Silkroad Direct

China Cross-border e-business in China is estimated to reach US$1.02 trillion in 2016.

Reaching Chinese Consumers in 7 step

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The growing consumer demand in China is the topic of nearly every marketer or retailer. Countless experts have pinpointed them as a target market, but how can local small business-owners open a sales channel that is clouded by language barriers, cultural differences and logistics challenges?

Here are PayPal’s top tips for reaching Chinese consumers in 2015:

1. Ensure Your Supply Can Meet the Demand

Shoppers don’t want to wait for their orders while you’re struggling to meet demands. Before you do anything, ensure you have the ability to ramp up production. While this is true of any retail expansion, it’s particularly crucial given the sheer population density and shopper expectations in China.

2. Stand Out with Hassle-Free Shipping

Shipping cost is a major consideration for buyers – 46 per cent of Chinese shoppers view free shipping as a must when buying from overseas online stores, and 50 per cent feel the same about free return shipping. Partner up with a logistics company in China for ease of shipping and handling; look for a partner within the free-trade zone in specific cities in China – this will streamline customs and overall logistics handling time. Once you’ve nailed your shipping and handling processes, explain this in full on your site. Customers want to know exactly what to expect when they’re waiting for their order to arrive.

3. Focus on a High-Demand Product Line

Over the next year, Chinese shoppers are projected to increase spend across the board. The top two categories for growth are leisure, hobby and outdoors goods (expected to grow 25 per cent); and baby and children’s supplies (expected to grow 21 per cent). Not far behind are health and beauty; entertainment; and clothing, footwear and accessories (expected to grow 19 per cent each).

Here’s our top ten list of the most popular products that Chinese consumers buy online from overseas:

  1. Clothing apparel, footwear and accessories
  2. Cosmetics and beauty products
  3. Consumer electronics, computers, tablets and mobiles
  4. Baby and children’s supplies, equipment and accessories (excluding clothes and footwear)
  5. Jewellery and watches
  6. Groceries, food, drink and alcohol (whether consumed inside or outside the home)
  7. Household appliances, household goods and furniture
  8. Travel and transportation (e.g. hotels, tours, airline / train / bus tickets)
  9. Health products (e.g. bandages, over-the-counter medicine); and entertainment and education (digital / downloadable / online)
  10. Entertainment and education (physical items)

4. Optimise Your Digital Presence

China has the world’s largest smartphone user base with over 521 million smartphones1, and 68 per cent of Chinese online shoppers have purchased via mobile in the past year, so when selling into China, it’s simply impossible to ignore m-commerce and digital channels.

Understand your customer’s behaviours, local customs, and preferences – busy visual layouts and detailed content sections are appealing in China, so consider this when you’re creating your site’s digital design. Another customer experience tip is that Chinese consumers seek support via chat and generally expect an immediate response time, so explore how you can facilitate this on your digital channels.

Consider your limits, too. Some social media channels like Facebook and YouTube aren’t accessible in China, so keep that in mind when you’re thinking of your marketing strategy. It also doesn’t hurt to look into offering a shopping app; 59 per cent of Chinese smartphone shoppers prefer them.

5. Speak Their Language

Nearly half (42 per cent) of Chinese online shoppers said that having a website available in their language would encourage them to shop cross-border. While China does have a number of dialects, Mandarin is the primary language used on the mainland and will appeal to the largest number of potential buyers. On that note, make sure your site also supports Chinese addresses and contact details at checkout.

6. Simplify Payment

The first priority for cross-border Chinese consumers is convenience – 63 per cent say it’s their main motivation for buying online; by comparison, only 47 per cent of domestic-only online shoppers say the same. Make information easily available, with clear and high-quality images; and always display prices in Chinese RMB rather than your own currency. This makes for a more seamless transaction. When it’s time to check out, offer wallet-less options like China UnionPay. PayPal accepts CUP payments, which goes a long way in the Chinese market. Don’t forget to advertise this advantage on your site, it will definitely be more appealing to the Chinese shopper.

7. Trade in on Traditions

Every culture has its traditions, which can become good insight for sales strategies. For example, in China, Singles Day on November 11th is the biggest retail opportunity of the year, when single ladies and gents treat themselves by indulging in jewellery, clothing or electronics. In fact, it’s the biggest retail day in the entire world, with over $10 billion having been spent in a 24-hour period.

Or, another example, many are aware that red is considered an auspicious color but fewer are aware that writing a person’s name in red ink is considered a sign of severing ties and should be avoided. Many Chinese shoppers also avoid buying items in sets of four, as the word for four in Cantonese sounds like the word for ‘death’.

 

China is one of the fastest-growing markets, and small business-owners shouldn’t be intimidated by perceived complexity around regulations or not being able to connect with a new culture and customer base. By thoughtfully making small changes to business and marketing methods, as well as taking advantage of the myriad resources available, entrepreneurs can easily navigate these international waters.