Having covered the basics of cross-border e-commerce and China and the regulations in place, we will now go through the steps a brand needs to consider when starting with CREC in China and share some tips and tricks.
Here are some questions you should answer when thinking of doing cross-border e-commerce in China:
Can I ship my product to China?
The first thing you would need to know before deciding to start selling in China is whether your product is part of the positive list for CBEC purchases. Since January 2019, 63 new items categories were added to the list, including sparkling wine, beer, health care products, and fitness equipment.
What do Chinese consumers want?
Chinese consumers are quite different than any other consumer, so you would have to make sure your product will meet their needs and can be customized according to their needs if necessary. Make sure to work on a relevant target audience in terms of demographics, location, income, etc.
Is cross-border e-commerce a long-term solution for my brand in China?
For some brands entering the Chinese market through cross-border e-commerce can be just a starting point with the purpose of testing the market or a new product. Then the brand can switch to general trade if they would like to have a presence in physical stores. For other brands, however, general trade regulations can be too lengthy, and they could benefit more from cross-border e-commerce.
What costs should I include in my budget for cross-border e-commerce?
When It comes to cross-border e-commerce the following expenses should be taken into account:
- Creation and maintenance of internet platforms
- Design, update, and optimization
- Generating traffic
- Warehouse management system and warehouse for storing products
- Transportation management system and shipping
- Marketing campaigns
- Staff In charge of all processes
Do I need a local partner for cross-border e-commerce?
Tmall and JD, some of the largest marketplaces in China, do require international brands to work with a local partner (so-called TP agency) to set up and operate their stores since there are many rules and guidelines that must be complied with to ensure a positive customer experience.
How can BrandHouse help you?
BrandHouse is a cross-border parcel delivery business facilitating cross-border sales to China on behalf of FMCG brand owners. BrandHouse has a proprietary and robust multi-channel e-commerce infrastructure to provide a complete end-to-end solution including cross-border logistics, technical integration, and customer service. Our local China organization has vast knowledge and experience in the Chinese consumer market. We provide a customized go-to-market strategy for foreign businesses to start or expand their cross-border e-commerce in China. If you would like to learn more about how to enter or expand your business on the Chinese market, feel free to contact us at email@example.com