Updated: May 27, 2019
There are definitely great opportunities in China. Already today the Chinese market is outnumbering EU and USA in number of online transactions and is expected also to have a higher revenue than these two markets within 2 years.
The number of Chinese people who can afford to buy western products are increasing dramatically and Nordic brands are still popular in China. Definitely an opportunity to consider.
What will the challenges be?
There are of course a few things you need to understand in order to become a successful web shop in China.
First of all you need to verify your business case. The challenge for many will be that their products are produced in China or close to China and shipping them to your warehouse in one of the Nordic countries and then back to the Chinese consumer will be expensive. Setting up a logistic operation in China can on the other hand also be an expensive and challenging task.
Running a web shop in China is also very different from Europe and US. You will have to learn to use a complete different set of tools for online marketing, social media and SEO. On top of that you are looking at a country with a entirely different written language.
Wealthy Chinese consumers
In 2015 there will be more than 4,4 million Chinese people earning more than the equivalent of earning 100.000$ in the US. This will rank China as number 4 on the list of countries with most wealthy people.
Of course these people represent an enormous buying power and to get access to these people there are many things to keep in mind, a few examples from a Mckinsey study:
80% of the wealthy Chinese people are less than 45 years old.
60% of the luxury products they buy are bought in China and not from abroad
The status connected with buying a specific product is less important for this group than in other countries
You can learn more about the Chinese market through a Market scan prepared for your specific industry.
MakesYouLocal offer services in China
MakesYouLocal’s partner Salesupply has opened an office in Shanghai. We will be able to localise and manage your web shop and make it possible for you to adapt to this market without setting up your own office. We can also offer warehouse services through the new office and make it possible to handle your products in China.
Please contact us if you wan’t to learn more.
Call Max Riis Christensen direct +45 3017 3950.