Here we highlight 6 key festivals in 2018 on Tmall that your brands cannot miss, because they contribute to the growth of the platform, and also the merchants.
After the grand opening of Correos cross-border shop on Tmall global in June, our team did a purchase and tested the shopping experience. Here, we will share what is it like to purchase in Correos cross-border shop:
First of all, the brands sold in Correos shop are mainly famous local Spanish brands and have not registered in China yet. Therefore, these brands joined together and sell to Chinese customers in this novel model.
After searching in this shop for a while, we decided to purchase a box of olive oil as Spanish olive oil is known with high quality and good taste.
Then, we started chatting with the customer service to ask for more details of this product. The shop sales replied us immediately. He told us the Correos cross-border shop has a local office in Hangzhou, China, however, all the products are in Spain and will be shipped directly from Spain to China. He also told us that lead time is within 3 days and the delivery time is around 7-14 days depending on various factors such as weather, traffic etc.
After all, we still decided to purchase this product and decided to pay and check out. There is personal cross-border purchase quota. We advise you to check it in here http://ceb2pub.chinaport.gov.cn/limit/outIndex before you make any purchases. Then, the buyer required us to submit a scanned copy of our ID, which will be used in the customs to clear the goods at the border.
Due to the long shipping distance, the shop does not take return merchandise. For testing, we finished payment and received a tracking number, which we can use to track our package online. For our order, we found out that the lead time is 2 days. After more than one week’s waiting, we finally received our olive oil 10 days after departure. Compared to our previous shopping experience on Tmall domestic, it feels slow but still within the time range they promised.
Unfortunately, our products exterior package is a little bit deformed probably due to the cushion put inside the package box is not enough. We sent a complaint to the customer service of Correos cross-border shop immediately.They were also sorry for this and decided to compensate 20 RMB to us.
In general, we have a very satisfying purchase experience on Correos shop on Tmall global except for the relatively long waiting time.
Recently, Spanish post office Correo launched its oversea flag shop on Tmall global(an online B2C platform under China Alibaba Group) and started the trial operation. All the products sold in this flag shop come from major local brands in Spain and will be directly sent from the Spanish local brands’ warehouse to China.
Last year, Alibaba’s Cainiao network announced the strategic collaboration with the Spanish post office Correos which significantly push forward the cross-border business and logistics services. After the flag shop is established, the delivery will be very convenient and fast. A staff working in Correos said “All the brands shown up in our flag shop are selected through deliberate consideration.” Since Correos has major advantage of its domestic logistics service in Spain, it only takes 7 to 14 days for Correos to deliver the products from the warehouse, transfer them to EMS and finally arrive at buyers’ designated address. Buyers can track the information on both Correos and EMS websites.
The brands in the Correos flag shop include:
- Oleocampo: a high-end olive oil made in Spain
- Colnatur: a protein powder brand with protein powder products suitable for both sports fitness people and middle aged people.
- ART: a Spanish fast fashion shoe brand
- Neosens: one of the high-end shoe brand from La Rioja, Spain
- Marques de Grinon: one of the high end Spanish wine brand
- Correos: main products are stamps and commemorative coin collection
However, Correos is not the first foreign country’s postal service company that launches Tmall global shop. UK’s Royal Mail, Australia Post and Northern Europe’s Post Nord have already had their Tmall global shop online.
September 9th was Alibaba’s APASS Day
Red carpet, hot girls and boys dressing up, while this is not a movie award ceremony, it is the first APASS off-line anniversary event held by Alibaba recently in Shanghai. They also invited Martha Lahti, SKII, Estee Lauder and many other international brands to join.
At this event, Alibaba Chief Marketing Officer Dong Benhong first revealed the level of APASS spending: “Based on the current membership size, these APASS members spend at least 30 billion RMB of their net purchases each year.”
Who is this group of people?
According to Ali group customer experience drive and Innovation Center General Manager Wang Hai, he said “APASS members are mainly trendy mothers, business elites, online shoppers and business generation”.
Here we have some examples. Zhang Yixin is a freshman in college. She spent 1 million last year on beauty products, jewelry and other luxury goods to simply just dress herself up.
Wang Ruoxi has 12 years of experience on Taobao. She would spend 800 thousand to buy luxurious watches and many other pricy goods including exorbitant Martha Lahti. Last year, she bought 16 brand-name handbags on Taobao. Right now, she makes her own skin care brand on Taobao’s line and transitions into a seller from a buyer.
In addition to our “super-chop type” buyers, Zhu Rongfei, one of the APASS members, is a “collection type” buyer. She bought more than 300 sets of Lego Limited Edition toys online as she is a maniac Lego fan.
What is APASS?
This lavish style of spending has made them gain the Alibaba Passport, also called APASS. It is an exclusive rewards program and a combination of Facebook, Amazon Prime and the American Express Black Card. Its 100,000 members get unusual perks in daily life such as abnormally good deals on trips, free return of products purchased online and considerate personal service. Meanwhile, they are also encouraged to join online communities of shopaholics who blog and talk up Alibaba.
When Zhang Yixin mentioned the APASS membership service, she spoke with excitement: “What moved me most was that once, just right before an important show I had the next day, I lost my dresses that I was going to put on. The exclusive customer manager managed to find a seller in the city at night and got me the dress in time. It was amazing.”
What luxury brands should know about APASS?
If luxury marketers doing business in China want to understand Chinese consumers better, they need to pay for professional market research agencies to do it. The APASS program offers a shortcut for brands to achieve this goal. It not only allows them to gain insight into their potential consumers, but it also shows them who they should target directly.
Even though it remains ambiguous whether APASS truly has what it claims to offer to luxury brands in China, brands such as Louis Vuitton, Ocean glasses, Antonio Banderas Guerlain, and Maserati are already among those who are beginning to test out what the APASS can reach.
If you need help to sell in China, contact us![recent_posts count=”3″ date=”true” thumbnail=”true” category=”1″]
According to a new report from eMarketer, experts predict that the decline of Baidu in favor to Alibaba is due to the new market conditions in Chinese digital business. Alibaba has adapted fast to the last digital ads regulation and currently enjoys the leadership in terms of online advertising revenue.
The Chinese Internet landscape is characterized by the huge prominence of the three technology giants.
As you may know, Baidu is the largest player in China in digital advertising market, Alibaba is the Chinese eCommerce leader firm and alongside both, plays Tencent.
These Top 3 in digital industry are estimated to command a total of 60% in ad revenue in the present year, and amount around $42 billion.
What factors have led Baidu to its future decline?
Although currently Baidu still controls the largest share of the online advertising market, the success of the company in 2015 is far from repetition. Baidu’s share in China’s digital ad market is expected to drop to 21% in 2016, and forecasts are less positive for the coming year.
In early September, in the team we analyzed in our article “New Online Advertising Rules in China” the new online advertising regulation in China and its impact in all digital business with presence in China.
The Internet Ad Interim Measures is a new regulation prompted by the State Administration for Industry and Commerce of China. It arose from the Government’s claim by adopt new rules over online advertisement, at the time it was expected to impact on Chinese Digital Marketing as a whole.
As we mentioned before, some fields were subject to special regulation: healthcare, medicine, food and beverage. But new regulations also affect to Internet advertising practices with some other measures: it is required that all paid ads to be clearly marks in search results, prescription medication and tobacco ads have been forbidden and it is already mandatory to certain medical and health products.
From the beginning, these changes were identified by outside analysts as a serious handicap for the future of the company. As Shelleen Shum told,
“We think the impact will be larger on Baidu than on the other search engines given Baidu’s larger market share and its dominance in medical service ads.”
But the coming into force of the new rules, is not the only reason for its current decline. The lack of strong mobile devices is also affecting its ability to attract advertisers.
The main driver in the Chinese market is the mobile platform. As Lyu Ronghui said,
“Huge traffic is the bedrock of online advertising business. But unlike Alibaba and Tencent, which have numerous successful mobile products that can attract traffic from users. Baidu still lacks a new cutting-edge to help jumpstart its slowing traditional search business.”
Facing Baidu, Alibaba has surpassed its rivals taken advantage of the new conditions. As Shelleen Shum explains, its reinforcement is due to,
“Although also affected by the new regulations, Alibaba’s ad revenue, particularly from the mobile sector, shows no sign of abating thanks to the robust growth of its e-commerce retail business.”
Although at present Baidu controls 28% of the online ads marketing, Alibaba is expected to become the largest player in China’s digital advertising market before finishing 2016.
New rules in China
In China, digital landscape changes as faster than imaginable. There are plenty of creative ways to sell your services and products in China, but acting in the hand of a company based in the country, is always a big extra bonus for your business in China.
In search of a Digital Marketing & Ecommerce Agency?
It is said that whoever hits first, hits twice. Some days ago, Zalando signed a partnership with its biggest competitors, Amazon and Alibaba. Far from thinking that they were wrong, we feel confident about the future of these new alliances between Europe, China and United States.
Zalando was founded in Berlin (Germany) in 2008. Born as an European electronic commerce company, the brand already holds the leadership as the largest online fashion retailer, while also has become the second largest group in Ecommerce in European region.
Although originally its activity was focused in marketplaces, in 2010 Zalando starts its jump into developing and selling its own brands. Online selling shoes, clothes and fashion items constitute the core of the company, under a cross-platform perspective.
A step to break: boundaries to online shopping
Even if such perspective still remains today, observers enjoy its dramatic effects: to an unique Refund – Return policy in retail and a highly attractive shipping, have joined an effective logistic management and a recent prospection in offline context.
Although timidly, its development in the offline environment constitutes a new movement to establish its brand in the retail market and its visibility on some physical multibrand markets in Germany. To this point is joined an attractive shipping policy that enhances its appeal to the consumer: it is fast, secure and in case the users feel dissatisfied with their purchase, they have the chance to return them within 90 days.
Even if its payment and reimbursed model is constantly criticized for its high risk, it is also truth that this pillar has become an emblem for Zalando, its trademark and distinction over its competitors.
Zalando pushes online to grow
The company shows a steady growth in its presence in Europe, while designing its jump to the international area. The future seems promising according to their latest analysis prospects, with a year revenue growth close to 20%.
This rise is the result of three main reasons:
- Its total adaptation to mobile user experience: U-commerce is the new king in sales –check our articles “How to Take Advantage of the Latest E-commerce Revolution? U-commerce Trend” and “5 Things to Avoid When Doing Business in China” to discover a bit more!–
- Mobile purchases are already more than half of its sales
- A wide range of products and therefore, a great audience to address
- Its advantage of using a vast network of online platforms
A twist to Ecommerce
The desire of the Group is boosting its international sales and take advantage of the huge possibilities that the electronic market and their highly developed logistics presents to them.
To achieve its goals, Zalando has woven alliances with the giants of E-commerce: Amazon and Alibaba. Although its presence on Tmall is expected for the coming months, its bet for B2C trade -previously discussed by us in our article “Do Other Ecommerce Platforms Stand a Chance Against Tmall?”- some steps further on international distribution are already in discussion.
It is worth noticing that this giant enterprises are transforming traditional business into a new business model. Digital Marketing and Ecommerce helps to create new partnership systems for other companies around the World, and it will become more and more important in the following years.
In search of a Digital and Ecommerce Company? If you have any question or require any information about our services,
Not quite a month we woke up with the news that two technological giants had joined forces in creating an alliance with huge chance of success. The alliance between Ingenico Group and Alipay is focused on payments innovation as part of a wider international push, but is also a recent demonstration of the growing momentum of Chinese companies in Europe.
The alliance is based in European mobile payments
Ingenico Group is a french company specialized in designing a wide range of payment solutions, whatever the sales channel or payment method is chosen, according to three main needs that merchants and consumer ask: a secure, easy and seamless experience.
In recent years, China has created a vast and well integrated digital ecosystem in which highlights Alipay– a Chinese equivalent to PayPallaunch by Alibaba– which is already China’s leading third-party online payment solution with no transaction fees. The company already has more than 400,000,000 active Users.
Although there are many reasons behind this alliance, the clear purpose was to tap into the huge Chinese tourist flow in Europe. As we wrote in our previous article “How to Acquire Chinese Tourists through Digital Marketing“, the Chinese tourism consumption is already estimated to be the highest in the World. Moreover, Chinese tourism market will keep growing even faster: in year 2019, estimations says that consumption will reach US 264 billion dollars.
The motivation to exploit the partnership is shared: on the one hand, Europe has become the major vacation destination by a sector of the population with high standard of living; on the other hand, Alipay seeks to exploit the existence of more than 120 million Chinese tourists arriving in Europe every year and an approximately cost of $ 875 on average, while offering a payment experience nearest to their day to day.
Chinese tourists in Europe will be able to pay via Alipay App at any store that uses the Ingenico solution
The announcement not only underscores the growing relationship in business between two increasingly interconnected areas, but also the enormous benefits that such collaboration can mean to both. With such a perspective, it is not surprising the happy ending. As Philippe Lazare, Chief Executive Officer of Ingenico Group said,
“We are very excited to partner with Alipay and contribute our unique omni-channel expertise, products and services to help them optimize the user experience and boost sales all over the world. Their choice for Ingenico is a tribute to our high success rate and ability to meet even the most demanding customers’ requirements.”
Chinese tourists are accustomed to using electronic payment methods, an innovation that fails to catch on among European citizens. Presumably, this cultural difference has become a barrier that discourages expenditure among Chinese tourists. As Jacques Behr, Ingenico’s executive vice-president for Europe and Africa said,
“Payment becomes a friction for business so we are removing this friction by allowing the retailers to capture sales to the Chinese tourist population.”
The measure therefore seeks to stimulate Chinese people expenditure in their major holiday destination, but also tries to take advantage of the huge market Alipay already has in China: more than 450 million users liable to become target audience, and a market share in mobile payments in China higher than 80%. As they themselves spelled out,
“We are building international business step by step. There is much still to do with our customer base, and is still expanding.”
Such collaboration not only benefits the Chinese people, but also means a qualitative leap in technological enjoyment for Europeans. The alliance seeks to provide to European online retailers and to customers the possibility to pay and accept payments through Alipay´s eWallet through some marketplaces. An excellent way to boost e-commerce and sales in China and Europe.
Although the operation has already begun, both companies estimate that Alipay won’t be fully operational in Europe yet.
Just to start
While Alipay makes its movements, the rest of the world watches. Only companies that have a deep understanding of Chinese market can cope with the changes that are to come.
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New online advertising regulation in China will impact all digital business with presence in China. Here we bring you an analysis overview to start adapting to the new trend in advertisement.
It would be after the death of a college student who took part in an experimental health treatment found in Baidu, when popular pressure would force the Government to begin an ads regulatory change.
The Internet Ad Interim Measures, a new regulation prompted by the State Administration for Industry and Commerce of China, went into effect in September 1st. Therefore, it arises from the Government’s claim by adopt new rules over online advertisement: email, paid searches, embedded links, images, and videos are already subject to the new law. Its aim is avoiding the spread of misleading advertisements on the Net, and correct the prevailing liberality so far.
The new online advertising regulations are expected to impact on Chinese Digital Marketing as a whole: social media, search engines, apps and electronic commerce in the country will have to move under the new guidelines.
A step closer to the uses and customs in Western advertisements
For the first time in China, the new measure features a specific definition of Internet advertising; often, foreigners suffer from a lack of legislative safety in China. Therefore, conceptualization is a step forward to define clearly not only the concept, but also its extension:
“Internet advertising is advertisements that directly or indirectly sell commercial goods or services through the websites, web pages, internet applications and other forms of Internet media including text, images, audio, video and etc.”
Moreover, the regulation comes to underline its main purpose:
“To protect the legitimate rights and interests of consumers, and promote the healthy development of the Internet advertising industry.”
In what fields are these changes applicable? What changes will take place after its implementation?
The regulation is particularly focused on a list of fields described below:
-Healthcare and medicine
-Food and beverage
The main measures to be starting to apply can be summarized as:
–First, the Law requires to place the word “advertisement” in a prominent position and clearly distinguishable at first sight.
–Second, every field subject of special regulation needs a previous review and an approval process by authorities.
–Third, online advertisements for prescription medicine is banned. A special measure in health products is also extended to medicines, pesticides or medical supplies.
–Fourth, tobacco online ads are also banned.
–Fifth, any paid search results, links or content must be clearly identified by the word “advertisement”.
–Sixth, users should not only have the choice to close an ad, but also this has to be easy to them.
–Seventh, paid links and contents must be clearly detailed at a glance.
–Eighth, any attached ad and/or promotional links to an email should have been allowed previously.
–Ninth, any misleading and/or false ad is considered illegal from now on.
Who is especially affected by the new regulation?
Under this measure, the biggest impact falls on the largest Internet companies in China. Baidu and Bing should apply new restrictions on ads; it should not be forgotten that, much of the incomes of Baidu, Weibo or Alibaba come advertising.
But also traditional Social Media must change. WeChat or Weibo offer paid content; as we mention before, pop-ups, ads or links should be first permitted, which will force companies to evolve the way advertising is offered to Chinese users. Seems marketers should start creating better ads, or contravening the prevailing legislation with all the penalties that that means.
There are plenty of creative ways to sell your services and products in China. In search of a Digital Marketing Agency?
In the first part of this article, we showed and identified 5 main points that differentiate a Chinese website from its western counterpart that we need to keep in mind in order to build a good one.
Let us summarize some of the main points addressed in the previous article:
- The style, design and structure are more complex and with much more information in opposition to the cleanness of the western websites
- Where to host your Chinese website is one of the first decisions to make. The most of the times we advise you to have a hosting in China. For that you will need a Chinese company to apply for an Internet Content Provider (ICP License)
- The Chinese Great Firewall blocks all websites that do not meet the content requirements that marks the Chinese government
- Your website needs to be ready to integrate with the main Chinese players. Google, Facebook and friends are banned in China; instead you will need to use the BATs (Baidu, Alibaba and Tencent).
After this little updating, we would like to further develop this post showing you 5 more crucial things to take in consideration when building a good Chinese website.
When building a chinese website, What else should I know?
6 – CHINA IS MOBILE. BE RESPONSIVE
Adapting our website to mobile is very important in any country, but in China is mandatory.
The Smartphone is, in many cases, the only way they have to access the Internet. Therefore Chinese users are much more familiar with the use of mobile devices. Keep in mind that almost the 50% of all Ecommerce transactions made in 2015 were done via mobile, compared to the also quite high 22% in the United States.
Don’t think any longer and start working on a nice mobile design… Mobile first!
7 – DOMAIN. WHICH ONE IS THE RIGHT OPTION FOR ME
In your approach to domains, three are the main options:
– Not that long ago, to have a .CN was a must. It was not possible to get it if you didn’t have a Chinese legal entity. This has changed over the time and now you can easily get a .cn domain, no matter where your company comes from, just providing a copy of your Company’s ID. As the Chinese international top level domain, your brand might be perceived as having a strong presence in China and might also bring some trust
– On the other hand, we have the .COM domain. Chinese Internet users are increasingly getting used to this domain. Major Ecommerce platforms like Tmall.com, JD.com or Sunning.com may bear much of the blame for this. It can be very good for foreign companies trying to sell their products in the Asian giant to have a .com domain as it might help to highlight the international feel of the brand
– .COM.CN is the ugly duckling in the middle still in use by many brands mixing the good things from the previous mentioned domains, but without reaching their full advantages. In any case it can also be a good solution.
Which language should I use?
Another point to think about is the language to be used. Does your brand have a Chinese name? Then you can also use its pinyin term. Pinyin is the romanization system for standard Chinese: Chinese search engines recognise the pinyin words in the URL and then link them to what they stand for in Chinese characters in order for the website not to lose coherence.
Don’t get crazy about the domain, they are usually not that expensive. So, in case you can afford it, try to get the three of them (.com, .cn and .com.cn), plus their pinyin variants and redirect them to the main one; depending on your strategy.
8 – CONTENT. DON’T GET LOST IN TRANSLATION
It is important to know very well your main target markets as the language will differ depending on it. It might be obvious to mention it, but it wouldn’t be the first time that a company’s target consumer is in Hong Kong, Taiwan or Macao and the language used for the website translation was simplified Chinese instead of traditional Chinese and the other way around. That is a major and silly mistake that takes a long time to revert.
I don’t want to mention either the fact that a Google translated web does not help at all, but I am doing it because I have seen too many. It is mandatory to let a professional team take care of the translations. In 2 Open we separate this process in three parts:
- Translation, interpreting the main message that the customer wants to transmit to the final customer, done by a marketing professional in our team
- External review, done by a professional translator outside the team
- Final review, done by another marketing professional in our team
You might not believe it, but in certain cases we still get minor complaints. This is because Chinese language can be interpreted in many different ways. Therefore translations are always a difficult point in the list.
Is Customization a mandatory requirement?
Let’s not forget about the Chinese cultural customization. Website localization embraces translating and localizing a site into different languages making sure all content (text, images and videos) is translated correctly in an accurate, cultural and technical manner.
As stated before when talking about content, we are also talking about images and videos. There are no written rules and it has similarities to the domain section we discussed above. There are brands like Nike or Zara that prefer to maintain their international feel using western models in their multimedia strategy. Many young Chinese users welcome this method, but not all of them. Depends on the strategy you want to follow.
9 – PAYMENT OPTIONS. CREDIT CARDS? NO, THANKS
In the previous post, we wrote about the BATs (Baidu, Alibaba and Tencent). In China, the online payments market is currently dominated by two of these two tech giants – Alibaba’s Alipay and Tencent’s WeChat payment with 49.2% and 20% market share respectively.
These companies try to increase their market share by adding more brands and merchants within their ecosystem; something that both companies effectively handle. Also cash is king, as cash on delivery holds a strong position. The fast and vast adoption of electronic payments via mobile is likely to counter this trend in due time.
It is actually China and not the US at the leading edge of the trends towards mobile payments technology. Just for putting an example, both WeChat and Alipay have long used the now famous QR codes to let Chinese netizens pay for purchases and transfer money. It seems they have jumped over some natural technological development processes. This kind of behaviours can be quite normal in undeveloped countries that start to grow very rapidly.
What happened is that they adopted the mobile payment technologies even before implementing some existing ones as a huge percentage of the Chinese population accesses the Internet via mobile devices.
Get ready to integrate Alipay in your website as first and mandatory option. And seeing how fast Tencent WeChat payment is growing, that would be your second natural option.
10 – SEO
Once your website is ready, you will need to submit it to Baidu creating a Baidu Webmaster Tools account (only available in Chinese). That way Baidu will be able to index the site properly and your great Chinese adventure starts!
Search engine optimization done in Baidu is not so very different as the one you could do for Google. Anyway, we would like to note a few differences I think you need to know:
– Meta description – unlike Google and Bing, Baidu still uses Meta descriptions as a ranking factor. Keyword targeted description match users’ queries and their demands, which would help with the click through rate (CTR).
– Indexation – Baidu’s web crawling bot, Baiduspider, is not as advanced as the one from Google. As a result, you will need to help Baiduspider to discover and index your pages in different ways. Without mentioning that you can go to sleep and wake up with huge traffic losses or de-indexed pages usually caused by a penalization. Be careful what you do!
– Link building – On Baidu, it is not about the quality of the publishers’ website, it is more about the unique relevancy of the content (as it relates to your content) and the quantity of links to your pages. Baidu penalizes duplicate content and it also disallows irrelevancy. Authority and quality of the publisher is not that important (for now). In short, the more the merrier as long as it is not duplicate.
– Baidu services – Baidu offers a lot of different products apart of Search; use them and leverage their integrated marketing power. The most useful are Baidu Zhidao (questions and answers service) and Baidu Baike (Wiki service), but there are tons of other services that might be helpful to increase brand awareness and for content creation.
As for the tracking, most people use Baidu Tongji and/or Google Analytics. Yes, you read it well; Google Analytics still works in China and it is the only Google service that still does. You will find many detractors, but for what we have seen there is no huge discrepancies between the data collected by both systems (usually not higher than 5%). And Google Analytics has more functionalities than Baidu Tongji.
It is also important to mention the typography. Chinese language is not easy to read due to the difficulty associated to its typography. With 40,000 characters, they are divided in strokes which amount can vary between 1 and 60. Therefore the font size should be at least 12px.
At 2 Open, we would be pleased to help you.Take the advantages the Chinese market offers.
With the cooperation of our Digital Marketing and Ecommerce Agency, China will be at your fingertips.
Do not hesitate to visit us We´d loved to hear from you!
This article has been edited by Paula Vicuña, from 2 Open.