Chinese e-commerce could start seeing a huge change, which could increase the number of competitors on the market. However, before everyone starts getting excited, professionals in the market are warning that though a new policy is going to make it easier for companies to enter into China, they are still going to need to help entering into the market from an established Chinese business or a dedicated professional helping to navigate the e-commerce waters of China.
The New Policy that is Changing E-Commerce
Many companies who are in the United States and other foreign countries do not abide by animal testing when it comes to cosmetics and other types of products. This is what has kept these businesses from entering into the Chinese market. The new policy that China is enacting is to open the door for companies who are not testing their goods on animals. According to Juice Beauty’s International marketing manager, Cindy Shi:
“Our products can’t be sold in stores in China because Chinese policy requires all beauty products to be tested on animals. We are an organic brand opposed to animal cruelty, and we can’t compromise on that.”
The policy is going to legalize the sales of these products for personal consumption. These products cannot be purchased in bulk and resold, according to the policy.
How Juice Beauty will take Advantage of the New Policy
Juice Beauty, an organic cosmetic company, has already decided that they are going to be taking advantage of this new policy and entering into Chinese e-commerce. The reason being, according to Shi:
“Chinese consumers, especially young people, have a strong demand for organic products.”
This is what Juice Beauty hopes to provide to the consumer market, but how is the company planning on making this happen? First, they will be appearing on Tmall Global. According to Shi:
“We plan to open a store on Tmall Global as the first step because the Alibaba platform reaches the largest number of online shoppers in China.”
Once the company has established themselves via Tmall Global, they do plan to look into what JD.com and Yhd.com are offering. The one obstacle that the company seems to be facing is finding a partner in the Chinese e-commerce world. Juice Beauty has one Chinese employee, and are looking for a company that can help with marketing and other efforts directed towards Chinese consumers. The company has talked to several companies, but they are finding a common issue:
“Those brands already have strong reputations and they can very easily generate a lot of sales after they open an online store. However, we are a smaller brand and our partner needs to do more on branding.”
Companies who have made the successful transition to Chinese e-commerce via the help of other businesses are usually bigger brands. It will be interesting to see how Juice Beauty does in the Chinese market, and how they brand themselves to their Chinese consumers.
Learn more about Chinese branding, here