Penetrating the Chinese e-commerce market, what do Thai SMEs need to know?

We already know that China is an example of a cashless society. The number of internet users is rapidly increasing to 854 million (as of June 2019), accounting for 61.2 percent of China’s population. More than 98 percent of these are via mobile phones, and e-commerce has become a very common shopping channel for Chinese consumers. It can be seen from Singles’ Day or the 11th day of the 11th month of every year that

Chinese online shopping sales hit a new record continuously every year. I think these numbers are very interesting. Because penetration in the Chinese e-commerce market will increase the opportunity to expand the market for Thai SMEs entrepreneurs.

But the Chinese e-commerce market is prone to intense competition. It is very challenging for Thai entrepreneurs. Both complex and complex processes differ on each platform, which are divided into 2 main types: 1.

e-Commerce in general, suitable for entrepreneurs who want to start entering the e-commerce market in China. Because the rules are quite clear. Must register to do business in China or use an intermediary to help do business. It is also a long-standing online sales channel in China. Chinese consumers are already confident and familiar,

such as Taobao, Tmall, Dangdang and JD.com, but entrepreneurs must study or understand thoroughly, for example, they must be a legal entity. A payment account has been opened in China. Or maybe there is a shipping plan. stock and self-return

2.cross-border e-Commerce suitable for entrepreneurs who are registered companies abroad Can access China’s online more easily through the websites of Chinese entrepreneurs such as International Tmall, JD Worldwide, Kua Jing Tong, and the website that is a collaboration of Thai and Chinese entrepreneurs such as ThaiOneMall, as well as the website of government agencies. of Thailand that is conducive to doing

online business across the country, such as Thaitrade.com. The Chinese government has a policy to support trade through cross-border e-Commerce. This reduces the cost of operators and reduces the time to import products. Imported goods are taxed at a

lower rate than general imports. But there are costs or operating costs, such as a guarantee for the performance of a contract. annual fee share of sales

As for the Chinese online payment model, there are three main payment intermediaries: Alipay, Tenpay and UnionPay, with Alipay being the most popular in China. Payments can be made via website and mobile in multiple currencies. Tenpay focuses on WeChat transactions and UnionPay is payment in RMB (RMB) via credit card debit.

The strategy to penetrate the Chinese online market for Thai entrepreneurs to know is The Chinese will give the brand a priority. Followed by reviews from real users. Then followed by quality, reputation and price respectively. All of these issues affect the purchasing decision. In addition, the integration of Thai entrepreneurs to enter the

online market in China together is another interesting strategy. Because in addition to reducing costs in various fields, it also increases strength and increases bargaining power. Due to the fact that the Chinese market is considered to be a complex and highly competitive

market, there are some obstacles that entrepreneurs must be aware of when entering the Chinese online market: 1) communication must be used in Chinese as the main; Doing business online, 3) brand registration (trade mark), 4) product imitation, and 5) product price control.

Therefore, in the early stages of entering the market in China, Thai entrepreneurs should have networks and alliances in China. to be a dealer or facilitating market entry, payment, delivery including after-sales service Which Chinese consumers are quite expecting a convenient and fast service. whether delivery is fast return of goods and

contact with customers Entrepreneurs must be cautious in choosing reliable Chinese people as partners. And must be someone who has real experience and expertise in e-commerce in China as well.

Open 4 emerging businesses Benefit from online retail (E-commerce)

Open 4 rising star businesses Benefit from the expansion of online retail business

on August 30, 2021 by the financial group estimated that Online retail market or E-commerce in Thailand after COVID-19 will expand by an average of 20% per year over the next 5 years, increasing from 300 billion baht at present to 750 billion baht in 2025, or 16% of the total retail market Only in the past 2020, Thai e-commerce has expanded by 80%,

reflecting the shift in consumer purchasing behavior to more online channels. from travel restrictions from lockdown measures Electronic products and food and health categories tend to expand well. while spending on hotel bookings and travel contracted sharply.

In addition, it also views that the expansion of online retail business will also encourage related business sectors to benefit as well:

(1) Warehouse business The continued growth of online retail has resulted in the demand for space in warehouse expanding Although the impact of COVID-19 and expansion of warehouse space to accommodate future needs This will bring the Thai warehouse occupancy rate to decline slightly to 86% in 2020. Going forward,

the growth of online retailers will become a key driver for the warehouse business. Especially modern warehouses with a full service model. distribution center including cold storage This will be an important part of the supply chain for the agriculture and food and pharmaceutical industries. The expansion of the warehousing business and its

location in the country can also enhance and build on Thailand’s expansion into a regional warehouse hub.

(2) Packaging The packaging business is one of those businesses that are expanding in tandem with the growth of online retail. Bank of America data shows that packaging used in online retail accounts for 12% of the total. North America Packaging Market and

is estimated to increase to 20% in the next few years. Thailand is currently the largest packaging exporter in ASEAN.

Coupled with the expansion of e-commerce in Thailand, the opportunity to expand the packaging business is likely to continue to grow in the next 4-5 years. However, almost 80% of all packaging produced in Thailand is from plastic. This could hinder the next phase of the green packaging trend. Therefore, it could be an opportunity and a avenue

for packaging businesses made from more eco-friendly materials or recycled plastics that still have a small market share. live

(3) Logistics Transportation is the heart of online retail development. Developing transportation infrastructure and growing number of logistics providers are supporting the expansion of the online retail business. This will continue to bring good results back

to the transport business directly. Especially last-mile delivery business due to the expansion of the consumer base across the country.

Over the past several years, the demand for freight and parcels in Thailand has increased dramatically, with between 2014-2019 the number of parcel shipments in Thailand grew at an average of 92% per year, higher than the global average of just 4.2. % and if we consider the number of parcel shipments per population in 2019, it

was found that Thailand was 8.3 per person. This is still less than countries with higher access to online retail, such as China (42.6), South Korea (48.2), etc.

(4) Online advertising: In the past 5 years, online advertising media in Thailand has grown by 21% per year until 2020, accounting for 23% of total advertising media value, up from 7% in 2015. More than 50% of online ads in Thailand are advertised on Facebook and Youtube, reflecting a shift in consumer reach to social media. And in line

with Thailand’s share of online retail through social networks reaching a high level of nearly 40% in the coming period,

while there are some businesses that will inevitably be affected by the change. such as a retail business that relies on a storefront Real estate business related to the sale or lease of commercial space or a large restaurant that has been taken away from the food delivery service (Food Delivery)

However, the strategy of adapting to the new normal (New Normal) will be the key for the business to survive. And it is an opportunity to create new business growth.

Turn business ideas into money

Creativity in new business initiatives happens all the time This may be because business owners can now research and study about new innovations more easily. With advances in technology, however, initiatives in product and service development are most beneficial and efficient. When products and services can deliver real value (Value)

to consumers. Entrepreneurs starting a new business may try the following methods. To study the possibility of selling products and services

1. Products and services can actually solve problems for consumers or not, and how?

Many people may have heard that “What kind of product or service can solve Pain Points?” Which Pain Points refer to consumer problems. or customers in the target group of business owners The fact that products and services can help solve the problems many consumers are facing. This is to achieve the objective of delivering

value of products and services to customers. And could mean a bigger market size, the operator may be able to sell their products and services

2. Taking into account the price is right. and the possibility that consumers are ready to purchase goods and services at a specified selling price.

When consumers know the ability of products and services to solve consumers’ problems, then The next step is to make a decision to purchase that product or service. The main factor in consumer analysis is inevitable. The factor in terms of selling price (Price) by the selling price set by the operator It should reflect the true value of goods

and services. And also need to consider strategies for generating profit from the selling price. Including taking into account the various expenses as well.

3. Looking for a target audience.

that businesses can find target groups to sell products and services Refers to the possibility of selling goods and services to the market itself. Moreover, having a goal to communicate about products and services. Can help businesses market to the point. This means spending on effective marketing. If the target group of the business Is a

niche market or niche market entrepreneurs need to make sure that consumers with this group. Able to create a market for selling goods and services that is true and sufficient to sustain the business of the business Businesses with Niche Market customers, for example A shop selling equipment for left-handers, etc.

4. Market testing.

Market testing allows operators to know the feasibility of selling goods and services under real-world environment and market conditions. The operator may get critical opinions about the customer’s actual needs for the product and service. By testing the market, there are various methods such as trial product distribution Using an

experimental group to test the product for a period of time to ask for opinions or Feed back about the product to be developed improve products to meet the needs of consumers as much as possible To increase the value of goods and services as much as possible.

5. Prepare funds.

Capital is a key factor in running any business at any given time, whether it’s a new start-up. as well as any business that has been in operation for a long time because if there is a lack of funds means that there is a lack of financial liquidity causing The

purchase of raw material has problems with employment or employee payroll. This is another important resource of the business itself.

“Capital” is another key factor that makes business initiatives can come true Even though businesses have proven feasibility to sell goods and services. Lack of working capital or start-up capital It may be a major trap that makes many entrepreneurs troubling.

6. How do you market your business?

when going through the initial process that allows entrepreneurs to visualize and conclude that Products and services have the potential to be marketed. and there is a real need Next is planning strategies and methods for communicating and delivering business messages about goods and services to consumers. The entrepreneur must

study the appropriateness of the marketing of the products and services that What kind of strategy, where, and with whom must be used in order to achieve the most effective and targeted marketing?

Good Business Ideas are ideas that can help consumers solve problems. that are encountering can actually generate income from sales And there are real customers, which are the 3 components of starting this business, which are 3 elements that entrepreneurs, especially entrepreneurs who are starting a new business, should focus

on because if one of the elements is missing A business idea that is invented may not be of benefit or value to anyone, be it the consumer or the business owner.

Techniques for selling products online to people who are interested.

Selling products is a way to make money for everyone. long time people Regardless of the type of product, the most important point is to try to find the most attractive selling technique, which means that the opportunity to sell a large number of products will follow as well. However, as the world has evolved, the sales of goods have also

changed. Online merchandising has played an increasingly important role. When this is the case, the techniques used to sell online require new techniques. to make selling products more successful

Techniques for selling products online to keep people interested.

1. Focus on taking photos that make the product stand out – no matter what type of product, if it is sold online, the first thing that customers will see is a picture of that product. In this way, the thing that will attract the attention of customers the most is the image of the product that must be prominent and beautiful. In this way,

photographing the product to make it stand out is the tool that will help attract attention. In that product even more.

2. Create credible advertisements. Not exaggerating – no matter what kind of product, the use of advertising words must be present. Still, the selection of advertising words to sell online should be an advertisement that presents the product but is sufficiently

attractive. It does not support or exaggerate its properties too much. Because if it’s over, people will feel uninterested by default.

3. Try to post frequently for sale – Selling online, if you want to be known or remembered by your target audience, you must try to post repeatedly until the customer is remembered. When he wants to buy this type of product, he will think of our product first.

4. Answer customer questions willingly – It is very common that when someone is buying something, they have to ask for details. The more it is online sales that don’t see each other’s faces as well, and customers have to ask more than usual. Answering

the seller’s questions is therefore the key to determining whether the customer will make a purchase or not.

5. Try to find reviews of your own products from real users to present – ​​having customers see product reviews when they have been used will help build confidence in buying the product. well Because the feeling of the customer who will feel that someone

has already used the product and it is not bad, it can increase the confidence of buying the product many times.

Target audience with online business

• Know your target audience.

This part must not be forgotten. That we need to know who our customers are, who we are selling, what occupation, how old, and what income. will be able to sell directly to the group

But if anyone still can’t see Or still can’t figure out who our real customers are? such as mass products that can be used for all ages We still can’t predict what age people will be interested. And buy our products the most. The

method is for us to try to sell it for a while. when customers start to come in We will be able to narrow our target audience more narrowly. Next, we will be able to spread the target audience to more desired groups. No budget for advertising to non-customers.

• Promote and market.

Well, we have a website.

But are you wondering? How will the target audience we talked about before see our online store?

online sales Require that people see us and know us much more mainstream yet to make our website stuck on the Google homepage to me, it had to invest little by 2 ways to do SEO and advertising Google ads

many people. Frown about what SEO is investing in. It’s free, isn’t it?

Yes, it’s free, but this work requires some investment in labor and time. Slow but sure Once installed, we will stay for a long time. How to make our website addicted to SEO? Let’s try to read.

As for Google ads, of course, it’s known as Ads and it costs money.

It’s the fastest way to promote your website to sell stuff. And definitely get on the first page of Google. When making ads, we will get new customers immediately. No need to wait for the website to rank like SEO. But when we have more traffic coming in, our SEO will improve accordingly.

What if we can’t shoot ads?

Make Web Easy has a specialist in Google Ads advertising to consult with.

Try to advertise yourself There may be a lot of free clicks. It’s bad to shoot at the target audience. Even if you have to increase the budget to hire a specialist to help take care of the ads a bit. but has specialized specialists to take care of Manage advertising costs I feel comfortable again.

However Money alone is not enough. Don’t forget other elements. That will help the ads to be more effective as well. Advertising words or images used Can customers see and then decide to buy? There are interesting promotions at different times. Have a review for customers to see To build credibility with our website or not?

• It’s good to review.

The best thing that will motivate customers to buy our products is review.

Actual reviews can be used as photos, videos, or text. Notice how successful businesses are. Most of them will focus on reviews. because the product or service review will help build credibility To our business more, of course, the nature of the consumer. would buy from a reliable store And there are already a lot of people recommending it.