“China is shifting from export to import” Jack Ma said this to his 3000 audiences at Gateway ’17 export conference (20-21 June) in Detroit. Export to China is a great opportunity.
China export different goods all over the world. And most “Made in China” goods are the symbol of cheap products. However, this situation is changing rapidly. “Made in China” now becomes “Buy in China”. “Buy cheap” becomes “Buy brands”. This is due to the increasing production cost and growing middle class.
More and more joint ventures in China have moved their factories to other cheaper labour countries in South East Asia like Vietnam, Bangladeshi, Cambodia and Laos. You now see more and more luxury brands open their flag shops in China since couple of years ago, from luxury cars to luxury shoes.
Now, the luxury goods boom is slowing down, the demand of the growing middle class push the imported goods to a record high. There are so many imported goods on Taobao, Tmall (Owned by Alibaba) and JD. Some are genuine and some are fake. To avoid the fake imported goods, many consumers ask their overseas relatives and friends to buy in overseas and they pay for the high postage. They care the quality more than the cost. A new Chinese word “Daigou” was created for people who buy goods in overseas and sell to China.
According to Jack Ma, there are 300 million middle class in China, almost the same as American’s population (321 million), and Chinese middle class will double in the next 10 to 15 years. These are the consumers who want high quality and imported products.
Jack Ma also mentioned another shift – from “Standardisation” to “Personalisation”. Big companies faces huge challenges while small and medium businesses braces the opportunities.
With about 200 million Chinese buying on Taobao & Tmall everyday, export to China is much easier on E-Commerce.
It is true that online shopping malls offered a great opportunities foreign business to list their products for Chinese consumers. However, put your products on-line is not the end of the export. It is just a start. There are many online platforms competing with Taobao & Tmall.
How to choose the correct online platform? How to make sales through online and off-line channels?
We will discuss more in our export consulting blog.
Should you want to know more, please contact us.