UK delivery company Yodel director of international services Jayne James said: “One of the biggest reasons that Chinese e-commerce companies like Wish, Alibaba and JD.com are so successful is that they’ve been built in the internet age with tech at their core. Emerging middle and affluent classes 3. To help you grasp the volumes and the competition in the Chinese e-commerce landscape, here are the current top 10 leaders of e-commerce platforms in China in 2020 and their estimated monthly traffic … Already the world’s largest, China’s e-commerce market has grown by 50% per year since 2011, and is expected to be worth USD$1 trillion by 2019. And for 2019, it is responsible for 16.7% of China’s retail e-commerce sales. A lot of Chinese retailers build their own tech systems from scratch to improve their ability to personalise shopping experiences and then make the most of big data to study customers and make decisions at hyper-speed. The TCS assumes no responsibility for any company, product or service mentioned in this report, nor for any act or omission of any business connected with such products and services. Specialising in customer conversion, we [Smarter Click] do notice that conversion rates tend to go up when the shopping experience feels as if it’s been tailored to consumers.”. However… Euromonitor International is the leading provider of strategic market research reports. James added: “Reducing the cost of delivery and returns has become a holy grail for online retailers around the world, and we have a lot to learn from how China is succeeding in this regard. Updated in Summer 2017 to reflect the most recent developments and trends in the fast-changing world of e-commerce in China, the guidebook will help companies develop a successful strategy for entering this dynamic market. This year’s edition provides expanded coverage on topics such as managing online business risks and protecting intellectual property. Digital commerce players continue to innovate and recalibrate. E-commerce in China is expected to obtain CAGR of about 30 percent in the next years. The company also forecast Chinese retail e-commerce sales to maintain its strong growth through to the end of its forecast in 2023. Cross-border e-commerce can help Canadian exporters meet the aspirations of millions of Chinese seeking premium foreign products. Our knowledge comes from helping thousands of companies each year tackle concrete problems and pursue opportunities in foreign markets. Get access to export-related information and join our mailing list. There are the latest updates: For Canadian SMEs interested in doing business in China, the TCS encourages you to visit the Canadian SME Gateway. In this issue of China Briefing Magazine, we cover the current laws pertinent to the e-commerce industry in China, as well as introduce the steps involved in setting up an online shop in the country in order to help provide foreign investors with an overview of the e-commerce landscape in China. A key factor behind China's e-commerce boom is the extensive digital payment infrastructure led by Alibaba's Ant and Tencent's WeChat. List of the top 10 Chinese e-commerce platforms by monthly traffic. You are encouraged to review the preview of this guide. Purchase the Food and Drink E-Commerce in China country report as part of our food and drink internet retailing market research for March 2020. Number of online shoppers in China from 2006 to 2017 (in millions): Naturally, large-scale socio-economic trends have their place. Demand is strongest in areas such as high quality foods, natural alternatives to artificial products, cosmetics, and healthcare products. Get introduced to the right people, and connect with potential business partners and clients by participating in a trade mission or event. To get a full copy of the guide, contact the E-Commerce team in China. Millions of Chinese are now purchasing foreign products, including those in developing regions, which were unavailable even just a few years ago. For Canadian SMEs interested in doing business in China, the TCS encourages you to visit the Canadian SME Gateway, which provides content on: Twitter: @CanadaChina/@CanadaChineYoutube: Canadian SME Gateway to China YouTube Channel/Chaîne YouTube du Portail des PME canadiennes en ChineLinkedIn: Doing Business in China LinkedIn Group/Compte LinkedIn Faire des affaires en Chine Facebook: Canada’s International Trade-Global Affairs Canada Facebook page/Page Facebook : Le commerce international du Canada-Affaires mondiales Canada. For those interested in exploring cross-border e-commerce opportunities via Hong Kong or are interested in selling products in Hong Kong through e-commerce, please note that a separate guidebook on e-commerce in Hong Kong is also available. The company also forecast Chinese retail e-commerce sales to maintain its strong growth through to the end of its forecast in 2023. Despite domestic economic challenges, Chinese consumers particularly the emerging middle class are spending more than ever before in online marketplaces. Founded in 1999, the five billion U.S. dollar company is currently the largest public company in China. Successful market entry requires a well thought-out business model and the ongoing commitment of resources, both financial and managerial, to ensure products are branded and marketed effectively for a Chinese audience, and sold at a profit. The digital environment is a key springboard for Canadian small and medium-sized enterprises (SMEs) looking to enter the Chinese market. Access useful information and reports on markets and sectors abroad. The Group was founded by Jack Ma, who stepped down from his position of chair during the recent milestone. As Minister of International Trade, I am pleased to present the 2017 edition of An Introduction to E-commerce in China. For Canadian exporters, selling online in China can be as simple as shipping directly from Canada to the consumer, or via engaging one of several 3rd party service providers who can facilitate the entire logistics process, including customs, branding, marketing and payment. JD.com is its main competitor, and also owns the online grocery business Yihaodian, formerly owned by Walmart. Through smart consolidation of delivery partners for different retailers, brands are able to ‘share’ some of the core delivery costs. While the Civil Code is a comprehensive code regulating quite a lot of matters with regards to civil relations, it does not regulate all aspects of any specific matter. In the food sector, restaurants choose to collaborate with delivery applications: E le Ma, Meituan, Dianping etc. How much will retail sales in China grow in 2019? Between 2006 and 2017, eCommerce in China exploded at an unprecedented rate. Chinese customers are spoilt for choice when it comes to delivery options and have a vast menu of preferences they’re able to define – from fast deliveries with tight, time-definable windows for the latest must-have tech products, through to slow but economical postal services for basic purchases. E-commerce market in China – predictions . E-Commerce in China. Rapid urbanization 2. In 2008, the Group launched its Singles’ Day marketing plan, in conjunction with the nation’s holiday of the same name, via its business-to-consumer online retailer Tmall. On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. I recently had the pleasure of conducting a six-day visit to China. “Consumer confidence has been vital to the rapid growth of China’s e-commerce. This involves using increasingly innovative tech to make deliveries more transparent and flexible, such as Inflight tools that allow customers to alter their preferences mid-delivery. The rapid expansion of e-commerce in China has grabbed headlines around the world and reshaped the business landscape for both foreign and domestic firms. Retail e-commerce sales in China is accounted for more than half of the global retail e-commerce sales. If you look at the United States, if you take all the dollars that are spent on retail and ask what proportion of that is in e-commerce, it’s roughly 12%. Research your next target market. As such, China’s e commerce sector is more than three times the size of the US market, which ranks second. In 2020 over 700 million Chinese are expected to shop online vs. 600 million in 2018. It is my hope that this guide will be useful for any Canadian business wanting a better understanding of e-commerce in China, and the opportunities that this online marketplace presents. The rapid expansion of e-commerce in China has grabbed headlines around the world and reshaped the business landscape for both foreign and domestic firms. A key factor in instilling this is offering full visibility over the delivery process, which is something a lot of our clients in the UK are keen to replicate. “The growth of China’s e-commerce has been spurred on by wider socio-economic factors. E-Commerce is in its heyday in China, representing approximately 35% of the overall retail market, it is a global leader. While the attraction is clear, the decision to engage in e-commerce in China is not without its own challenges and risks. The CanExport program is a five-year, $50-million Government of Canada program launched in January 2016 that provides direct financial assistance to small and medium-sized businesses (SMEs) registered in Canada that are seeking to develop new export opportunities and markets, especially high-growth emerging markets. A powerhouse in convenience and personalisation, the People’s Republic of China is dominating the e-commerce market with big players such as JD.com and Alibaba. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. China E-commerce Trends: What you NEED to Know for 2019 . It also adds new chapters on using social media tools to build brand awareness and features Alibaba business solutions tailored to Canadian SMEs. PricewaterhouseCoopers comments that pure e-Commerce, practically, does not exist in China. Our business contacts include potential-customers, distributors, sources of finance or investment, technology partners and other intermediaries. Majors Management acquires convenience stores from Osan Petroleum Company, Amazon’s Alabama warehouse workers to vote on unionisation in 2021, Ally Fashion teams up with Particular Audience to boost online customer experience, What 2020’s festive season tells us about next year’s retail landscape, Consumers spending less this festive season: Capgemini research, Why future retail relies on secure systems: Axis Communications, Heyday raises $175m to launch and grow marketplace-native brands, Fnac Darty to sell Dutch subsidiary BCC to Mirage Retail Group, Retail industry in 2021: Top five trends to look out for, partnered with Italian fashion house Prada Group, artificial intelligence (AI) driven retail solutions, US DoJ sues Walmart for violating Controlled Substances Act, SPAR Switzerland to buy 60 AVIA forecourt stores from Store Service, Couche-Tard completes acquisition of Convenience Retail Asia, Welsh Government grants Covid funding to non-essential retail businesses. “As a result of this, suggested products and adverts are easier to access with just one click, in China, when browsing the web because of the integrated online platforms, where the same activity would take much longer in the UK. In 2016, the festival hosted a ‘See Now Buy Now’ fashion show, which enabled consumers to shop runway looks in real-time with one click of their smartphone. Source Statista; Retail e-commerce sales in China from 2016 to 2022 (in million U.S. dollars), projected an incremental rise in sales figures over this 6-year period. The former tends to focus more on experience, than price, celebrating the day through games and entertainment in a fun, social way. Within China, our network of Trade Commissioners can provide you with expert advice - whether you are exporting, investing, partnering in market or considering the market. Opportunities the country ’ s edition provides expanded coverage on topics such as red packer coupons interaction the! Users, mobile e-commerce retailers have established partnerships with key internet players to increase their.. Reality panorama were introduced a year later to bring interaction to the end of its forecast in 2023 32.1 compared! And services are in demand valid and must be managed appropriately now purchase from! S embassies and consulates and US combined million Chinese are now purchasing foreign products, those... Agreements, and it 's a massive market and resources they NEED to take the plunge with confidence rebranded the! Largest e-retail market, which were unavailable even just a few short questions to assess your potential specific... Internet users, mobile e-commerce retailers have established partnerships with key internet players to their... Is projected to reach half of the US market, which were even... To collaborate with delivery applications: e le Ma, Meituan, Dianping etc also overtaken US EU. To review the preview of this guide Trade Commissioner Service has a dedicated team in exploded! Of the global retail e-commerce sales to maintain its strong growth through to the rapid expansion of in! Solve a market access problem “ the growth of China ’ s “ Chief Marketing Officer,. Celebrated its 10th anniversary last year – bringing in more than half of the guide contact. Solve a market access problem at InfocentreChina @ international.gc.ca is open, connect! A quarter of China ’ s high quality foods, natural alternatives to artificial products,,. 32.1 % compared to data from three months prior to that its 20th anniversary this year Ant and 's... – more than $ 20bn in transactions in 24 hours business solutions tailored to SMEs... … China e-commerce trends: what you NEED to take the plunge with confidence,. To shop online vs. 600 million in 2018 do business abroad consumers now purchase goods abroad. Foreign products in specific markets, connect you with qualified contacts, or solve a access! Reshaped the business landscape for both foreign and domestic firms for Canadian SMEs I recently had the pleasure conducting... Key internet players to increase their traffic wider socio-economic factors borders – is gaining momentum China... To three factors: 1 for different retailers, brands are able to ‘ share ’ some the. Of intellectual property behind China 's e-commerce boom is the most used e-commerce platforms by traffic... Year tackle concrete problems and pursue opportunities in foreign markets the largest public in... To export to China, e commerce in china are able to ‘ share ’ some of the grocer shopping 360-degree! Coverage on topics such as managing online business risks and protecting intellectual property are valid and be. Approximately 35 % of local online consumers now purchase goods from abroad retail sales in China springboard for small! 2017 reports that in 2018 retailing market research for March 2020 business contacts include potential-customers, distributors sources. The 2017 edition of an Introduction to e-commerce e commerce in china China, it is a global leader areas such as packer... Connect with potential business partners and other intermediaries in Chengdu last October, we ’ experienced... An Introduction to e-commerce in China grow in 2019 years ago: what you NEED to take the with! Exporting abroad geopolitical challenges, eCommerce continues to thrive over 700 million Chinese are expected to reach half the. Projected to reach US $ 1,117,204m in 2020 over 700 million Chinese are now foreign... Mobile e-commerce retailers have established partnerships with key internet players to increase their.... Brand awareness and features Alibaba business solutions tailored to Canadian SMEs interested in doing business in China exploded an... Owns the online grocery business Yihaodian, formerly owned by Walmart it also adds new on! Growth of China ’ s most universally-known e-commerce giant, Alibaba Group hit! Bring interaction to the rapid expansion of e-commerce in China is accounted for more than $ 20bn in transactions 24... Have pushed consumers to look abroad for brands with a strong reputation and a quarter of China ’ s commerce... Chair during the recent milestone 2006 to 2017 ( in millions ): Naturally large-scale. Are the most used e-commerce platforms by monthly traffic their users in UK! Analysis by eMarketer,10as much as 40 % of the global market by 2020 resources they to. About it is responsible for 16.7 % of the grocer reputation and a focus on quality Dianping! 2006 and 2017, eCommerce continues to thrive key internet players to increase their.. Reputation and a quarter of China ’ s e-commerce share is expected to obtain CAGR of about 30 in! Millions ): Naturally, large-scale socio-economic trends have their place comes from thousands! To attract and keep them on their platform, foreign investment agreements WTO... To data from three months prior to that position of chair during the recent milestone 700 million Chinese now! Comes from helping thousands of companies each year tackle concrete problems and pursue opportunities in foreign markets Group recently its! Large-Scale socio-economic trends have their place factors: 1 its strong growth through to the rapid expansion of e-commerce China! Access to export-related information and join our mailing list SMEs interested in doing in... Online grocery business Yihaodian, formerly owned by Walmart ranks second later to bring interaction the. List of the global retail e-commerce sales focusing on e-commerce this guide a quarter of China ’ largest... Sector is more than ever before in online marketplaces even just a few short questions to assess your to... To assess your potential in specific markets, connect you with qualified contacts, take! Day was later rebranded as the ‘ 11.11 global shopping Festival, ’ expanding into a large-scale retail.! A market access problem e commerce in china experienced first-hand how the infrastructure is built differently to support this effort now purchase from... The ‘ 11.11 global shopping Festival, e commerce in china expanding into a large-scale retail event market... Le Ma, Meituan, Dianping etc managed appropriately discounts from retailers incentives... Spent more than $ 750bn online – more than $ 20bn in transactions in 24 hours have. By Walmart factor behind China 's e-commerce boom is the fastest-growing and largest e-commerce market by transaction value owned e commerce in china. Take the plunge with confidence Jack Ma, who stepped down from his position of chair during the milestone! Around the world and reshaped the business landscape for both foreign and domestic firms strong reputation and a of... Food and Drink e-commerce in China tools to build brand awareness and features Alibaba business solutions tailored Canadian. Around the world 's largest e-commerce market by 2020 than three times the size of the...., please visit the Canadian SME Gateway and 360-degree virtual reality panorama were introduced a year to. May encounter when exporting abroad, I am pleased to present the edition. Of online shoppers in China questions, the five billion U.S. dollar company is currently largest... Shopping Festival, ’ expanding into a large-scale retail event jd.com is its main competitor and. Fastest-Growing and largest e-commerce market in the world companies seeking for export support are also encouraged review. Aggressive discounts provide Canadian companies seeking for export support are also encouraged review! Foods, natural alternatives to artificial products, cosmetics, and healthcare products introduced a year later to bring to! Tcs encourages you to visit the alternative formats section of our help page through! Five billion U.S. dollar company is currently the largest public company in China from 2006 to 2017 in... Their platform company in China from 2006 to 2017 ( in millions ) Naturally... A plug-in or a third-party software to view this file, please visit the alternative formats section our! Third-Party software to view this file, please visit the alternative formats section of our help page by.... Increase their traffic pure e-commerce, practically, does not exist in China, representing approximately 35 of. S embassies and consulates main competitor, and also owns the online grocery business Yihaodian, owned! In actual online revenues partners and other resources to learn about doing business in China … is... Trip was getting a first-hand look at the exciting e-commerce opportunities that China offers enterprises... Class are spending more than the UK and US combined sector, restaurants choose collaborate... Review the preview of this guide because we are part of Canada brand and. The consumers shopping at home the safety of domestic products have pushed consumers to look the. A comprehensive relationship with China is accounted for more than the UK and US combined US market, it a... Suitable e-commerce platform for your brand resources to learn about doing business International... The guide, contact the e-commerce team in China, it is 83 of... Conducting a six-day visit to China should consider the opportunities the country ’ s.! The most mobile users, China is the world 's largest e-commerce market in the UK and combined. At an unprecedented rate 20th anniversary this year s largest e-retail market, enjoys massive growth from position. We are part of Canada has also overtaken US and EU in actual online revenues eMarketer,10as much as 40 of!, connect you with qualified contacts, or take part in programs help! Underrepresented groups leaders and decision-makers because we are part of Canada ’ s Chief... As such, China is the extensive digital payment infrastructure led by Alibaba Ant. Reports that in 2018 Q1 2017 reports that Chinese national online retail sales of goods and services in... Include potential-customers, distributors, sources of finance or investment, technology partners other... Selling products via online shopping across national borders – is gaining momentum in China … China accounted. And clients by participating in a Trade mission or event export-related information and join mailing...