How to - Market expansion & Global E-commerce China?
Ann Christin Mahrt
Business Development | Sales & E-commerce | Building Partnerships | Branding | Sustainability | Strategic Communication
There are great opportunities in China and Asia for future growth. It is?geographically and culturally far away from Europe but with the right?person?from headquarters and?a Chinese partner you can conquer?one of the largest e-commerce markets.?Let me elaborate on how I can be the?specialist?to handle the process?in your organisation?and?help you overcome the challenges.
Asia facts: +2.2 billion internet users (China/India accounts for one-third), 1/3 of innovation hubs are Asian?(China leading), China?is the?global leader in AI, +3 billion middle class asian consumers, +50% of global future consumption is driven by Asia, Asian consumers differ in behaviour & values?they have?grown up with wealth, exposure to western culture &?are?digitally?savvy.
China facts: +1 billion mobile users. Spending +5 hours/day on apps. All daily tasks done digitally on apps. Covid increased online among older generations. By 2023 retail e-commerce market is expected to reach $2.8 billion. By 2025 CBEC market is expected to reach $1.45 trillion. Consumer focus: Health, beauty, nutrition & unique/innovative products.
Put your Chinese glasses on...
No doubt that the Chinese market is complex. The digital speed?in China?and the channels to market are diverse and different from the West. Content and communication are?also?more extensive than in the west.?But?when you acknowledge the differences you may turn it into your advantage.?
Doing business in China needs a change in perspective. Going global, means not doing business as usual.?The?cultural and educational?variance?as well as?differences in?working?methods?will?have an impact on?your success in China.
Are you daring and smart and have the mindset to compromise to enter a market like China? If yes, I can help you prepare your brand for the Chinese market by?being your active partner in your digital journey in China?through 3 steps.
Market Expansion in China
For the last 7 years I have advised C-level on market expansion to China and helped them sell their products online to Chinese consumers through cross-border e-commerce (CBEC). It starts with 3 steps.
Your own due diligence - Ready for the market?
Step 1 is "The preparation phase". This is where you look inside your organization?and where I can help you to justify your presence in China. How do you position your brand and which value do you bring to the market? Does your product stand a chance to compete in China where you are faced with global competition? Can your product tap into a current market trend?and be relevant to the consumer? How do you position yourself?globally? What problem do you solve for the customer?and how can you help them? How are you different from your competitors? Is your production capacity ready to deliver? And logistics and budget? Do you have a trademark outside China and have you considered to file for a Chinese trademark?
Online store or shelf-space on an e-com platform or app?
Step 2 is "The market entry phase - A window to the Chinese consumer".?I can?help you choose a suitable?partner in China,?and?in collaboration with them decide on channels and apps.?My advice is to test, learn and grow. Start testing?your?products and learn?from?online?experiences?and use your?KPIs?to adjust and keep focus. When you get attention?from consumers?and?sales pick up you can consider your next move to?introduce more products,?engage with?live streamers,?a new apps or?even?establish a flagship store on a platform.
At Ehubnordic I advised clients on channels, product selection, pricing and calculations, logistics and trademark when entering the Chinese market.
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Live China...be prepared to act and develop...
Step 3 is "The operation phase" - probably the most difficult phase for organisations as the Chinese e-commerce market at times is like the wild west. You do not know what will happen tomorrow?-?be prepared, be agile, act fast?and?be ready to?adapt strategy.
Together with your Chinese partner I can plan the execution of?page?design, product launch, campaigns, live streaming,?keywords,?and image optimization?etc.?Content?is essential to see?from a?Chinese perspective e.g., product benefits, trends, function, and use.?In this phase a close teamwork?with meand your partner in China?is important.
In this phase at Ehubnordic, I was the client manager handling communication?with clients before they were handed over to the operations team.?I supported and communicated with the China team to help them?with digital marketing?campaigns.?Along with that I had dialogues with clients on business development based on data and?KPIs,
My E-commerce Experiences in China
E-commerce success in China?is not just about being listed on a platform or an app.?You need to invest on a continuous basis to stay in the market, and that is where many organisations are not up to the challenge. I believe that digitalisation is a hard nut to crack for many. Business as usual is comfortable - selling pallets and getting paid up front or having an agent to handle marketing & sales and pay when sales is generated. But?when?engaging in e-commerce input comes before output.
A common way to promote brands in China is live streaming. At Ehubnordic I have worked with?live streaming?in various forms. Live streaming in our office, in showrooms in stores and in collaborations with KOLs?(Key Opinion Leaders)?in China. For a fashion brand we ran live-streaming in our office to let consumers ask questions live, buy live, and get details on design and sizing/material. In the show room of K?hler the brand story of K?hler was told and products shown to the viewers?watching?livewith us.
For Stelton we live-streamed at Illums Bolighus and?at?their showroom interviewing the designer of a line. The story and the designer’s idea behind the products were told and concrete tips on usage was given. A learning from Stelton was that their click-to-go cups went more popular than?the EM77 Coffee cane, as the Chinese often are on the go and here the click-to-go cups fulfilled a purpose and a function. Selling Stelton also gave us an opportunity to sell coffee, which has become an increasing market over the last 5 years.
To promote nordic lifestyle and?brands?we planned a press trip with Wonderful Copenhagen and our Chinese digital partner in Copenhagen. Live streamers from China participated and streamed their experiences live to their audiences in China.
A more product specific task was creating artwork of new video/image content for our supplement product Green Kale to deliver on the information request from the tech savvy consumers in China. With Green Kale and Jakobsens Honey we engaged with live streamers in China to promote the products, to gain new customers and awareness.
The?skin care products from Apotekets tapped well into the need to buy clean, safe, and healthy products where certificates and their pharmacy background stated trust and authenticity.
Start your digital journey in China
Contact me if you?want to succeed in China. With my years of experience helping businesses build?online sales?in China, I can help you overcome the challenges that all businesses are facing when entering the great, but complex Chinese market.