If you have any questions about Cross-border E-commerce in China, how you can join it or invest in it, please contact us at [email protected] Consumer electronics e-commerce in the United States, Holiday season e-commerce in the United States, Ecuador: domestic and cross-border e-commerce sales 2017-2019, Market share of cross-border e-commerce Indonesia 2020, by country, Market share of cross-border e-commerce Malaysia 2020, by country. Directly accessible data for 170 industries from 50 countries Contract renewal after one year to the then valid regular price. To enter China through cross-border e-commerce, there are generally two main logistical approaches. Cross-border e-commerce is the new opportunity for brands. Due to the Covid-19 crisis and the new e-commerce law, Daigou sellers could completely exit the sector, paving the way for foreign retailers and pharmacies to sell in China through cross-border e-commerce. Full transcript below: This also confirms the needs of Chinese consumers on foreign products. In practice, many foreign cruelty-free brands entered China through e-commerce channel. According to T-mall international, in the past five years from 2015 to 2019, T-mall international introduced over 23,000 overseas brands from 80 countries and regions into the Chinese market. Currently, there are more than a dozen different Cross-Border e-commerce platforms in China covering every product category. do not have to be registered. With this approach companies ship their products in bulk to China, and store them in bonded warehouses until they are ordered. Or any other constraints to cross border E-Commerce for that matter. For a long time the “Daigou” has been operating in a grey area in Chinese law. © 2020 All Rights Reserved 1421 Consulting Group, Tier 2 Cities in China: New Opportunities, FinTech in China: Growth Drivers & Trends, Electric Vehicles in China: Market Disrupter, or…. Cross-border e-commerce paves an express way for foreign brands to enter the Chinese market, however how to market and sell foreign goods in the Chinese market is a problem that troubles many cross-border merchants. What Is Fueling the E-commerce Boom in China? 37 cities (up from 15) are now included in the cross-border tax rebate. Among the products which enter China through cross-border e-commerce, cosmetics, personal care, and health products remain the most popular ones. Something we have not discussed before is cross-border e-commerce. In 2018 she completed her master study in International Trade and Investment from Ewha Womans University where she gained in-depth understanding of how economic, business, and political factors interact in shaping the international trade environment. Qian is originally from Sichuan province. These are listed below. Order a Single Account now and you receive a free dossier of your choice. Due to this endeavour we can conclude that “1421 is the year that the Chinese discover the world”. 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. New, Figures and insights about the advertising and media world, Industry Outlook Cross-border e-commerce in China holds a specific distinction.International companies are allowed to sell certain goods to Chinese consumersonline, through platforms such as Alibaba’s Tmall Global and Kaola, atpreferential duty rates and without a license to operate a business in China. Golden Week, China’s national holiday that spanned Oct. 1 to 8 this year, prompted a surge in domestic spending which drove a robust rebound in consumption as pandemic effects begin to recede. Cross-border e-commerce keep growing and is expected to reach a 7.5 trillion RMB volume in 2017; 58 million users in China are expected to engage in cross-border transactions in 2017; Cross-border e-commerce market is very fragmented as opposed to local e-commerce market; Cross-border shoppers make frequent purchases between 300 RMB and 1,000 RMB Furthermore, this law marks the first time the Chinese government has endorsed the model of cross-border e-commerce, which has opened up many opportunities for foreign firms wanting to sell their good in China. This means on average, around 10 overseas brands entered the Chinese market for the first time every day through T-mall international. While cross border e-commerce (CBEC) is an attractive channel for foreign businesses to sell to China, misunderstandings over how CBEC in China works frequently end in costly disappointments and retreats from the market. At $5.8 trillion last year, China has the second-largest retail market in the world. MAU number of major cross-border e-commerce platforms in China 2020, by platform. JD Worldwide, part of JD.com. Cross-border e-commerce lowers the threshold to enter global markets and raises brand awareness while enabling access to international consumers. China is a key market for cross-border e-commerce as it transitions to a consumption economy fueled by growing middle class. Cross-border eCommerce. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. The Chinese ministry of commerce announced that cross-border e-commerce reached 6.5 trillion yuan in 2016. Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. Consumers can experience cross-border e-commerce retail services here. According to the Food Safety Law, food products, whether domestic or imported, must be registered or filed with the national or provincial food and drug administration. First of all, there is the direct approach, where a company ships products directly to Chinese consumers from a warehouse in their country of operations. Cross-Border E-Commerce consumers in China (2014 - 2020) 2 113 billion RMB approximately equals 14,5 billion euros with the average exchange rate of July 2019. When you start a store on Amazon, Alibaba or another … Other very popular products are food, and products meant for mothers and babies. Especially, products in categories such as food, health products, cosmetics, etc. Earlier in 2019, e-commerce transactions on WeChat mini-programmes increased by 27x year-on-year growth (source: Tencent). The development of China’s e-commerce has captured the world’s attention with many foreign brands and retailers selling their products via cross-border e-commerce platforms. * This offer is for business only; Going forward, cross-border e-commerce will become an important growth point for foreign trade in China, which has a broad market, with competitive barriers being relaxed. 3. Although the bonded warehouse approach is the most favored approach, it is not applicable to every cross-border e-commerce enterprises. However, when entering China through cross-border e-commerce most of the products do not need to go through the process of registration. Update, Insights into the world's most important technology markets, Advertising & Media Outlook On the year 2014, Chinese government issued new regulations regarding cross-border e-commerce in China. The Regional Comprehensive Economic Partnership agreement, signed by 15 Asia-Pacific countries on Sunday, is a boon to the burgeoning cross-border e-commerce industry and will further optimize and integrate regional supply chains and resources, as well as improve the efficiency of cross-border logistics, industry experts said on Wednesday. However, it is not actually allowed to sell food offline, if there are offline sales they need to apply for a food business license in accordance with the regulations. Second article: What Is Fueling the E-commerce Boom in China? Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. These companies would have to import their products from abroad, which requires an import/export license, before they can sell via the domestic eCommerce channels. Therefore, the bonded warehouse approach is favored by most companies, since it is quicker and cheaper. Tiktok owner Bytedance tests cross-border e-commerce, and Tencent doubles it … Entering the Chinese market through cross-border e-commerce can save companies many costs, and save them from the headache of product registration and licensing. The term of Cross-border e-commerce did not really exist until 2014. Christof Baron about Statista After a consumer places an order, the goods are sent out directly from the bonded warehouse for customs clearance, and then delivered to the consumers. We value your privacy and will never rent or sell your email address. 2017 has been another incredible year for global online retail. In the last few years a great number of Platforms sprang up, such as Jumei Global Store, Daling, Amazon Global, B&G, Kaola.com, Suning Global, JD Worldwide and VIP International. First article: History of the Future: how China takes over world e-commerce? Third article: China E-commerce Market Trends that Foreign Companies Should Know, Click here to request our E-commerce White Paper. Find here China Paradigm episode 101.We interviewed Dr. Renata Thiébaut, one of the few experts in cross-border e-commerce in China as well as the head of business intelligence of an agency providing e-commerce operations in China.Read on to learn more about how the Alibaba Tmall partner agency helps foreign brands tackle the Chinese market. To buy a couple of Carhartt T-shirts, Bilibili fashion KOL @吕政懋Maomao went on a convoluted global journey, involving two … CEO, MindShare Germany. 59,8 146,6 Top import cross-border e-commerce platforms in China include: 1. According to the CFDA (the China Food and Drug Administration) , cross-border e-commerce brands that sell food are even allowed to open offline display (experience) stores. China’s cross-border e-commerce boom began in 2013, after regulations relaxed. All these people came into contact with foreign (luxury) products, and started bringing and sending them to China. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies, sales channels, and product mix based on their better understanding of Chinese consumers. New, Everything you need to know about the industry development, Find studies from all around the internet. For instance, as for the general trade in cosmetics, the approval process can take anywhere from 3 to 12 months. From 1421 to 1423, during the Ming Dynasty of China under Emperor Zhu Di (朱棣) the fleets of Admiral Zheng He (鄭和), commanded by the Chinese captains, discovered Australia, New Zealand, the Americas, Antarctica, the Northeast Passage; and circumnavigated Greenland. Moreover, from a legal perspective, currently there is no domestic registration requirement for cross-border e-commerce cosmetics brands. In 2018, the business transactions amount of import cross-border e-commerce in China has arrived 1.9 trillion RMB, and it has continued to grow over the past few years. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. Registration. There are the latest updates: Instead, China will continue to favor the cross border sales model by reducing taxes, streamline clearance procedures, and expand cross border operations to a number of other Chinese cities. To provide you with a better understanding we have highlighted the process of selling selling cosmetics and health products through e-commerce channels down below: According to the Notice of Improving the Supervision over Cross-border E-commerce Retail Imports issued by the Chinese government, the licensing, registration or filing requirements for first-time imports do not apply to retail products imported into China through cross-border e-commerce. To name a few that are familiar to the Chinese consumers: Tmall Global , Kaola.com , Suning Global , Onion OMALL , JD Worldwide and VIP International . The company’s financial capacity and it’s type of products need to be taken into account. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. This dossier presents graphs and information about the cross-border e-commerce, which is a subcategory of e-commerce in China. This means that cosmetics brands entering China through cross-border e-commerce , do not need to go through the registration and approval process, which includes animal testing including the animal testing. It also lowers thecost of doing business in China. By Dezan Shira & Associates Editor: Qian Zhou With cross border e-Commerce (CBEC) taking an increasing bigger share of the total import and export market, it is of no surprise that the government has taken CBEC regulations more seriously.As consumer complaints and industry speculation over unfair competition increase, regulatory authorities have taken notice. Cross-Border E-commerce in China: a convenient entry strategy. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Number of online shoppers in China 2009-2020, Transaction volume of China's cross-border e-commerce players 2011-2019, Penetration rate of cross-border e-commerce in China 2014-2019, China's cross-border e-commerce GMV growth 2014-2019, Total amount of cross-border e-commerce retail in China 2015-2019, Number of cross-border e-commerce companies in China 2019, by type, Import cross-border B2C e-commerce platforms' market share in China Q3 2020, Trade volume of China's import cross-border e-commerce players 2012-2019, Cross-border import e-commerce trade growth in China 2013-2019, User number of cross-border import e-commerce trade in China 2013-2019, Cross-border e-commerce retail imports market size in China 2016-2022, Market share of China's export cross-border e-commerce players 2011-2019, Trade volume of China's export cross-border e-commerce players 2011-2019, Retail export value of cross-border e-commerce players in China 2017-2019, Cross-border export e-commerce trade growth in China 2014-2019, Number of cross-border online shoppers in China 2016-2020, MAU number of major cross-border e-commerce platforms in China 2020, by platform, Distribution of Kaola.com users in China 2020, by gender, Distribution of Kaola.com users in China 2020, by age group, Trust level in cross-border e-commerce platforms in China 2019, Reasons why Chinese consumers want to try cross-border e-commerce retail outlets 2019. Cross-border e-commerce is growing in popularity in China.The growth rate of China’s cross-border e-commerce has been higher than the total amount of imports and exports in spite of the slowdown of global trade, which means that the penetration of cross-border e-commerce in import and export trade has been very high.. Chinese people living overseas and buying products for Chinese consumers in China are called “Daigou (代购)”. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. France – The fastest growing e-commerce segment in France is cross-border purchases. Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre. The payment system of the store is directly connected to the customs clearance system and the Shanghai cross-border public service platform, and consumers can pick up the goods on the spot after waiting for the completion of customs inspection and customs clearance. 4. The other option companies have is making use of a bonded warehouse located in China. This type of e-commerce details how foreign companies operate in China through opening digital stores on Chinese e-commerce platforms. The approval process of health products is even longer and can take up to 24 months. The lure of cross-border e-commerce (CBEC) in China shines like a beacon in a market that already dazzles with record-breaking figures. Enter your email to subscribe to our newsletter. Read more about the cosmetics market in China in our previous article. Furthermore, shipping in bulk and less individual shipping means that companies can save on transportation costs. One area in the market in particular is showing promise: the cross-border e-commerce channel, says a new report from global consultancy Deloitte, the China Chamber of International Commerce and AliResearch, which is a part of Alibaba Group.. Cross-border e-commerce in China holds a specific distinction … Starting in the early 2000s, more and more Chinese people started to study, work and travel abroad. With these new laws cross-border transactions conducted through e-commerce platforms became regulated. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook At the start of the boom, many Chinese platforms sprang up to ride the wave of online trade. More than 80% of these brands entered China for the first time. The “Daigou” would then send the goods to their Chinese customers in China directly by international express delivery or by a forwarding company, and this kind of transaction mode is often called “Haitao (海淘)”. Relying on the huge market potential, China’s e-commerce platforms are an enormous success. and over 1 Mio. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. In the direct approach, the capital turnover pressure is relatively low because there is no need to stockpile goods, however the delivery and clearance time take longer, and the logistics cost per unit is higher. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC. History of the Future: how China takes over world e-commerce? Since the products are already located in China when they are ordered, it takes less time for them to reach the customer.