The rapid expansion of e-commerce in China has grabbed headlines around the world and reshaped the business landscape for both foreign and domestic firms. Comprehensive parcel tracking is a primary feature of our new international outbound service which recently launched.”, 7 October 2019 (Last Updated February 4th, 2020 06:24). “Consumer confidence has been vital to the rapid growth of China’s e-commerce. Early e-commerce in China tended to focus on low value, fast moving items but the growth in disposable income in the region has created a new type of shopper and higher-end retail has become a significant growth area. In 2017, Chinese consumers spent more than $750bn online – more than the UK and US combined. Delivered by the Trade Commissioner Service (TCS) of Global Affairs Canada, in partnership with the National Research Council Industrial Research Assistance Program (NRC-IRAP), CanExport is one of the building blocks of the government’s export strategy. Government policies regulating the marketplace are dense, complicated and prone to change without notice. JD.com also believes that the retail of the future is all about continuing the retailer-to-customer relationship after purchase and that the sector will see innovative collaborations between retailers and brands. You are encouraged to review the preview of this guide. That was an increase of 32.1% compared to data from three months prior to that. Answer a few short questions to assess your readiness to do business abroad. The e-commerce platforms are numerous and tend to be refined more and more in China. List of the top 10 Chinese e-commerce platforms by monthly traffic. Access useful information and reports on markets and sectors abroad. E-Commerce in China. The number of e-commerce users in China rose by 100 million compared with last year, and the number of stores on major online retail platforms went up 3.8 percent year on year, according to the Ministry of Commerce (MOC). China’s E-Commerce share is expected to reach half of the global market by 2020. Chinese customers are spoilt for choice when it comes to delivery options and have a vast menu of preferences they’re able to define – from fast deliveries with tight, time-definable windows for the latest must-have tech products, through to slow but economical postal services for basic purchases. JD.com vice president and JD Retail Solutions general manager Chenkai Ling revealed, at Retail Week’s Tech event last week, that traditional walls in retail were collapsing, with the future of retail being boundless. It is my hope that this guide will be useful for any Canadian business wanting a better understanding of e-commerce in China, and the opportunities that this online marketplace presents. For Canadian SMEs interested in doing business in China, the TCS encourages you to visit the Canadian SME Gateway. The most used e-commerce platforms in China in 2020 are: Taobao; Tmall and Tmall B2D; JD.com; Little Red Book (Xiaohongshu) Suning; Kaola; Pinduoduo; But let’s get to know them in detail. For Canadian exporters, selling online in China can be as simple as shipping directly from Canada to the consumer, or via engaging one of several 3rd party service providers who can facilitate the entire logistics process, including customs, branding, marketing and payment. Within China, our network of Trade Commissioners can provide you with expert advice - whether you are exporting, investing, partnering in market or considering the market. “As a result of this, suggested products and adverts are easier to access with just one click, in China, when browsing the web because of the integrated online platforms, where the same activity would take much longer in the UK. “Since opening our office in Chengdu last October, we’ve experienced first-hand how the infrastructure is built differently to support this. And in June this year, retail e-commerce spend in China for 2019 was said to increase 27.3% to $1.935 trillion – making up 36.6% of total retail sales, according to digital data and research company eMarkter. Rapid urbanization 2. A highlight of my trip was getting a first-hand look at the exciting e-commerce opportunities that China offers. Conversion rate specialists Smarter Click market development director Henry Boyson said: “Chinese e-commerce has seen a massive boom in recent years due, in no small part, to the massively successful and now globally recognised Singles’ Day. A lot of Chinese retailers build their own tech systems from scratch to improve their ability to personalise shopping experiences and then make the most of big data to study customers and make decisions at hyper-speed. The CanExport program is a five-year, $50-million Government of Canada program launched in January 2016 that provides direct financial assistance to small and medium-sized businesses (SMEs) registered in Canada that are seeking to develop new export opportunities and markets, especially high-growth emerging markets. If you have any specific e-commerce related inquiries or need more information about e-commerce in China, please contact us at: infocentrechina@international.gc.ca. Research your next target market. Issues surrounding the safety of domestic products have pushed consumers to look abroad for brands with a strong reputation and a focus on quality. Updated in Summer 2017 to reflect the most recent developments and trends in the fast-changing world of e-commerce in China, the guidebook will help companies develop a successful strategy for entering this dynamic market. Canadian companies looking to export to China should consider the opportunities the country’s online commerce sector presents. The other point to note is that Singles’ Day has remained – well – a single day, whereas Black Friday and Cyber Monday have merged into a somewhat chaotic month-long discounting splurge,” concluded Boyson. Retail sales in China … Already the world’s largest, China’s e-commerce market has grown by 50% per year since 2011, and is expected to be worth USD$1 trillion by 2019. For nearly a decade, China's B2B market was ruled by the e-commerce conglomerate Alibaba. Take advantage of Canada’s free-trade agreements, foreign investment agreements, WTO agreements, and more. According to the projections, by 2020 e-commerce market in China will be bigger than American, British, Japanese, German and French e-commerce markets combined. In 2016, China’s e-commerce transactions accounted for US$2 Let us help assess your potential in specific markets, connect you with qualified contacts, or solve a market access problem. Number of online shoppers in China from 2006 to 2017 (in millions): Naturally, large-scale socio-economic trends have their place. “There is a much higher degree of personalisation in Chinese online retail when compared to the West, where customers are expected to search for and purchase individual products themselves. China is the world's largest E-Commerce market by transaction value. While the Civil Code is a comprehensive code regulating quite a lot of matters with regards to civil relations, it does not regulate all aspects of any specific matter. For a copy of this document and for more information about Hong Kong, please contact the Trade Commissioner Service at the Consulate General of Canada in Hong Kong and Macao at the following address: The TCS strongly recommends that readers obtain independent legal, financial and related forms of professional advice prior to acting upon information in this report. What is the most suitable e-commerce platform for your brand? Retail Insight Network takes a look at the current and future state of e-commerce in China and what Western countries can do to mimic its success. To help you grasp the volumes and the competition in the Chinese e-commerce landscape, here are the current top 10 leaders of e-commerce platforms in China in 2020 and their estimated monthly traffic … Our business contacts include potential-customers, distributors, sources of finance or investment, technology partners and other intermediaries. Agriculture and ag-food companies looking for export are eligible to apply through Agriculture and Agri-Food Canada’sAgrimarketing program. In 2020 over 700 million Chinese are expected to shop online vs. 600 million in 2018. There are the latest updates: The Honourable François-Philippe Champagne Minister of International Trade, Embassy of Canada in China: Beijing Consulate Generals: Shanghai, Guangzhou, Chongqing, Hong Kong Canadian Trade Offices: Shenyang, Qingdao, Nanjing, Wuhan, Chengdu, Shenzhen, Xi’an, Xiamen, Hangzhou and Tianjin. At the same time, E-Commerce infrastructure has substantially improved in recent years & sales potential appears limitless, however the market remains challenging due to its unique local characteristics. The former tends to focus more on experience, than price, celebrating the day through games and entertainment in a fun, social way. Millions of Chinese are now purchasing foreign products, including those in developing regions, which were unavailable even just a few years ago. In this issue of China Briefing Magazine, we cover the current laws pertinent to the e-commerce industry in China, as well as introduce the steps involved in setting up an online shop in the country in order to help provide foreign investors with an overview of the e-commerce landscape in China. This means that the customer experiences a more personalised journey, where everything can be bought in one place, making the online experience ultimately more seamless. This not only improves profit margins for retailers but can enhance the speed of deliveries and reduce their carbon footprint. Founded in 1999, the five billion U.S. dollar company is currently the largest public company in China. I am confident that this guidebook will provide Canadian companies with the information and resources they need to take the plunge with confidence. I recently had the pleasure of conducting a six-day visit to China. 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. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. This year’s edition provides expanded coverage on topics such as managing online business risks and protecting intellectual property. And for 2019, it is responsible for 16.7% of China’s retail e-commerce sales. If you look at the United States, if you take all the dollars that are spent on retail and ask what proportion of that is in e-commerce, it’s roughly 12%. It also adds new chapters on using social media tools to build brand awareness and features Alibaba business solutions tailored to Canadian SMEs. PricewaterhouseCoopers comments that pure e-Commerce, practically, does not exist in China. For those interested in exploring cross-border e-commerce opportunities via Hong Kong or are interested in selling products in Hong Kong through e-commerce, please note that a separate guidebook on e-commerce in Hong Kong is also available. They also offer discount coupons to their users in order to attract and keep them on their platform. James added: “Reducing the cost of delivery and returns has become a holy grail for online retailers around the world, and we have a lot to learn from how China is succeeding in this regard. Source Statista; Retail e-commerce sales in China from 2016 to 2022 (in million U.S. dollars), projected an incremental rise in sales figures over this 6-year period. Get access to export-related information and join our mailing list. China, world’s largest e-retail market, enjoys massive growth. We use cookies to ensure that we give you the best experience on our website. Plan for the tariffs, sanctions, and export/import controls that you may encounter when exporting abroad. The … “Personalisation has become a popular buzzword when we talk about meeting the demands of consumers and Chinese companies have set the bar high in achieving this to enhance customer experiences. However, China's e-Commerce does exist, but it is a world away from the smooth and real-time transactions experienced in Internet advanced countries (Hennock, 2002; Martinsons, 2002). The China e commerce market is the largest in the world with a volume of 1.94 trillion USD in 2019. 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A deeper relationship between our two countries will unlock the untapped potential in our commercial ties, grow the prosperity of our middle class, and create new opportunities for Canadian businesses of all sizes. CanExport is open, with few exceptions, to all industry sectors. The Consulate General of Canada in Shanghai is pleased to provide this guidebook, “An Introduction to E-Commerce in China”, designed to help Canadian companies understand the Chinese e-commerce landscape. China: Revenue in the eCommerce market is projected to reach US$1,117,204m in 2020. JD.com is its main competitor, and also owns the online grocery business Yihaodian, formerly owned by Walmart. It is estimated that China's e-commerce sales make up 3.2% of the country's GDP, this is compared to 2.7% in the US. If you continue to use this site we will assume that you are happy with it. By the end of 2015 it has also overtaken US and EU in actual online revenues. The company also forecast Chinese retail e-commerce sales to maintain its strong growth through to the end of its forecast in 2023. Canadian companies must recognize that the Chinese e-commerce market is extremely competitive, and merely getting listed on a Chinese marketplace is not enough to succeed. How much will retail sales in China grow in 2019? Published: July 2013. E-Commerce is in its heyday in China, representing approximately 35% of the overall retail market, it is a global leader. Mobile e-commerce benefits from partnerships with internet giants China saw a rapid development of mobile communication through the WeChat app and social platform Weibo over the review period. In 2016, the festival hosted a ‘See Now Buy Now’ fashion show, which enabled consumers to shop runway looks in real-time with one click of their smartphone. This boundless retail concept would see the merging of content commerce, social commerce and AI, to produce shopping experiences that would seamlessly join the online and offline. As such, China’s e commerce sector is more than three times the size of the US market, which ranks second. The Single’s Day shopping event included discounts from retailers and incentives such as red packer coupons. UK delivery company Yodel director of international services Jayne James said: “One of the biggest reasons that Chinese e-commerce companies like Wish, Alibaba and JD.com are so successful is that they’ve been built in the internet age with tech at their core. We have privileged access to foreign governments, key business leaders and decision-makers because we are part of Canada’s embassies and consulates. For specific questions, the TCS in China can be contacted at InfocentreChina@ international.gc.ca. The festival celebrated its 10th anniversary last year – bringing in more than $20bn in transactions in 24 hours. The Singles’ Day was later rebranded as the ‘11.11 Global Shopping Festival,’ expanding into a large-scale retail event. To explain this growth, most analysts point to three factors: 1. 21 GMV of China's import e-commerce market 2013-2021 22 Popularity of cross-border e-commerce platforms in China 2017 23 Share of products bought on cross-border e-commerce sites in China 2017-2018, by type 24 Share of online shoppers who purchase domestically and cross-border China 2018 E-commerce consumer demographics “The personalisation of the customer journey can also help to explain why Singles’ Day is so successful and how it eclipses Black Friday and Cyber Monday in the West. This has resulted in a major shift in product focus of the biggest retailers.”, Boyson added: “In terms of what other nations can do to mimic the success of Chinese e-commerce, the personalisation of a customer’s journey is certainly something that needs to be taken more seriously in the UK and other countries. Funding and support for international business, alternative formats section of our help page, Getting Paid If You Have A Company In China, Getting Paid When Engaging In Cross-Border E-commerce, Main Considerations For Approaching The Market, Prepare for your entrance to international markets. Through smart consolidation of delivery partners for different retailers, brands are able to ‘share’ some of the core delivery costs. Euromonitor International is the leading provider of strategic market research reports. Despite domestic economic challenges, Chinese consumers particularly the emerging middle class are spending more than ever before in online marketplaces. The company also forecast Chinese retail e-commerce sales to maintain its strong growth through to the end of its forecast in 2023. This year alone, the company has partnered with Italian fashion house Prada Group to open an authorised flagship store on its platform, introduced a new supply chain innovation initiative as part of its Retail as a Service strategy and is using artificial intelligence (AI) driven retail solutions to enhance health technology company Philips’ flagship store performance. Augmented reality shopping and 360-degree virtual reality panorama were introduced a year later to bring interaction to the consumers shopping at home. E-commerce has been growth fuelled by extortionate rentals on physical retail space, convenience compared to shopping in polluted, congested, vast urban areas & of course, the Chinese propensity for online services in such a digital … China’s most universally-known e-commerce giant, Alibaba Group recently hit its 20th anniversary this year. Digital commerce players continue to innovate and recalibrate. The Canadian Trade Commissioner Service (‘TCS’ www.tradecommissioner.gc.ca) with its network of resources in China, including a dedicated team focusing on e-commerce, is available to Canadian companies interested in learning more about the topics presented in this guidebook. If you require a plug-in or a third-party software to view this file, please visit the alternative formats section of our help page. However… Canada’s high quality goods and services are in demand. Already the world’s largest, China’s e-commerce market has grown by 50% per year since 2011, and is expected to be worth USD$1 trillion by 2019. Canadian companies seeking for export support are also encouraged to look at CanExport program. Access guides, information and other resources to learn about doing business in international markets. The Group was founded by Jack Ma, who stepped down from his position of chair during the recent milestone. In China, it's about 16, 17%. A key factor in instilling this is offering full visibility over the delivery process, which is something a lot of our clients in the UK are keen to replicate. The Trade Commissioner Service has a dedicated team in China focusing on e-commerce. To acquire access to mobile users, mobile e-commerce retailers have established partnerships with key internet players to increase their traffic. E-commerce market in China – predictions . General regulation of e-commerce in China – FAQs . According to research conducted by Daxue Consulting, e-tailing accounted for 11 percent of total retail sales of consumer goods in 2015 and is estimated to reach 15-18 percent by 2020. We can help you: Led by our Consulate General in Shanghai, the e-commerce team is dedicated to keeping up with the latest policies, trends and developments of China’s fast moving e-commerce landscape, to help you stay ahead of the curve. 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