China is at present the world’s second largest economy and the EU’s second largest trading partner behind the US. China is a major importer of foreign goods, and the purchasing power of the Chinese population is vastly growing. China is a country full of opportunity and promise, especially when it comes to e-commerce.
Unfortunately it is also a country which remains hard to crack for foreign merchants. We have all heard of Alibaba’s Tmall and sometimes even of similar platforms like JD.com and Yihaodian. While those platforms offer a lot of convenience, from a merchant’s perspective, they are not very financially attractive. Download our new whitepaper now!
Only 10% of merchants are profitable on Tmall with only a slightly higher percentage of merchants actually making money on Tmall International. This is due to high competition from both domestic and “rest of world” players thus creating extremely high marketing costs, sometimes equating to 40 percent of the sellers revenue.
Currently there is a shift in the market where mostly foreign merchants are shifting away from platforms like Tmall and instead focusing on alternatives like brand owned online store and WeChat stores.
In this Whitepaper, we will shed some light on the Chinese e-commerce market and show you three simple steps to enter the market at a controllable business risk. Download our new whitepaper now!