How Cross Border eCommerce is a New Opportunity for Businesses in China?
Chinese businesses are facing immense resistance from all over the world. Especially many countries are looking to prepare their alternatives for manufacturing or countries that can produce quality compared to China. They are now stringently cutting down the imports from this country.
What is Cross Border eCommerce?
Cross Border eCommerce involves the import and export of either B2B or B2C products across borders through e-commerce methods. The trend of China Cross Border eCommerce is increasingly seen in the recent past from around 2016. And now the corona pandemic and USA-China fight have just boosted it.
What are consumers buying on CBEC?
China is not just a top manufacturer; it is a top buyer too. Chinese consumers are more increasingly purchasing from foreign countries. This looks to have two reasons behind:
• The Chinese earning power has boosted and they are ready to shell on costlier products and believe that foreign brands are more quality-oriented compared to the natively manufactured ones.
• Secondly, the Chinese have been fed up with various scams in their own country which have occurred in the fields of manufacturing of products related to cosmetics, baby foods, and products. Thus, the average Chinese customer’s look now has shifted to foreign products.
Besides, as per the rules of CBEC foreign retailers and manufacturers have to disclose all the specifications and ingredients used in the making of a product. This is what driving trust in Chinese consumers to buy foreign products with confidence.
Now, are only imports gained momentum through China Cross Border eCommerce?
Not really.
Exports through China Cross Border eCommerce
China has revamped its CBEC strategy by adding new pilot zones for the same. Besides, it also expanded its list of products for cross-border eCommerce thus boosting this sector more. This means, the country has now fully understood the power of CBEC and is all geared up to exploit it to the fullest.
Why?
The corona pandemic has hit retailers as much as consumers. Besides, market watchers opine that it may take many months or not surprisingly years too for brick and mortar shops to get back their previous sheen. On the other hand, it is e-commerce that is witnessing a rising trend.
Both the Chinese as well as the global customers are now keen on purchasing via online trade from China. Notably, US customers are ready to purchase good quality products from China via cross border commerce. This trend will increase as per the experts, in the next five years.
Cross Border eCommerce – An opportunity
China is planning to give its retail and small businesses a boost by adding more pilot zones for cross-border e-Commerce. As a part of this, it is looking at cross border logistics, billing, and payment processes, and supply chain methodologies. The country is confident that this will boost its small and medium-sized companies and encourage more entrepreneurs in the coming times.
The Ministries here are especially focusing on methods to boos their exports through CBEC. They are planning to include more and more products into the CBEC eligibility kitty that can provide a higher profit margin when exported through e-commerce.
What is the future?
China has taken to cross border eCommerce as part of the revamping strategy of its manufacturing and retail business. This has further widened the products that are eligible to reach global customers from its mainland.
This trend is now adding more energy to China-based e-commerce websites such as Kaola.com, T-mall Cross Border, Xiahongshu, Yangmatou, We Chat store and many others.
The shopping trends via these portals reveal interesting statistics. Most shoppers who prefer cross border e-commerce products are male in the age group of 30 years. This is proof that the Chinese are now able to spend more on their lifestyle and are ready to shell out more dollars to provide quality products to themselves and their families.
Conclusion
The trend of China Cross Border eCommerce is here to stay and rise. It is the time for business expansion in China and focuses on attaining the attention of global customers through cross border eCommerce. Also, the country’s eCommerce policies are just boosting the spirits of enthusiast cross border traders, which means this is like a time now or never for business expansion through cross border e-commerce in China.