Marketing & Digital Media
By Gidon Gautel
Billions lie within China’s e-commerce market. Online sales in 2016 amounted to RMB 5.16 trillion – approximately US$758 billion. E-commerce giant Alibaba saw US$17.8 billion in sales last November 11 during China’s largest e-shopping festival, Singles’ Day. However, although China has a plethora of other online shopping events, few beyond Single’s Day have gained Western recognition.
Just last month, JD.com, Alibaba’s main competitor in China, celebrated its own shopping festival: “618.” Over the course of 18 days, the website amassed US$17.6 billion in income from sales. Large shopping festivals such as this hold significant potential for foreign businesses looking to sell their products in China.
By Femke van Rijt
When entering the Chinese market, some foreign companies attempt to use the same business and marketing tactics that have worked for them elsewhere. Many underestimate the need for market research, which helps localize marketing tactics, prior to entry.
Investors who fail to understand the nuances of the Chinese market will struggle to survive. In this article, we will explore the different ways in which some multinational companies have failed or succeeded in acclimating to the Chinese market.
By Zolzaya Erdenebileg
While 2017 promises to be a better year than 2016 for the luxury market in China, the fierce competition for sales has not let up.
To increase outreach to their customers, many brands are investing heavily into e-commerce channels. About 92 percent of top luxury brands in China now have an account on the messaging app WeChat, compared to only about half that in 2014. This puts WeChat on par with Weibo, a popular Chinese microblogging site, on which about 94 percent of luxury brands have an account.
WeChat and the WeChat Store allow brands to stage creative and engaging marketing campaigns to reach customers in China. Setting up shops and multimedia marketing on the app has become simpler, as Tencent – WeChat’s developer – courts luxury brands in its competition with Chinese e-commerce giant Alibaba. For the most part, the move has been successful with more luxury brands experimenting with the app.
By Mike Vinkenborg
By Mike Vinkenborg
Chinese e-commerce sales are expected to reach new heights on the country’s upcoming Singles’ Day shopping festival, with analysts predicting sales to reach US$20 billion (around RMB 135 billion) on Alibaba’s platforms alone. This figure represents continued growth at remarkable speeds for the landmark online shopping event. Since Alibaba popularized the former small Nanjing University tradition in 2009, revenues grew from almost RMB 1 billion in 2010 to 5.2 billion in 2011, 19.1 billion in 2012, 35.2 billion in 2013, 57.1 billion in 2014, and 91.2 billion in 2015.
Each year Alibaba utilizes Singles’ Day to launch new innovations in the e-commerce scene, and this year it plans to launch, amongst others, a new virtual reality (VR) shopping experience, which the company claims will transform how people shop both online and offline. Ongoing innovation in Chinese e-commerce signals the intense competition among online retailers to capture the lucrative market, as well as offering a preview of possible ways consumers will embrace technology to shop in the future.
By Winnie Jin, Content Marketing Associate
Over the past several years, the Chinese government has turned its attention toward greater regulation of advertising, and more recently of online advertising. Following in the footsteps of the amended Advertising Law implemented in 2015, the State Administration of Industry and Commerce’s (SAIC) Interim Measures for the Administration of Internet Advertising came into effect on September 1, 2016. The new regulation clarifies what content is considered “internet advertising,” lays down rules for “publishers” of online advertisements, and outlines investigation measures and penalties for violators. Given the ubiquity of online advertising in China, the regulations will have a widespread impact on the actions of advertisers and platform operators.
By Dezan Shira & Associates
Editors: Jake Liddle and Alexander Chipman Koty
Last summer, Chinese tech giants Tencent and Alibaba announced investments into cloud computing services worth US$1.57 billion and US$1 billion, respectively. In 2014, cloud computing sales accounted for only five percent of China’s total IT market compared to 11 percent globally, but Bains predicts this number to swell to 20 percent by 2020, reaching US$20 billion in value and representing an annual growth rate of over 40 percent.
Despite the positive outlook for cloud computing, China’s complex and restrictive regulations governing data and internet services make entering the rapidly expanding market a complicated process.
By Dezan Shira & Associates
Editor: Jake Liddle
The Chinese Central Bank has announced significant regulatory change to the operation of online payments, widely affecting service providers and their millions of users in China. From July 1, 2016, third party online payment service providers must ensure that all user accounts bear the real name of the account holder. In addition, accounts will be categorized into three types based on security requirements, capped with maximum annual payments. The policy was created with an aim to prevent large deposits of money into third party payment accounts unprotected from bank deposit insurance.