These past few years, thanks to Chinese middle class rise in disposable income, the overseas shopping has grown tremendously. According to the Chinese Academy of International Trade and Economy, e-commerce trade has increase by 44%, representing 15% of the Chinese internal trade;
As if the figures were not impressive enough, Chinese have become the first buyers of American products. Indeed, they buy eighteen times more American goods than the second ranking, the UK.
E-tail has become THE major sales channel in China, and e-commerce platforms have become the giant most foreign brands have to deal with if they want to efficiently enter the Chinese market.
Who does that?
Nowadays, two names come up: Alibaba and Jingdong. Given how much US brands want to enter the Chinese market and how much the e-commerce want to bring American product that are in strong demand. It’s a good match.
Both CEOs have gone to the US in order to discuss serious business with some of the most famous American brands in order to bring them back to their domestic market.
Still, even though many perceive it as a war between two giant, there is a proeminent difference in the eye of the customers and experts:
Thanks to its initial strict entry requirements Jingdong is seen as a platform for people looking for more high end products while Alibaba’s Tmall is more seen as a mass platform where customers can find cheaper goods.
The winner of this battle is more than uncertain given their respective advantage and positioning.
Yes, even though their inner workings are different (one is more e-bay like, the other is more amazon like) they still compete for the same things: US brands brought to Chinese customers, a very juicy market!