In China, the Ecommerce is booming, while the cake is not prepared for everybody. On one side, some platforms get the biggest share, and they show up on media frequently talking about how they get succeeded; on the other hand, another group of people are calculating how much they have burnt in ecommerce and get themselves packed up and leave with an unrealized dream left.
That’s the real world ecommerce beginner in China should know, who are facing both challenges and opportunities. In this wave of ecommerce, what trends you need to know?
1- Taobao VS Own Ecommerce
The selection of the platform is a strategic decision to make. It’s the first important decision to make. Before that, you will need to make it clear that do you want fast and considerable sales at low prices on Taobao or do you want a stable promotion of your brand awareness and image, with hard control on your price? What are the Strategy of Brands to balance short-term gains on market place (taobao, jingdong… ) or long-term ecommerce strategy with your own platforms.
“If your brand is not incompatible with Tmall, the best way to go is to use two complementary online approaches: your e-commerce website and a Tmall store. Starting with a Tmall store first is a good approach, since it will allows you to gain in terms of e-marketing knowledge in a Chinese environment, so you will better know what kind of functionalities you need to implement into your own e-commerce website. On top of this you can create an e-commerce website that will engage your (potential) customers through social commerce, mature merchandising and a multi-channel approach.”(Source: BlueCom)
2- Increase of the cost of the visitor
To cost for acquisition of traffic in China is increasing with the competitors flooding in main fields. Chinese companies are very agressive, Foreign Brands want to get strategic position and it increase the cost of SEM : PPC on Baidu, price on display on website, or ads on platforms…
Most of the Brands, and websites try to attract as many visitors as possible without considering the cost per customer.
=> Result the cost of the unique Visitor increase
3- What is the good strategy to get traffics ?
SEO ? Most of the companies do not really know what is SEO, and prefer pay for fast result than wait for SEO results.
Content: Create good content on your own platforms or via Blogs, online website can be a good way to attract quality traffics.
Enhance content like a good product description which is the key for optimizing natural search Engine.
Baidu continues to enhence its leading position, but other search Engine like 360, Soso or sogou are also increasing their market share rapidly and already become alternative solution besides SEM.
And never never never forget mobile channel where most webpages are viewed, especially for the post 90 generation(in China, post 90s is the main purchasing power who get the easy money from their parents and spend it without limit).
4- Brand loyalty
Most of websites have to use strategies to increase the loyalty of your customers of your brand, and push them to buy it again.
You can give a prediction in China that 10-20% of buyers can come back to you and buy on your online store again, if they are satisfate of the product and services.
Social Media , Weibo & Wechat are playing important roles in strengthening your brand image in your customers’ minds.
Email marketing might be interesting for some part of the society.
Enhancing CRM through optimized communication channels is a key factors of success in this step of development…
5- Low conversion rate although high traffic!
Most Ecommerce managers that I have met explain me that they are facing the same situation, big traffic, but low conversion rate, especially after they use local agencies.
Most local agencies push to attract as many visitors as possible but do not really care about the quality. (Some agency even use Fake traffic,Yes in China it is possible , fake IP, Fake View , but no sale)
Solution for that is to analyze your data, and understand where come your visitors, and your sales.
- It is better to optimize your SEM campaign (if you have this problem)
- And target other keywords on SEO
- You may also have a problem of content, products , price policy, or technical problem… (customers can not purchase what they want)
- The Trustrank of the website by user is a possible reason for that
- Change your agency .. if you use one. If you do everything by yourself
If you have a lower conversation rate , should have a reason to make change immediately, right?
Conversion optimisation is generally a big challenge for the ecommerce Managers.
6- Use other platforms
China has a lot of platforms for online sales. Taobao Tmall yes, but also Jingdong, Suning, 1haodian, Amazon, VIP shop.
Website JD.com focused on Home appliance and electronic product.
For every sectors you can find specific websites, that can offer to sell your products. It is a trend to be everywhere for most of Brands to maximilize your visibility and chance to sell.
7-Introduction of your product
In China on Taobao, Chinese online Buyers get used to have as much information as possible in the product description such as :
- Products description
- Story telling
- 5-10 pictures of the product
- User experiences/comments
Personalisation is a key to increase your performance.
8- Co Branding
Co Branding and partnerships develop very fast in China. With one product, you add another one to get a special package.
It is a trends online to offer to the user large choice of products, and specially for Gifts.
“Chocolate with Wine” , “Perfums and Skin care product”
Offline to online is a strategy used by most of the Big website in China to get new customers and increase their branding.
1haoDian, jingdong, moonbasa, VanCl… They all have choose offline communication to sensibilize the consumers.
Example : VANCL Ads
10 – Improving the Sales Team Efficienty
Ecommerce is like retail in China, Consumer are get used to answer to the question of eshoppers, and good salers can transform leads, prospect easily into Customers.
Chinese eshops will use QQ, Wangwang(chat de Taobao) etc, to communicate with customers.
The Trends is to build you own sales team to be better, and to give service to your customers.
Most ecommerce (local) teams have a marketing background, but it is insufficient to drive Sales, to increase traffic, to corporate with dealers, platforms….
Source: Marketing China