Access to the Chinese consumer market through cross-border e-commerce

China's retail market is huge, especially with the rapid development of e-commerce, and the mode of operation of the mainland retail market has its own uniqueness, which may make some overseas enterprises intending to enter the Chinese retail market feel at a loss as to what to do

Characteristics of government regulation of cross-border e-commerce retail imports

The government's approach to regulating cross-border e-commerce retail imports is different from that of general import trade. The Government's approach to regulating cross-border e-commerce retail imports is based on ensuring that the products are free of hazardous substances and ingredients, and requiring consumers to pay the tax payable. Therefore, goods imported via cross-border e-commerce retail do not necessarily need to fulfill some of the requirements that are necessary for general import trade. For example, product formulations and packaging characters must comply with Mainland standards, and product labels in simplified Chinese must be attached to each item. The time required for enterprises to import new goods by way of cross-border e-commerce retail import is generally less than that for general import trade, and thus enterprises can test the market's response to new products through cross-border e-commerce retail import.

It is recommended that enterprises may consider using cross-border e-commerce to enter the Chinese market first before exploring other sales channels

The simple procedures and processes of cross-border e-commerce allow overseas brands to enter the Chinese market quickly. While testing market acceptance of products through cross-border e-commerce retail imports, companies can go through the necessary procedures for general import trade for their products, and then use other sales channels to enter the Chinese retail market with products that are more popular according to market response. Always, the overall retail market in China is much larger than the cross-border e-commerce retail import market.

Cross-border e-commerce operation model

Overseas brands entering the Chinese market through cross-border e-commerce retail imports often struggle with cross-border logistics and warehousing issues.

China's logistics and warehousing service industry is already very mature. Enterprises only need to ship their goods to the port, and the logistics and warehousing service providers can provide services such as receiving, handling, warehousing, picking, warehousing, and docking with Customs, etc., so enterprises do not need to rent a bonded warehouse separately. After receiving the order, the enterprise only needs to transmit the information to the service provider through the computer system, and the service provider will transmit the information to the Customs to complete the customs clearance procedure, after which the goods can be shipped. As long as the enterprise can ensure sufficient supply and provide quality customer service, the logistics and warehousing part can be entrusted to professional service providers.

Branding Strategy and Costs

Building a competitive brand is the key to gaining a foothold in China's cross-border e-commerce and retail market as a whole.

The threshold for setting up an online store on an online shopping platform is relatively low, so the quality of the products, the operation of the store, and the skills of promoting the store will determine whether it is successful or not. When promoting a brand, not only should the goal be to increase product sales, but also to enhance the brand's image in the process, in order for the promotion strategy to be considered successful. Starting from 2018, a large number of overseas brands are entering the mainland market through cross-border e-commerce platforms. Whether the products have selling points, whether the online store operation is efficient and whether the promotion is able to make consumers recognize the brand are the keys for enterprises to gain a foothold in the Chinese retail market.

Advice on entering the Chinese market

Overseas brands need to adapt their supply chain to the Chinese market when they plan to enter the mainland market through cross-border e-commerce retail imports.

On the one hand, companies need to have enough staff to handle the daily operation of their online stores, and on the other hand, they need to have enough productivity to cope with sales peaks and resources to promote their brands during large-scale promotions such as "6.18", "11.11", "12.12", etc. The Mainland market is huge and highly competitive, and it is important for companies to have sufficient resources to promote their brands. The mainland market is huge and competitive, and prices of similar products from different companies are often driven down. Therefore, companies need to ensure that their supply chain is efficient enough to produce quality goods at lower costs so that they can devote more resources to other areas of cross-border e-commerce.