Three Strategies To Win In China’s E-commerce Market

Recently, American retailer Macy’s announced that it will launch an e-commerce site in China in 2017.  Will Macy’s follow the footsteps of other American giants such as e-Bay, which failed miserably, or Amazon, which couldn’t gain much footing in China?

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For Macy’s, or any other retailer large or small, the Chinese consumer market is both enticing and intimidating. China’s e-commerce market is the largest in the world, and has been growing by double digits. However, Chinese shoppers behave differently than their Western counterparts, and market conditions are fundamentally different as well.

In order to win in China’s e-commerce market, the following three strategies are essential. Continue reading

Reasons Why Chinese Millennials Have More Cash To Burn

Xiao-jie is 21. A senior in college, she is one of six million people who traveled overseas during China’s Golden Week holiday (Oct. 1-7). Japan was her destination. The trip cost about 10,000 yuan (about $1,500), which her parents paid for. As the only child in the family, Xiao-jie gets pretty much everything she wants.

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The same is true for her friend who traveled with her.

Xiao-jie and her friend are not alone. According to China National Administration of Tourism, more than 120 million Chinese traveled abroad in 2015, spending $194 billion. About half of those Chinese travelers were millennials–born after the 1980–and they accounted for two-thirds of Chinese outbound travel spending.

The travel industry is excited to target “wealthy” Chinese millennials. While some Chinese young people are from wealthy families, most of them are not. But compared to Western millennials, they have two significant advantages. Continue reading

The Chinese Consumer Is Driving Global Innovation

This year’s Economist Innovation Summit in Hong Kong brought together about 200 industry luminaries, entrepreneurs and venture capitalists to debate one of the hottest topics regarding China: will China become an innovative economy and what will it mean to the world?

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One of the themes that emerged was Chinese consumers have become a driving force for global innovation. In 2015, China’s industrial sector barely grew, but its service sector saw higher than usual growth at 12%. Latest data indicate that consumption accounted for more than 60% of China’s GDP.

As I wrote here and here, there are more than 600 million Chinese middle class consumers–and counting. They have been evolving and maturing quickly over the past decades.

“I don’t think that there is a consumer in the world now that is more demanding than the Chinese consumer,” said Victor Fung, chairman of Fung Group, a business consultancy based in Hong Kong. Continue reading

How Starbucks Can Revive China’s Lost Tea Culture

Starbucks’ announcement to enter China’s tea market has raised a few eyebrows. Some questioned why Chinese consumers would want to drink tea from a foreign coffee chain, given their own rich tea tradition. I wondered, however, why it took Starbucks so long to venture into China’s tea business. 

China may have thousands of years of tea-drinking history, but its tea culture has been largely lost.

Little has changed in China’s tea culture

I recently visited Longjing Village in Hangzhou, one of China’s famous tea capitals. A college friend wanted to treat me to my hometown’s finest green tea—the Longjing tea, also known as Dragon Well tea. Legend has it that the Qing emperor Qianlong favored Longjing tea so much that he planted 18 tea trees in the hills himself.

Farmers at Longjing Village have been growing tea for centuries. In recent years, they turned the village into a tea garden with restaurants featuring local cuisine. Its countryside setting is much sought after by locals and tourists alike who want to escape the stress of city life. Continue reading