If you open a Hong Kong company, you can also receive payments in RMB and manage local operations through the entity. Alibaba alone claims that they will import USD 200 billion worth of goods by 2023 and the market is valued to almost USD 2 trillion. China is not alone in celebrating what used to be an exclusively Chinese festival. 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. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. Cross-Border E-commerce Platforms Currently, there are more than a dozen different Cross-Border e-commerce platforms in China covering every product category. A keyboard and a shopping cart are seen in front of a Shein logo in this illustration made on October 13, 2020. Over the last decade, the company has had an oddly successful run in taking its self-designed products abroad. Nowadays, you rarely have to leave the application as you can book everything from cinema tickets, pay for haircuts, and browse the net via the application. Selling cross-border is a fast-track to the Chinese market and a perfect way to get your feet wet. In 2018, the value of Chinaâs cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. With that said, foreign sellers have faced problems with high entry barriers, lengthy product registrations, and setup fees. China's cross-border e-commerce sector has been growing exponentially over the past few years as the country's middle and high-income shoppers are demanding increasingly diversified and personalized products and services. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. Tmall (tmall.com) is also referred to as Tmall Classic and a local eCommerce platform in China. By far, the State Council has approved five batches of 105 comprehensive pilot zones for cross-border e-commerce (CBEC pilot zones), covering almost all the provinces except for Tibet. If you continue to use this site we will assume that you are happy with it. The China cross border e-commerce market is expected to grow significantly. France â The fastest growing e-commerce segment in France is cross-border purchases. Youâll also experience strict inventory records and you can be charged for small discrepancies. Feel free to book a consultation call or use the many free resources on this website. You can. Opportunities for Swiss companies People are seen at the booth of Sea's e-commerce platform Shopee at the International E-Business Expo (IEBE) in Guangzhou, Guangdong Province, China, March 22, 2019. All these people came into contact with foreign (luxury) products, and started bringing and sending them to China. Another survey conducted a month ago by Marketbuzz also suggested that up to 86 percent of Thais planned to shop online on November 11, and Shopee and Alibaba-owned Lazada were found to be their most favored destinations. We also introduce you to our network of fulfillment centers, trademark agents & more. When you start a store on Amazon, Alibaba or another â¦ Nearly half of all French consumers regularly buy from cross-border merchants and 19% of all online sales in 2016 were made on non-domestic websites, four point higher than the European average of 15%, most frequently Germany, the UK, Belgium, the US, and China. No, foreign cross-border sellers donât have to register Chinese entities. The products are only cleared by the customs and CIQ when leaving the bonded area and shipped to the end-customer in China. There are many benefits why Hong Kong is a perfect location for the fulfillment of products. The same as it goes with Tmall Global, youâll find most products on display on JD Worldwide, even if the range of products is a bit smaller. Kaola Global is a members-only cross-border e-commerce platform under Alibaba Group. As mentioned, cross-border sales only make up 2.2% of the online market. First of all, it has the freest economy in the world with no import duties or VAT. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. 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 Alibabaâs Tmall Global and Kaola, atpreferential duty rates and without a license to operate a business in China. "I have so many things on my wishlist that I haven't bought yet, even though I've been adding them to it for weeks.". Some of the most popular products sold on Tmall Global include fashion & beauty products, mom & baby products, food & beverages, and household appliances. Donât hesitate to come by our office for a coffee if you visit Hong Kong, Best Regards, Fredrik Gronkvist, Co-Founder, I accept that this form collects my name, email and other information that may be necessary to reply to my inquiry (read our, Asia Market Entry Kit: Childrenâs Products, Asia Market Entry Kit: Textiles & Fashion, Asia Market Entry Kit: Beauty & Personal Care. Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. As a result, it has introduced and updated several regulations for cross-border trade since 2019. Copyright Â© 2020 CGTN. Things didnât turn out according to plans and cross-border sellers from all over the world use Kaola to reach the Chinese consumer market. At $5.8 trillion last year, China has the second-largest retail market in the world. When sales volumes start to pick up, you can move to a more sustainable and long-term model, such as using a bonded warehouse or a Hong Kong fulfillment center. Besides, itâs not suitable if you plan to sell in other countries than China. By Li Ruikang Share . The advantage is that you can sell products directly to the end-consumers. The clear benefits of using bonded warehouses are that itâs cheaper and delivery times shorter. China is not alone in celebrating what used to be an exclusively Chinese festival. Some of the benefits of using the direct shipping model are: Hong Kong is one of the main fulfillment hubs in Asia and a perfect choice if you sell to clients in mainland China and other Asian countries. WeChat has managed to create its own ecosystem and large companies do their utmost trying to promote their products through users feeds and with the help of Key Opinion Leaders (KOL). Cross border e-commerce is a reliable way to enlarge your business and expand your client base with a constant profit. Tmall Global (Tmall.hk) was launched in 2014 and is owned by Alibaba, the parent company of Classic Tmall (Tmall.com). Or any other constraints to cross border E-Commerce for that matter. But that's not all. In short, you send the products in bulk shipments to Hong Kong where a 3PL company helps you with the inbound, storage, pick & pack, and shipping to end-customers in mainland China. As China tries to increase the imports of foreign goods, cross-border sales have exploded but still account for just 2.2% of the online retail market. Your email address will not be published. There are the latest updates: Chinaâs cross-border e-commerce, or Haitao, grows on search for exclusivity and thrift By Vogue Business Team 26 October 2020 Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. In short, this means that you need to have or work with a Chinese entity that can import the products. By pouring ads all over Facebook, Twitter and Instagram, signing up influencers to promote their products and posting interactive videos to engage with a marked audience, the fashion brand has tapped into its fast-growing followers while raking up billions of dollars in annual returns. Daxue has helped many Cross-border e-commerce to develop their strategy in both way from China and in China. Below I have included commonly asked questions and my replies. The platform is primarily focused on mom & baby care products, cosmetics, personal care products, foods, homewares, digital appliances, apparel, shoes, and bags. The latter are mainly high quality products â¦ which attract a lot of customers: it is one the most popular cross-bording websites in China. If youâre registered as a cross-border seller in China and sell via a bonded warehouse or the B2C (Business Commercial model), youâre exempt from paying import duties. 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. Even if the physical distribution of products is different youâll also notice differences in tax payments, what information thatâs required from buyers, and more. The agent shall take responsibility jointly with the seller to comply with local regulations and provide the best quality and services possible, Packages are randomly checked by the customs, You donât need to stock the products in China, No taxes if the value is less than RMB 50, No tariffs when shipping products for storage in Hong Kong, Easy and fast to register a Hong Kong company, A good way to test the Mainland China market for your products, Generally more expensive pick & pack fees and storage costs, Goods can be held up in customs (and are subject to changes), Chinese consumers are subject to an annual quota of duty-free cross-border retail imports, Pre-declared goods, quicker to clear customs, Lower risk of orders being held (assuming full compliance), Can use local China couriers to deliver (cheaper). Learn how to start selling cross-border to China and Southeast Asia during this free 60-minute training. With at least a 20 percent off applicable to all its in-house products, it certainly has an added allure for many budget-conscious women. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. Over 20,000 Chinese cross-border e-commerce platforms are competing by joining the global markets in promoting retail sales based on the U.S. Besides, you have to register the products with local authorities and sometimes manage product testing before you can start importing the products. But Shein, a Chinese fast fashion digital retailer, has changed the whole landscape. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. Part of Alibaba Group, Tmall Global is Chinaâs largest cross-border B2C online marketplace, and allows brands and retailers without operations in China to build virtual storefronts and ship products into China from their home countries. Starting in the early 2000s, more and more Chinese people started to study, work and travel abroad. Required fields are marked *. WeChat is the biggest chat application in China with more than 1 billion users. According to the China Statistical Report on Internet Development, the number of Chinese customers buying foreign products through cross-border e-commerce reached 130 million in 2020 . They also said that they plan an annual growth of 30 percent in the next few years with more than 58 million consumers buying via cross-border e-commerce. Compared to Tmall Global and JD Worldwide, itâs generally cheaper to start selling on WeChat and it can be suitable if you want to try out the Chinese eCommerce market. Like other similar platforms that have swept through the region, Shopee is expected to see an enormous sales boost this year. The total product value must not exceed 1000 RMB for 6 products, but need to check on the restrictions and prohibitions terms of import in China (cf. Less known to the 1.4-billion population is that the Double-11 (Singles' Day) shopping extravaganza is also gaining remarkable steam in other parts of the world, and that is both the result of and testament to Chinese online retailers going global. Due to the COVID-19 pandemic, the enforcement of social distancing, lockdowns and other measures has driven up the demand for online shopping in China. to China & Southeast Asia. The Chinese ministry of commerce announced that cross-border e-commerce reached 6.5 trillion yuan in 2016. Cross-border e-commerce has its roots in the interest of Chinese people for products from outside China. Dubbing the festival as Shein Black Friday, the womenswear retailer is poised to seep the holiday through the consciousness of many more online shoppers. This is due to a host of more shopping destinations offered by region-wide platforms that have either localized the festival or imported it from China. The shipping company that manages last-mile deliveries will pass on this cost to the online seller/merchant. First, your goods have to be transported by a bonded truck which requires extra fees and a minimum truckload each time. 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. How cross-border e-commerce is internationalizing Double-11. 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 â¦ Itâs not strange, as customers request short delivery times at the same time as logistics costs can eliminate much of your profits. First, the scale of cross-border e-commerce transactions continues to expand, accounting for an increasing proportion of China import and export trade. Itâs equivalent to WhatsApp, but over the years itâs evolved into something bigger. As consumer complaints and industry speculation over unfair competition increase, regulatory authorities have taken notice. Second, the focus is mainly on exports, which is expected to continue the rapid development trend. Tmall Global (tmall.hk) is solely dedicated to cross-border sales which means that you ship the products directly to end customers from a China bonded warehouse or fulfillment center. Copied. All of this serves to reduce the trial-anâ¦ Beijing ICP prepared NO.16065310-3, How cross-border e-commerce is internationalizing Double-11. We get many questions related to shipping and fulfillment when selling in China. The cross-border e-commerce (CBEC) market is hot and competitive in China. Even if Kaola offers the opportunity for companies to set up flagship stores, itâs not the main service of the company. 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. Kaola was launched by NetEase in 2015 with a purpose to increase imports from Australia, thereby its name. Today, there are more than 26,000 brands from 84 countries and regions across 5300 categories on Tmall Global. The social media assets the company has built over the years are all in one place promoting its biggest sales event, with influencers sending Double 11 posts and followers waiting anxiously to see how much discount they can get. In short, cross-border channels were introduced to make the Chinese market access easier for foreign brands. Export2Asia.com has been quoted or mentioned in, Export2Asia was an incredible resource as we looked to expand our merchandise sales overseas, Export2Asia provided us with a understanding on how to undertake our expansion in China, Export2Asia Business package is worth every Dollar, Free Webinar: How to Sell Online And for the new AliExpress members, the colossal annual event is considered as the main entry point through which they make their debut. For Southeast Asian shoppers, the Double 11 sales event rings much more familiarity than those from other parts of the world. This will inevitably change in the coming years as the Chinese appetite for high-quality foreign products grows and thanks to new regulations. It will break down the limit of location for some businesses that is only attracting a small and local audience. /Reuters, "They have great prices, and the quality of the clothing seems to be getting better too," said Green, who is also an influencer and a die-hard fan of Shein. Cross-border e-commerce is growing in popularity in China. On Twitter, what seems to be resonating among the fashion-seeking women is the irresistible urge to add their favorites to the Shein chart, with rhetorical tweets such as "I need to delete the app before November 11" and "someone please stop me from shopping on Double-11" reflecting just how addictive this Shein promotion could be. Chinese companies look to ride a new cross-border e-commerce wave driven by the coronavirus ... "There is a trend towards more direct shipping out of China through digital cross-border â¦ Statista Dossier about cross-border e-commerce in China This dossier presents graphs and information about the cross-border e-commerce, which is a subcategory of e-commerce in China. The platform is dedicated to cross-border sellers and established brands that have products in demand in the Chinese market. At the moment, itâs the most difficult platform to enter and youâll also pay the highest setup and running fees. Since the company began expanding its merchant base last year, it has been joined by cross-border retailers who hope to reach a broader consumer base. Regulations when Selling Cross-Border in China, Cross-Border eCommerce Marketplaces in China, The Cross-border E-commerce Retail Imports Regulation (“The Circular”), The Notice of Improving the Tax Policy of Cross-border E-commerce Retail Imports Regulation (“The Notice”), The Goods List of Cross-border E-commerce Retail Imports Regulation (“Goods List”), The products must be included in the âGoods Listâ, for personal use, and fulfill the conditions for the application of the relevant tax policy, The customs must be able to cross-check the transactional, payment, or logistics electronic information for products sold through cross-border eCommerce platforms, Cross-border express delivery or postal services must provide the transactional, payment and other electronic information of the products to the customs when needed, Foreign companies must have a responsible agent that has an entity registered in China. What's also fueling these companies' confidence is the rapid growth of Southeast Asians' awareness toward the shopping festival. It was very funny actually â well, of course, it was interesting, very stressful, but thinking back at the beginning, especially cross-border e-commerce in China, or even e-commerce in China, the campaigns they were so stressful, when a lot of manual work that we had to do and the system â like the marketplace system would freeze for a couple of minutes and you would not be able to buy the â¦ The double-digit increase in cross-border B2C e-commerce from Chinese consumers could generate a consistent demand for European goods. Cross-border e-commerce (CBEC) â activities of purchasing or selling products via online shopping across national borders â is gaining momentum in China. Ymatou was founded in 2009, it is a cross-border e-commerce platform for C2C and B2C products. This is set to increase significantly in the coming years. Other benefits include: That said, there are some cons of using this model as well. One of the obvious advantages of selling on the website is that they can manage the imports and fulfillment of your products. Below Iâve made a summary of both the pros and cons when using a Hong Kong-based fulfillment center compared to a bonded warehouse in China: Your third option is to use a bonded warehouse in one of Chinaâs Free Trade Zones. Asia has the fastest-growing eCommerce market in the world and where China leads the pack. As Iâve mentioned in separate articles, Tmall Global caters to more female buyers than JD Worldwide which is also big on electronics. China has faced issues with counterfeit goods and quality issues. FedEx websiteâ¦ The website declares recording at least 10,000 orders every day and having more than a million users. Founded in Singapore less than six years ago, the company has adopted the Double 11 concept since its first year and extended its reach to Malaysia, Thailand, Indonesia, Vietnam and others. It doesnât require an import permit, but products may be subject to tax up to 15/30/60% according to your product. Asyou can imagine, thatâs a significant reduction in red tape. It has taken the Chinese-originated festival abroad and shoppers from all over the world are capitalizing on the day to binge buy heavily discounted products. transcosmos China wins 5-star rating from "Kaola Global," Alibaba Group's cross-border e-commerce platform. The logo of Alibaba Group is seen during Alibaba Group's Double-11 (Singles' Day) global shopping festival at the company's headquarters in Hangzhou, Zhejiang Province, China, November 10, 2019. To export your products in China, youâll get 3 different choices. 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