It has led to strong share price growth of brands that have been particularly favoured by Chinese consumers. The rapid development of cross-border e-commerce in China has not only triggered a heated discussion on how to support and regulate cross-border e-commerce, but also attracted local governments to introduce more high-quality international brands through the import expo. E-commerce – the trade in goods and services via the Internet – has become a growing component of the global economy, and cross-border e-commerce a major topic of discussion for Customs authorities. China, is called: cross-border e- commerce1 (CBEC) retail import. In 2018 alone the marketplace introduced 122% more overseas brands, over 80% of which entered the Chinese market for the first time. With increasing digitalization, cross-border e-commerce (CBEC) is booming globally and has become a massive factor in the growth of the global economy. Our team of professionals will take a deep dive into your business and determine the optimal channels and strategies for promoting your business in China, so be sure to contact us for a free consultation! The platform will be integrated into the Tmall Import and Export Business Department, but the Kaola brand will remain separate and be run independently. For details (fees, procedures, documentation, etc.) As mentioned previously, as of November 2018, the Ministry of Finance (MOF) and several other authorities jointly issued the Announcement on Adjusting the List of CBEC Retail Imports and the List of CBEC Retail Imports (2018 Version). Among the three business models, the TMG provides more autonomy as brands can co-manage their sales and marketing efforts on Tmall with their Tmall Partners. Merchants can either open a Flagship store, Specialty Store or an Authorized Store on Tmall Global depending on their business nature, and submit relevant documents for authentication. Over 40% of the e-commerce transactions in the world take place in this country. It was always clear that the Chinese authorities would at some stage seek to better regulate cross-border e-commerce and two … Diese Statistik bildet den Umsatz im Cross-Border-E-Commerce-Markt (B2C) in China im Jahr 2017 sowie eine Prognose für die Jahre bis 2022 ab. If the customs value of a single product exceeds the single transaction limit of RMB 5,000 (US$729) but less than the annual transaction threshold of RMB 26,000 (US$3,791), the item can still be imported via the CBEC retail channel. L’Oréal’s brand account and digital store on XiaoHongShu, XiaoHongShu has been very successful in building a community of user-generated content (UGC). In November 1st, China implements a tariff cut on 1,585 imported goods. Chinese consumers often feel that products purchased via cross-border e-commerce platforms guarantee a higher level of quality and offer protection against counterfeit goods (examples include infant milk formula, cosmetic products, handbags etc). So how does Kaola stand out from other big competitors like JD and Tmall? Entering the Chinese market through cross-border e-commerce can save companies many costs, and save them from the headache of product registration and licensing. Overview of China’s Cross-border Ecommerce MarketRead Now Must-know China Cross-border E-commerce Rules for Foreign PlayersRead Now Q1: What products can be shipped to China? With more business support and lenient regulations, overseas merchants should grab the chance to explore the prosperous China consumer market. She loves yoga, drama and literature. Kaola, previously owned by Netease and now sold … Q3: How is the currency conversion handled throughout cross-border trade with China? Most zones are located in coastal regions like Beijing (1), Shanghai (1), and the provinces of Guangdong (13), Zhejiang (10), Jiangsu (10), Shandong (7), and Fujian (6). In 2018, the State Council approved the establishment of a further 22 Cross-border Ecommerce Pilot Zones across the country, in addition to the 15 existing sites set up since 2015. As China's existing import/export structure was created before the advent of mass cross-border e-commerce transactions, the country has been setting up new cross-border e-commerce pilot zones in 13 cities since 2015, which has led to tremendous growth, and has just approved 22 more locations across China. Second, the focus is mainly on exports, which is expected to continue the rapid development trend. The development of China’s e-commerce has captured the world’s attention with many foreign brands and retailers selling their products via cross-border e-commerce platforms. Previous Article « China Revises Rules of Origin for Some Goods Under CEPA, Effective July 1, Next Article China’s 2020 New Negative Lists Signal Further Opening-Up ». As China continues on its path of economic recovery from the pandemic, smaller U.S. beauty brands are turning to Alibaba’s cross-border e-commerce to reach a Chinese audience. The country should no … Umfrage zum Online-Kauf aus dem In- und Ausland weltweit 2018. "E-commerce trade volume reached about 1 billion yuan between January and September. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies,  sales channels, and product mix based on their better understanding of Chinese consumers. China’s large market of 500 million online shoppers presents an irresistible opportunity, with an estimated 25% of shoppers buying through cross-border … According to Alipay and Tenpay’s official statement, in terms of mobile payment, WeChat Pay recorded 460 billion annual transactions in 2018, while Alipay only recorded 197.5 billion transactions. It allows more brands to customize their storefront, allowing them to optimize the page to the best of their ability and maintain their brand image. Since then, XiaoHongShu has formed strategic partnerships with many overseas brands including Lancôme, Swisse, and Innisfree (Brands can open a brand account/digital store on XiaoHongShu). They also said that they plan an annual growth of 30 percent in the next few years with more than 58 million consumers buying via cross-border e-commerce. It is still necessary to learn about how to choose a suitable China cross-border e-commerce platform for your business, as well as understanding local laws and regulations, product and marketing issues, payment conditions and logistics limitations to make wise decisions. Meanwhile, Hangzhou is also a pilot city for CBEC retail importation. All of this serves to reduce the trial-and-error cost and make it easier for brands to enter the market. As China has been putting much effort into upgrading its manufacturing infrastructure, it is seeking opportunities to export products with higher value and margins. Reducing the VAT levied on imported goods from 16% to 13%. In a move to facilitate CBEC import and export, local CBEC pilot zones are exploring innovative breakthroughs in the management of customs clearance, tax collection and management, foreign exchange supervision, cross-border financial services, and logistics. To get your products sold on Kaola, merchants must possess legitimate corporate entities, valid brand authorizations, and good credit standing and operating status. You can find the list here. Allein in Europa be… Cross-border E-commerce in China is unique because of the Chinese method of doing business, and due to the specificities of the Chinese market itself. To expand the business and attract more partners, XiaoHongShu launched several marketing initiatives by providing traditional display advertisements and introducing an influencer marketing platform to boost KOL marketing. We’ll explain you here how to do and what is the best strategy to implement to succeed in your business. The 2019 version of this list, which has taken effect since January 1, 2020, contains 92 new taxable items compared with the previous version, including frozen aquatic products, alcohol, and consumer goods. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. This illustrates that Internet and Mobile technology has become an indispensable facet of Chinese people’s everyday life, providing a fertile breeding ground for e-commerce business. Kaola would purchase products in bulk from merchants directly and help with brand marketing, packaging and operation (unified customer service and after-sales service on the platform). The major players include Tmall Global, Kaola and JD WorldWide. For retailers or brands who would like to expand their business through China cross-border e-commerce there are two major shipping models that they can consider, the bonded warehouse and direct shipping. 4. For more details about how to market and sell on XiaoHongShu, read our article The Best Guide To XiaoHongShu Marketing: How To Sell to Gen-Z & Millenials. Policy makers think that the CBEC trade will help China diversify its trade links in the context of the One Belt and One Road Initiative and reshape international trade patterns amid US-China trade tensions. The first and foremost question that you must consider is – Is it legal to ship and sell your products in China via cross-border e-commerce? The CBEC pilot zones have been pivoted as the ideal home for manufacturing companies, e-commerce export enterprises, e-commerce platform companies, logistics enterprises, and financial service firms. According to China Internet Watch, as of December 2018, the total number of internet users in China has reached 829 million, which occupies 59.6% of the total population. The item will be subject to import tariffs, VAT and consumption tax at the standard rate and the transaction value will count towards the annual limit. Wie sieht der Logistikprozess dazu aus? In another incident, the platform was accused of hosting huge amounts of fake content. In April 2019, the State Council issued the Circular of the State Council Customs Tariff Commission on Issues Concerning the Adjustment of Import Tax on Personal Effects, which affects the Personal Postal Articles Tax as below: Example of personal postal articles tax calculation. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Our subscription service offers regular regulatory updates, T h e boom in China cross-border e-commerce has been dramatic and exponential. In the first three quarters this year, China's import and export through the customs cross-border e-commerce management platform reached 187.39 billion yuan ($28.03 billion), a year-on-year increase of 52.8 percent, Zhu said. JD Worldwide, part of Cross-border e-commerce in China has grown steadily in recent years, on the back of strong consumer demand for … Tmall (Chinese:天猫), introduced by Alibaba, is a website for business-to-consumer (B2C)/ wholesale (B2B2C) online retail in China. For example, brands can open a 3rd party flagship store, or simply supply products to the platform without setting up a brand name store. Kaola works under a direct procurement model, meaning the company has established overseas offices in countries like the US, Japan, and Australia, to ensure it gets its products straight from the source! Foreign investors who are looking to tap into China’s CBEC market should stay abreast of the latest developments. A transfer will be made to the merchant’s receiving bank account during settlement. For tax rates in different product categories, please check the list here (in Chinese). 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