Your target lives mostly in big cities such as; Shanghai, Beijing, Hangzhou, Guangzhou, and Shenzhen. Tmall has recently launched its Tmall Oversea fulfillment specially targeting small and mi-size brand with low awareness in China and small budget. As we mentioned above, retail imported goods have to be on the “List of Goods under Cross-border E-commerce Retail Importation”. Tmall is the most important platform in China, but it’s also reserved for the most successful players. With... Having suffered through the worst of the COVID-19 outbreak in the initial months of the year, China now offers... China has faced a deluge of international criticism over its treatment of foreign businesses and the perceived... Dezan Shira & Associates helps Cross-border e-commerce in China E-commerce worldwide E-Commerce in China Imports to China Alibaba Group Statista Accounts: Access All Statistics. Today, Chinese consumers want to know what they purchase. Le Cross border e-commerce est simplement l’importation de bien venant de vendeurs de pays étrangers. For example, Hangzhou is the city where Hangzhou CBEC Pilot Zone was established. We are passionate about marketing in the aptly named ‘mysterious orient’. Time to get yourself a slice of that pie, we say! For a single transaction exceeding a certain limit – RMB 1,000 (US$141.3) for mailed item from abroad or RMB 800 (US$113) for items from Hong Kong, Macao, or Taiwan, goods must be cleared and subject to general import taxes (Tariff, VAT, and CT), or they will be returned. (counterfeiting, dangerous goods, food scandals…). DIGITAL SOLUTIONS: Website creation, development and audit; social media marketing (including WeChat & Weibo); PR; monthly reports and analyzes by our team of experts. MAU number of major cross-border e-commerce platforms in China 2020, by platform. 8 Platforms to Promote Your Business In China (update 2020). Our subscription service offers regular regulatory updates, JD Worldwide, part of JD.com. On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. China’s National People’s Congress is currently reviewing the draft E-commerce Law, which includes a special chapter on cross-border e-commerce. The two most popular overseas goods are cosmetics and baby products (Baby formula for instance). Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. Retailers would be allowed to continue their activities but a new tax on imported products was created. Finally, the evaluation of the results will be important to guide us in the next stages of your development. As a prerequisite condition, these pilot cities usually own free trade zones (FTZs), comprehensive bonded zones (zones), and act as logistics hubs with trading partner countries. Brand Case Study: Pixi. Required fields are marked *. Domestic products are often considered to be inferior to foreign products. Please contact the firm for assistance in China at china@dezshira.com. China is a rapidly growing consumer market with more companies throughout the world looking for ways to develop their marketing, branding and communication that is relevant to Chinese consumers. Let’s schedule a call so we can talk strategy more in-depth and see what would work for your handbag & purse brand , Your email address will not be published. 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. GMA analyze Marketing trends and give to professionals the best Tips to succeed in China, with a focus on fast-moving Digital World. Chinese consumers are more and more informed. It is more commercial. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. Toothpaste in China : a $4.8 billion Market, Search Engines Market Share in China 2020. 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). CBEC retail imports are regulated as items imported for personal use and can’t be re-sold. The product will need to go through the customs clearance process to be released to the consumer. Meanwhile, the number of end users in China engaging in cross-border transactions. Les réglementations sont spécifiques à chaque pays. Besides, the regulation of the cross-border goods is stricter and retailers have to inform the consumer about all the characteristics of the products they sell. The 5 th Global Cross-border E-commerce Summit, under the framework “New Tides in Qiantang River, Digital Trends along the Silk Road”, was held on November 24 and 25 in … These are stores hosted within this app that is linked to an official account. Marketing to China is a website created by Gentlemen Marketing Agency designed to provide fresh insights and a deeper understanding of the Chinese market. Under certain single and annual transaction limits, retail imported goods on the ‘CBEC positive list’ are deemed as duty-free, and the import VAT and consumption tax (CT) are temporarily levied based on 70 percent of the statutory tax payable. Besides, payment is made extremely convenient and fast to encourage impulse purchase. Yangmatou offers a big range of goods on its site but it is focused primarily on the most popular categories:  baby products, beauty products, nutrition products, clothes, shoes, and handbags. China is not a country for Cheap Company . “What is Peppa?” : The perfect marketing campaign? Since April 2019, the parcel tax has been reduced to 13 percent, 20 percent, or 50 percent, depending on the type of goods and can be exempted if the tax is less than RMB 50 (US$7.07). E-commerce in China has become part of Chinese consumers daily life. We are the top and most visible Web & Marketing Agency for China you will find on the web. CIT will be assessed and levied with a taxable income rate of 4 percent, namely: Further, if the enterprise meets the conditions of preferential policies for a small low-profit enterprise, the enterprise can enjoy the applicable preferential CIT policies for small low-profit enterprises on top of the aforementioned treatments. 2. E-commerce in China has become part of … businesses establish, maintain, They call it “six systems and two platforms” – the “six systems” refer to the information sharing system, financial service system, intelligent logistics system, e-commerce credit system, statistics monitoring system, and risk prevention and control system; the “two platforms” refer to the online integrated service platform and offline industrial park platform. Foreign investors who are looking to tap into China’s CBEC market should stay abreast of the latest developments. China, is called: cross-border e- commerce1 (CBEC) retail import. Launched in 2009, Yangmatou is The first mover in China cross-border e-commerce. As China has been putting much effort into upgrading its manufacturing infrastructure, it is seeking opportunities to export products with higher value and margins. My hand bags have a high quality and are really beautiful. Basically, a way for any brands to try out the chinese market. Growth is however starting to plateau around 17% (still quite a healthy growth rate). But the e-commerce service providers, or the logistic companies as the case maybe, will act as the withholding agent and pay tax on behalf of individual customers. What is the pilot program of CBEC retail importation? These shoppers spend an average of $473 each on cross-border purchases. First, let’s have a look at what cross border E-Commerce means practically and in terms of shipping. Hello, I would like to know which app is the best to market my purse brand from Latin america. What is the difference between China’s CBEC pilot zones and pilot cities? If you register to this service, you send your product to Alibaba oversea warehouse and tmall will take care of the rest. T h e boom in China cross-border e-commerce has been dramatic and exponential. It has led to strong share price growth of brands that have been particularly favoured by Chinese consumers. En savoir plus. The mechanism can achieve information sharing among customs, taxation, foreign exchange, and other government departments, which largely shortens the period of goods export declaration. The demands for better, safer and cheaper products grow at the same time as the purchasing power of the Chinese population. It is mainly classified into B2B and B2C. After a consumer places an order, customs clearance and delivery will be carried out immediately from the bonded warehouse. Besides the innovative system and facilitating customs clearance procedures, the government has also rolled out favorable tax policies for in-zone e-commerce export enterprises. Now the country has a total of 86 CBEC pilot cities as well as Hainan island. Please feel free to comment and share our articles ! Marketing news and analysis for CEO, Entrepreneurs, and Top Managers. They have more money and are more picky with what they buy. Your email address will not be published. For a visualization of the ecosystem, please see the image gallery below. To make it simple, it works a little like kaola. Faced with pressure from conventional retailers at home, and the loss of tax revenue, the government is now looking at … There are different platforms popular among Chinese consumers with different challenges and benefits. It is expected that China will scale-up favorable policies to support the growth of CBEC as well as roll-out further measures to regularize CBEC. In case the transaction does not happen through an e-commerce platform linked with the Chinese Customs network, the inbound and outbound courier operator or postal enterprises will undertake the corresponding legal liability – they will need to transmit the electronic information of transaction, payment, and logistics to Customs, according to the Notice on Work Relating to Improved Regulation of CBEC Retail Importation (Shang Cai Fa [2018] No.486). 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. Stay Ahead of the curve in Emerging Asia. Cross border e-commerce is defined as import and export activities of cross-border trade conducted through e-commerce methods by transaction subjects from different customs borders. In the past six years, the proportion of China’s CBEC exports in the country’s total foreign trade jumped from 2.2 percent to 11.25 percent. To Partner with us it is here. Chinese consumers often feel that products purchased via cross-border e-commerce platforms guarantee a higher level of quality and offer protection against counterfeit goods (examples include infant milk formula, cosmetic products, handbags etc). We can provide you with a location analysis and strategic site selection plan, We can help you structure your China investment, Learn more about China’s strategic advantage for traders, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), 46 new comprehensive pilot zones for CBEC, preferential policies for a small low-profit enterprise, China Revises Rules of Origin for Some Goods Under CEPA, Effective July 1, China’s 2020 New Negative Lists Signal Further Opening-Up, Dezan Shira & Associates' Service Brochure, Opportunities for Foreign Investors in China’s Service Industries After COVID-19, An Introduction to China’s Cross-Border E-Commerce Pilot Zones and Pilot Cities, In January 2020, five authorities, including the Ministry of Commerce (MOFCOM), jointly. To optimize it, your e-reputation must be irreproachable. Since January 1, 2019, the government has increased the duty-free quota on a single transaction from RMB 2,000 (US$291.6) to RMB 5,000 (US$729) and the annual quota per person from RMB 20,000 (US$2,916.2) to RMB 26,000 (US$3,791) for retail imports, according to the Notice on Improving Tax Policies for Cross-border E-commerce Retail Importation (Cai Guan Shui [2018] No.49). XiaoHongShu aka RED is a little different from the other platforms. 23 Share of products bought on cross-border e-commerce sites in China 2017-2018, by type 24 Share of online shoppers who purchase domestically and cross-border China 2018 E-commerce consumer demographics 26 Number of online shoppers in China 2008-2018 27 Penetration rate of online shopping in China 2008-2018 28 Digital buyer penetration in China 2017-2023 29 Age structure of online … Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. Pilot cities which joined the program of China’s CBEC retail importation usually overlap with CBEC pilot zones geographically. We are dedicated to helping our clients grow in the Chinese market by implementing the most effective digital strategy to offer return on investment. Ce site de e-commerce cross border travaille avec plus de 5000 marques sélectionnées dans plus de 80 pays à travers le monde. Marketing to China would like to explain Chinese Business and Marketing to the rest of the world. The aim of this website is to inform readers about the market and provide insightful analysis. In 2019, the number reached RMB 186.2 billion (US$26.25 billion), five times that of 2015, showing an average annual growth rate of 49.5 percent, according to the official data. Previous Article « China Revises Rules of Origin for Some Goods Under CEPA, Effective July 1, Next Article China’s 2020 New Negative Lists Signal Further Opening-Up ». We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative. But they are different. LEAD GENERATION: Our teams are professionals in lead generation. According to the STA Announcement on Issues Concerning the Levy upon Assessment of Income Tax on Retail Export Enterprises in CBEC Pilot Zones (STA Announcement [2019] No.36) released in 2019 and taken effect January 1, 2020, for the in-zone e-commerce export enterprises that meet certain criteria – corporate income tax (CIT) can be levied upon verification. We are a pure Digital Agency based in Shanghai. Do you want to know more about the technicalities of operating on cross border e-commerce in China? To be noted, under the CBEC retail importation program, the imported retail goods have to fall under the “List of Goods under Cross-border E-commerce Retail Importation” (2019 version), which is also dubbed a ‘CBEC positive list’, limited to personal use, and must satisfy the criteria stipulated in the tax policies for CBEC retail importation. How to start my e-commerce business in China with Small Budget? What is Tmall Oversea Fulfillment? At the beginning the platform was open only to Australian retailers, so they could sell their products in China. The 2019 version of this list, which has taken effect since January 1, 2020, contains 92 new taxable items compared with the previous version, including frozen aquatic products, alcohol, and consumer goods. It’s a very good perspective for cross-border e-commerce and many platforms are gaining in popularity. Following this growth, government announced it’s will want to close them, which had retailers were very worried. China Briefing is written and produced by Dezan Shira & Associates. The Chinese cross-border shoppers are mostly coming from the middle class. 4. They are young, around 30 years old. As one of the major platforms expanding the spillover effects of the China International Import Expo (CIIE), Hongqiao Pinhui, the Hongqiao Import Commodity Exhibition and Trading Center, provides over 5,000 kinds of products from more than 500 brands, 70 percent of which are exhibitors at the CIIE in Shanghai. Our customers choose us because of our; efficiency, pragmatic approach and innovative solutions adapted to the market. Over these limits, consumers will need to pay full general import taxes, including tariff, VAT, and CT. The products available on the website have very detailed descriptions to inform the consumer and build trust. « Bonded warehouse »:  These warehouses are warehousing facilities dedicated to storing overseas goods. People talk about brands and shop online like never before. Cross-border E-commerce in China 5 things to know about e-commerce in China: a quick guide for SMEs . Chinese Cross-Border E-commerce Overview December 6, 2018 China’s e-commerce market is the largest in the world and already represents more than 40% of the total global e-commerce spending. Lyfen, how China Snacks Leader sells online. Different from general trade, China’s CBEC retail importation program is designed to make it easier to import certain foreign goods for Chinese consumers’ personal use, in order to satisfy the growing domestic demand. The site is a mix between a social media app and an e-commerce platform. Learn how we helped Feelunique scale its e-commerce operations, starting with a China-optimized cross-border e-commerce website, mobile app, and WeChat mini-program, and later expanding to Tmall, JD.com, etc. We want to be Your Digital Guide to do Business in China. This indefinitely extends the waiver of the pre-importation registration requirements on specified categories of products, including cosmetics, infant formula, health food, and medical devices, which was originally set to expire on December 31, 2018, as long as the goods are on the ‘CBEC positive list’. Why? L'e-commerce cross-border est le pendant coté commerçant du shopping cross-border coté client. Currently, the bonded warehouse mode involves two customs supervision codes – 1210 and 1239. This app is a bit similar to Instagram with Chinese characteristic. For goods mailed into the country by individuals, the electronic information of which can’t be accessed by Customs – the parcel tax will be levied. We help companies wishing to sell on the Chinese market. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. WeChat store is the best and most effective tool. It is mainly classified into B2B and B2C. The Chinese government is trying to promote CBEC business to stabilize and promote foreign trade. All our Update & Tips about Business in China, Scan the Qr Code and get the best of on Wechat, Designed by Elegant Themes | Powered by WordPress. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. Chinese consumers purchase a lot of goods on cross-border e-commerce but, several categories are clearly more popular the others. This market will more than double by 2020. We come from different backgrounds and have different cultural views which make us the ideal international team to develop your interests in China. 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