The 5 Keys to China’s Unstoppable Conquest of Western E-Commerce and How to Survive the New Paradigm

Shein is a clear disruptor in the fashion sector and its growth continues unstoppably. Temu, already present in the US and EU with 50 million users, was the platform with the highest expansion rate in history. Miravia breaks records never seen before in the Spanish digital ecosystem. After Meta’s failure on the matter, TikTok will be the one to set the rules of the social e-commerce game in the West.

In this article, Dori López of Innova Digital Export reflects on the 5 keys to this unstoppable growth and concludes today with 5 actionable ideas to not be left behind in this new digital paradigm.

1) China is an economic and digital giant

1 billion people shop online, that’s not trivial. Likewise, it is no secret that in 11.11 China will settle in digital form in a few days what will take Spain several years.

But there may be doubts about how the pandemic has affected the Chinese economy. We’ll just give you one fact: Even in the worst moments of the pandemic, China’s GDP grew no worse than the US’s year-on-year.

In fact, China’s economic contribution to the world has changed significantly, and it’s no secret which economies are losing this piece of the pie:

2) China is the most competitive country in digital production and distribution

More than 50% of the TOP 100,000 sellers on Amazon are Chinese for good reason: they are cracks at the cross-border model. They have many years of experience. Amazon is aware of this and therefore continues to promote and train seller schools in this market.

30% of the world’s manufactured products are made in China; the bad ones and also the highest quality ones. 80% of computers, 60% of shoes and luxury items and 85% of all healthcare products.

Did you know that China graduates seven times more engineers each year than the United States? Inspired by Shein or Temu, who want to escape a local market already filled with apps and fiercely competitive, more and more Chinese entrepreneurs want to conquer the West.

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3) China is no longer selling, China is innovating

Meta or YouTube’s race to compete with TikTok (Reels vs. Shorts) is becoming more desperate by the day. In fact, influencers on this social network achieve ratings that only a public figure on Instagram could imagine.

WhatsApp keeps dreaming of becoming a little more like WeChat every day – as long as they let it – and TikTok will present SEO/SEM specialists with a new algorithmic dilemma if it is the product that finds the consumer and not the other way around.

China is also a leader in business model innovation. Temu (and Pinduoduo) are a clear example. On the other hand, the working environment and salary calculation in a Chinese company show significant differences to a Western company.

Let’s open our minds, curves are coming!

And they come from Asia.

4) and let’s stop talking about AI…

Apart from this quick thought:

AIs born in China have the largest “training ground” in the world: a billion people use the Internet for all aspects of their daily lives, and access to this data is relatively easy. Although his advances are still surrounded by a certain aura of mystery, many are betting on his hegemony in this area. Maybe sooner rather than later.

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5) “actionable” ideas today for living in an increasingly Asian world:

1) Find out about China: Choose a good book and familiarize yourself with this exciting country.

2) Download WeChat today and see which contacts in your phonebook are using it. Can you add me with “adlonie”?

3) Open Baidu and browse without fear. Automatic translation also works with Chinese!
4) Study your Chinese counterparts. At Innova Export we carry out an investigation into your case free of charge and without obligation. You can even consider using our subsidiary to sell in China or on Chinese platforms.

5) Choose your name in Chinese 🙂

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