Having been invited to speak at the Cross-border eCommerce Conference in Shanghai at the end of May, I prepared a very insightful presentation focused on Chinese cross-border ecommerce. I put data into perspective on emerging countries from both an import and export point of view and I provided the audience with research-based information from Payvision, one of the founders and principal members of CBEC.
Payvision’s infographics illustrate online shopping behavior and cross-border ecommerce activities across emerging markets, such as Brazil, China, Russia, but also the more mature markets such as the UK and the US. I recommend you download them because there is strategic information included for every player in the cross-border ecommerce field. One can find information on the major retailers, major ecommerce categories, preferred online payment methods, Internet and mobile penetration, and other cross-border ecommerce opportunities.
Moreover, the research unveiled a great untapped potential to sell into China, as merchants in the West are largely unaware of the business potential opening up in the region. They lack insight on how to tackle the Chinese market and best explore these opportunities.
While Chinese marketplaces like JD.COM, DHGate.com, or Alibaba have extensive knowledge about how to reach Western consumers, and to be successful in China, a Western merchant should put aside what they know about Search Engine Optimization (SEO) and Search Engine Advertising (SEA) as the primary methods of consumer exposure. A competitive presence on the correct marketplace platforms is paramount. Learn more about the barriers are merchants facing when entering Chinese market.
Delivering a superior consumer experience across all channels; a seamless shopping experience no matter what device the customer is using.
China is generating such seamless omnichannel experiences that in 2014 use of mobile payments grew 73.2 percent. With one app such as the popular social network WeChat, a consumer can do everything he/she needs from generating communication around a brand, searching for the desired product to ordering and paying for it. Social commerce is the next consideration for merchants looking for brand exposure in the Chinese market. With 37% mobile share in China, and only 18% in the US 18% and 13% in Europe, the Western world has to catch up.
In the Western world using a mobile device for in-store payment has floundered, but in China it is inevitable and really booming.
We expect significant growth for the use of mPOS of about 1000%, with a majority share still coming from the Asia Pacific region, but a higher percentage form Europe and the US. The biggest Western names in tech and finance; Apple, Samsung, Google, Visa, and MasterCard have come to the fore with great plans for the mobile payments space. These businesses, with both a high stake in the payments value chain and strong consumer loyalty, will ensure the main blocking points are addressed.
All in all, cross-border ecommerce is still at a very early stage in China, however in the near future we will all assist in a major breakthrough. For Western merchants to realize true cross-border ecommerce growth, now is the time to tap into China.