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Selling your products in China A quick guide to online retail
You want to sell your products in China 在中国销售 的产品? So how do you access this massive market? We’re glad you asked...
Market snapshot Online retail in China is $200b and growing. It is predicted to be $650b by 2020!* *McKinsey & Company Australian online retail consumers spent $18.7b between March 2014 and March 2015* *QOR Research
‘Singles Day’ is the world's biggest day of online retail 2014 = $9.3b $9.3B 2012 = $4.0b $4.0B 2012 $5.8B 2013 2014 These ﬁgures show the Alibaba Group's huge increase in sales on November 11 over the past three years. *Sources: McKinsey & Company, Bloomberg, Reuters
MALL In the West, most online retail is done by large B2C sites such as department stores In China, 70% of the market is C2C. *McKinsey & Company
For foreign retailers, this means three things: Barriers to entry are low Consolidation of the market is likely Prospects for growth are high
Big foreign brands are already selling online in China And new brands are joining them every day.
What are Chinese consumers buying online? 35% 35% 15% Recreation and education Apparel 11% Healthcare and personal 12% Household products 4% Transport and communications 2% Food Utilities
Top Western products that Chinese consumers buy online: Baby formula Tech Clothing Cosmetics Nutritional supplements Food and beverage Young Chinese consumers save very little, spending most of their salary. They will pay a premium for quality, cleanliness, health and safety. Cnn money, marketingtochina.com & vecci
Where are they buying? The main player is Alibaba Group Taobao (C2C) TMall (b2C) Has nearly 800m product listings and is in the top 10 global websites Where businesses sell to Chinese consumers. Fun fact: eBay shut down its Chinese site in 2006
How are they paying? Chinese eCommerce takes place on Alibaba, Tmall and Taobao, and payments go through PaiPai and AliPay.
How do you actually get products there? Whether you need cold supply chain Or your products are non-perishable You need a logistics provider to tailor a supply chain speciﬁc to your products.
But I don’t speak Chinese! Don’t worry, logistics providers can: Set you up with a TMall account Improve your customers' online experience Create a complete supply chain for your products
StarTrack can help your business take part in China’s online retail boom. Call 13 2345 StarTrack is a business of Australia Post