Date post: | 22-Jan-2018 |
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Small Business & Entrepreneurship |
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CHINAINBOUND
$975 billion USD
$648 billion USD
$186 billion USD
$124 billion USD
$76 billion USD
Estimated turnover in 2016
United States
Japan
China
France
United Kingdom
World’s #1 Ecommerce Market
● In 2016, Chinese cross border ecommerce purchases totaled $86 billion USD (9% of total Chinese ecommerce market)
● By 2020, it is expected to double to around $157.7 Billion USD
Cross Border Opportunity
Other factors affecting cross border:
● Rising incomes, larger middle/upper class demographic
● Increased brand awareness results in growing demand for mid/high-end products
● Changing preferences and tastes
Why Cross Border?
● Tmall
● JD Worldwide
● Amazon.cn
● Coming soon: Taobao Global
China Distribution Channels
● Cross-border ecommerce market is fragmented vs traditional
● China platforms partnering with more global brands e.g. Macys, Hugo Boss, Versace
● Consumers now purchase direct from overseas retailers
China Market Share
Top Overseas ProductsTop 10 cross border product categories
49.6%Consumer Electronics,
household goods
China Postal Channel
Hong Kong Inventory
Tax free if under threshold$120 USD China Consumers
3 days - 6 days
China Customs B2C ImportOverseas Inventory
No tax
Hong Kong CustomsB2B Import
Tax rate of 15% / 30% / 60%
China BC Import Channel
Hong Kong Inventory
eCom Tax (11.9%) HS Code pre-entered on platform China Consumers
4 days - 7 days
China Customs B2C ImportOverseas Inventory
No tax
Hong Kong CustomsB2B Import
Coming soon:Currently supported:
Floship IntegrationsAmazon.cn
Tmall
JD.com
Aftership
Magento
Shopify
Woocommerce
Dear
Market Entry PrerequisitesBasic business requirements:
A registered foreign corporate entity
Possess foreign retail and trade qualifications
Pay partner site set up fees and acquire appropriate business licenses
E.g. Tmall Global requires a US$25,000 security deposit, a US$5,000 annual fee,
and a 0.5-5 percent commission depending on the product category
Operational requirements:
Products must be genuine, complete with a certificate of origin and meet both
Chinese/international customs specifications
Product labels must be in Chinese and use international units of measurement
Floship Features & BenefitsOnline Visibility & Control Integrations to Key China Channels
Fluent English Customer Service China Inbound & Regional Expertise