The internet has changed the business world
In is happening daily all over the world
Like the printing press over 650 years go
The printing press enable commutations to towns and cities. The internet enables commutations world wide.
Many buiness are not see the changes
Is your internet present support your trading or point in which you start trading?
The race is on world-wide to control and profit from internet explanation.
Given the indepenant deveopment of the internet in China there are two countries running the internet: USA and China
The internet is merging markets world-wide.
With a little time and knowlodge you can see the opportunity
Your local market in now available internationality
You no longer need to leave your office to trade overside your local market.

Want to grow your business in Chinese market?

The Chinese market is not just trading in China and in the past.

Your local market now has access to Chinese market.

This is due to;

  • Chinese international trading over the internet,
  • Chinese delegations traveling world-wide for trade and education,
  • Chinese people on holiday exporting the world and returning to China with gifts of expletive banded products,

You on longer need to visit China to trade with China.

If you are serious about China, you need to be visible on the Internet in China!

Most overseas websites cannot be seen in China. It is a straight forward process to correct this using Access to China products and services.

We have a unique understanding of the practical and legal web issues, restrictions and requirements in China and how to help companies have optimum web visibility there. We have over 16 years’ experience serving international companies working in China.

Our company was founded to help business be seen in China on the internet and to give software companies access to the Chinese market.

This year we see the start of our own Cloud Hosting Services in China. We believe this is a first for an overseas company in China.

Our knowledge and advice is free. Our Chinese platforms is available when you want to make a start in the Chinese market.

For your consideration

In working with businesses in North America, Asia and Europe I feel the importance of the internet has been lost on many companies trading locally and world-wide trading.

The internet is often seen as something your business needs a presence on and not the main point in which to start trading. Maybe we saw it as something that was important in the 90’s but we have move on, that was yesterday idea!

This is not the case; the birth of the internet was as important as the birth of the printing press. Like the printing press, the internet is finding different uses very quickly given that the internet, like the printing press, enables faster commutation of information. If the printing press gave access to towns and cities., the internet gives us access to the world.   

There has been a world-wide change in the use of the internet which has been developing over the last 10 years.

The USA has leads the way, “if you are not online you not trading”. This is followed by China, not Europe, with number of users over 800 million and growing. The developing markets of Africa and South America will follow soon.

There has been a growing and changing use of the internet driven by the youth of the world over. 20 years ago, TV, books, newspapers were the main sources of information. Today the growing demands for information, educations and purchases is supplied by the internet.

There is now a generation which grew up with the internet and is working in business. They are changing the way in which we trade locally and international. This change is so great that your local market now has direct access to the international market.

This change is not a “Big Bang” but the changes are happening daily and are often missed by business.

Based on our company extensive knowledge we suggest the following key issues need to be considered;

  • Be seen on the internet world-wide. What services on the internet have been developed recently? Can new services help to grow your business or are they going to take control away from your business?
  • The amount of information being collected has given birth to the term “Big Data”. How can you put this information to use for our business?
  • With each passing generation the world-wide knowledge grows. The world-wide demand for education and training is growing fast along with the growing populations. Is your business seen as a source for information?
  • The world-wide control of distribution channels. The use of the internet enables people to access products and services faster. New big businesses are keen to manage and control access to products and services. Do these new businesses create new business opportunities or effect your current trading?

Web page last modified: May 2018

 

 

Business to Consumer (B2C)

B2C

 The internet has allowed the development of the Business to Consumer market in China.

Historical: before the internet

In the past most of the consumer products were purchased at local department store. The local stores selling consumer products had a very limited range and not part of a chain of stores.

Store Chains do exist in China but limited to large cities and shopping malls. Chain stores in the past, Chinese or oversea, have not always been welcome by local retails and consumers as local retails can be forced out of the market by the chain store. Local retail can create pressure and forced the chain store to close!

Given the lack of chain stores purchasing power and local competitor’s most Chinese made product where available outside China a cheaper price.

Overseas goods were sold in licensed overseas stores at greatly marked up prices.

Historical: the development B2C internet trading

The consumer market changed greatly with start of the local e-Mall department stores.

Before China had access to local websites the overseas e-Malls have always been available. Some of them where accessible from China, not because they were blocked, just they too slow or not accessible at all.

The other key issue was door to door delivery. The international delivery was costly and returning the goods was too exceptive.

One of the first local e-Malls was Amazon China, a local Chinese JV between China Company and international company Amazon.

This was followed by Taobao, created by Alibaba.

Taobao was a greater success;

  • Market penetration – Alibaba had access to most the suppliers on the internet
  • They resolve the end to end processing issues;
    • Payment processing, Alipay
    • Delivery systems
    • Returns processing
    • Social Media - Weibo
  • They welcome Chinese made products at the low prices and accessible to all.

Later Tmall (Alibaba) was added for “up market” products and Tmall Global for overseas companies

360Buy, which now know JDBuy, is the major competitor to Alibaba e-Malls.

The advantage JDBuy has over Alibaba is there trading / commercial relationship to WeChat (Tencent). We except given this relationship JDBuy market share will grow greatly in the next few years (see BATs for more information).

Amazon China has a very low percentage of the Chinese market. They lost their market share to Taobao had a created end to end solution and there greater marketing reach.

A summary of the rules and regulations

  • Sell on-line on a Chinese hosted website requires certification which only available to a Chinese business
  • Any product sold on Chinese website is subject to Chinese rules and regulations
  • Products sold on website outside China to a Chinese consumer are not subject to Chinese rules and regulations
  • Products imported to China are subject to duty and taxes
  • B2C purchased from overseas website are not subject to Chinese product certification rules (i.e. overseas cosmetic products sold directly to a consumer do not require Chinese product certification)

Today’s e-Mall market

The good news today is all these e-Mall department stores help the suppliers to trade end to end; selling, payment, importing, shipping, taxes, etc.

These services come at higher cost then trading on Amazon or eBay outside China.

Many Chinese business feel that trading in the e-Malls is very expensive and that only the e-Malls make a high profit.

There are many problems in these e-Malls with counterfeit products been sold (or copy products as they are called in China).

The biggest trading day on-line in China is 11 November: Bachelor's Day.

Overseas companies B2C trading

Many overseas businesses look at their products been sold in at higher price thinking that are high margins to be made in China. The prices often include;

  • International shipping costs
  • The local shipping costs
  • Custom fees
  • Import taxes
  • Sales taxes

i.e. what you see often on the internet in China is the net price for end consumer.

There is a very large consumer market in China.

First you must own your band in China. If you do own your brand registration in China you can take control of who can sell your products on-line from a Chinese website. This is something which general not available in the rest of the world!

After taking control your company’s band in China you start work reducing the distribution costs, e.g. shipping in bulk, creating a Chinese company and reducing transaction fees.

Transaction fee are often higher for overseas companies

  • E-Mall membership fees
  • Deposits
  • Transaction fee
  • Payment fees

If you have the business case, make sure you have, if your oversea company name, brand ownership in China and Chinese product certification (as required)

The good news you can start your business case today without travelling to China. Just start searching the Chinese e-Malls for your products / like products and see if there is a market for your business in China.