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Headquartered in Switzerland, CBC has been deeply rooted in the Asian market for more than 26 years.

Jul 13,2023

Cross Border E Commerce in China

With the globalization of the economy and the rapid development of the Internet, cross-border e-commerce has gradually emerged as a new business model, and more and more ecommerce companies in China are getting involved in the cross-border e-commerce sector. The emergence of cross-border e-commerce has allowed more businesses to see the opportunity to expand their markets; at the same time, it has also provided consumers with a more convenient and quality shopping experience.

This article will explore the topic of cross-border e-commerce in China from various aspects such as the definition of cross-border e-commerce, the current state of the industry and the development trend.

Cross-border e-commerce refers to the sale of goods across national borders through the Internet. In traditional trade models, there are high costs of logistics, tariffs and capital for cross-border trade, while cross-border e-commerce breaks down these restrictions through the globalized nature of the Internet. At present, cross-border e-commerce is mainly based on the B2C model, i.e. direct sales by enterprises to consumers.

Current state of the industry for cross-border e-commerce

l Market size maintain growth

According to China Customs statistics, in 2022, the scale of China's cross-border e-commerce imports and exports will account for 4.9% of the total value of the country's goods trade imports and exports, accounting for essentially the same proportion as in 2021. Among them, exports will be RMB 1.53 trillion, up 10.1%, accounting for 6.4% of the total value of national exports; imports will be RMB 527.8 billion, down 0.8%, accounting for 2.9% of the total value of national imports.

l The United States accounts for the largest share of import and export destinations

The US market accounted for 34.3% of China's cross-border e-commerce export destinations, while the UK accounted for 6.5%; among import sources, Japan accounted for 21.7% of China's total cross-border e-commerce imports, while the US accounted for 17.9%.

l Expanding categories and channels

As consumer demand continues to change e-commerce companies in China, so do the categories of cross-border e-commerce. Consumer goods accounted for 92.8% of exports, including 33.1% for apparel, shoes and bags, and 17.1% for electronic products such as mobile phones; and 98.3% of imports, including 28.4% for beauty and toiletries and 14.7% for food and fresh produce. At the same time, the sales channels of cross-border e-commerce are no longer the single, early traditional self-operated e-commerce, but are gradually expanding to a variety of self-media forms such as platform e-commerce and social e-commerce.

l Policy risks

The rapid growth of the cross-border e-commerce market is also accompanied by policy risks. Policies vary from country to country and region to region, with some countries imposing very strict taxation and regulation on cross-border e-commerce, while others are relatively lax. Therefore, cross-border e-commerce enterprises need to understand and study the policies of the relevant countries and regions in order to cope with the risks arising from policy changes.

Leading Chinese cross-border e-commerce companies

E-commerce agency China have become the focus of global attention, offering a wide range of products and services to consumers and businesses alike. The following are some of China's leading e-commerce companies:

l Alibaba: Alibaba is one of the largest e-commerce companies in China, and the company has a huge global presence. Alibaba's main business is to provide B2B and C2C e-commerce trading services for businesses. The company uses various marketing tools, such as Taobao advertising, as well as marketing and promotional activities for coupons, to attract more consumers.

l Jingdong: Jingdong is one of the largest integrated e-commerce companies in mainland China. It offers a wide range of products from digital products to everyday items, again by giving back to customers to build credibility and increase sales. Jingdong has opened a number of offline retail shops over the past few years to provide consumers with a more comprehensive shopping experience. In addition, Jingdong has opened its own platform to collaborate with other sellers to provide businesses with a full range of e-commerce solutions.

l Suning.com: Suning.com is another giant in China's e-commerce industry, with a similar scope of business to Jingdong, offering a wide range of electronic products and home appliances. Unlike other e-commerce companies, Suning.com has opened offline brick-and-mortar shops in many cities to provide customers with a more comprehensive shopping service by integrating online and offline sales channels.

Chinese digital marketing strategies for cross-border e-commerce

There are many different ways to do ecommerce marketing in China, a few common methods are listed below:

l Social media: Promote your brand through social media platforms (e.g. Weibo, TikTok, and RED), promotes your products via content marketing in China, interact with potential customers and enhance brand awareness.

l Search Engine Optimization (SEO): Optimizing the content, use of keywords and other methods to get a website to rank higher in search engines, attract more traffic, and get more people searching your online advertising in China and increase sales.

l Marketing SMS: entice users to make purchases by sending them SMS messages offering promotions, coupons and other marketing activities.

l Cooperative marketing: Cooperate with other cross-border e-commerce websites or related brands to launch joint promotions to expand audiences and increase sales.
l Promotions and discounts: Attract consumers by participating in global promotional festivals (e.g. 618, Double 11, etc.) and by offering discounts, freebies, free shipping and other offers on products.

Development trend of cross-border e-commerce

In the future, the cross-border e-commerce market will continue its growth trend. With the development of technology and the improvement of logistics efficiency, cross-border e-commerce will become more convenient and popular. In the future, consumers' needs will become more diversified and cross-border e-commerce companies will need to strengthen their own brand building and service level enhancement.

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