The State Of E-Commerce In China

Jun 01, 2023

E-commerce has become an increasingly essential component of everyday life in China. Customers are now influenced and motivated by a sophisticated social media ecosystem to make purchases from various e-commerce platforms on a regular basis. The level of service provided has reached exceptional levels of efficiency and speed: products are delivered to their homes, offices, hotels, and even trains on the same day. Additionally, convenient pickup cabinets are strategically placed throughout the city for hassle-free collection.

·       Having stock in the country and the right logistics partner is key, as consumers are not willing to wait for deliveries

·       Return rates are extremely high, with some categories such as fashion can go up to 60%

·       Little red book, initially popular for cosmetics promotion, has now grown to become the leading peer-to-peer multimedia platform for all categories (from fashion to traveling, education, and parenting).

·       Consumers are less keen to read and prefer short videos. They buy during live-streaming sessions where they can ask questions in real-time and interact with KOLs

·       Consumers continue loving international products with a Chinese accent, such as collaborations with local brands and limited editions

·       Everything is paid via apps. Cash became obsolete in favour of mobile payments

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