5 e-Commerce trends in China that you should know
InfluChina
Chinese influencer agency dedicated to promoting hospitality businesses on Red Book through influencers.
China, now the world's largest online market, offers any foreign brand a very attractive sales volume and margin. As a result, an increasing number of companies are entering the Chinese market through e-Commerce in China.
An increasing number of companies are entering the Chinese market through e-Commerce in China
Throughout the article, we will talk about e-Commerce in China, focusing mainly on the main e-Commerce trends in China that are making their way into this new market.
Feel free to contact InfluChina, an e-Commerce agency in China whose objective is to increase the presence of foreign companies in China, If you are interested in entering this interesting market.
E-Commerce trends in China
Now that we have put ourselves in the context of e-Commerce in China, we can move on to see what the main trends that are making their way into the market and breaking the traditional patterns of companies that, increasingly, are being left behind.
The "virtual influencers" are the result of the spread of Artificial Intelligence in the Chinese social networks in recent years. Brands use these virtual influencers to livestream products on Chinese platforms.
"AI influencers" are the result of the spread of Artificial Intelligence on social networks in recent years
Virtual influencers do the same as real Chinese Influencers: involve consumers, mainly the Generation Z, with different profiles and features designed to attract different target audiences.
However, these virtual influencers are only a facade, since there are people behind them who manage the content, share, publish and create everything. This means that there is no AI that does everything.
The immersive experiences have also proven to be a useful marketing tool for brands to interact directly with consumers and build followers both online and in real life.
Rapid technological development has enabled e-Commerce platforms in China to create immersive experiences with consumers in which they can communicate and interact with brands without leaving home.
Metaverse Marketing Used in China to Create Immersive Consumer Experiences
One of the clearest examples of creators of these immersive experiences is Tmall, who has been developing a much more immersive shopping experience through of the technology, through the launch they made for luxury brands, a project called Luxury Pavilion.
More than 200 luxury brands have launched digital art collectibles on Tmall Luxury Pavilion and hosted virtual fashion shows where clients send their avatars to the metaverse or to dress up with luxury products in the Taobao Life 3D avatar game.
More than 200 luxury brands have launched digital art collectibles on Tmall Luxury Pavilion
In that Tmall-led project, we found different ways to promote brand items:
As for the emerging groups, we can find three: luxury customers, generation Z and people from lower-tier cities.
As one of the fastest growing consumer groups in China, Generation Z already has a large influence on consumer trends in China, despite only representing 15% of the country's population.
In 2022, China's Generation Z accounted for two-thirds of China's cross-border market consumers. Alibaba, Tmall Global, and more than 17% of Tmall Luxury Pavilion consumers.
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Generation Z already has a great influence on consumer trends in China
We must keep in mind that Generation Z has different values than other consumers, since they value individuality and they look for products that were previously niche due to their increasing purchasing power. Therefore, brands should explore new ways to attract this group of customers.
On the other hand, it is increasingly common to carry out e-Commerce in China in lower-tier cities and regions. (Tier 3 and 4 cities) throught social media. Low-level cities, such as Zhenjiang or Yangzhou, have experienced an increase in purchasing power.
It is increasingly common to conduct e-Commerce in China in lower-tier cities and regions through social networks
On the other hand, there are also more willing to spend and buy consumer goods, because its costs of living are lower than those of high-end cities, such as Beijing or Shanghai.
This has resulted in the fact that cities that were previously unknown are now very attractive markets sought after by brands internationally due to the lack of competition and the growth opportunities they provide.
Last but not least, we must mention the luxury Chinese clients. In China, about 1.4 million people have an average annual income of $500,000. The demand for luxury goods in China is mainly driven by this wealthy population.
In China, around 1.4 million people have an average annual income of $500,000
However, as consumers look for quality and products that reflect their rising lifestyles, high-end products are becoming more popular even among China's middle and working classes, where average incomes range from $5,000 to $10,000 per month.
In general, Chinese consumers are adopting greater selectivity in purchasing high-quality products that can be used for a longer time. That is why the brands should emphasize the standard of their goods or services for your marketing in China.
In recent years, e-Commerce in China has experienced a significant boom. The growth of the sector is driven by the increased consumer interest from China in international products and brands.
The marketing of products over the Internet between two parties hosted in different countries is known as cross-border commerce or cross-border e-Commerce (CBEC).
The marketing of products over the Internet between two parties hosted in different countries is known as cross-border commerce or cross-border e-Commerce.
This type of e-Commerce in Chinese allows any foreign brand to test the Chinese market, avoiding large costs and administrative requirements costs by being able to ship and store the product directly from your current warehouse.
As a result, many companies entered the Chinese market to meet this demand, which caused competition between platforms such as JD Worldwide, Alibaba, Kaola, Pinduoduo and Amazon Global. This has made China's market more attractive and diverse, attracting millions of Chinese shoppers to international stores and businesses.
Thanks to Douyin e-Commerce and XHS e-Commerce, the access to cross-border e-Commerce is cheaper, compared to Tmall or JD that require high deposits and initial costs. On the other hand, it must also be taken into account that these social commerce platforms work and are more adapted for some sectors and product categories than for others.
This type of e-Commerce in Chinese allows any foreign brand to test the Chinese market
Although e-commerce in China has not historically been linked to sustainability, in recent years, e-commerce giants have demonstrated their commitment to sustainable living and the goal of net zero.
For example, Ant Forest, Alibaba's flagship project that was established in 2016 to reforest vast areas of China, has received the Champions of the Earth award from the United Nations.
In addition to these business promises, the Chinese government has taken on the responsibility of establishing a maximum limit of carbon dioxide emissions by 2030. Thus, the lessons from the e-Commerce market in China are evident, as brands prepare for a competitive retail season around the world.
Contact an e-Commerce agency in China
With all these difficulties and constant changes in this market, it is important to have detailed knowledge about e-Commerce in China, which is not an easy task nor can anyone achieve it.
With all these difficulties and constant changes in this market, it is important to have a lot of detailed knowledge about e-Commerce in China
Therefore, contacting an e-Commerce agency in China may be the best option for first-time companies in the great Asian country, and InfluChina is the best idea, an agency dedicated to promoting the presence of foreign companies in China through strategic collaborations with Chinese influencers.