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.