Taobao has been hailed as the Chinese equivalent of Amazon. For foreign brands, it is still difficult to enter a distribution channel in China, as most of them are difficult to understand and are not very open to innovation and integration of foreign products.
According to the potential, functionality, and rapid development of China’s online market, Taobao is easily one of the best tools to enter the Chinese market and establish a foreign brand as a leader, with easier access to a physical distribution channel and online store.
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By the end of 2013, nearly 620 million internet users in China bought on Taobao. The platform had 54 million new users in one year. Online shopping has also grown dramatically in China with consumers recorded to have spent $213 billion in one year.
An analysis of the market
Entering the China market can be much easier and faster through e-commerce, and especially on Taobao. The online store allows you to bypass the usual barriers of points of sale, such as inventory problems, high rent cost, and strategic location.
Taobao is a Chinese online store with millions of Chinese sellers and shops, operating on a consumer-to-consumer (C2C) system.
This system allows the sale of goods and services directly between individuals. For example, Taobao acts as an intermediary (a platform) in sales between individuals.
Taobao offers the opportunity for individuals and corporations to open an online shop on their website, as long as potential sellers meet certain requirements. These requirements allow for regulation of the site, ensuring that the platform has viable stores and recourse for any foul play.
The Taobao platform is one of the best symbols of e-commerce in China. It has become a reflex for Chinese people to make a purchase when they are on the site.
There are, however, a number of obstacles. Online sellers of foreign goods have struggled to get them to customers in a timely manner. For now, sellers can have the goods shipped directly from manufacturers. Also, problems concerning customs clearance and creating a refund policy need to be addressed.
What we can do for your brand?
BUILD A STRONG E-REPUTATION
In China, brand reputation is an important criterion. You have to do everything to always have a good image alongside Chinese customers. If you lose your reputation, you will lose everything. You need to make sure that you get good comments for your spirit brand on forums, social media, and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms. Don’t hesitate to engage a digital marketing agency that can help you to keep a good image and avoid all bad comments about your brand.
KOL TO PROMOTE YOUR BRAND
To gain visibility and e-reputation, it is crucial to encourage positive word-of-mouth. KOL can help you. The Key Opinion Leaders (KOL) are social media users who succeeded to make a lot of traffic on their accounts and became famous. Chinese consumers idolize KOLs, trust them more than brands. Some KOLs have millions of fans. They are really good to influence the mass population. You can influence spirits, lovers, using KOLs as intermediaries. Through them, you are able to reach your target group. In other words, intermediaries can be a great asset in selling your imported spirits to Chinese consumers.
Invest in online advertising and create quality content will help you developing your e-reputation. Finally, measure results to improve your performances.
AN ROI-FOCUSED AGENCY: GMA
We are an ROI-focused agency. The solution is to attract and also re-target the most qualified traffic in order to increase conversion rates. We are a French and Chinese team, here to help you develop your business in China. We understand the Chinese consumers: their needs and habits. We also understand the foreign brands’ difficulties when they tried to enter the Chinese market.