Foreign Companies Looking to Enter Chinese Market

0

Three Online Platforms that are catching their Eye

foreign online

For foreign companies looking to make it in in the Chinese market, putting their product onto one of the many online platforms available in China is often the first step in to getting into the Chinese market. Many companies look at this as the more cost-efficient way of getting their products to a bigger consumer market. With this being said, there are several online platforms these foreign companies can utilize as they seek to enter into the Chinese market. The three biggest platforms for foreign brands to utilize are Tmall Global, JD.com and Yihaodian.

Entering into Tmall Global

Tmall Global is considered to be the largest online shopping platform that China has to offer. It is owned by the Alibaba Group, which does showcase just how large this platform is. The Global platform of Tmall launched in 2013, and is open specifically to foreign brands that are looking to make it in the Chinese market. The problem now is that Tmall Global has to invite a company to sell their products on their platform, though this was not always the case.

For a foreign brand to be eligible for this platform they must be a registered corporation that is outside of China, have retail and trade qualification in their home country, and have the relevant stock certificates. For the most part, Tmall Global targets businesses that have been operating for over two years, and has annual sales of over $10 million.

JD.com: Another Option

Since Tmall Global is now only letting businesses who have an invitation to join them, several foreign brands are turning to JD.com as one of the easier options for them. One of the bestselling points for JD.com is their attention to the issue of counterfeit goods, something that has been plaguing the Chinese market for some time now. In addition, they are allowing a foreign company to have access to numerous areas in China that would otherwise be restricted.

JD.com offers three types of operations that a foreign company can look into:

  1. Franchising Business Partner: This is where a foreign company can set up their own store, while JD.com is responsible for warehousing, delivery of the products and customer service
  2. Licensing Business Partner: The merchant is responsible for their own store and shipping of the order. While JD.com is going to handle the customer service and sending invoices.
  3. Self-Operation Partner: The merchant basically utilizes JD.com as a way to get their store out there, while also being responsible for warehousing, shipping and all customer service.

Yihaodian: A Perfect Choice for Companies with Food and Beverage Products

When most foreign brands look to enter into the Chinese market, they often overlook Yihaodian. This is due to this company is being the online retailer of food and beverages, rather than the numerous products that Tmall Global and JD.com provide the Chinese consumer market. Though Yihaodian is available in China, it is actually owned by US retailer Wal-Mart. The best aspect with this option is that foreign enterprises looking to enter into the Chinese market, will find that with Yihaodian, they can sell tax free and not have to adhere to the Chinese domestic product standards. For food and beverage companies, this is often their best choice.

The below graphic outlines even more about the three main online selling platforms that foreign brands have to choose from:

ecommerce vs

For foreign companies, now is the best time to enter into the Chinese market. Chinese consumers are more interested in what foreign companies can offer them, as they often feel these products are of a higher quality. In either situation, it can help a brand become a success in China when entering onto these online platforms.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

Comments are closed.

Get Digital Insights on Demand

Join over 21,000 subscribers and receive fresh insights from the front lines of digital, mobile, ecommerce and socal media in China. Subscribe today and receive new content every week.

You have Successfully Subscribed!

Pin It on Pinterest