotton industry. It provides laced, cotton spun, non-woven fabrics. The brand has expanded from medical products to civilian products. As the only high-end cotton household goods brand with a medical background in China, its core concept “cotton care for health” commits to providing safer, more comfortable, and environmentally friendly healthy cotton products.

At present, PurCotton specializes in four main product categories: maternal and infant care, female care, quality life care, and medical care. These categories include products such as soft towels, sanitary items, napkins, baby diapers, cotton household items, etc. and they are all widely recognized and favored by the customers.

Marketing strategy:

Every “PurCotton” product has a lasting guarantee. It has eight main types of products, such as clothing, household goods, baby and children’s products, women’s care, and many more. The basic “PurCotton” materials are imported from American and are of a very high quality. In 2010, PurCotton fell into the trap of wasting money to buy online traffic. However, in 2011, it adjusted its strategy and began to establish trust between its products and users, resulting in a better reputational position and improved sales prices. Over time, the brand’s trust has gradually accumulated with the establishment of direct sales – both online and offline. As of 2015, the PurCotton brand has more than 90 offline stores.


Xiaoxiandun brand strategy

Brand introduction:

Xiaoxiandun is a beauty product made from bird’s nests in Malaysia and Indonesia. It was established in 2014 and has a shelf life of 15 days. It has no additives and is a cold and fresh product that gets delivered to thousands of houses every week. Its brand mission is to make tonic health care easier and hassle-free.

Marketing strategy:

Consumers don’t often know how to select or make this product at home which makes the consumption of it very few. Therefore, Xiaoxiandun focuses on making the process much simpler for consumers. For example, the brand selects the ingredients (with no additives), freshly stews it, and chills it ready for delivery (uses a C2m business model) – making the customer journey effortless and hassle-free.

Providing a natural solution for pregnant women and those who love beauty

Traditional tonic products, such as those made from bird’s nests, seem like products that only middle-aged and elderly people can afford. However, the demand for tonic health care is rapidly changing and there is becoming a much bigger demand from the younger generation.


Advice to brand’s live-streaming in 2021

  1. Live broadcasting has become a very common way for users to learn about a brand and its environment – similar to the experience of going to an offline store to buy things as the customer is able to meet the employees and get a feel for the business.
  2. When broadcasting, the brand image should be considered, e.g. the style that the anchor conveys and the type of environment being showcased.
  3. Different brands should have a professional anchor landing style.
  4. Profits, including gifts, should be very clear and diversified.
  5. Live broadcasts should be planned well in advance and holidays/events should be taken into consideration. For example, the seasons, Christmas, Chinese New Year, 618 and Shuang 11.

HI-COM is a multilingual communication agency dedicated to providing China specific social media communication and e-commerce marketing services to businesses around the world. Working with more than 100 brands, HI-COM is the go-to partner of companies that want to enter China market!  Contact us for your free consultation today!

Scan QR code to follow Localization and The Chinese Market Entry News or Contact us on WeChat: 

OUR CHINESE SOCIAL MEDIA AND OTHER SERVICES: 

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China’s Dazhong Dianping: English guide 2021 – HI-COM https://www.hicom-asia.com/china-dazhong-dianping-english-guide-for-2019/ Wed, 21 Jul 2021 03:02:19 +0000 https://www.hicom-asia.com/?p=7124 china social media marketing dianping

Dazhong Dianping has been called the Chinese version of Yelp. However, its services go well beyond its counterpart, incorporating elements of Groupon, social media, delivery apps, and more. Starting out as a movie and restaurant review platform in 2003, by 2015, Dianping merged with Meituan, one of China’s largest food delivery networks, integrating the functions […]]]>
china social media marketing dianping

Dazhong Dianping has been called the Chinese version of Yelp. However, its services go well beyond its counterpart, incorporating elements of Groupon, social media, delivery apps, and more.

Starting out as a movie and restaurant review platform in 2003, by 2015, Dianping merged with Meituan, one of China’s largest food delivery networks, integrating the functions of both companies while retaining separate apps. With backing from Tencent, Dianping has also become part of the WeChat super eco-system.

In 2021’s Q1, Meituan saw food delivery business growth of 99.6% year over year to RMB142.7 billion. With the close connection between the two apps, Dianping’s influence in China’s F&B and entertainment industries will only continue to grow. The app has also become more and more popular overseas among Chinese tourists, asserting a growing influence on businesses abroad. With that said, let’s take a look at how to grow your business on Dianping.


 

How to Open a Business Account on Dianping

 

Account Types on Dianping

When registering your business on Dianping, you will have two options, to have a FREE and PREMIUM account. Now, the first thing to know: in China (unlike other locations) you cannot list your business by yourself, you must call a hot line (China hotline: 101 00 011) and have an operator register one for you. After the simple FREE account will be done (2-3 working days), the operator will provide information for PREMIUM package, which will include various promotional activities, and the price will vary by your location.

dianping account


Registration Process on Dianping

 

Registering Your Business Account on Dianping I Mobile

For mobile users, click on the hamburger menu on the top right-hand side of the homepage and click on 添加商户 “Add Merchant”.


Registering Your Business Account on Dianping I Desktop

For desktop users, on the homepage, click on 商户服务 “Merchant Services” and select 商户合作 “Merchant Collaboration”. Follow the prompt and select the type of business you are registering.

Fill in the relevant business information according to the prompts. For the mobile version, you will be able to first register your storefront and then separately choose the “Merchant Collaboration” option granted criteria are met for the type of business you operate. “Merchant Collaboration” allows your business to access Dianping promotional advertising services outlined in the Advertising on Dianping section below.


 

6 Best Marketing Practises on Dianping in 2021

dazhong dianping marketing china

Dianping at its core is a review platform for customers. As such, the goal of any business on the app is to garner as many positive reviews as possible to drive visibility on the app.

For a successful marketing strategy on Dianping, businesses need to understand what drives positive customer engagement from offline to online. This will involve optimizing online presence in tandem with offline customer experience to effectively increase growth at both points of customer engagement. Below we have listed some tips to expand your business on Dianping to create a strong pipeline between your business’s online and offline presence.

 

  1. Optimize Page Design

    As your business’s digital storefront on Dianping, your business’s page should reflect the branding and packaging you have worked to implement at your business’s physical location(s). Aside from ensuring all store information is filled out accurately, visuals and text should work to drive engagement. For example, header images/video should include text providing customers an active call to action, while different sections of your page can offer various campaigns and promotions visually coded to stand out from each other.

  2. Improve POI (Point of Interest)

    While you may have attracted users on the app to your business, getting them to your physical store may be challenging if your storefront is located in a less conspicuous location. Ensure your POI data, otherwise understood as location information, is correct and up to date, with detailed information on how to get to your store.

  3. Update Activities/New Store Opening Activities

    Store openings and events are a big driver of foot traffic to brick-and-mortar shopfronts. Online promotional activities should be planned ahead of time to increase hype leading up to the event. Make use of your header banner space and business profile picture to promote your events.

    In addition, consider driving offline to online interactions at events by encouraging reviews on Dianping during your events.

  4. Increasing Data Points

    For online sales numbers and reviews, more is more. High sales and review volumes reflect well on your product, encouraging more users to buy from and engage with your business.

    On Dianping, in-app promotional coupons display half-yearly sales volumes. By ensuring quality and offering good deals on these promotions to drive sales, transaction volumes will be directly reflected on the app.

    Reviews are another data point on Dianping. As user-generated content, this sort of organic engagement gives potential customers a third-party perspective of your business. Other than ensuring good service and products, businesses can offer rewards for visiting customers to leave reviews.

  5. Paid Promotion

    Promotions through back-end Dianping is one of the ways businesses can pay to attract traffic on the Dianping platform. Merchants can set advertisements to appear within certain timeframes and distances from storefronts to maximize effectiveness.

  6. Attract KOC (Key Opinion Customers)

    For review platforms such as Dianping, KOCs are the equivalent to the much-hyped KOLs (key opinion leaders) of social media.

    On Dianping, users are rewarded by other users for quality reviews and are also assigned a level based on how often they review. The top reviewers or KOCs are known as V达人or “V experts”. Their reviews are often featured and appear on Dianping’s homepage.

    By attracting these “V experts” to your store, you can increase your store’s visibility on the Dianping app. Such product seeding can take the form of eye-catching storefronts, gifts for reviewing, and photo-op worthy décor backed up by quality products and services.

 

What are other apps in China that can help you promote your business? Check this guide out!

How can you measure your success on Dianping? Read our guide about back office of Dianping!


Advertisement on Dianping

 

Dianping has its own system of native advertisements, with varying prices depending on industry. To access advertisement functions on Dianping, businesses must register for “Merchant Collaboration” on the Dianping platform.

Dianping’s advertisements offer tight integration with app functionality to complement brick-and-mortar operations. The four main types of advertisements on the platform are keyword promotion, group buy promotion, targeted advertisements, and digital membership cards.

 

Keyword Promotion

keywords promotion advertisement on dianping

Much like other search engine-based marketing, Dianping’s keyword advertisements push your business to the top of keyword related searches. This allows your business to accurately target ad spend on customers who are looking for your services.

According to Dianping, 60% of a business’s in-app visitors are directed to the page through searching keywords, while businesses who have paid for keyword promotion see an average of 4.2 times more exposure.


Group Buy Promotion

group buy promotion on dianping

Much like Groupon’s promotions for group buying, Dianping’s group buy promotions offer discounts when a group of people are buying together. These are displayed prominently on business’s Dianping page. By lowering the cost barrier for larger groups of customers, these in-app coupons allow businesses to attract new customers. Dianping’s group buy promotions allow businesses to explain their offerings with text and visuals, while also displaying half-yearly sales volume to users.

According to Dianping, 83% of sales of group buy promotions went to first-time customers. The average volume of first day sales for the group buy promotions is 100, while the highest record is 30,000.


Targeted Advertisements

targeted advertisement on dianping

With vast troves of personalized user data from reviews and purchases, Dianping has a robust system to help businesses place effective targeted ads. These ads are displayed natively in-app as Dianping recommendations. By analysing user generated data, the platform algorithm is able to identify both the unique specialties of businesses and the personalized tastes of individual users to facilitate effective discovery.


Digital Membership Cards

digital membership cards

As it is based on Dianping’s own infrastructure, Dianping’s digital membership cards allows businesses implement membership systems without having to create and maintain their own from scratch. Membership cards allow for businesses to conduct a more accurate survey of their customer demographics and execute personalized promotions through in-app notifications and text messages.

According to Dianping, the average business has 1000 customers with membership. Businesses that have implemented membership cards see a twofold increase in in-app exposure. Membership cards also allow businesses to see a distribution of customers by age, gender, and membership tier.


Can You Use Dianping to Promote your Business outside of China?

As stated at the beginning of this article – Dazhong Dianping is available to use outside of China. Let’s look at it from a Chinese tourist perspective.

Slide one tells us that we have picked Paris as a destination of interest.

The main orange menu will provide options on sightseeing destinations, shopping spots, restaurants and hotels. One can also get a map and a city guide provided by Dianping.

On the right side of the main banner, one can check the most popular experiences, or the experiences that might interest Chinese tourists, like cruising on the Seine, some shopping or even napping outdoors!

Scrolling down on the same page, Dianping will bring you to the hottest topic of Chinese culture – dining choices!

Here we have all the typical French foods – foie gras, snails, macarons etc.

Straight after you have the restaurant list. The top restaurants are the ones that been voted for by users of the app, as well as those that are just famous for other reasons. Right here you can also search for a hotel (menu on the right).

Below are a few fun options.

So let’s click on one of the hot eating topics – Snails or L’escargot.

After the main description by Dianping writers, one can check all restaurants that serve snails, their rating (number of stars), and the first few words of the last visitor’s review. Of course, there is also a map.

Want to know if Chinese tourists are already talking about your business online on Dianping? Ask us and we’ll check that out for you!

So let’s go to the first restaurant and see how are they’re doing.

dianping english

L’escargot Montorgueil has 732 comments, the average price per person is 289 RMB (37 Euro), the taste score is 7.8 out of 10, Environment 8.2 and Service is 7.4. These are the average numbers right next to the stars, and are calculated taking into account all voters.

On the first page you can see the menu – and photos of the dishes taken by app users themselves, for anyone can add a photo and a review. This section also displays all the dishes most recommended by visitors.

Next is the environment – one of the top criteria of any dining experience. In this case you can see the photos of the interior, and the view from outside.

dianping english

And last but not least – the bill! Yes, people talk about money openly in China, and will show exactly how much their dining experience cost. This section also serves as a preview of the menu.

dianping english

So that’s more or less it for the restaurant information, now it’s time to review and vote! In the section below we can see the visitor based experience overviews and photos. Anyone can react to the review (even a restaurant manager), click to “like” this review, add this advice to favorites or even report it.

dianping english

Respectability and trust is highly valued on Dianping, so the more Dianping is used by one person and the number of reviews grow, the higher the user’s rank in the app community will be. This is shown in diamonds, hearts or medals.

So that’s it for the restaurants. For hotel reviews it is quite similar.

In any case, being on Dianping will dramatically increase your business visibility and bring tons of curious people your way. Ask us how can you start your journey on Dianping, install WeChat Pay or Alipay or anything else you found interesting on our blog!

HI-COM is a digital marketing agency dedicated to providing China-specific strategy, social media communication and e-commerce marketing services to businesses around the world. Working with more than 100 brands, HI-COM is the go-to partner of companies that want to enter China market!  Contact us for your free consultation today!

Scan QR code to follow Localization and The Chinese Market Entry News or Contact us on WeChat: 

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Your Guide to the Most Cost-Efficient Marketing Strategies for Xiaohongshu in 2021 I HI-COM https://www.hicom-asia.com/the-most-cost-efficient-marketing-strategies-for-xiaohongshu-in-2021/ Tue, 12 Jan 2021 06:46:51 +0000 https://www.hicom-asia.com/?p=18859 effective marketing strategy for xiaohongshu 2021

With an estimated 300 million users, Little Red Book (also known as 小红书 or Xiaohongshu) is one of the most popular and influential social commerce platforms in China. More importantly, it has also become the country’s most trusted social commerce platform, making it a powerful tool for international companies aiming to reach shoppers in China. […]]]>
effective marketing strategy for xiaohongshu 2021

With an estimated 300 million users, Little Red Book (also known as 小红书 or Xiaohongshu) is one of the most popular and influential social commerce platforms in China. More importantly, it has also become the country’s most trusted social commerce platform, making it a powerful tool for international companies aiming to reach shoppers in China.

However, getting the greatest return on investment from marketing on the Little Red Book app requires the right strategy and understanding the platform and its users. New to the app? Here’s what you need to know:

Xiaohongshu is China’s Largest Platform for KOLs and KOCs

Key opinion leaders (KOLs) are influential figures on social media and celebrities in fields such as film, music, fashion, and tech. Typically, KOLs have hundreds of thousands (and often millions) of followers. KOCs, on the other hand, are key opinion consumers, that is, ordinary consumers who share their feedback on products and have grown a smaller community of followers.

Why does this matter? KOLs and KOCs are fundamental to how Xiaohongshu works – and to its huge success. Many Chinese consumers trust the opinions of their favorite celebrities more than those of their peers. Others see corporate sponsorship for what it is, but nonetheless value the style or approval of their favorite KOLs. Still others are most likely to trust the opinion of KOCs who are everyday people who appear to be genuinely interested in the products they review. At the end of the day, the platform is where influencers of all kinds choose to share the feedback that hundreds of millions of Chinese consumers trust and use to make purchasing decisions.

Little Red Book KOLs Boost Brand Awareness – The Best Bet for New Brands in China
effective marketing strategy xiaohongshu 2021 KOL

KOLs are a great asset for companies, as they can generate a buzz about new companies unheard of to most consumers by simply talking about them, and lead them to purchase a company’s products, and make a brand’s products more desirable for users already familiar with the brand. Plus, they already know how to work with the Little Red Book app and the type of content users want to see, saving the company valuable time and resources.

In addition to providing KOLs with an excellent platform for sharing content about their favorite brands while informing users about new products and trends, in 2018, Xiaohongshu decided to make communication between companies and KOLs seamless by creating a new platform which helps companies monetize their social media accounts and improve communication with existing and potential customers.

Thanks to its explosive growth, Xiaohongshu has even drawn Western celebrities such as Kim Kardashian and KOLs from other social media platforms in China, such as Weibo, WeChat, and Douyin. These are opinion leaders who have noticed Little Red Book’s big potential and want to take advantage of the platform’s growing community.

So how do you choose the right KOL for your campaign? Your KOL needs to both be a good fit for your brand and have the right number of followers. For example, in order to achieve a short-term effect with broad brand coverage, it’s best to work with high-profile opinion leaders with between 500,000 and 1 million followers. Companies that need a medium- or long-term effect may benefit more from mid-tier influencers because the audiences of smaller KOLs tend to be more engaged and more attentive compared with those of top-tier influencers. Companies that are just starting out on the platform and want to increase brand awareness are often best served by KOLs with an audience of 5,000 to 100,000 followers.

KOCs on Xiaohongshu – Word-of-Mouth Marketing for the Masses

Marketing strategy for xiaohongshu clients reviews

They say word-of-mouth is the world’s best advertising, and the growing appeal of KOCs (key opinion consumers) has been proving it’s still true. Although top-tier influencers have broader reach, many consumers are well aware that their endorsements of products and services are paid for by large corporations and as a result, have less trust in the objectivity of their reviews. As KOCs are ordinary consumers and unpaid reviewers, many consumers are more likely to not only trust their reviews, but relate to them on a more personal level, and engage with them more actively.

KOCs are not likely to replace KOLs anytime soon, but they are an important new part of the ecosystem, and can be a great way for smaller companies to start building their presence in the Chinese market.

Cost-Efficient Strategies for Marketing in China with Little Red Book

marketing strategy for xiaohongshu little red book

Want to sell big on Xiaohongshu without breaking the bank? Here are just a few of the many low-cost ways you can start gaining visibility:

– Influencer Seeding

This refers to finding potential KOCs who are a good fit for the brand and sending them complimentary products for them to test and review. The brand would get free exposure from any reviews by the KOC; afterward, the company and the KOC could work together to create paid campaigns if all goes well.

– Incentive-Driven Campaigns

By offering an incentive (such as a free gift) to users for sharing branded content,  the company can reach a much wider audience at a low cost. Plus, if the gift is attractive, high-quality, branded, and a practical item that the participant wants to take with them and use on a regular basis, it can become a conversation-starter that creates brand exposure well beyond the initial campaign.

– Compelling Content

People are often more willing to engage when they’re moved by a story or feel like they can help others. A couple of easy, low-cost strategies include sharing a moving story or quote and asking followers to support a charity by inviting their friends to participate in campaign, game, or other event.

Getting Your Brand into the Little Red Book

There are endless marketing possibilities on Xiaohongshu, and international companies are advised to partner with local marketing and communications agencies to ensure the best results. New to Xiaohongshu? Check our How to Register a Store on Xiaohongshu guide

HI-COM’s digital marketing department is always here for you, and we’re excited to introduce our Xiaohongshu marketing services: we can support you with all of your online marketing and advertising needs. Whether you need advanced graphics, videos, live streaming or KOL cooperation to target your new customers, we are here for you. HI-COM also works with other Chinese social media platforms, such as WeChat, Weibo, and much more.

Looking for Chinese social media services? Contact us today to discuss your project!

 

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Chinese Social Media Strategies of Top 5 Luxury Brands in China 2020 – HI-COM https://www.hicom-asia.com/chinese-social-media-strategies-of-top-5-luxury-brands-in-china-2020/ Tue, 22 Dec 2020 04:38:56 +0000 https://www.hicom-asia.com/?p=18708

Chinese consumers, now more than ever, are the keystone of the luxury market. In 2020, strategies of luxury brands in China will be the key in determining how their brand fares globally. According to the market analysis from the Bain and Company Luxury Study 2020 Update, 90% of luxury market growth was driven by Chinese […]]]>

Chinese consumers, now more than ever, are the keystone of the luxury market. In 2020, strategies of luxury brands in China will be the key in determining how their brand fares globally.

According to the market analysis from the Bain and Company Luxury Study 2020 Update, 90% of luxury market growth was driven by Chinese citizens, yet 70% of luxury shopping by Chinese citizens was done overseas last year. As travel is not aviable option for Chinese citizens this year due to the global nature of the coronavirus outbreak, there is now an influx of Chinese consumers purchasing luxury products domestically.

As the first major economy to emerge from the coronavirus crisis, Chinese consumers will make up over 50% of the share of the global luxury market by 2025 according to Bain and Company. In the last few months, luxury brands in China have had to quickly pivot their marketing strategies and adapt to the new climate of post-COVID Chinese consumer habits.

What strategies have luxury brands tailored to respond to this new situation?

 

Engagement on Chinese Digital Platforms

In China, consumers of luxury goods are younger and more digitally aware than their Western counterparts. To gain a foothold in the market and establish a lasting presence, luxury brands in China have started to break into the fast-paced environment of the Chinese internet.

Top luxury brands have launched accounts on major Chinese digital social media platforms to establish a digital connection with their customers and thoughtfully engage with them as part of their China localization strategies.

Douyin, Tiktok’s Chinese counterpart, is China’s short video platform of choice for the post-90s generation. The most successful luxury brand on Douyin by follower and engagement, Gucci officially launched their Douyin account in April.

Gucci’s Douyin strategy consists of creating a host of hashtag challenges to encourage brand engagement, of which the Gucci Qixi (the Chinese counterpart to Valentine’s day) challenge was most successful, with over 75.3 million views, owing to smart brand localization.

Get familiar with Wechat updates with HI-COM’s What’s new on WeChat in 2020

Chinese social media Wechat Gucci
Gucci Qixi Hashtag Challenge on Douyin

 

Livestreaming fashion shows have been an unavoidable adaption to the coronavirus outbreak across the world. Exploring a different side of livestreaming, Louis Vuitton teamed up with China’s largest social e-commerce app Xiaohongshu (Little Red Book) to livestream the product presentation of their SS21 collection, tapping Xiaohongshu KOL Yvonne Ching and celebrity actress Zhong Chuxi as cohosts.

As the first luxury brand to officially launch an account on Xiaohongshu and produce interactive original livestream content, Louis Vuitton garnered over 150,000 page views and positive engagement from Chinese consumers over the course off the livestream.

Chinese social media Xiaohongshu livestream Louis Vuitton
Louis Vuitton livestream on Xiaohongshu

 

However, as a new strategy for these luxury brands, there are still growing pains. Other than Gucci, top luxury brands with Douyin accounts have seen lacklustre performance. Dior and Cartier currently boast follower counts and engagement levels similar to mid-level domestic KOL’s. Some commentators also found the image quality of Louis Vuitton’s Xiaohongshu livestream unbefitting of an internationally renowned luxury brand.

To succeed in this new arena, luxury brands in China will need to find a localized voice and content to fit the format of these platforms while retaining their international brand image.

An example of a luxury brand that has succeeded in developing their own localized voice and digital content in China would be Hermès. By creating playful and gamified posts on their WeChat official account to educate consumers of their craftsmanship and products, they have garnered the attention of younger audiences without compromising brand image.

Chinese social media Wechat Hermes
Hermès WeChat post featuring interactive graphics showcasing their products

 

E-Commerce Integration

Just a few years ago, selling luxury goods online would have been seen as a degradation of brand image. However, since the coronavirus-imposed lockdowns, e-commerce in China has expanded with rapid pace leaving no industry untouched. Luxury brands are no exception.

And as China’s economic growth continues, there is a growing class of luxury consumers in second and third tier cities. Online channels for e-commerce have become the most important way to reach this growing cohort of customers.

Tmall, Alibaba’s B2C platform, launched their Luxury Pavilion in 2017 as an invite-only online “safe space” for luxury brands. Luxury Pavilion features the Luxury Pavilion Club for brands to provide top customers a host of exclusive benefits.

Learn more about successful strategies in our Getting ready for Double 11 in 2020: learning from Chinese brands

Chanel signed a partnership with Tmall to sell their makeup on Luxury Pavilion in 2019. To bring the premium feel of brick-and-mortar stores to their online shop, Chanel has integrated real-time online consultations with beauty advisors and free shipping. Their membership program also provides exclusive access to attend offline events. However, Chanel clothing is not available on Luxury Pavilion; shoppers can browse on Chanel’s official Chinese website and go in-store to buy, as luxury clothing is still seen as a product that requires tactile experience before purchase in China.

Chinese social media strategies Chanel pavilion on Tmall
Chanel’s Luxury Pavilion page on Tmall

 

Cartier also joined Luxury Pavilion earlier this year, launching exclusive products for sale on the app including their Juste un Clou bracelet and Guirlande chain wallet bag. As a luxury jewelry brand, Cartier has made their full product catalogue available on Tmall while offering online real-time personalization services.

According to Morgan Stanley’s “Consumers of the China’s Stay Home Economy”, luxury brands in China saw sales increase by 40-90% in early June of this year. The trend of e-commerce integration for luxury brands in China will only grow as online shopping for luxury becomes part of the new normal.

Read more about other options when entering China’s e-commerce market in HI-COM’s 5 social e-commerce solutions in China besides Tmall guide!

Contact us for your projects and get a free quote !

HI-COM is a multilingual communication agency dedicated to providing China specific social media communication and e-commerce marketing services to businesses around the world. Working with more than 100 brands, HI-COM is the go-to partner of companies that want to enter China market!  Contact us for your free consultation today!

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Registration Costs of Chinese E-commerce Platforms in 2020 I Tmall, JD, Kaola, Xiaohongsu – HI-COM https://www.hicom-asia.com/registration-costs-chinese-e-commerce-2020/ Thu, 17 Dec 2020 01:52:06 +0000 https://www.hicom-asia.com/?p=18588 Registration costs of Chinese ecommerce platforms

Numerous international companies regularly contact HI-COM regarding issues related to the registration process of Chinese e-commerce platforms.  With this in mind, we decided to highlight the entry fees that may be required for Chinese e-commerce platforms such as Tmall, Tmall Global, JD, JD International, Koala, and Xiaohongshu. Entering Tmall  Entry fees for Tmall include a […]]]>
Registration costs of Chinese ecommerce platforms

Numerous international companies regularly contact HI-COM regarding issues related to the registration process of Chinese e-commerce platforms.  With this in mind, we decided to highlight the entry fees that may be required for Chinese e-commerce platforms such as Tmall, Tmall Global, JD, JD International, Koala, and Xiaohongshu.

Entering Tmall 

Tmall registration cost

Entry fees for Tmall include a deposit, an annual software service fee and a sales commission. It’s a very popular chinese e-commerce platform.

Tmall Deposit

The deposit fee is typically either 50,000, 100,000 or 150,000 RMB. Deposits for some categories can be as high as 1 million RMB.

Merchants must pay a deposit when setting up a Tmall store. The deposit is mainly used to ensure that merchants operate according to the Tmall Service Agreement and Tmall Rules so that costs are covered if merchants violate any regulations.

Read more about Tmall deposit standard for merchants in 2020

Tmall annual fee for software service

Regarding this fee, there are two options: 30,000 and 60,000 RMB.

Merchants must pay an annual fee when operating on Tmall.

The annual fee paid at the time of settlement and dependents on the category selected by the merchant.

Check the list of annual software service fees for various items of Tmall in 2020

 Tmall commission on sales

Typically the fee is between 2% and 5%, but it can vary from 0.5% to 10% dependent on the category selected.

Tmall provides an entry assistant to calculate the total estimated entry fee.

Entering Tmall Global

Tmall Global deposit

The entry fee for Tmall Global consists of a deposit, an annual fee for technical services, and sales commission.

Usually 150,000 or 300,000 RMB. However, some categories can be as high as 800,000 RMB (e.g. Bird’s Nest tonic)

Merchants must pay a deposit when operating on Tmall Global store. This is used to ensure that merchants operate according to Tmall Global’s specifications, and pay for any damaged products or services according to the Tmall Global Merchant Service Agreement. It also helps to prevent merchants from violating regulations.

Read more about Tmall Global Fee Standards in 2020

Tmall Global annual fee for technical service:

Fee: Between 30,000 – 60,000 RMB.

Merchants must pay an annual fee when operating on Tmall Global. This fee is based on the highest option. For the standard annual fee, please refer to the Annual Fee List of Technical Service Fees of Tmall Global in 2020.

Tmall Global sales commission

Typically between 2% and 5%. The fee can vary from 0.5% to 5% dependent on the category selected.

Merchants operating on Tmall Global need to pay commission according to a certain percentage of their sales. For details on Tmall Global’s commission, please refer to Tmall Global’s Annual Fee Schedule for Technical Service Fees for Various Items in 2020.

 

Entering JD

The entry fee for JD includes a deposit, a platform usage fee (monthly fee), and commission. The deposit amount and the platform usage fee is pre-specified, whilst the sales commission is charged at a variable rate.

JD deposit

Usually between 30,000 and 50,000 RMB. However, some categories can be as much as 60,000 RMB (computer equipment, storage equipment, etc.), and 100,000 RMB (luxury goods, wine, milk powder, UAV, etc.), and higher (automobiles).

JD platform usage fee (monthly fee)

Unified charge of 1,000 RMB/month. Very few categories are 500 RMB/month or free (ticketing and hotel reservation).

JD sales commission

Usually between 5% -8%.  It can vary from 2% to 10% depending on the category, whilst some categories are free of charge. Regarding commission, there are obvious differences among different categories on JD.

Note: Sales commissions include technical service fees such as SOP (Sales on POP) and FBP (Fulfillment By POP) modes. The SOP cost is the same as or bigger than FBP.

(POP- PCtoWAP open platform: it’s the general name of platforms which are created at PCtoWAP.com. In this situation, it means JD Platform)

SOP: JD.com provides merchants with an independent operation back office (uploading products, descriptions and prices by themselves) that is similar to Taobao, delivery within 12 hours of the orders created. Merchants do not need to issue special VAT invoices to JD, but need to issue general VAT invoices to customers for each order.

FBP: JD.com provides businesses with an independent operation back office (where you would be uploading products, descriptions and prices) and storage solution in five warehouse locations: Beijing, Shanghai, Guangzhou, Chengdu and Wuhan. Storage, delivery and customer service will be operated by JD.  Other services that  JD.com  provides to merchants are 211 time-limit arrival (211 stands for 11 am and 11 pm or 2 11s, where the delivery time is guaranteed either within same day or next day depending if order was made before 11 am or before 11 pm), self-pickup, cash on delivery, payment via POS cards. Merchants must be qualified as general taxpayers and need to issue special VAT invoices to JD.

Learn about: List of Fees for Various Items of Jingdong Open Platform in 2020 – chinese e-commerce platform

Entering JD Global

Entering JD global chinese e-commerce

When compared with other platforms, JD Global’s settlement fees are much higher and are calculated in US dollars. The fees include a deposit, a platform usage fee (monthly fee) and a technical service fee (commission).

JD International deposit

Most of the merchants are in the $15,000 price range. If the store sells products such as milk powder, medical care and famous luxury goods, the platform will likely charge a deposit of 30,000 USD per store. In addition, very few categories charge as little as 5,000 USD (music, film and television).

JD International platforms apply a monthly fee

It is typically 1,000 USD/month. Very few categories such as clothing bags, sports & outdoor products, jewelry, watches, etc. are $3,000/month.

Technical service fee (commission)

Typically, in the range of 2%-5%. However, some specific categories will increase the rebate rate by 1%, 1.5% or 3%.

Categories with a rebate rate includes mother and child, toys, beauty and skin care, personal care, household cleaning/paper products, household appliances, mobile phones, digital products, computer & office, home textiles, and kitchen utensils.

Check the list of 2020 Open Platform Tariff Standards for JD Global Purchase

Entering Kaola

At present, Kaola has not yet officially given a detailed description.  According to previous information, the general fee consists of a deposit and sales commission.

koala e-commerce

 

Kaola deposit:

10,000-100,000 RMB

Kaola sales commission:

5%-7%

If you are new to the platform, please refer to the Kaola official website

 Entering Xiaohongshu

The application and review time of Xiaohongshu’s entering process depends on the merchants and can be completed as quick as one week.

xiaohongshu chinese

Xiaohongshu deposit:

According to a variety of factors such as the characteristics of merchants, qualifications, and shop types – different merchants pay different deposits.

Xiaohongshu informs the merchant of the deposit when they sign the contract. The deposit needs to be transferred to Xiaohongshu’s account via official bank transfer.

Xiaohongshu sales commission:

Sales commission is the only charge on Xiaohongshu – there are no other marketing, traffic or resource expenses that must be paid (but can be paid if a brand chooses to invest in them). Xiaohongshu informs the merchants of the commission rate as they sign the contract. Normally, it is around 5%.

New to Xiaohongshu? Read how to register store on Xiaohongshu in 2020.

You can also refer to Xiaohongshu merchants entry assistant

Many partners asked HI-COM, “Should I enter onto an chinese e-commerce platform or build my own e-commerce website?”
Here are two effective growth strategies for e-commerce platforms in China:

  • Rapid growth mode (high cost, high growth):  Firstly, enter third-party e-commerce platforms, then use a WeChat official account and a WeChat Mini program store.  Lastly, build your own e-commerce website
  • Organic growth mode (low cost, slow organic growth): Firstly, use a WeChat official account and mini program store, then build your own e-commerce website, before finally entering a third-party e-commerce platform.

chinese e-commerce multi channel

 

The option selected depends on the enterprise’s unique development plan and strategy. The ultimate goal is always to develop into a multi-channel and cross-link e-commerce solution.

HI-COM can provide you with lots of information and one-stop service for e-commerce platforms.  Get in touch for further details as we’d love to hear from you.

Wanna learn more about chinese e-commerce?
Read HI-COM’s guide about the evolution of e-commerce in China in 2020.

Contact Us Today to Get Your Free Quote!

HI-COM is a multilingual communication agency dedicated to providing China-specific social media communication and e-commerce marketing services to businesses around the world. Working with more than 100 brands, HI-COM is the go-to partner of companies that want to enter China market!  Contact us for your free consultation today!

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5 social e-commerce solutions in China besides Tmall https://www.hicom-asia.com/5-ecommerce-solutions-china-besides-tmall/ Fri, 24 Jul 2020 07:37:36 +0000 https://www.hicom-asia.com/?p=16356

Besides opening a Tmall store, what are the other options when entering China’s e-commerce market? China’s e-commerce platforms have millions of internet users and target a wide variety of online consumer groups. E-commerce platforms provide multiple interaction opportunities for consumers and make it more convenient for companies to improve their  products based on the needs […]]]>

Besides opening a Tmall store, what are the other options when entering China’s e-commerce market?

China’s e-commerce platforms have millions of internet users and target a wide variety of online consumer groups. E-commerce platforms provide multiple interaction opportunities for consumers and make it more convenient for companies to improve their  products based on the needs of their customers – therefore, helping to enrich their brand. Today, more and more international brands are turning to cross-border e-commerce when entering the Chinese market.

In 2018, Tmall global had introduced around 3700 imported products from over 18,000 brands across 74 different countries and regions. Whilst more than half of those brands entered the Chinese market for the first time. However, many brands are put off Tmall due to its high platform entry fees and commissions.

Which new Chinese e-commerce platforms can replace Tmall as the first choice to enter the Chinese market?

Option 1: Youzan Storeyouzan logo

What are the advantages of delivery in Youzan stores?

Youzan is a set of mobile e-commerce solutions designed to help businesses. It provides the tools needed for mobile terminal marketing.  Youzan has both offline stores as well as online traditional e-commerce sites.  Youzan is a self-built mall and provides multiple services such as online interactive marketing, commodity sales, online and offline connections, and open data.

Youzan is a powerful and productive tool distributed by enterprises and marketed by e-commerce. Traditional e-commerce sites such as Taobao and Jingdong are flow-thinking platforms whereas social e-commerce sites, are user-thinking. Other sites such as Youzan, instead helps businesses to manage their own private flow.

Youzan is not a flow platform, but instead helps businesses to accumulate consumer flow. Businesses are able to get fans and followers through platforms such as their WeChat accounts, micro-blogs, QQ shopping numbers, and Kuaishou Fu, etc, which enables them to control their own flow – making it a main advantage of Youzan.

Many powerful businesses in the e-commerce industry use Youzan.

✓  Youzan currently has more than 2 million merchants

✓  Youzan currently has 5 million talents to share good products

✓  Youzan has more than 300 million consumers

✓  There a more than 50,000 transactions per second

 

Deposit required for store opening: No deposit required

Annual fee: The basic version is 6800 RMB, the professional version is 12,800 RMB, and the flagship version is 26,800 RMB.

Store opening requirements: Youzan only accepts a mainland business license to open a shop, so that businesses from overseas can cooperate with domestic partners in order to open stores or register a company in China, which requires a brand trademark registration certificate

How long does it usually take to open a store? It takes 1-2 weeks to obtain the required certification

Is live streaming supported? Youzan supports live streaming. It is free to use and can be viewed on WeChat. “Loving live streaming” is a sub brand of Youzan.

Option 2: WeChat store

wechat

Deposit required for store opening: There is no deposit, fee or service charge required

Small store function: The WeChat small store is a new capability which can help businesses generate sales apps with no development, zero cost and little effort. It now provides commodity information release and trading, small program live broadcast, order management, transaction settlement, logistics after-sales, live delivery and other functions.

Store opening requirements: WeChat’s small stores support enterprises, self-employed, and individuals. It has opened the internal test application for enterprises and individual businesses, and will gradually open individual store applications in the future.

At present, it is only available for WeChat certified service numbers and users who have successfully applied for WeChat payment merchants.  Enterprises and individual businesses that have received the invitation for internal testing can complete registration by clicking the invitation link, and provide relevant identification and qualification certificates.

Note: During the internal testing period, enterprises can open up to 50 small stores, and individual businesses can open up to 5. Besides, one Wechat number can only support registration once.

What are the advantages of delivery in WeChat small stores?

  1. Incomparable flow advantage

According to the latest authoritative data, WeChat’s monthly live flow is as high as 980 million! With regards to online stores, online business is not limited by geographical restrictions, but instead by popularity restrictions. Therefore, online stores should be opened on large-flow platform such as WeChat, to ensure that the shop is exposed to as many users as possible.

 

  1. WeChat is low risk

WeChat is easy to operate, has a low threshold and is a low risk platform. To set up your very own WeChat store, you need to set up your own WeChat service number and operate the binding in the background. After uploading details about your goods, your store will become available for customers.

 

Option 3: Weibo mini shop

weibo logo

What are the advantages of Weibo shops?

  1. There are a large amount of Weibo users and therefore, many opportunities for recommendations. At present, there are over 550 million monthly active Weibo users.Weibo has a mature content recommendation system (both text and live) which creates multiple platform recommendation opportunities.
  2. Weibo supports various media forms such as picture, text and live broadcast. It is helpful for accumulating consumers and attracting KOLs in industries such as finance and education. Bloggers in the fields of finance and cosmetic medicine are able to attract more users due to a high purchasing power.
  3. There is no posting limit on Weibo which is good for frequently interacting with fans. For example, “Wuhan Liu Zhengtao” often shares information about stock investment, mainly in the form of pictures and live broadcast. In addition to sharing professional content, Liu Zhengtao also shares information about his daily life on Weibo. He posts 30-40 online articles a day to entertain his fans and improve their sense of trust.

Deposit for store opening: No deposit required

Store opening information required: Overseas passport information, Chinese identification information and face recognition

What platforms do small stores currently support?

At present, it supports Taobao, Jingdong, Youzan (binding store), Jumei Youpin, Ymatou, and Ctrip

Is live streaming is supported?  Yes, it supports live streaming and the live platform is free of charge

Commissions and other fees Information for cooperation between e-commerce platforms and Weibo shops:

Third product platform Taobao Youzan Jingdong(newly added on 1st July 2020)
Requirements for adding products Products must be in the Taobao League products catalogue Businesses need to bind their Youzan store with their Weibo store. At present, the products can be updated on both stores after binding. Jingdong cps business is supported.
Weibo commission information 0% 5% of the profits made on Weibo platform Jingdong will deduct 10% commission as a platform fee. Weibo and talents will divide other commissions in the ratio of 3:7.(Weibo can take 5% of GMV at most)
Fees for the third product platform Taobao will take 6% of the trading volume as a platform fee. It will also take 10% commission as a technique service fee. Youzan charges a store service fee.

For a basic version it is 6800 RMB, for a professional version it’s 12,800 RMB, and for a flagship version it’s 26,800 RMB

Jingdong collogue will deduct 10% commission as a platform fee. Jingdong’s store opening deposit: a deposit is required for every catalogue. There is also a platform usage fee. Points can be deducted after deals.

 

 

Option 4: Douyin (Chinese version of TikTok) shop

Douyin shop is an e-commerce platform that help brands and businesses broaden their channels and enhance their flow. Single users have the opportunity to become followers of business accounts, which forms a complete closed traffic loop. On Douyin shop you can have a separate shop. You can also link Taobao, Jingdong, Koala, Haigou, Vipshop, Suning e-buy, and foreign wharf goods.

 Douyin shop requirements

  1. You should be registered in the Chinese mainland. Overseas businesses can cooperate with domestic partners to open a shop or register a company in the country.
  2. The business scope and operation time should be specified in the business license
  3. Any goods to be sold should be included in the category of investment promotion and have the relevant qualifications
  4. All goods must meet the quality requirements of law and industry standards
  5. All qualifications should be provided with the original scanned copy and the red seal of the resident

Is live broadcasting is supported? Yes, live broadcast is supported.

Security Deposit of Douyin e-commerce:

In order to sell products on Douyin companies shall pay a security deposit, according to the type of products they want to sell. In case a company wants to use ppc or other ad solutions, other deposit shall apply in addition to the organic business deposits. If more than one category is selected, the deposit should be paid according to the highest margin corresponding to the selected category.

First category Organic Order deposits/RMB Advertisement deposits/RMB
Individual business Enterprises
Clothes and underwear 2000 4000 20000
Sports and outdoors 2000 4000 20000
Shoes and boots 2000 4000 20000
Gifts 5000 10000 20000
Food and drink 2000 4000 /
Wine 10000 20000 100000
Seafood 2000 4000
Watches 5000 10000 50000
Jewellery 10000 20000 /
Mother and baby 5000 10000 /
Toys and instruments 2000 4000 50000
Pets 2000 4000 20000
Kitchenware 2000 4000 20000
Household supplies 5000 10000 20000
Furniture 5000 10000 20000
Home furnishings 2000 4000 20000
Plants 2000 4000 /
Household appliances 10000 20000 /
Computers 10000 20000 50000
Mobile phones 10000 20000 50000
Digital products 2000 4000 /
Cleaning products 5000 10000 /
Make up 5000 10000 /
Educational products 5000 10000 /
Digital content 5000 10000 /
Educational videos 5000 10000 50000
Travelling 5000 10000 /
Cars 2000 4000 50000

 

Option 5: Kuaishou mini shop

Kuaishou logo

Kuaishou shop is an online app merchant, providing quick service to Kuaishou users to efficiently convert their flow into revenue. There are 2 ways to sell products in Kuaishou: native store and 3rd party apps providing services in the platform.

Kuaishou tin store receives the following benefits:

  1. Various ways of income, efficient conversion of fan flow into revenue
  2. Official exposure to Kuaishou shop projects
  3. Convenient commodity management and sale function provided by Kuaishou Tai platform  

The conditions for entry of a Kuaishou store

  1. You should be registered in the Chinese mainland. Overseas businesses can cooperate with domestic partners to open a shop or register a company in the country.
  2. The business scope and operation time should be specified in the business license
  3. Any goods to be sold should be included in the category of investment promotion and have the relevant qualifications
  4. All goods must meet the quality requirements of law and industry standards
  5. All qualifications should be provided with the original scanned copy and the red seal of the resident

Shop deposit:

The shop deposit is subject to the prompt on the back page of the merchant.  According to factors such as business mode, opening category and service opening, the merchants pay the deposit. There is no maximum limit on the amount of deposit. The minimum deposit standard is 1000 RMB.

Merchants who open other commodity functions of small stores need to pay 500 yuan promotion deposit. The platform adjusts the store deposit every month according to sales from the previous month.

It can vary is as follows:

Last month sales(x) Deposit standards
x>500,000 30,000
100,000<x£500,000 5,000
50,000<x£100,000 3,000

 

Is live broadcasting is supported?  Yes, live broadcasting is supported

The Kuaishou store can link to other business platforms such as, Youzan, Mokuai, Jingdong, and Taobao.

Youzan Mokuai Jingdong Taobao
Requirements for adding products 1. CPS products commission rates > 10%

2.self sale products need certification

Business certification is needed on the Mokuai platform Product commission > 105 1.Taobao takes 6% of the trading volume as a platform fee. It also takes 10% commission as a technique service fee. 2.Products must be in the Taobao League products catalogue
Third product platform  service charge information 1.  It takes 10% commission as a technique service fee.

2.  Self-selling products take an opening store fee.

Only an opening store fee is needed There is no spreader technique fee Taobao takes 6% of the trading volume as a platform fee. It also takes 10% commission made by spreaders as a technique service fee.
Kuaishou technique service charge information 1.  CPS products 45% commission (5% of the volume of transaction)

2.   Self-selling products take 5% of the real volume of transaction

5% of the volume of the transaction 45% commission

(5% of the volume of transaction)

0%

 

Have more questions about Chinese mobile e-commerce solutions? Want to explore new opportunities in this market? Shoot us an email and we will be happy to help!

HI-COM is a multilingual communication agency dedicated to providing China specific social media communication and e-commerce marketing services to businesses around the world. Working with more than 100 brands, HI-COM is the go-to partner of companies that want to enter China market!  Contact us for your free consultation today!

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Choosing a Tmall Partner/TP in China: how to find the one for you https://www.hicom-asia.com/tp-china-oneworld-interview/ Thu, 09 Jul 2020 08:35:04 +0000 https://www.hicom-asia.com/?p=16299

Today, founder of 1 World, Jean-Luc Duong, a successful TP in China discusses with us ways in which foreign brands can enter the Chinese market effectively.  Below, he shares his advice, guidance and top tips on current trends, high-demand products and effective USPs in China. China is today the world’s largest E-commerce market and the […]]]>

Today, founder of 1 World, Jean-Luc Duong, a successful TP in China discusses with us ways in which foreign brands can enter the Chinese market effectively.  Below, he shares his advice, guidance and top tips on current trends, high-demand products and effective USPs in China.

China is today the world’s largest E-commerce market and the retail sales revenue is set to hit over a trillion USD this year.

China’s E-commerce market has shown exponential growth in the past five years and is predicted to continue growing by 8.6% the next five years (CAGR 2020-2024). With a window of seemingly endless opportunities on offer, the China E-commerce can prove to be extremely advantageous and beneficial to any brand attempting to enter the Chinese market – as long as it’s done the right way.

1 World is a China market entry and strategy consultancy and TP in China. The company helps international FMCG brands to get successfully established on China E-commerce and to drive their business.

Before you share with us your advice, can you explain what a TP is, its role and the importance of the TP in China to a brand?

A Tmall Partner (commonly referred to as TP), is a brand’s Chinese e-commerce partner.  With the right TP in China, brands are able to manage their day-to-day e-commerce business effectively and contribute towards the overall company growth.

Effective management of the day-to-day business is fundamental as it includes store operations, logistics, customer service and post-sale service.

A brand’s store rating is based on its sales figures and consumer satisfaction, and a store rating in turn influences the sales.

In addition to the flagship store, sales can also be generated on other channels. The right TP, with a strong distribution network, can boost a brand’s sales on Taobao, Tmall Direct Import, WeChat, RED and other relevant platforms.

It is therefore absolutely vital for a brand to choose the right partner.

How can a company see whether the China E-commerce may be interesting for their brand?

To see if their brand may be a good fit for the China E-Commerce, a company could ask itself the following questions: Is the product category of our brand trending? How does our brand stand above our competitors? Do we have a long-term strategy and vision for the Chinese market?

 Could we discuss these questions in detail?

 1) Is your product category trending in China?

What are the most popular type of imported products in China? 

In general, Chinese consumers, who can afford it, still prefer international brands as they stand for high quality and trust. The highest-performing imported product categories are mum&baby care, beauty, food, and fashion.

The last two years we saw new categories trending and these are pharmaceuticals, vitamins & dietary supplements, pet care, kitchen & homeware, and high-end sportswear. These categories are growing double-digits year on year.

Which countries are best known for products in the above categories? 

Western brands as well as brands from East-Asia enjoy a good reputation among consumers. For the categories mentioned above, many of the strong performing brands are from Germany, France, the US, Australia, Japan or Korea. There are of course also brands from other countries that are doing well.

Are there any product groups that aren’t doing so well in China?

China E-Commerce is still growing strongly. Many FMCG categories are still showing an YoY double-digit growth, there are however few categories that have slowed down, to a high single-digit, which is of course inevitable after high growth.

China’s market is nowadays on every brand’s radar. The competition not only increased among international brands but also between international and local brands, as the latter ones are gaining in quality and appreciation from Chinese consumers. This just highlights the importance of choosing the right partner or TP in China to enter the market, to operate your E-commerce and to drive your sales.

How can brands get the type of information on local trends that you just shared with us? Is there an effective way of doing this? 

There are constantly new and updated Chinese e-commerce studies that can be found on Google, but for best results and to ensure the most accurate and up-to-date information, I’d strongly recommend getting directly in touch with an agency in your field of interest. Partering up with a competent agency allows you to gain a clear view on the opportunities and challenges that the Chinese market can represent for your brand.

2)Branding and USPs:

 You mentioned that the competition increased in China. How can brands make sure that their products stand out?  What do you think are the most important brand/product attributes to have when entering the Chinese market?

Chinese consumers are nowadays spoilt by a great number of choices and are looking for brands that are trustworthy, reliable and capable of supplying a high-quality service.

Brands need to set themselves apart from the competition to attract the consumers’ attention. The brands’ USPs that work back home or in Western markets may be only partially applicable in China. There is, after all, still great cultural differences between the West and China.

It is essential that brands adapt their USPs to speak to Chinese consumers and to be relavant.

To help with this, brands can rely on the support of China strategy and market entry consultancies and marketing agencies.

The differentiator for brands that succeed in China is their level of commitment to developing their brand in China. It not only requires a substantial marketing budget but also time and dedication of their team.

TP in China

3) You shared that commitment and dedication are key. Can you further elaborate?

How dedicated does a brand need to be when it comes to entering the Chinese market?

Building a brand takes time and it is not different in China. It is essential that brands that have the intention of entering the Chinese market, have not only the proper strategy and realistic expectations but also a long-term vision for the market.

Most internationally well-known Western brands are not known to Chinese consumers. This means a start from zero, which is a great challenge on any market, but perhaps a slightly greater one in China. Commitment means in this case being prepared to take time to build your brand as well as to invest in marketing.

Another important point is the partner that brands choose to support them in this challenge, as it is decisive for the brand’s success.

What sort of marketing budget is to be expected?

The market entry costs in China are nowadays comparable to international levels. Building a brand, engaging with consumers, driving traffic and such require a substantial budget. This budget will depend on the category and the expectations of the brand. A new brand may expect to invest 30 to 40% of its annual targeted GMV for the first two to three years. The ratio budget to GMV decreases to around 20 to 25% the following years, once the brand has gained brand awereness.

The first half of the budget is usually invested on on-platform marketing (i.e. Tmall) for banner ads, SEO and such to drive traffic to the brand’s flagship store. The second half is invested on off-platform brand building on the Chinese equivalent of Instagram or Twitter and also through KOLs, Livestream, as examples.

These are recommended ballpark numbers and examples. Every brand needs its individual marketing strategy

Thank you for your very useful insights on the China E-Commerce. Last questions: What are 1 World’s USPs and what are the reasons brands should choose you? 

Thanks to our European and Chinese backgrounds, we fully understand the particularities of both the Western and the Eastern mindsets, cultures and values. We know how to translate the values of a Western brand to values relevant to Chinese consumers.

Over the past 13 years we built and enhanced our expertise on the Chinese market and the E-commerce industry.

Our focus on the FMCG industry has allowed us to establish a strong distribution network across various FMCG product categories and this with partners who are among the leaders in each of their category.

Conclusion

If would like to learn more about the Chinese E-commerce landscape, TP in China, and ways to successfully entering the Chinese market, feel free to get in touch with 1 World.

If you would like to become more familiar with Chinese social media channels, KOLs, contact HI-COM today to find out how we can help you!

HI-COM is an international communication and localisation agency with over 10 years of experience in the Chinese market. With offices in Shanghai, Guangzhou and Hong Kong, HI-COM serves its loyal customers in more than fifteen industries, including tourism, hospitality, e-commerce, and retail.

For more information about e-commerce translation  or Chinese Social Media content management and Chinese KOL/Influencer marketing support, get in touch!  KOL marketing is one of the most effective ways for a brand to connect with its target audience, and China is one of the most “influenced” societies in the world.

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Linking Chinese social media to e-commerce https://www.hicom-asia.com/linking-chinese-social-media-to-e-commerce/ Thu, 17 Oct 2019 14:41:43 +0000 https://www.hicom-asia.com/?p=13759 chinese ecommerce

One of the very first questions a marketer may ask when executing a campaign is, how can we increase sales from our social media activities – especially the ones with our KOL partnerships? In fact, understanding Chinese social media and the e-commerce world is not only important for ongoing marketing activities, but also for marketing […]]]>
chinese ecommerce

One of the very first questions a marketer may ask when executing a campaign is, how can we increase sales from our social media activities – especially the ones with our KOL partnerships? In fact, understanding Chinese social media and the e-commerce world is not only important for ongoing marketing activities, but also for marketing strategies.

One of the first questions a marketer may ask when executing a campaign is, how can we increase sales from our social media activities – especially the ones with our KOL partnerships? In fact, understanding Chinese social media and the e-commerce world is not only important for ongoing marketing activities, but also for marketing strategies.

Here are a few things to consider when linking Chinese social media to e-commerce platforms in China.

Will Chinese consumers trust your brand if you are on Taobao, or should you invest in a Tmall store? Is the JD.com audience enough to achieve your first 3-5 years sales plan or should you introduce your brand to a new market? Should your brand be on RED/Xiaohongshu, or is that only for a cross-boarder operation? And most importantly, how can a brand import traffic and sales to those channels, and what Chinese social media platform matches what e-commerce?

Linking Weibo with e-commerce platforms in China

Weibo is one of the oldest and most popular Chinese social media platforms and is commonly compared with Twitter, although Weibo is a much more developed and complex digital ecosystem.

Some of the challenges when linking Weibo with e-commerce platforms in China:

  1. Weibo is a pay to play platform, so brands or individuals must buy target advertising in order for their commercial content to be found (even by its own followers)
  2. Weibo is mostly used for news, humour and leisure.  However, the general audience rarely visit brand pages – even if they are following them
  3. KOL marketing on Weibo can be challenging because it’s an easy platform to buy fake followers on, and 75-85% of its influencers do so
  4. Another reason KOL marketing on Weibo is challenging is due to Weibo charging an extra fee when publishing commercial content

Nonetheless, Weibo is still one of the main platforms in the Chinese social media world due to modern buzz and engagement.

Some of the benefits of using Weibo:

  1. Targeting is quite precise on Weibo and audiences ages vary from 14 to 60. Weibo is great to use for tailored campaigns.
  2. Weibo covers most topics and industries unlike other social media platforms who have more of a targeted audience
  3. Weibo is great for brand awareness campaigns and sales generation

Linking: Weibo works best with Taobao and Yizhibo, JD via Taobao

 

Linking your product via weibo and taobao jd Linking your product via weibo and taobao jd Linking your product via weibo and taobao jd

Find more information about the benefits of Weibo here.

Linking WeChat with e-commerce platforms in China

WeChat is a champion when it comes to online popularity as the social platform has almost 1.8 billion active users. However, WeChat is a closed digital ecosystem and it involves a lot of effort and money to get successful brand results

Challenges to consider when linking WeChat with e-commerce platforms:

  1. Advertising on WeChat can be expensive, with a campaign’s minimum budget (moments ad) of 50K RMB (7K USD).  There are, however, other “less fancy” ad options
  2. It takes time to master the design basics because the content standard for each WeChat post is quite long
  3. There are only 2 options when setting up a WeChat account, and one of those limits publications to only 4 per month, whilst the other option means that the publication is unlikely to be so widely read

Consequently, WeChat is a widely popular platform used by mostly everyone with a smartphone.  Shopping on WeChat is now as common as shopping on Taobao.

The positives of linking WeChat with e-commerce platforms:

  1. Targeting is very precise (even a mobile device and model can be taken into the equation)
  2. Variety of different ad options for every product and budget (smaller budget equals less visible), as well as an option to create a CPS type of campaign
  3. E-commerce click through rates are much higher compared to Weibo (10% on WeChat, and 1,5% on Weibo)

Linking: Wechat supports links to your mobile site, your independent app, mini program, JD.com, pingduoduo, Weidman.

WeChat linking product to e-commerce WeChat linking product to e-commerce WeChat linking product to e-commerce

Linking TikTok (Douyin) with e-commerce platforms in China

TikTok is another popular social media platform with almost as many users as WeChat. It is a relatively new app for short video user-generated content.  Whilst numerous brands use this app for marketing purposes, it is not always relevant to every company for these reasons:

  1. The general audience is quite young (15-25 years old)
  2. The platform only supports video format

However, the positives of linking TikTok with e-commerce platforms are:

  1. Audience from tier one and tier two cities
  2. Endless creative possibilities for campaigns
  3. Higher engagement levels of the follower base

Linking: TikTok is linked with toutiao’s jinritemai, Taobao, physical location/store via a map.

Linking RED (Xiaohongshu/ Little red book) with e-commerce platforms in China

Xiaohongshu is the app for cross-border businesses with 30 million monthly active users. Since Red is a social media app that has its own market, it does not link to any other shopping platforms, but it does link to other social media platforms.

The challenges when linking Xiaohongshu/ RED with e-commerce platforms:

  1. Targeted for mainly cosmetics and fashion, Red is not a relevant platform for lots of products and services. The top categories are apparel, skincare, makeup, health supplements, furniture, FMCG.
  2. Content is mainly user-generated, in the form of a product review
  3. High commissions from the platform side
  4. Red charges extra for KOL activity

On the other hand, Red is still considered one of the best digital platforms for marketers and brands, here is why:

  1. Red is a top brand name research tool of China’s social media
  2. There is a high level of trust with consumers and it has the highest e-commerce click through rate (5%)
  3. Most affordable KOL marketing platform
  4. Mainly meant for cross-boarded, it is a great place to start a brand’s journey in China

Linking: miaopai

Full RED guide can be found here:

How to Register a Store on Xiaohongshu in 2021 – HI-COM

For more information about social media in China, please get in touch with us. Our marketing team will be delighted to hear from you.

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Import to China: how to enter e-commerce, cross border and offline markets https://www.hicom-asia.com/import-to-china-e-commerce-cross-boarder/ Wed, 31 Jul 2019 02:54:41 +0000 https://www.hicom-asia.com/?p=13448 import to china

“How can I import to China and start selling my products there?” is the question every entrepreneur and business owner asks lately. China’s market size make it seem appealing to companies trying to expand internationally, it also relates closely to China’s growing middle class, which by the year 2022 will have same spending power as […]]]>
import to china

“How can I import to China and start selling my products there?” is the question every entrepreneur and business owner asks lately. China’s market size make it seem appealing to companies trying to expand internationally, it also relates closely to China’s growing middle class, which by the year 2022 will have same spending power as the middle class of Italy (earning $9,000 to $34,000 a year) but with a population of 550 million people.

“How can I import my products and sell them in China?” is the question every entrepreneur and business owner asks lately. China’s market size make it seem appealing to companies trying to expand internationally, it also relates closely to China’s growing middle class, which by the year 2022 will have same spending power as the middle class of Italy (earning $9,000 to $34,000 a year) but with a population of 550 million people.

To gain a better understanding of the topic “import to China”, we discussed with ASI Group, a service provider which helps hundreds of brands entering the Chinese market, by providing supply chain,  logistics ,and import solutions.

1-Could you briefly describe what is your company about? And what are its main activities?

ASI Group is a business facilitator company based in Shanghai since 2008, we are specialized in helping companies wanting to import from Europe and export from Asia, mainly China, Vietnam, Cambodia and whether you want to penetrate Chinese market or export manufactured products across the world. Our services includes: Global Trade Management, integrated supply chain solutions:  E-commerce, textile and Food & Beverage solutions.

  • Expansion in China

2-If a company is wishing to expand and start selling in China, does it need to be physically present in the country?

Strictly speaking, yes. Normally, a company should have an entity in China to be able to invoice Chinese customers.

Except if it grows through distributers and resellers, who will buy products from the country of origin. But in this case, the brand might have little to no information of who exactly sells the products in China or how they are sold.

This is the case for some brands who are used to working with distributors and promoters.

If a company wants to have control of their distribution in China, they must be able to invoice using an established Chinese entity.

One way to find a compromise is to use existing structures of importers or agents.

Some companies go further and take care of the whole supply chain, physical flow, documentation, and payments, like ASI.

Regarding a cross border operation, companies are required to have a Chinese legal partner who will represent them on cross border platforms. In that case your Chinese partner will be responsible for the product that you are selling.

Want to localise your marketing materials for the Chinese market? Need help communicating on an upcoming trade show? Shoot us a line!

3-What are the fastest ways to enter the Chinese market when considering the legal side, such as incorporation and bank/tax account setting up?

While the brand is going through the registration of a new company, which takes around 8 months, they can use agents like ourselves to handle all their paperwork, invoicing, as well as reporting.

This is the fastest way to start the operation. This is also a good way to test the market for the first few shipments, without the risk of investing in the legal side and loosing time setting up a company, when in the end the success is not guaranteed.

4-How can foreign brands begin to start selling their products in China?  What are the different ways?

Brands can sell their products through mass offline retail, wholesale, F&B channel (hotels, restaurants, bars), e-commerce, TV Shopping, App shopping, and more. China has developed dozens of business channels with the aim of increasing spending.

import to china

You have all the distributers, who could also be an intermediary and who could sell later on and they can be situated between manufacturer and mass retail. And of course, with mass retail, you have to distinguish for sure between offline and online. The online market is growing fast in China and is overtaking traditional offline retailers as well. Online selling has a strong potential, which can be better developed here than in Europe or the US.

5-Should a brand concentrate on online or offline markets when doing business in China? 

When you start to import to China, you will have many retail options. Right now online shopping is a big trend in China.  But the choice between online and offline models depends on the category of the product.

For apparel products for example, experimenting on different online platforms is a must as the market needs more distribution levels, even though the brands still have a lot of offline presence. Think of Uniqlo, Adidas, and others. Online represents 10-30% of their overall business.

But it’s very hard to say because it depends whether your initial business model strategy is more focused on online or offline. I know some Chinese brands of textiles who are 100% online. They have no physical presence.

If you push your online channels you still should have some offline outlets, especially if you are not a known brand. One needs to create visibility and credibility.

Chinese consumer, before buying any product, will always check online what it is said about the brand and its products on the different social media.

Your offline operation could be a window of marketing that shows your products and convinces people to buy online. In fact, many physical stores are playing the role of a showroom mixed with an “entertainment spot”.  Indeed, the Chinese consumer, before buying any product, will always check online what it is said about the brand and its products on the different social media. If the brand has no online presence, no one is mentioning it, then it will be very difficult to attract sales. That is why it is crucial to work on brand awareness in china’s online ecosystem, before even importing.

6-From your experience, what are the biggest challenges brands are facing when starting to import to China?

I would say a lot of brands come with a product that they want to sell to Chinese customers.  However, sometimes it’s better to go the other way around and ask, “What do the Chinese customers want?”

Most brands don’t know the Chinese customer preferences or habits. They say, “I have a good product that works worldwide in 10 different countries, for sure it’s going to work in China”. This is not the case.

Maybe 10 or 15 years ago most foreign products would import to China almost anything and it could work, but now the competition is so high, you have to show the Chinese customers that your products offer added value to their life.

This can be done by learning about your target customer and personalizing your marketing strategy according to your target, long before importing and selling your goods.

For example, you know that Chinese people don’t like overly sweet tastes. So, if you are a pastry manufacturer, maybe you may have to lower the amount of sugar in your products.

Packaging is another thing when you want to import to China. Maybe in Europe people like to have “family packs”, but in China they will go for different sizes. For example, milk. In Europe the best sales are 1 Liter pack, in China it is the 500 ml.

When we say “adaptability” it doesn’t always mean recipes. It might be naming, packaging, delivery time, brand story and so on.

Some brands, who sell to China don’t have any knowledge about their products in China. Due to the sales rights, which brands give to the importers or general distributors, in the end brands don’t have any insights of what Chinese customers actually need.

The only knowledge they have comes from their distributors and those may pay attention only to the most obvious facts that are not necessarily the essential ones.

Wherever you want to sell your products, you have to know your customers. This comes of course firstly with the research, but also with experience. And this is the information brands lack when they export the products without being here. Brands in the end may not have the opportunity to redesign or change the recipe of their products to better fit to the Chinese market, and will then inevitably fail.

  • Import process:

7- Import to China: will all products make the cut?

When talking about imports, one must remember, all countries have their regulations. One product might be blacklisted not because it is harmful, but because of one of the ingredients.

For example, if you want to import lasagna, Chinese authorities will check that the meat in the product comes from a licensed and approved by Chinese authorities producer.

So your vegetable lasagna might have a green light, but you must change your producer of the meat for lasagna. This means, before you even start calculating costs of your import to China, you will need to adjust your production to fit the Chinese market. In this case you should always check the ingredients.

Once you are sure that your category of products is importable, you have to provide information about the product itself including the ingredients that you put in your products, even small percentages, all the conservatives, all the colorants, etc. And you have to check one by one and make sure that all those ingredients are allowed in China.

Then you have to look at the financial side.  Maybe the taxes for this category of products will be 100%, which might make the product non-competitive. If competition here is selling at one yuan and I sell at 10 yuan after taxes, maybe there is no point importing it.

Here is where your decision might depend on the marketing survey we talked about earlier, which will help you to understand how to position your product, will you want to sell in premium or even luxury category etc.

When your decision is made, the actions are to come.

Let’s say a brand owner decided  “ I want to start with one container”, what shall he start with?

Here are some important steps in your everyday import business that is accurate for China with some time frame:

  • The market research takes 3 to 8 months,
  • The importability check takes 2-4 weeks depending on the ingredients.
  • The production of let’s say one container takes about 3 weeks ( depending on the production lead time of the product )
  • The export 1 week.
  • The shipping with logistics from Europe (France) to China, by sea it takes about 1 month.
  • Then there is import clearance and re-labelling (according to the law, all products that sell in China must have a Chinese label on them). This could take up to 2 weeks to have clearance and labelling done here.
  • Then the CIQ test (on food products) takes 21 days, but it starts at the same time as the import and custom clearance.

Then the shipment goes to the warehouse. The products are labelled and ready to be sold. So are you are all set in about 2 months!

import to china

 

This works for dried food and for frozen products etc. but if you work with fresh food it is obviously going to be more complicated.

Regarding the budget, with around EUR 10,000 you can import to China a container, have it cleared, and it will take 2 months. Market research can cost more than EUR 5000.

Another thing to keep in mind, most offline and more and more online retailers in China refuse to accept your products if they have passed 1/2 or sometimes even 1/3 of the expiration time. So, if your products have 12 months of expiration time, you must sell them all within 6 months.

If your products have passed even one day over their limit, you can only sell them at a discount. That’s one of the drawbacks for new brands who import to China a few containers of food as a “trial” batch.

8-Do you think second and third tier cities still appreciate and look for imported products?

Yes. There is actually a huge boom. In second and third tier cities, people have fewer choices. In Shanghai and Beijing you can find everything you want. In terms of income, there is not much difference as the middle class of China exists throughout China. Wealthy people are not living solely in the top 3 cities, and they want to buy imported goods just as much.

Furthermore, in those areas in China there is still less competition. That’s why e-commerce is working better in those cities. So when you want to test the water, consider to import to China starting with those cities.

Depending on the target of the brand, some brands prefer to begin in lower tier. They start getting known in these second and third tier cities and do good business there because there is less competition, then head to the big cities.  It’s a good test, because it’s also cheaper to be there.

imported brands to china

For example some supermarkets, started online almost 2 years ago, and now they open their first offline shop this week in Shanghai.

Same for some fashion brands, they start online and then switch to offline. So, online can be the first trial of a market and can be adapted according to the development of the brand and its strategy.

To have a better understanding of the market and prepare for analytical work, we recommend conducting a real market study with a professional marketing agency. Things like market surveys, focus group tests, etc. are very important when entering such a big and segmented market like China.

Brands must find information about the distribution channels, product categories and large marketplaces like JD and so on. They need the information in order to see when the biggest periods of sales are. Whether to sell more in May than in December, for example.  They also need to understand what the demographics of their customers are.

One of the advantages of the e-commerce business is that brands have access to analytics from the marketplace.

After you go and start building a business offline, for sure you also need to have some insights as we mentioned earlier such as focus groups, etc.

So, we advise the brands to have this study done before they start to sell. 

  • Cross border E-commerce in China

9-How big is a cross border model of business today in China?

Cross border is 10% of the penetration of the online commerce in China. For some businesses, it can represent a big chunk of their overall business presence. This depends on their strategy or how they want to test the Chinese market.

10-What type of consumers are using cross-border platforms?

Chinese customers will go on cross-border platforms to look for high fashion goods and luxury goods because they trust the source. Cosmetics is a huge hit on cross borders as well.

Food products such as baby food, milk products and alcohol are popular too, because people trust the producers from overseas.

However, if you are selling a mass-market product, like, cookies or bathroom products, it is not recommended to use cross border models because the penetration is still very small compared to the whole e-commerce world in China.

You have to keep in mind that a larger proportion of cross border buyers are coming from top-tier cities.

So, if you want to target the middle class in China, then cross border is not going to be that effective.
The reason the cross-border trend is very popular today, is that it is good forcash flow, as you don’t pay duties immediately. You pay your duties and VAT only when you import the goods from bonded warehouses to mainland China. Then again, if you are talking about food with a limited shelf life, you might want to consider general trade.

china cross boarder platform tmall

Regarding the point of trust, technology is successfully solving the issue with the latest block chain and QR code tracking systems. Today in most supermarkets Chinese consumers can see the information of the producer, facilities, origins and business licenses.  Some products may include sanitary tests etc. by scanning a QR code. And today, with all the recent food scandals, people in China want to have assurance of quality. Standards that need to be respected to penetrate the Chinese market are becoming tougher in order to better protect the Chinese consumers and ensure quality of goods.

11-Is it necessary to import to China? Can I sell directly to a cross border platform?

Yes, but now you need to have a Chinese legal entity that represents you on cross border platforms and takes responsibility. So, you have to make sure you choose wisely who will be your partner.

So, it’s becoming quite impossible just to be in your warehouse abroad and still sell to China, especially if you are doing classic operations like Tmall, JD, Taobao and so on.

Import to China: Cross border sales and the taxes

Basically, after you did your import to China, if your stock is in the bonded warehouse (Free Trade Zone), your goods are technically outside China. So if you don’t sell the products and don’t need to physically import them, your stock remains in that special area.

As soon as you make first sale, you have to make custom clearance and pay VAT.

On the other hand, if you choose to operate as a general trader, you must clear your goods and pay 100% of your duties and VAT as soon as your goods arrive in China. And then you can start selling.

This will have an impact afterwards on your logistics, especially on the delivery. The time lags between the customer order and the product reception will be longer under cross-border.

In general, it’s not difficult to import to China most of the products, but it takes an in-depth research, various testings and experiments as well as an adoptable strategy to be successful in China. Not to forget, that the country is now trying to improve its own high quality production and increase the level of trustability in local brands. So prepare for competition, changing of trends, and sizeable investment in the market. But if and when your brand takes off, it might just rocket up! 

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How to buy on Taobao ? Guide in English – 2025 https://www.hicom-asia.com/taobao-shopping-guide-in-english/ Mon, 10 Apr 2017 07:34:43 +0000 https://www.hicom-asia.com/?p=1655

“For Chinese people online shopping is a lifestyle” said Jack Ma, the founder of Alibaba group and Taobao shopping platform. If you have spent even the smallest amount of time in China, you will have heard of Taobao (here), China’s biggest online shopping service. However much to the frustration of many foreigners living here, Taobao […]]]>

“For Chinese people online shopping is a lifestyle” said Jack Ma, the founder of Alibaba group and Taobao shopping platform. If you have spent even the smallest amount of time in China, you will have heard of Taobao (here), China’s biggest online shopping service. However much to the frustration of many foreigners living here, Taobao is only available in Chinese. But don’t worry, our team here at HI-COM has translated the most useful parts of the website in English, so you can start grabbing those bargains just like the Chinese have been doing for many years now!

Once you get over the language barrier, the site is actually very easy to use. And if you already use a Chinese bank card or Alipay, your shopping experience on Taobao will be even easier.

On the other hand, if you’re not resident in China, you’ll have to go through shopping agents to receive your packages. We’ll explore this possibility at the end of the article ⬇

PS: This guide and the examples in it are on a computer interface. A mobile version is coming soon…

So let’s begin!

TABLE OF CONTENTS
– Step 1 : Presentation of the home page
– Step 2 : Register
– Step 3 : Sign In
– Step 4 : Find an article
– Step 5 : Results of the search
– Step 6 : Description of the article
– Step 7 : Add to shopping cart
– Step 8 : Payment
– Step 8 : Payment confirmation

Step 1: Taobao English home page

Once you arrive at taobao.com, you will see a main search bar with a “Search” button (this also works if you search for English words or brand names), categories of goods on the left, advertisements in the middle, a QR code to scan with your phone to activate the Mobile Taobao App, and Taobao mascot under the code with three orange buttons: Login, Register and Open your own shop.

Go ahead and click “Register“.

Step 2: Registering at Taobao in English

The developers at Taobao have already created a registration page in English, so you should have no problems signing up.

Step 3: Logging in to Taobao in English

After registering, you can then log in. Here you have two choices; you can either scan a QR code with your mobile, or click on the orange computer icon that’s partially hidden n the top right corner.

Step 4: Surfing the Taobao English Guide

Now let’s move on to the fun part – searching for an item you wish to buy. In our case we are buying an iPhone cover. For best results, we recommend that you find the name of the item translated into Chinese first, and enter it into the search bar. This will bring up a wider range of results and choices.

The filters here are really useful. You are free to choose styles, materials, special features, sort by price (or enter an minimum / maximum price range in the windows marked with ¥), and sort by origin of shipment. You can tick the “same day arrival” window, “new product” or “used products” etc. depending on your needs.

Step 5: Choosing your items on Taobao English Guide

We picked out our item here using a brand name and a Chinese description.

When you compare the products, here are a few things you may want to look out for:

  • The number of people who purchased this item (the small grey number next to the price)
  • An Icon of each platform on which it is sold (e.g. Tmall, red icon on the last line)
  • Origin of the shop (above the blue logo of the messenger).

The product we have selected has been purchased 105,438 times. It is sold on Tmall (so we are going to be redirected, but fear not – Tmall is well integrated to Taobao), and it will be dispatched from Shenzhen (the origin of shop/shipment information comes in handy if you’re in a rush to get your products, as it will take less time to be delivered). Feel free to play with the filters the way you like.

Step 6: Item details

By clicking on the item, you will enter the shop, where you can choose an exact model or check the trustworthiness of the seller (check the line with the red numbers above the product – monthly sales and feedback, if applicable).

taobao english

Model: You can choose the color, size and other criteria. Now, if you get past all the ads, you will see some additional information on this page: freight info – price and time of transportation, amount of units in stock.

You will also find some statistics such as how many times the product was sold in the last 30 days (117,227), and how many times it has been rated (144,353).

Step 7: Adding your address to your Taobao account

After you have made your choice, go ahead and click either “Add to Shopping cart“, or “Buy now” for a direct payment.

To make a payment you will need to enter your address (enter it Chinese if possible) and contact info, select the items you want to pay for and click the red button. You will then be directed to the payment page.

taobao english

In our case we do not have a Tmall voucher, and we do not need to send any messages to the sellers, but we have those options if we need them.Among the other options you might want to choose the type of delivery, ranging from a super fast one (SF express), an average one (set by default), or a slower one (China Post). You can adjust the quantity you wish to order and even request a Fapiao invoice.

Step 8: Using Alipay when shopping on Taobao

If you are using Alipay on your computer, this synchronised web helper will pop up automatically. Otherwise log in to your internet banking service, by clicking on the logo of your bank.

taobao english

If you are using Alipay, enter your password and press “Confirm the payment”.

Step 9: Confirmation of your purchase and payment on Taobao

You will then receive confirmation of your payment (as indicated below by the green tick), and the estimated delivery time will also be displayed here.

And of course beware of scams!

taobao english

So there you have it, you are now free to shop on Taobao in a language you understand! Let us know in the comments about your shopping experiences using our guide.

HI-COM Answers Frequently Asked Questions About TAOBAO :

  • How long does it take to ship from Taobao?

If you are expecting a purple within Mainland china, expect your purchase to be at your door within 2 to 3 days. If you are shopping at the store within your city, the delivery is next day, but there is no guarantee to that if you didn’t set the details with the seller via the Taobao inner messenger – WanWan! If there are any problems with the items purchased or you would like to return the items, make sure you talk to the seller first.

  • What are the reviews and opinions on Taobao?

Taobao is often perceived as a site for the sale of poor-quality Chinese products. Nevertheless, Taobao is a site mainly used by Chinese consumers, so you just have to know how to spot the good products from the bad ones.

Taobao has controversial reviews, as people who have had a bad experience will share it, but people who have had a good experience will not.

So, as a TAOBAO consumer, we can tell you that this is an application or website, where product reviews are paramount to inspect before making any purchase. Having already ordered from Taobao, we received all our orders on time and as described. Despite the differing opinions on this platform, we recommend that you follow our tips and guides for ordering products on this site.

As on all good websites, there are some so-called “toxic” sellers who are indeed dishonest about the product description or the shipment of the package. TAOBAO is no exception to the rule, and in our section on “How to avoid scams on TAOBAO” you’ll find out how to ensure a good customer experience on this site.

Finally, TAOBAO is a highly recommendable site, especially if you live in China. It will be very useful if you don’t want to spend much and quality is not an important criterion depending on the product.

  • What’s the difference between AliExpress and Taobao?

Taobao, unlike AliExpress, is an e-commerce site primarily focused on selling products directly in China, not across borders. This is why the AliExpress website is available in English, unlike Taobao, which is only available in Chinese, but thanks to our guide you’ll be able to order without worry.

AliExpress deals mainly with foreign trade, while Taobao deals with Chinese domestic trade.

As far as payment methods are concerned, AliExpress is open to international payment methods such as Paypal, whereas on Taobao you can only pay with Alipay or WeChat pay.

Taobao offers better-quality products, with faster delivery thanks to a much larger number of sellers than AliExpress.

  • Is Taobao a trusted and reliable site?

TAOBAO is a trusted and reliable site if you know how to choose the right seller and the right product.

To do this, you need to be fluent in Chinese or have a translation tool at your disposal.

What’s more, payments via Alipay or WeChat pay are verified and controlled. The site is also secure. So you can order products on TAOBAO without fear if you know how to select the right products.

  • How to avoid scams on Taobao?

To avoid scams on Taobao, it’s important to read the comments and reviews about the seller and the product you want to buy. As the website is in Chinese, you’ll need to either master the Chinese language or have a translation tool to understand and translate the reviews posted by people who have bought the product. Note that in China, Chinese people write reviews for all products all the time! As a result, product reviews are very important, and usually in very large numbers.

What’s more, if a seller sells a non-compliant product or fails to ship it, this will be reflected in the comments and ratings of the product or seller page.

If you have zero comments on the product, it’s quite suspicious. It may also mean that the product page is often deleted to remove negative comments warning you about the product.

What’s more, if the price is really low compared to the competition, this is also a way for you to be wary. Indeed, very low prices compared to the competition may be proof that it’s surely a scam.

Finally, accessing the seller page allows you to see whether or not there’s any cohesion between the products being sold. If you’re looking to buy a dress and you see on the seller’s page that he’s also selling electronic products, that might seem suspicious too.

  • What is Taobao Focus and shopping agents?

When you are not in China, it might be hard to do shopping on Taobao, since the delivery is strictly local. But there are hundreds of  agents out there to help you with your Taobao shopping experiences. Be careful when choosing your shopping agent!

TAOBAO Focus is an intermediary site dedicated to shopping on TAOBAO. This website helps you buy on TAOBAO and have your order delivered from China.

It differs from other TAOBAO agents in that it doesn’t require minimum orders, it’s in French and the service fees are competitive.

So there you have it, you’re now free to shop on Taobao in a language you understand! Let us know about your experiences in the comments.

Discover Parcel Up (Taobao FOCUS)

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