What is the demand of Chinese consumers for imported goods? What products are most profitable to ship to China from Ukraine, Belarus and Kazakhstan? Where and how best to introduce and sell domestic products in China? The answers to these questions knows Vyacheslav Lysenko, an economic expert and the owner of the company “Ukr-China Communicatin”.
We perceive China not be what he really is – eat a lot of wrong stereotypes about this country. Indeed, the Chinese produce everything. But one of the strongest misconceptions about Chinese products today is its cheapness.
In addition, China has transformered from a global factory into a consumer giant that seeks to feast on a variety of goods. More than a billion consumers are looking to get previously unavailable imported goods – from shampoo to luxury automobiles. Over the last few years the demand of Chinese consumers for domestic goods has dropped significantly – especially among young people, urban population and affluent.
For the Chinese consumer is not so important the price of the product becomes important to the reputation of the country of origin as a manufacturer and the corresponding product quality.
Western companies are already active in the fight for the hearts, minds and wallets of Chinese consumers. In the market of China the fierce competition, but it’s worth it.
The companies decided to begin marketing their products in China through electronic channels, has three main strategies:
- To open your online store on one of the existing Chinese online marketplace;
- To create a common portal-a market place for Internet sales of goods of the Ukrainian (Russian, Belarusian) produced by different manufacturers;
- For beginners in the field of e-Commerce in China is appropriate to apply a dual strategy: standard products with high volume sales and lower cost to offer the major Internet portal, and a full range of products, including expensive premium products, to introduce its own online store.
The electronic platform of China’s segments are distributed as follows:
- On the e-commerce market segment B2C China is dominated by Alibaba group with the online store TМall, the share of which in the first half of 2015 amounted to 57.7%. Second place goes to the platform JD.com (25.1% market share), followed by Suning (3,4%) fourth – VIP.com (2,5%). Also of importance, Amazon China, Dangdang.com, Gome.com.cn, Yihaodian.
- Sale-online in the segment of B2B is an area companies Alibaba Group, Ganglian Holdings, Global Resources.
- The largest C2C-platform is now Taobao.
It stores diversified platforms, but most of them brings in their activities elements of specialization. For example, food products, usually offered separately through such Internet platforms as TMall Miao, Chi Taobao, Chaoshi JD, Suning Chaoshi.
On the e-commerce market of China also operates a number of entrepreneurs oriented exclusively to the sale of food. The largest such specialized platforms include: WoMai (company store COFCO), Tuotuo, Benlai.com, Yoocai.com SF Best Youguo.com (selling fresh fruit and vegetables).