Chinese retail & e-commerce market overview

UKTI - Steve Hope

Transcript

1. JD.com UK Pavilion Launch 29th June 2016 Steven Hope – Senior eCommerce Adviser UKTI
2. Chinese e-commerce market and an explanation of the channels • What is changing? Why now? • Core considerations • Size of the Opportunity • Routes to success 2
3. What is changing – why now? • Urbanisation • Mobile • Macro Economic Drivers • Internet+ Policy • China’s middle class today is expected to reach 630 million by 2022 according to management consultancy McKinsey* • Authenticity and quality * http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class 3
4. Core Considerations • What is your prime motivation for entering China • Is there a gap in the market and is there a market in the gap • Evidence of Demand for your product • What/who are the competition • Do you know which cities or regions are most likely to have demand • Do you know your customers • Can your product be legally sold in China • Does your product coincide with political agendas • What is the current level of brand recognition in the market • Can your business adapt to serving Chinese demand 4
5. Size of the Opportunity In 2016, more than 15% of the population will make purchases from abroad worth $85.76 billion, according to eMarketer’s first-ever estimates of the consumer trend. Digital shopping in China grew by more than 70% in 2015. 5
6. eMarketplaces • They make up a 90% share of the e-commerce sector in China, JD.COM INC. and TMall taking the lions share. • Selling through emarketplaces is a cost effective way to export to China. • Given the high barriers to enter the country, JD.com developed JD Worldwide as a way for international retailers to sell products in China from a business based outside the mainland. • You can focus on just a few of your best selling products. • You can ship directly from the UK (or you can ship in bulk to a bonded warehouse, from which orders will then be fulfilled). To edit click View>Header and Footer 6
7. Routes to Success - 1 Trademark Registration Brand Awareness – Social Media – KOL’s Choosing an online Partner 7
8. Routes to success -2 Business Models Available Drop Shipping from UK Drop Shipping from other Country incl. FTZ Sell Wholesale Own store on emarketplace WeChat sellers 8
9. New Rules Regulation name: Notice on Cross-border E-commerce Retail Import Tax Policy Release Date: 2016-3-24 Effective Date: 2016-4-8 Issuing Departments: MOF: Ministry of Finance GAC: General Administration of Customs SAT: State Administration of Taxation Levy tax on imported products available on CBEC platforms. The amount of single order will be limited to 2, 000 RMB and the annual individual consumption of CBEC products would be restricted to 20, 000 RMB. Commodities bought within the limit would be free from tariff but would be levied 70% of VAT and consumption tax. Those exceeding the limit will be subject to the tax for general trade. To edit click View>Header and Footer 9
10. Positive List To edit click View>Header and Footer 10
11. Tax To edit click View>Header and Footer 11
12. UKTI and Exporting is Great UK Trade & Investment (UKTI) works with UK based businesses to ensure their success in international markets through exports. They have a network of professional advisers around the UK and across more than 100 countries overseas. Through the Exporting is GREAT campaign, UKTI aims to inspire and support UK businesses to sell their products and services overseas. Visit http://www.exportingisgreat.gov.uk/for real-time global export opportunities, support, guidance and details of our national events programme. UK companies can also join UKTI’s E-Exporting Programme, helping UK retailers and brands to accelerate their global growth via online channels, including e-marketplaces. For more information, please visit gov.uk/e-exporting or email e-exporting@ukti.gsi.gov.uk 12
13. Get in Touch To edit click View>Header and Footer 13 UKTI HQ – London Steven Hope Senior eCommerce Adviser steven.hope@ukti.gsi.gov.uk