Commerce Businesses Begin to Expand into China through IB Mass
While ecommerce has been shrinking in Western markets, it continues to expand in China. Statistics for ecommerce in the west are not encouraging. Barely one out of ten of commerce businesses in Western markets such as the US, Canada, the UK and Australia are selling their products through ecommerce portals. While it would have made sense to open an ecommerce portal in the past, these days Western commerce companies see little reason to start selling products through the Internet. In fact, only 1 out of 3 commerce businesses actually run and operate a website. But even small businesses and startups are raking in large revenues from expanding into the growing Chinese ecommerce market.
Unfortunately, in late 2013 China's Ministry of Commerce began more strictly regulating the transactions performed online, making it harder for small businesses from the West to sell through Chinese ecommerce platforms such as Taobao, Tianmao and Yihaodian. But these regulations are a double-edged sword. While the regulations make it harder for western businesses to enter the Chinese market, they also providing a more modern and safe commerce environment for western newcomers.
Aggressive, Localized Marketing Strategies for China
Western companies who wish to enter China's booming ecommerce industry will need to market through the fastest growing channel: mobile. They will also need to pay attention to the fast-paced online trends in Chinese ecommerce. One such characteristic of the Chinese ecommerce environment is flash sales promotions. Occassionally, Chinese ecommerce companies will create their own holiday to generate sudden sales. For example, the largest ecommerce sales day worldwide happened on November the 11th, which spontaneously became "Singles Day." This sudden happening in China garnered nearly six billion dollars in a single day of sales. Today, the big Chinese ecommerce platforms such as Taobao, Alibaba and TMall treat this day (11/11) as a huge day for discounts and sales. Small businesses entering the Chinese ecommerce community will have to pay attention to such marketing tactics.
Domestic Sales Strategies within China's Ecommerce Community
From a western perspective, Chinese ecommerce websites might look text heavy. This is part of how ecommerce works in China: a focus on the sales message and relationship-building. Thus, companies will need to fight the war of wars through localizing and translating their sales messages.
Is It Worth It?
Moving into the Chinese market requires quite a bit of local help. So is it worth it? The short answer is "yes." China will soon overtake the US and become the world’s largest ecommerce market. In Q3 2012, Chinese ecommerce accounted for over $300 billion, which calculates to about $40,000 in sales per second. The Chinese eBay, Taobao, sells 5 thousand products per minute. Current projections put China’s ecommerce market at nearly 5 trillion USD before 2020. China will likely smash this record: Chinese Internet users and online commerce customers are increasing exponentially.
China might have taken its sweet time to catch up to the west in terms of ecommerce, but now it seems to be taking the lead. With the explosion of online consumption, China is seeing its consumers move onto ecommerce platforms for their shopping needs. This spills over into the western ecommerce business, as small businesses now have the opportunity to reshape how they do business internationally. And this is where IB Mass, http://ibmass.com/services/, steps in. With the Chinese ecommerce field being suddenly widened, IB Mass is offering western businesses a wealth of opportunities to easily enter this market. With continued growth, the Chinese market allows similar growth for stagnating or aggressive US commerce businesses.