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NEW OPPORTUNITIES IN CHINA

While entering China’s e-commerce market has become more complex, recent shifts between platforms are creating fresh openings for foreign brands. Strategic preparation and localization are more essential than ever.
GENUINE in the media

Cross-Border E-Commerce in China

China remains a highly attractive market for foreign brands. In 2022, the cross-border e-commerce trade volume reached a staggering 306.3 billion USD, which is nearly double that of 2018. Yet despite consumer appetite for foreign goods (especially premium and niche products) entering the Chinese market has grown more demanding. According to the German Chamber of Commerce in China, the landscape has shifted: major platforms are consolidating, and Chinese consumers increasingly value authenticity and quality over price alone. Damian Maib, founder of consultancy Genuine German, notes that platforms like Tmall and JD.com still dominate but are facing serious competition from fast-growing players like Douyin, China’s TikTok, which is aggressively expanding its e-commerce model.‍

Regulation and Local Partners

As the market matures, the China has tightened controls and reduced regulatory uncertainties. This has made the logistics of entering the market, especially via Cross-Border E-Commerce, somewhat easier. Sellers can now import goods without needing a local business entity, as long as customs and tax procedures are followed. However, sustainable success depends on far more than paperwork. It requires deep local market understanding, careful localization of webshops and payment systems, and tailored marketing strategies. Influencers, for example, are now essential: many brands rely on Key Opinion Leaders to manage livestream shopping and community interaction.

Read the full article here: “Neue Chancen in China”, Der Handel, April 2024

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