China is the world's largest ecommerce market, with over 1.3 billion potential customers.
Online shopping has become very popular in China, so businesses now use Chinese websites to reach a large number of customers.
You probably know that almost 30 percent of retail sales in China will be online in 2022. This is a 5 percentage point increase from 2021.
The 5% increase in 2021 shows that consumers in China are changing their habits. This also means that both local and global businesses have a big chance to succeed in the Chinese market.
This detailed handbook delves into the leading ecommerce platforms in China and how they can assist your business to thrive in the Chinese marketplace.
We will also answer questions like What is the most popular eCommerce site in China? What do Chinese people use instead of Amazon, and most importantly, what does a non-Chinese business need to know to stand a chance of success in China’s competitive market?
Grasping the E-commerce Landscape in China: Why Chinese Ecommerce Platforms Are Important
If you ever asked yourself how many ecommerce sites are in China, you will be pleased to know that according to Statista, as of June 2021, there were 80 public e-commerce companies in China, showing an increase of six since December 2020. The majority of these companies are based in Beijing. Therefore, the options are many and enough to accommodate all types of businesses.
The ecommerce market is growing at an unprecedented rate, with a projected market volume of US$1,540.00bn by 2028.
A large proportion of this volume is expected to continue being produced from China. This presents a huge opportunity for businesses looking to expand their reach and tap into a new customer base.
Chinese ecommerce platforms offer a variety of benefits for businesses, including:
- Access to a large and diverse customer base
- Lower barriers to entry compared to traditional brick-and-mortar stores
- Effective marketing and advertising options
- Easy and convenient payment options for customers
- Seamless integration with logistics and delivery services
With the right strategy and platform, businesses can tap into the potential of the Chinese market and achieve success.
The Top Chinese Ecommerce Platforms
There are several Chinese ecommerce platforms to choose from, each with its own unique features and target audience. Here are the top platforms to consider for your business:
1/ Taobao
The most popular e-commerce site in China is Taobao. Owned by Alibaba, Taobao is the largest consumer-to-consumer (C2C) platform in the country. With 500 million registered buyers and sellers, it boasts an impressive 50,000 sales per minute. Unlike eBay, Taobao's focus is on fixed-price sellers rather than auctions.
2/ AliExpress
AliExpress is a popular online retail platform owned by Alibaba Group. AliExpress allows international buyers to purchase products directly from Chinese manufacturers and sellers at competitive prices. It offers a wide range of products, including electronics, fashion, home decor, and more. AliExpress has gained popularity globally due to its extensive product selection, buyer protection policies, and affordable prices.
3/ Tmall
Tmall is yet another top Chinese ecommerce platforms owned by Alibaba Group. It is a business-to-consumer (B2C) platform that allows brands and retailers to sell their products directly to Chinese consumers. Tmall offers a wide range of products, including fashion, electronics, home goods, and more. It is known for its strict quality control and authentication processes, which ensure that customers receive genuine products. Tmall also provides various marketing tools and services to help brands increase their visibility and reach in the Chinese market.
4/ Xiaohongshu (Little Red Book)
Xiaohongshu is a popular Chinese ecommerce platform that is often referred to as "Little Red Book" in English. It is a social commerce platform that combines elements of social media and online shopping. Xiaohongshu allows users to discover and purchase products recommended by other users, influencers, and brands.
This platform is renowned for its content created by users, who post advice, opinions, and reviews on an extensive assortment of items.
Xiaohongshu primarily caters to a younger demographic, with a strong focus on fashion, beauty, and lifestyle products. The platform also offers various marketing opportunities for brands to promote their products to a highly engaged community.
5/ Vipshop
Vipshop, also known as Vip.com, is one of the top Chinese ecommerce platforms. It specializes in flash sales and offers discounted prices on a wide range of products, including fashion, beauty, home goods, and more. Vipshop has gained popularity for its exclusive deals and limited-time offers, attracting bargain-hunting shoppers. The platform provides a user-friendly interface, making it easy for customers to navigate and find products of their interest. With its strong customer base and extensive product selection, Vipshop offers great opportunities for brands to reach a large audience in the Chinese market.
6/ Yihaodian
Yihaodian is known for its wide range of products, including groceries, household goods, electronics, and more. Yihaodian provides a convenient and user-friendly online shopping experience for customers, with easy navigation and secure payment options. The platform also offers fast and reliable delivery services, ensuring that customers receive their orders in a timely manner.
Yihaodian, known for its impressive reputation and extensive range of products, serves as a remarkable platform for brands to penetrate the Chinese market and connect with a vast audience.
7/ Shangpin
Shangpin is known for its selection of fashion and luxury goods, offering a large selection of goods for its customers. It provides customers with a convenient and user-friendly online shopping experience, ensuring easy navigation and secure payment options. Shangpin also focuses on delivering a high-quality customer service experience, with reliable delivery services and a strong reputation in the market. This platform presents a great opportunity for those brands looking to target Chinese customers interested in fashion and luxury products.
8/ Alibaba Group
Alibaba Group is one of the top Chinese ecommerce platforms. It is a multinational conglomerate that specializes in various sectors, including e-commerce, retail, internet, and technology. Alibaba Group offers a wide range of services and platforms, such as Alibaba.com, Taobao, Tmall, and AliExpress. These platforms cater to both businesses and consumers, providing a diverse range of products and services. Alibaba Group has a strong presence in the Chinese market and is known for its extensive reach and customer base.
9/ Suning
Suning is a leading retail company that offers a wide range of products and services, including electronics, home appliances, home furnishings, and more. Suning operates both online and offline stores, providing customers with a convenient and seamless shopping experience. With a strong presence in the Chinese market, Suning has gained a reputation for its high-quality products, competitive prices, and excellent customer service.
10/ Dangdang
Dangdang is another Chinese online retail company that offers a wide range of products, including books, electronics, fashion, and more. Dangdang is known for its extensive selection of books and has been referred to as the "Amazon of China." The platform provides customers with a user-friendly interface, competitive prices, and fast delivery options. Dangdang is a popular choice for Chinese consumers looking for a convenient and reliable online shopping experience.
11/ GOME
GOME an online retail company that offers a wide range of products, including electronics, appliances, and home furnishings. GOME is known for its high-quality products and excellent customer service. The platform provides customers with a seamless shopping experience and offers competitive prices. GOME is a trusted choice for Chinese consumers looking to purchase electronics and home appliances online.
12/ JD
JD is a major online retail company that offers a wide range of products, including electronics, clothing, home goods, and more. With its extensive product selection, JD provides customers with a convenient and reliable shopping experience. The platform is known for its fast delivery, excellent customer service, and competitive pricing. JD has gained a strong reputation among Chinese consumers and is a popular choice for online shopping.
13/ PDD Holdings
PDD Holdings is a Chinese ecommerce platform that is gaining popularity in the online retail market. It is worth mentioning that PDD Holdings, is the parent company of Pinduoduo and Temu and as of November 29, 2023, the company’s capitalization hit a staggering 195.9 billion, surpassing Alibaba Group’s 190.5 billion. PDD Holdings has gained a significant user base in China and Western countries due to its competitive pricing and interactive shopping experience.
14/ Lazada
Lazada is a leading Chinese ecommerce platform that offers a wide range of products to online shoppers. It was founded in 2012 and has quickly gained popularity due to its user-friendly interface, convenient payment options, and reliable delivery services. Lazada provides a seamless shopping experience and is known for its competitive pricing and regular promotions. It caters to various categories such as electronics, fashion, beauty, home appliances, and more. With a strong presence in Southeast Asia, Lazada has become one of the top choices for online retail in the region.
15/ Duoyin
Duoyin is a Chinese ecommerce platform, also known as TikTok in the international market. It is a popular social media platform that allows users to create and share short videos. However, it is important to note that Duoyin is not primarily an ecommerce platform like Lazada. It is primarily used for entertainment purposes and is not considered to be one of the top Chinese ecommerce platforms for online retail.
16/ Mogujie
Mogujie is a Chinese ecommerce platform that focuses on fashion and lifestyle products. It is known for its visually appealing and interactive shopping experience. Users can browse through a wide range of products, create collections, and share their favorite items with others. Mogujie also offers personalized recommendations based on user preferences and browsing history. It is considered one of the top Chinese ecommerce platforms for online retail, especially in the fashion industry.
17/ 1688
1688 is a popular Chinese ecommerce platform that caters to B2B (business-to-business) transactions. It is owned by Alibaba Group and is mainly used for wholesale purchases. 1688 offers a wide range of products from various industries, including electronics, fashion, home goods, and more. It is a preferred platform for businesses looking to source products in bulk at competitive prices. The platform provides a secure and reliable environment for buyers and sellers to connect and conduct transactions.
18/ Kaola
Kaola is a Chinese ecommerce platform that specializes in cross-border online retail. It offers a wide variety of products, including cosmetics, baby products, household items, and more. Kaola is known for its focus on quality and authenticity, ensuring that all products sold on its platform are genuine. It provides a convenient and secure shopping experience for Chinese consumers who are looking to purchase goods from overseas. With its reliable service and extensive product selection, Kaola has established itself as one of the top ecommerce platforms in China.
19/SMZDM
SMZDM is a Chinese ecommerce platform that focuses on providing users with information and reviews about various products. It is known as a shopping guide platform that helps consumers make informed purchasing decisions. SMZDM offers a wide range of product categories, including electronics, fashion, home goods, and more. It features user-generated content, such as reviews, ratings, and recommendations, which can be helpful for consumers who are researching products before making a purchase. SMZDM is a popular platform among Chinese consumers who are looking for reliable product information and deals.
20/ Dianping
Dianping is a Chinese ecommerce platform that primarily focuses on providing users with information and reviews about various local businesses, including restaurants, shops, hotels, and more.
It is frequently known as the "Chinese Yelp."
Through Dianping, users can look up businesses based on their location, read reviews and ratings given by other users, and directly make reservations or purchases on the platform.
It also offers deals and discounts for users to take advantage of. Dianping is a popular platform among Chinese consumers who are looking for recommendations and information about local businesses.
21/ Amazon China
Amazon China is an ecommerce platform that operates in the Chinese market. It offers a wide range of products, including electronics, clothing, home goods, and more. With its vast selection and competitive prices, Amazon China is a popular choice among Chinese consumers for online shopping. It provides a convenient and reliable platform for buyers and sellers to connect and conduct transactions.
Amazon China caters to Chinese consumers with a tailored product selection based on high demand.
Tips for sellers on Amazon China:
- Localize product listings by translating into Chinese and incorporating local cultural references.
- Understand Chinese consumer behavior to tailor products and marketing strategies.
- Build trust and reputation through positive reviews and excellent customer service.
- Leverage social media and influencers for brand visibility and reach.
By understanding the differences between Amazon China and the global Amazon platform and implementing these tips, sellers can increase their chances of success on Chinese ecommerce platforms.
Tips for Success on Chinese Ecommerce Platforms
Now that you know the top Chinese ecommerce platforms, here are some tips to help your business succeed on these platforms:
1. Understand Your Target Audience
Before choosing a platform, it's important to understand your target audience and their preferences. Each platform caters to a different demographic, so it's crucial to choose the one that aligns with your target audience.
2. Localize Your Content
To appeal to Chinese consumers, it's important to localize your content and marketing materials. This includes translating your product descriptions, images, and marketing campaigns into Chinese.
3. Leverage Social Media
Social media plays a crucial role in the Chinese ecommerce market, with platforms like WeChat and Weibo being popular among consumers. Utilize these platforms to promote your products and engage with potential customers.
4. Utilize Influencer Marketing
Influencer marketing is a popular strategy in China, with many consumers relying on recommendations from influencers before making a purchase. Partnering with influencers can help increase brand awareness and drive sales on Chinese ecommerce platforms.
5. Optimize for Mobile
The majority of Chinese consumers access ecommerce platforms through their mobile devices, so it's crucial to optimize your content and website for mobile users.
Get in touch with us today for additional insights and tactics on excelling in the highly competitive Chinese ecommerce landscape.
Case Study: How Nike Succeeded on Chinese Ecommerce Platforms
In China's sportswear industry, there is a competitive dynamic between global giants like Adidas and Nike and domestic brands such as Anta and Li-Ning. Anta has achieved record-high revenue, surpassing the combined total of Li-Ning and Adidas. Nike China also performed well but was outperformed by Anta in a recent period.
The competition challanges previous assumptions that Chinese consumers only prefer local or foreign brands. Both global and local brands are making efforts to cater to Chinese consumers through cultural integration and collaborations with local talents.
Despite the competitive landscape, the key to success lies in providing value that resonates with Chinese consumers. While local brands have strengthened, there are still opportunities for global brand like Adidas and Nike, but they must prioritize quality, innovation, and customer centricity to navigate the challenges posed by intense local competition.
Nike has successfully tapped into the Chinese market through ecommerce platforms. Here are some strategies they used to achieve success:
- Localized their content and marketing materials to appeal to Chinese consumers
- Partnered with popular Chinese influencers to promote their products
- Utilized social media platforms like WeChat and Weibo to engage with potential customers
- Offered exclusive products and promotions on Chinese ecommerce platforms to attract customers
- Optimized their website and content for mobile users
Through these strategies, Nike has become one of the top-selling brands on Chinese ecommerce platforms, with a strong presence and loyal customer base.
Conclusion
That concludes our rundown of the top 23 e-commerce platforms originating from China!
Now, you've got the scoop on where you can kickstart or expand your e-commerce venture. But we want you to know that thriving in this fiercely competitive arena isn't a walk in the park. It takes a solid strategy and expert guidance to make your mark.
That's where our team of China marketing experts at W4 comes in. We're here to support foreign businesses looking to conquer the Chinese market. With our knowledge and experience, we're your trusted partner in navigating the complexities of China's e-commerce landscape. So, don't hesitate to reach out to us for the assistance you need to make your China e-commerce journey a success.
Our goal is to assist you in each phase of the journey!