CHINA MARKET ENTRY AND EXPANSION
The challenges associated with operating in a market of 1.36 billion people can be daunting for any foreign business which looks to trade in China. Here at Monrah, we make successful e-commerce market entry a reality for our clients - and with the Chinese e-commerce market set to reach 30 trillion Yuan in 2020, there’s no better time than the present.
However, as a foreign brand there are some risks associated with market entry. To minimise any potential dangers or untoward occurrences, Monrah provides information on key market trends and consumer behaviour to ensure our client’s operations in the Chinese e-commerce market are healthy and long-lived.
Our client’s needs
To guarantee effective market entry, a business must develop a solid brand identity that also coheres to the Chinese market. Monrah facilitates this process by listening to our client’s goals and compiling a plan tailored to their business’ needs and capacities. We also create a detailed schedule for our client, helping them prepare comprehensively for market entry.
Understand the market
Secondly, Monrah undertakes an extensive analysis of our client’s competitors within the Chinese market, showing them how to differentiate their business from others. Our informed analysis of the competitive landscape will position our client well to successfully carve out a piece of the market, and we will also brief them on how to correctly adhere to Chinese regulations and trading rules.
Finally, it is imperative that a foreign business fully understands the behavioural tendencies of Chinese consumers. Our market research enables clients to know which e-shops consumers tend to use for their product or service, the characteristics of their target audience and the marketing strategies this audience will be most receptive to.
Digital Marketing analysis
To be successful online our client’s business needs to be visible. Monrah devises a digital marketing strategy that demonstrates the most reliable methods of generating traffic to our client’s site and how to create effective, compelling online advertising. Our strategy also covers the ways to increase the chances of being shown on the first page of results of Baidu, China’s most popular search engine.
Interested in what we can do for your company?
Set up a consultation with Monrah today by phoning +44 (0) 20 371 23922 or emailing us at contact@monrahconsulting.com
CROSS-BORDER E-COMMERCE
Cross-border e-commerce (or international e-commerce) is when consumers buy goods online from overseas sellers. Despite some challenges and obstacles, cross-border e-commerce is an extremely lucrative venture for a foreign company; according to ChinaWatch, the value of Chinese cross-border e-commerce is set to surpass $1 trillion in 2016.
For foreign businesses, a more relaxed regulatory environment makes Chinese cross-border e-commerce appealing. However, in order to best profit from the opportunity, an understanding of local customs and cultural distinctions is indispensable. Monrah’s grasp of such cultural specificity can aid our clients to pursue an appropriate e-commerce strategy which will appeal specifically to Chinese consumers.
What Chinese cross-border marketplace is the best fit?
Monrah can help our clients benefit from cross-border e-commerce by advising them on how best to meet each marketplace’s demands.
Tmall Global is the largest international e-commerce marketplace, and access to it can greatly benefit foreign companies who want to reach China’s numerous consumers. However, while trading on Tmall Global is an exciting opportunity to expand our client’s reach, some necessary considerations must first be made. To trade on Tmall, brands require competitive potential, the sellers must be authorised to sell branded goods and products must be of a good quality and/or genuine. The e-shop also needs to provide a returns policy and language support for Chinese consumers.
JD Worldwide (Jing Dong Worldwide) is China’s second largest online marketplace. JD Worldwide offers fewer restrictions to foreign companies who want to set up e-commerce sites on its platform. It also provides marketing assistance on JD.com for foreign companies, as well as nationwide logistics expertise.
WeChat is the Chinese social media platform used by almost everyone in China. It also has huge marketplace potential, with 180bn sales in 2015, 360bn in 2016 and expected growth in 2017. WeChat operates has few regulations and is a unique platform with different challenges and opportunities for the store owner.
While foreign businesses do not need to have a bank account or physical presence in China to trade on JD Worldwide, they are still expected to have a significant market presence overseas. Companies are also expected to sell authentic goods and provide Chinese consumers with Chinese language customer services and mainland China returns facilities.
Want to operate in a niche marketplace?
In China, there are smaller alternatives to Tmall, JD and WeChat that offer the ability to sell products in specialised or exclusively business-to-business (b2b) markets; examples include Jumei Global, Tuniu.com and dangdang.com. Whatever their needs or targets, Monrah is on hand to find a marketplace that is most compatible with our client’s business.
Interested in our services?
Email us at contact@monrahconsulting.com or phone us on +44 (0) 20 371 23922
CHINESE E-COMMERCE MARKET STRATEGY
For a foreign business, deciding to enter the Chinese e-commerce market can be an overwhelming and daunting task. Monrah offers support and guidance to clients undertaking this process, providing a comprehensive and considered approach to the various modes of market entry.
The Chinese e-commerce market differs substantially to those of Europe and the US. Whereas Amazon is the go-to marketplace for online consumers in the Euro-American context, in China it is TMall and JD that are the major players, together holding close to 80% of the market share. A business can also use social media platform WeChat, as well as many other smaller alternatives.
Our strategy
Whether our client wants to set up in a pre-existing marketplace like TMall, create their own e-shop or use an amalgamation of the two, Monrah can help them every step of the way. Through our tailored services, we carefully analyse our clients’ capabilities, helping them decide on the best e-commerce strategy for their needs.
Monrah also offers guidance on social media and branding strategies; for example, showing our client how to effectively link social media accounts to an e-commerce site or creating profitable digital marketing strategies for China’s most popular social networks (e.g. Weibo, Wechat and Youku). Such strategies are implemented while at the same time maintaining a coherent and recognisable brand identity across both the Chinese and international markets.
We're here for our client
Once a suitable e-commerce strategy is implemented we never leave our clients without support. At every stage of the plan, Monrah is always on hand to provide assistance, and stakeholders are continually updated on the business’ performance. This allows us to ensure that our client fulfils the long and short-term goals they have gathered and agreed with Monrah, further securing the long-term viability of our client’s endeavour.
Interested in what we can do for your company?
Set up a consultation with Monrah today by phoning +44 (0) 20 371 23922 or emailing us at contact@monrahconsulting.com