Furthermore, this law marks the first time the Chinese government has endorsed the model of cross-border e-commerce, which has opened up many opportunities for foreign firms wanting to sell their good in China. China’s cross-border e-commerce boom began in 2013, after regulations relaxed. This means on average, around 10 overseas brands entered the Chinese market for the first time every day through T-mall international. A warehouse needs to be rented, and stockpiling goods requires certain capital strength. Looking back at the rise and development of cross-border e-commerce, several important time nodes can be pointed out: Cross-border e-commerce has its roots in the interest of Chinese people for products from outside China. 3. During the past years, 1421 Consulting group has already created many articles about e-commerce in China. Since 2014, customs has regularly introduced new trade supervision methods, exploring innovative ways to help the industry develop in a well-regulated and systematic way. While cross border e-commerce (CBEC) is an attractive channel for foreign businesses to sell to China, misunderstandings over how CBEC in China works frequently end in costly disappointments and retreats from the market. For instance, as for the general trade in cosmetics, the approval process can take anywhere from 3 to 12 months. 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 … Entering the Chinese market through cross-border e-commerce can save companies many costs, and save them from the headache of product registration and licensing. It also lowers thecost of doing business in China. History of the Future: how China takes over world e-commerce? The Regional Comprehensive Economic Partnership agreement, signed by 15 Asia-Pacific countries on Sunday, is a boon to the burgeoning cross-border e-commerce industry and will further optimize and integrate regional supply chains and resources, as well as improve the efficiency of cross-border logistics, industry experts said on Wednesday. Registration. 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. This also confirms the needs of Chinese consumers on foreign products. Later on around 2007, with international banking, social media, and online shopping becoming increasingly easy and popular, the sales “Daigou” became more direct and clustered. France – The fastest growing e-commerce segment in France is cross-border purchases. The market of cross-border e-commerce  in China is very unbalanced, with large enterprises such as T-mall international, Kaola, JD Worldwide accounting for around 90% of the market share. Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. Contract renewal after one year to the then valid regular price. These companies would have to import their products from abroad, which requires an import/export license, before they can sell via the domestic eCommerce channels. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Cross-border e-commerce is growing in popularity in China.The growth rate of China’s cross-border e-commerce has been higher than the total amount of imports and exports in spite of the slowdown of global trade, which means that the penetration of cross-border e-commerce in import and export trade has been very high.. All of this serves to reduce the trial-an… According to T-mall international, in the past five years from 2015 to 2019, T-mall international introduced over 23,000 overseas brands from 80 countries and regions into the Chinese market. Unsurprisingly, since 2014, cross-border e-commerce in China has exploded and entered a rapid growth phase. The term of Cross-border e-commerce did not really exist until 2014. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. Consumers can experience cross-border e-commerce retail services here. Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. For instance, as for the general trade in cosmetics, the approval process can take anywhere from 3 to 12 months. China E-commerce Market Trends that Foreign Companies Should Know. Cross-Border E-Commerce consumers in China (2014 - 2020) 2 113 billion RMB approximately equals 14,5 billion euros with the average exchange rate of July 2019. Or any other constraints to cross border E-Commerce for that matter. New, Everything you need to know about the industry development, Find studies from all around the internet. 37 cities (up from 15) are now included in the cross-border tax rebate. With this approach companies ship their products in bulk to China, and store them in bonded warehouses until they are ordered. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook However, health care products brought into China through cross-border e-commerce are exempt . Golden Week, China’s national holiday that spanned Oct. 1 to 8 this year, prompted a surge in domestic spending which drove a robust rebound in consumption as pandemic effects begin to recede. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. During the past years, she has participated in various programs both in China and abroad, which shaped her to be a strong supporter of cross-cultural exchange. The China cross border e-commerce market is expected to grow significantly. Something we have not discussed before is cross-border e-commerce. Consumer electronics e-commerce in the United States, Holiday season e-commerce in the United States, Ecuador: domestic and cross-border e-commerce sales 2017-2019, Market share of cross-border e-commerce Indonesia 2020, by country, Market share of cross-border e-commerce Malaysia 2020, by country. This type of e-commerce details how foreign companies operate in China through opening digital stores on Chinese e-commerce platforms. Cross-border e-commerce lowers the threshold to enter global markets and raises brand awareness while enabling access to international consumers. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Number of online shoppers in China 2009-2020, Transaction volume of China's cross-border e-commerce players 2011-2019, Penetration rate of cross-border e-commerce in China 2014-2019, China's cross-border e-commerce GMV growth 2014-2019, Total amount of cross-border e-commerce retail in China 2015-2019, Number of cross-border e-commerce companies in China 2019, by type, Import cross-border B2C e-commerce platforms' market share in China Q3 2020, Trade volume of China's import cross-border e-commerce players 2012-2019, Cross-border import e-commerce trade growth in China 2013-2019, User number of cross-border import e-commerce trade in China 2013-2019, Cross-border e-commerce retail imports market size in China 2016-2022, Market share of China's export cross-border e-commerce players 2011-2019, Trade volume of China's export cross-border e-commerce players 2011-2019, Retail export value of cross-border e-commerce players in China 2017-2019, Cross-border export e-commerce trade growth in China 2014-2019, Number of cross-border online shoppers in China 2016-2020, MAU number of major cross-border e-commerce platforms in China 2020, by platform, Distribution of Kaola.com users in China 2020, by gender, Distribution of Kaola.com users in China 2020, by age group, Trust level in cross-border e-commerce platforms in China 2019, Reasons why Chinese consumers want to try cross-border e-commerce retail outlets 2019. and over 1 Mio. MAU number of major cross-border e-commerce platforms in China 2020, by platform. 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. facts. Currently, there are more than a dozen different Cross-Border e-commerce platforms in China covering every product category. Since the products are already located in China when they are ordered, it takes less time for them to reach the customer. China is a key market for cross-border e-commerce as it transitions to a consumption economy fueled by growing middle class. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. To name a few that are familiar to the Chinese consumers: Tmall Global , Kaola.com , Suning Global , Onion OMALL , JD Worldwide and VIP International . In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC. Qian is originally from Sichuan province. Establish Flawless Online Reputation. The entry cost for different e-commerce platforms, the collaboration with a Chinese operation agent, and the approach to marketing are all the important points to consider. Going forward, cross-border e-commerce will become an important growth point for foreign trade in China, which has a broad market, with competitive barriers being relaxed. The payment system of the store is directly connected to the customs clearance system and the Shanghai cross-border public service platform, and consumers can pick up the goods on the spot after waiting for the completion of customs inspection and customs clearance. Chinese customers can search for information about foreign goods on these platforms, and place purchase request. There are the latest updates: These are listed below. Although the bonded warehouse approach is the most favored approach, it is not applicable to every cross-border e-commerce enterprises. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. According to the CFDA (the China Food and Drug Administration) , cross-border e-commerce brands that sell food are even allowed to open offline display (experience) stores. With her relevant academic and hands-on experiences, she has been actively involved in consulting and corporate service projects for 1421 Consulting Group as junior consultant since March 2019. Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. Find here China Paradigm episode 101.We interviewed Dr. Renata Thiébaut, one of the few experts in cross-border e-commerce in China as well as the head of business intelligence of an agency providing e-commerce operations in China.Read on to learn more about how the Alibaba Tmall partner agency helps foreign brands tackle the Chinese market. Starting in the early 2000s, more and more Chinese people started to study, work and travel abroad.