How to success in e-commerce in China?
Western companies are racing to develop effective e-commerce strategies to capitalize on the booming Chinese market. They must master the cultural, legal and administrative settings specific techniques the Chinese subcontinent.
Then it moves to the title of world's largest economy, China is becoming the largest online marketplace in the world. Last year, online sales in the country totaled 210.4 billion dollars, an amount up 64.7% compared to 2011, according to Forbes magazine. And by 2020, China should do better alone as America, Britain, Germany and France combined.
source : http://ecommerce-china.blogspot.com/
This meteoric rise in market represents an opportunity to size for the U.S. and European retailers. China already holds the world record regarding buying online, nearly 220 million Chinese from marketingtochina.
Ecommerce phenomenonThis phenomenon is explained by the penetration of the Internet growth and burgeoning middle class. This number is expected to double by 2016, while the average online spending per user is expected to increase at the same time from 670 to 1039 dollars.
Given the growth prospects of the retail sector in China, it is not surprising that foreign retailers looking to capture a share of this so dynamic digital market. But to get a place in China is extremely difficult and requires advance with caution. Behavior and consumer preferences online Chinese consumers hosted e-commerce with enthusiasm but confidence is the key word.
Beginns of online SalesThe beginnings of online sales in China have been plagued by problems of fraud and credit card counterfeiting, but they were quickly resolved with the introduction of service PayPal payment types. Chinese consumers do not trust advertising and traditional information sources, so that the recommendations of the users and their counterparts on social networks play a role of strong promotion. Among the main Chinese social media are Youku (similar to YouTube), Kaixin (site like Facebook), Tudou (other video site), Sina Weibo and Tencent Weibo (similar to the platforms of Twitter microblogging) and Qzone, a site Type MySpace. According to the BCG office in China more than 40% of online buyers consult and posting opinions on products.
And yet, according to McKinsey, many Western companies fail to take advantage of Chinese social media to offer their value or explore efficiently the data provided by these platforms on the habits and preferences of consumers.
Purchasing trends in China, online shoppers love a bargain, as evidenced by the popularity of e-commerce site TaoBao, which offers both auction and fixed prices. The online retailers must redouble our efforts to ensure that their products stand out by offering to send free samples, special offers and discounts in order to attract and retain consumers. Retailers already operating in the country have the opportunity to integrate innovative marketing techniques to enhance their online presence, using the example of e-mail campaigns, mobile advertising on taxis and contact points promotions sales to increase their e-commerce activity. Customize the content online retailers must also adapt the content of their site to the local public.
Culturally speaking, a product will not necessarily have the same scope in Shanghai and Los Angeles. The slow network is a common phenomenon in China, consumers may have difficulty navigating sites integrating different media and online stores must be optimized for all types of devices used by customers. For example, it is advisable to avoid Flash animations.
When designing the site, no need for evaluation and classification modules. However, a tight integration with local social networks is essential. Respect local administrative constraints can not be too strongly recommended to Western retailers who want to engage in e-commerce in China to appeal to local counsel in order to navigate the intricacies of the Chinese bureaucracy.
ICP licenseThis is especially true for a license ICP, without which it is impossible to sell anything online in China. Selling policies online, the terms of sale and the rules for the return or exchange of products should be clearly defined with a local specialist who can advise the retailer on how best to comply with all regulatory requirements and Chinese cultural standards. Collaboration with partners in local development work, native Chinese speakers to master all cultural, technical, legal, political and administrative can help to facilitate the accession in the phases of planning and design of the site. The retailer will have insurance and implement the most effective and avoid delays or significant additional cost solutions. Technological Considerations The architecture of a platform for e-commerce for the Chinese market must be adapted in the early stages of development to address the unique standards that apply in China. The platform will also be able to integrate the house ERP and other enterprise systems.
Payement solutionsAlipay, a system similar to PayPal electronic payment, is widely used in China and against payment reimbursement is also widespread. Mobile commerce gaining ground in the country, the retailer will also include in its priorities the close integration of its platform to mobile commerce solution.
China is also world champion custom order processing. In urban areas, the majority of deliveries are made by courier, with the possibility for the consumer to choose express delivery by FedEx or UPS. However, delivery in more remote areas can be complicated.
Online Store in ChinaMany of the major online stores do not deliver the 300 largest cities in China and newcomers will build their platform to include those restrictions.
Optimize site performanceBeyond the site location (currency and language), there are other lesser-known technical aspects to consider to engage in e-commerce in China. Internet Explorer 6 is still the favorite of nearly a third of Chinese web browser. That is why it is important to optimize the commercial sites for IE6 and scripting languages but also to avoid integration with Google tools (like Google Analytics), as some years the Chinese authorities have blocked access to Google services.
Finally, the Internet infrastructure in China has yet to be optimized. It is therefore advisable to Western retailers to consider integrating a CDN (Content Delivery Network) Local Cache as China or completely control the caching rules in force in the country. It is also essential to know when and how to distribute content via a CDN.