Something we have not discussed before is cross-border e-commerce. After a consumer places an order, the goods are sent out directly from the bonded warehouse for customs clearance, and then delivered to the consumers. It also lowers thecost of doing business in China. First of all, there is the direct approach, where a company ships products directly to Chinese consumers from a warehouse in their country of operations. Establish Flawless Online Reputation. Entering the Chinese market through cross-border e-commerce can save companies many costs, and save them from the headache of product registration and licensing. Among the products which enter China through cross-border e-commerce, cosmetics, personal care, and health products remain the most popular ones. This means that cosmetics brands entering China through cross-border e-commerce , do not need to go through the registration and approval process, which includes animal testing including the animal testing. Products are only shipped and cleared by Chinese customs after an order is placed. CEO, MindShare Germany. The entry cost for different e-commerce platforms, the collaboration with a Chinese operation agent, and the approach to marketing are all the important points to consider. Cross-border e-commerce is growing in popularity in China.The growth rate of China’s cross-border e-commerce has been higher than the total amount of imports and exports in spite of the slowdown of global trade, which means that the penetration of cross-border e-commerce in import and export trade has been very high.. What Is Fueling the E-commerce Boom in China? 2017 has been another incredible year for global online retail. Furthermore, this law marks the first time the Chinese government has endorsed the model of cross-border e-commerce, which has opened up many opportunities for foreign firms wanting to sell their good in China. On the year 2014, Chinese government issued new regulations regarding cross-border e-commerce in China. Registration. Due to this endeavour we can conclude that “1421 is the year that the Chinese discover the world”. France – The fastest growing e-commerce segment in France is cross-border purchases. The other option companies have is making use of a bonded warehouse located in China. Top import cross-border e-commerce platforms in China include: 1. facts. Golden Week, China’s national holiday that spanned Oct. 1 to 8 this year, prompted a surge in domestic spending which drove a robust rebound in consumption as pandemic effects begin to recede. Starting in the early 2000s, more and more Chinese people started to study, work and travel abroad. Full transcript below: All of this serves to reduce the trial-an… During the past years, 1421 Consulting group has already created many articles about e-commerce in China. Going forward, cross-border e-commerce will become an important growth point for foreign trade in China, which has a broad market, with competitive barriers being relaxed. Especially, products in categories such as food, health products, cosmetics, etc. According to T-mall international, in the past five years from 2015 to 2019, T-mall international introduced over 23,000 overseas brands from 80 countries and regions into the Chinese market. Second article: What Is Fueling the E-commerce Boom in China? Cross-Border E-commerce in China: a convenient entry strategy. Order a Single Account now and get a Dossier worth $495.00* for free upon registration. Other very popular products are food, and products meant for mothers and babies. Qian is originally from Sichuan province. Moreover, from a legal perspective, currently there is no domestic registration requirement for cross-border e-commerce cosmetics brands. © 2020 All Rights Reserved 1421 Consulting Group, Tier 2 Cities in China: New Opportunities, FinTech in China: Growth Drivers & Trends, Electric Vehicles in China: Market Disrupter, or…. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. For instance, as for the general trade in cosmetics, the approval process can take anywhere from 3 to 12 months. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies, sales channels, and product mix based on their better understanding of Chinese consumers. From 1421 to 1423, during the Ming Dynasty of China under Emperor Zhu Di (朱棣) the fleets of Admiral Zheng He (鄭和), commanded by the Chinese captains, discovered Australia, New Zealand, the Americas, Antarctica, the Northeast Passage; and circumnavigated Greenland. This means on average, around 10 overseas brands entered the Chinese market for the first time every day through T-mall international. 4. They also said that they plan an annual growth of 30 percent in the next few years with more than 58 million consumers buying via cross-border e-commerce. This allows consumers to buy products online from merchants located abroad. Looking back at the rise and development of cross-border e-commerce, several important time nodes can be pointed out: Cross-border e-commerce has its roots in the interest of Chinese people for products from outside China. 37 cities (up from 15) are now included in the cross-border tax rebate. China’s cross-border e-commerce boom began in 2013, after regulations relaxed. Third article: China E-commerce Market Trends that Foreign Companies Should Know, Click here to request our E-commerce White Paper. Find here China Paradigm episode 101.We interviewed Dr. Renata Thiébaut, one of the few experts in cross-border e-commerce in China as well as the head of business intelligence of an agency providing e-commerce operations in China.Read on to learn more about how the Alibaba Tmall partner agency helps foreign brands tackle the Chinese market. Directly accessible data for 170 industries from 50 countries One area in the market in particular is showing promise: the cross-border e-commerce channel, says a new report from global consultancy Deloitte, the China Chamber of International Commerce and AliResearch, which is a part of Alibaba Group.. Cross-border e-commerce in China holds a specific distinction … Number of cross-border online shoppers in China 2016-2020. Enter your email to subscribe to our newsletter. According to the Food Safety Law, food products, whether domestic or imported, must be registered or filed with the national or provincial food and drug administration. Consumer electronics e-commerce in the United States, Holiday season e-commerce in the United States, Ecuador: domestic and cross-border e-commerce sales 2017-2019, Market share of cross-border e-commerce Indonesia 2020, by country, Market share of cross-border e-commerce Malaysia 2020, by country. 2. However, it is not actually allowed to sell food offline, if there are offline sales they need to apply for a food business license in accordance with the regulations. Although the bonded warehouse approach is the most favored approach, it is not applicable to every cross-border e-commerce enterprises. This Site contains interesting Reports relevant to profitable cross-border ecommerce, published by industry leaders and by international Research and Consultancy agencies; knowledge and expertise which we ‘d like to share with you:. Relying on the huge market potential, China’s e-commerce platforms are an enormous success. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. Or any other constraints to cross border E-Commerce for that matter. With these new laws cross-border transactions conducted through e-commerce platforms became regulated. There are the latest updates: The payment system of the store is directly connected to the customs clearance system and the Shanghai cross-border public service platform, and consumers can pick up the goods on the spot after waiting for the completion of customs inspection and customs clearance. Tiktok owner Bytedance tests cross-border e-commerce, and Tencent doubles it … In consideration of types of goods, the bonded warehouse approach is more suitable for commonly used goods such as daily necessities, while the direct approach is more suitable for personalized products and new products in the market testing phase. Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. The market of cross-border e-commerce  in China is very unbalanced, with large enterprises such as T-mall international, Kaola, JD Worldwide accounting for around 90% of the market share. Update, Insights into the world's most important technology markets, Advertising & Media Outlook Cross-Border E-Commerce consumers in China (2014 - 2020) 2 113 billion RMB approximately equals 14,5 billion euros with the average exchange rate of July 2019. Therefore, the bonded warehouse approach is favored by most companies, since it is quicker and cheaper. Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC. If you have any questions about Cross-border E-commerce in China, how you can join it or invest in it, please contact us at info@1421.consulting. At the start of the boom, many Chinese platforms sprang up to ride the wave of online trade. Cross-Border E-commerce Platforms . The China cross border e-commerce market is expected to grow significantly. Asyou can imagine, that’s a significant reduction in red tape. Cross-border eCommerce. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. Christof Baron about Statista Later on around 2007, with international banking, social media, and online shopping becoming increasingly easy and popular, the sales “Daigou” became more direct and clustered. At $5.8 trillion last year, China has the second-largest retail market in the world. The term of Cross-border e-commerce did not really exist until 2014. China's eCommerce channels generally require that any firm wanting to set up a web shop on its domestic eCommerce B2C channels to have a Chinese legal entity. In 2018, the business transactions amount of import cross-border e-commerce in China has arrived 1.9 trillion RMB, and it has continued to grow over the past few years. Order a Single Account now and you receive a free dossier of your choice. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook For example, the bonded warehouse approach has high capital requirements. To enter China through cross-border e-commerce, there are generally two main logistical approaches. These companies would have to import their products from abroad, which requires an import/export license, before they can sell via the domestic eCommerce channels. The Regional Comprehensive Economic Partnership agreement, signed by 15 Asia-Pacific countries on Sunday, is a boon to the burgeoning cross-border e-commerce industry and will further optimize and integrate regional supply chains and resources, as well as improve the efficiency of cross-border logistics, industry experts said on Wednesday. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. It provides key figures for the cross-border e-commerce market overview, cross-border e-commerce imports, cross-border e-commerce exports, and consumer behaviors. Consumers can experience cross-border e-commerce retail services here. By Dezan Shira & Associates Editor: Qian Zhou With cross border e-Commerce (CBEC) taking an increasing bigger share of the total import and export market, it is of no surprise that the government has taken CBEC regulations more seriously.As consumer complaints and industry speculation over unfair competition increase, regulatory authorities have taken notice. Read more about the cosmetics market in China in our previous article. The “Daigou” would then send the goods to their Chinese customers in China directly by international express delivery or by a forwarding company, and this kind of transaction mode is often called “Haitao (海淘)”. Earlier in 2019, e-commerce transactions on WeChat mini-programmes increased by 27x year-on-year growth (source: Tencent). On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. More than 80% of these brands entered China for the first time. do not have to be registered. The Chinese ministry of commerce announced that cross-border e-commerce reached 6.5 trillion yuan in 2016. 3. According to the CFDA (the China Food and Drug Administration) , cross-border e-commerce brands that sell food are even allowed to open offline display (experience) stores. Nearly half of all French consumers regularly buy from cross-border merchants and 19% of all online sales in 2016 were made on non-domestic websites, four point higher than the European average of 15%, most frequently Germany, the UK, Belgium, the US, and China. These products are classified as personal use items. Chinese people living overseas and buying products for Chinese consumers in China are called “Daigou (代购)”. Distribution of Kaola.com users in China … and over 1 Mio. In practice, many foreign cruelty-free brands entered China through e-commerce channel. However, health care products brought into China through cross-border e-commerce are exempt . Cross-border e-commerce in China holds a specific distinction.International companies are allowed to sell certain goods to Chinese consumersonline, through platforms such as Alibaba’s Tmall Global and Kaola, atpreferential duty rates and without a license to operate a business in China. cross border e-commerce in china, new way to sell in china Cross-border websites are online retailing platforms which connect Chinese consumers to International retailers . History of the Future: how China takes over world e-commerce? However, when entering China through cross-border e-commerce most of the products do not need to go through the process of registration. Cross-border e-commerce paves an express way for foreign brands to enter the Chinese market, however how to market and sell foreign goods in the Chinese market is a problem that troubles many cross-border merchants. This type of e-commerce details how foreign companies operate in China through opening digital stores on Chinese e-commerce platforms. Furthermore, shipping in bulk and less individual shipping means that companies can save on transportation costs. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Number of online shoppers in China 2009-2020, Transaction volume of China's cross-border e-commerce players 2011-2019, Penetration rate of cross-border e-commerce in China 2014-2019, China's cross-border e-commerce GMV growth 2014-2019, Total amount of cross-border e-commerce retail in China 2015-2019, Number of cross-border e-commerce companies in China 2019, by type, Import cross-border B2C e-commerce platforms' market share in China Q3 2020, Trade volume of China's import cross-border e-commerce players 2012-2019, Cross-border import e-commerce trade growth in China 2013-2019, User number of cross-border import e-commerce trade in China 2013-2019, Cross-border e-commerce retail imports market size in China 2016-2022, Market share of China's export cross-border e-commerce players 2011-2019, Trade volume of China's export cross-border e-commerce players 2011-2019, Retail export value of cross-border e-commerce players in China 2017-2019, Cross-border export e-commerce trade growth in China 2014-2019, Number of cross-border online shoppers in China 2016-2020, MAU number of major cross-border e-commerce platforms in China 2020, by platform, Distribution of Kaola.com users in China 2020, by gender, Distribution of Kaola.com users in China 2020, by age group, Trust level in cross-border e-commerce platforms in China 2019, Reasons why Chinese consumers want to try cross-border e-commerce retail outlets 2019. Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. Contract renewal after one year to the then valid regular price. More products are open to cross-border ecommerce in China, including luxury items under 5,000 RMB, such as high-end fashion and cosmetics that appeal to cross-border purchasers. To name a few that are familiar to the Chinese consumers: Tmall Global , Kaola.com , Suning Global , Onion OMALL , JD Worldwide and VIP International . In the last few years a great number of Platforms sprang up, such as Jumei Global Store, Daling, Amazon Global, B&G, Kaola.com, Suning Global, JD Worldwide and VIP International. When you start a store on Amazon, Alibaba or another … Facebook: number of monthly active users worldwide 2008-2020, Smartphone market share worldwide by vendor 2009-2020, Number of apps available in leading app stores 2020. In 2018 she completed her master study in International Trade and Investment from Ewha Womans University where she gained in-depth understanding of how economic, business, and political factors interact in shaping the international trade environment. With her relevant academic and hands-on experiences, she has been actively involved in consulting and corporate service projects for 1421 Consulting Group as junior consultant since March 2019. To buy a couple of Carhartt T-shirts, Bilibili fashion KOL @吕政懋Maomao went on a convoluted global journey, involving two … For instance, as for the general trade in cosmetics, the approval process can take anywhere from 3 to 12 months. The approval process of health products is even longer and can take up to 24 months. During the past years, she has participated in various programs both in China and abroad, which shaped her to be a strong supporter of cross-cultural exchange. Since 2014, customs has regularly introduced new trade supervision methods, exploring innovative ways to help the industry develop in a well-regulated and systematic way. With this approach companies ship their products in bulk to China, and store them in bonded warehouses until they are ordered. New, Everything you need to know about the industry development, Find studies from all around the internet. For a long time the “Daigou” has been operating in a grey area in Chinese law. Consumers … Instead, China will continue to favor the cross border sales model by reducing taxes, streamline clearance procedures, and expand cross border operations to a number of other Chinese cities. First article: History of the Future: how China takes over world e-commerce? This dossier presents graphs and information about the cross-border e-commerce, which is a subcategory of e-commerce in China. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. MAU number of major cross-border e-commerce platforms in China 2020, by platform. Entering the Chinese market through cross-border e-commerce can save companies many costs, and save them from the headache of product registration and licensing. These are listed below. * This offer is for business only; Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre. The company’s financial capacity and it’s type of products need to be taken into account. We value your privacy and will never rent or sell your email address. In 2018, the value of China’s cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. New, Figures and insights about the advertising and media world, Industry Outlook In the direct approach, the capital turnover pressure is relatively low because there is no need to stockpile goods, however the delivery and clearance time take longer, and the logistics cost per unit is higher. Due to the Covid-19 crisis and the new e-commerce law, Daigou sellers could completely exit the sector, paving the way for foreign retailers and pharmacies to sell in China through cross-border e-commerce. China E-commerce Market Trends that Foreign Companies Should Know. This also confirms the needs of Chinese consumers on foreign products. Chinese customers can search for information about foreign goods on these platforms, and place purchase request. Cross-border e-commerce keep growing and is expected to reach a 7.5 trillion RMB volume in 2017; 58 million users in China are expected to engage in cross-border transactions in 2017; Cross-border e-commerce market is very fragmented as opposed to local e-commerce market; Cross-border shoppers make frequent purchases between 300 RMB and 1,000 RMB 59,8 146,6 China is a key market for cross-border e-commerce as it transitions to a consumption economy fueled by growing middle class. All these people came into contact with foreign (luxury) products, and started bringing and sending them to China. To provide you with a better understanding we have highlighted the process of selling selling cosmetics and health products through e-commerce channels down below: According to the Notice of Improving the Supervision over Cross-border E-commerce Retail Imports issued by the Chinese government, the licensing, registration or filing requirements for first-time imports do not apply to retail products imported into China through cross-border e-commerce. Online shopping groups and platforms where “Daigou” advertise their products began to pop up. Unsurprisingly, since 2014, cross-border e-commerce in China has exploded and entered a rapid growth phase. Since the products are already located in China when they are ordered, it takes less time for them to reach the customer. While cross border e-commerce (CBEC) is an attractive channel for foreign businesses to sell to China, misunderstandings over how CBEC in China works frequently end in costly disappointments and retreats from the market. The lure of cross-border e-commerce (CBEC) in China shines like a beacon in a market that already dazzles with record-breaking figures. Cross-border e-commerce is the new opportunity for brands. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. The development of China’s e-commerce has captured the world’s attention with many foreign brands and retailers selling their products via cross-border e-commerce platforms. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Cross-border e-commerce lowers the threshold to enter global markets and raises brand awareness while enabling access to international consumers. Currently, there are more than a dozen different Cross-Border e-commerce platforms in China covering every product category. JD Worldwide, part of JD.com. A warehouse needs to be rented, and stockpiling goods requires certain capital strength. 08.10.2020 How to Work with a Trade Partner on a Cross-Border E-Commerce Platform in China Due to the COVID-19 pandemic, the enforcement of social distancing, lockdowns and other measures has driven up the demand for online shopping in China. Overseas and buying products for Chinese consumers in China: a convenient entry strategy process can anywhere. Our previous article companies many costs, and Tencent doubles it … China! Receive a free dossier of your choice 5.8 trillion last year, China has second-largest. And raises brand awareness while enabling access to international consumers is undergoing major policy changes the Future how... 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