China eCommerce: Localisation tips for a $3 trillion market
- Jo Silverwood
- Read time: 16 minutes
Expanding into the eCommerce market in China offers a great opportunity for UK brands, with its vast consumer base and dynamic digital landscape.
With the largest eCommerce Market in the world, China is an attractive choice for brands considering international expansion. However, marketing in China presents unique challenges for foreign brands to navigate carefully if they want to be successful in this diverse eCommerce landscape.
Brands must grasp a deep understanding of cultural nuances, consumer behaviour, and local preferences – elements that are often overlooked. But as we’ve discussed in our earlier introductory article about the importance of understanding cultural differences in international marketing, these are crucial aspects of an effective website localisation strategy for any overseas market brands wants to target.
In the first article of our country specific guides to international marketing, we will explore the key aspects of cultural localisation for ecommerce businesses aiming to thrive in China. From adapting your marketing strategies and aligning with Chinese cultural values, to leveraging native eCommerce marketplaces, social media platforms, and payment methods, we’ll cover all the essential steps to ensure your brand resonates with local consumers.
By the end of this article, you'll have the insights and tools necessary to navigate the complexities of the Chinese market and build a strong, culturally localised ecommerce presence.
What does eCommerce in China look like today?
How does Chinese culture impact online buyer behaviour?
Ecommerce marketplaces, local search engines, and social media marketing in China
Ecommerce website localisation considerations for a Chinese audience
What does eCommerce in China look like today?
In recent years, the digital economy has made a huge difference to China’s GDP. With over 25% of consumer goods being sold online last year, China now boasts the world’s biggest ecommerce market- it is expected to reach $3.3 trillion US dollars by 2025. Over 80% of Chinese people shop online, mostly via smartphones. China is also expected to be the first country worldwide to have over 50% of retail sales happening online.
The reason for this China ecommerce market boom can be explained by several factors:
- The coronavirus pandemic
- Faster internet speeds
- Huge smartphone adoption
- More trusted ecommerce platforms
- Consumer confidence in online shopping
More safe ways to pay have contributed too, led by platforms such as Alibaba’s Tmall and Taobao, JD.com, and Pinduoduo. These platforms facilitate payment but also provide entertainment and social networking features, which blur the lines between ecommerce and social media.
The good news for UK merchants is that demand is growing for high quality and premium goods. Chinese consumers know that Britain stands for design and quality when it comes to consumer products, so the market in China provides a good opportunity for UK ecommerce exporters.
How does Chinese culture impact online buyer behaviour?
Chinese culture profoundly influences buyer behaviour, shaping everything from purchasing decisions to brand loyalty.
Collectivism plays a significant role, with consumers often relying on recommendations from friends, family, and influencers. This leads to the importance of word-of-mouth and social proof. The cultural concept of ’face’ (mianzi) makes luxury and status symbols particularly appealing, as they enhance social standing. As a result, brands with strong reputations can enjoy significant loyalty. Additionally, balancing traditional values with modern aspirations is crucial, as consumers appreciate products that respect cultural customs while also symbolising progress.
The importance of guanxi (relationships and networking) means that trust and personalised customer care are highly valued, with influencer marketing playing a significant role in digital marketing in China. Festivals and holidays like Chinese New Year and Singles’ Day create significant spikes in consumer spending, providing opportunities for targeted promotions.
China's unique digital ecosystem, characterised by mobile-first shopping and integrated platforms like WeChat, requires brands to optimize for mobile commerce and leverage super apps for engagement. Price sensitivity also affects consumer behaviour, with many seeking value for money through discounts and promotional events. Understanding these cultural factors enables UK ecommerce brands to tailor their strategies effectively, ensuring a strong connection with Chinese consumers.
Ecommerce marketplaces, local search engines, and social media marketing in China
China’s digital ecosystem is unique, with native platforms and online marketplaces like T-Mall and JD dominating the ecommerce landscape. Unlike in the west, many Chinese brands operate online stores within messaging apps like WeChat. With over a billion monthly active users, the app is used not only for messaging but also for paying bills, ordering food, booking flights, and shopping.
Tmall
Operated by the Alibaba group, Tmall is similar to Amazon marketplace, and allows international brands and retailers to set up a China eCommerce store to sell D2C without needing a local presence. When brands set up a Tmall account, they get access to a storefront, analytics, and marketing tools. Merchants have to apply for an account, and meet various requirements if based outside of China and incur large trading fees, so it's worth doing some market validation first. There is also an option on Tmall to use a Trading Partner (TP) initially, who manage operations on a brand's behalf. Essentially like a distributor for non native brands. These partners are vetted and charge a monthly retainer fee, as well as a percentage of each sale.
WeChat combines social networking, messaging, payments (WeChat Pay), and ecommerce into a single platform, making it integral to daily life in China. Brands can create official accounts and develop promotions, customer service, and interactive content to provide a rich user experience. WeChat’s sophisticated targeting and analytics tools help brands tailor marketing strategies to target specific audience segments and drive engagement and conversions. This tool is essential for brands to connect with new users where they are already present, foster deep connections, and drive business growth in an already highly competitive market.
Often referred to as the Chinese version of X, Weibo is one of the most popular Chinese social media apps with over 600 million monthly active users. Contrary to WeChat which is private, Weibo is open to advertising and its users are too. This is a good place to advertise and engage with your followers in a commercial way. Brands need to create an official Weibo account and attract followers to amplify brand presence in China. The platform’s seamless integration with ecommerce functionalities, such as direct links to product pages and seamless purchase options, supports a frictionless user journey from discovery to purchase. This makes Weibo an obvious choice for ecommerce brands in China.
Baidu
In terms of advertising, Chinese people generally trust paid ads more than organic results. But for merchants to be visible they need to target Baidu - the most popular Chinese search engine with over 218 million daily users. Google and many global social media platforms such as Facebook, X, Instagram, and YouTube are not available in China due to the government’s strict censorship rules on foreign websites and platforms.
To develop visibility on Baidu, we recommend a multi-channel approach blending Paid Media advertising (PPC and SEM) and SEO, using carefully crafted content and keywords (localised linguistically, of course) to gain traction and drive traffic and revenue.
Ecommerce website localisation considerations for a Chinese audience
The first thing to note here is that non native brand websites are likely to be blocked or slowed down significantly by the GFW or Great China Firewall, which monitors all incoming traffic. If a brand is using tracking pixels from Facebook or other social media sites, it is unlikely to work at all.
Create a separate Chinese store
To optimise your store for China, we recommend using a nearby CDN, (Shopify uses Cloudfare), and have a separate store which is optimised for this unique market by cutting down on large media files. Videos hosted on YouTube or Vimeo will be blocked automatically, so try using a local streaming platform like Youku.
Western tracking such as Google analytics and Facebook code will be blocked, so simplify and remove these types of apps and features from your Chinese store.
Make sure you have a clear sitemap, and avoid hosting in China which can be difficult and expensive. Shopify's multi-region architecture is ideal for a cost-effective out-of-the-box solution to selling into Chinese market.
Website design
Chinese people really like to buy from Chinese companies. Brands therefore need to ultra-localise stores to infiltrate the market to the point where they almost reinvent themselves to appear authentically Chinese. Global giants such as Coca-cola (可口可乐 meaning “delicious happiness”) and Nike ("耐克" meaning ‘endurance and conquer’) completely changed their brand names for the Chinese market to appeal to local consumers.
Mobile-optimised sites with integration to local apps like WeChat are essential as locals prefer to shop on their smartphone. Chinese people love interactive content such as animations, videos and live chat. Use bright colours and dynamic designs. Red and gold colours are considered to convey prosperity and good fortune.
Chinese online shoppers prefer comprehensive product information to allow them to compare alternatives thoroughly. If the details are lacking, they will seek other options. Product listings typically include:
- Key bullet points
- Detailed descriptions of uses and materials
- Brand history
- Numerous images
- At least one video
- Data on certifications and sales figures
Language
There are two distinct written styles of Chinese:
- Simplified - used in Mainland China, Singapore and Malaysia
- Traditional Chinese - used in Hong Kong and Taiwan
There are also many regional variations of the spoken language, and distinct dialects within these variations. The best option for website localisation and content marketing in China is to adopt simplified Chinese characters which are used in mainland China. Avoid literal translations, always adapt to local expressions and idioms, and never rely on machine translation alone.
Payment Methods
Alipay and WeChat Pay dominate the market with a combined 2.5 billion users globally. WeChat is one of the few potential competitors to Mastercard and Visa. UnionPay is also popular in China. The key here is also to ensure a seamless checkout experience, with multiple familiar payment options.
Note that Shopify payments is not currently available to merchants in China.
Shipping & returns
For price sensitive Chinese consumers, speed, flexibility, and low-cost or free shipping options are key. Local warehousing can help reduce delivery times from the UK, so merchants could consider this or selling via popular marketplaces such as Taobao, Tmall, and JD.
Clear and transparent processes for returns and handling complaints quickly and effectively is crucial in China. Consumers appreciate being kept informed and prompt returns procedures.
Marketing messaging
Consider heavy use of social proof, user generated content, celebrity endorsements, and live-streaming for sales. It’s wise to incorporate user reviews and testimonials, as Chinese consumers rely heavily on these aspects before purchasing. Emphasize value for money, discounts, and promotions – Chinese consumers are extremely price sensitive and value-driven. Chinese online shoppers love a good deal!
One extremely popular way to promote a brand and product is to collaborate with a Chinese KOL or Key Opinion Leader. These are like social media influencers who are often able to sell often thousands of products in a short amount of time due to their authority, knowledge or relationship with the audience. KOLs play a big part in helping sell online goods in China via interactive content on social channels, videos, and live streams. They create a buzz around a product and drive high levels of engagement and awareness. Since social proof significantly impacts buyer behaviour in China, when a follower sees a trusted KOL using or endorsing a product, they are much more likely to want to purchase it.
Before launching into the Chinese market, where regulations and commerce operations differ greatly from those of western countries, it’s wise to seek specialist help in areas like market research, routes to market & distribution, and legal advice - especially since the government controls many areas of the economy. That said, with careful planning and a robust tailored marketing strategy, China poses a great opportunity for UK commerce brands.
Customer Service
Due to the competitive ecommerce landscape and cultural values, Chinese shoppers have high expectations for customer service in terms of speed and efficient responses. Quick, 24/7 real-time and comprehensive after-sales support via live chat features are expected. This reflects the fast pace, always connected nature of modern life in China.
They also expect a seamless omni-channel experience; consumers value the ability to begin a service request on one platform and continue on another without disruption.
Platforms like WeChat and Weibo offer integrated customer support, which is very popular with local consumers. Responsive and engaging customer service on these platforms is crucial.
A personalised and friendly service is important to the Chinese consumer, and brands using data to offer a personalised shopping experience will do well. Politeness and a friendly demeanour are vital, and customer service clientele should always remain courteous and respectful, which aligns with the cultural importance of maintaining ‘face’ and positive relationships in China.
Seasonal trends
Chinese New Year which typically falls between January and mid-February, is the biggest holiday in China. It leads to a surge in spending on gifts, decorations, clothing, food, and travel related purchases as people return home for family celebrations. Brands should focus on festive promotions, giftsets, and limited-edition products tailored to the holiday.
Important Chinese calendar dates for ecommerce brands to consider
Single’s Day (November 11th) – Originated in China as a counterpart to Valentine’s Day, this is now the largest online shopping event in the world, generating over €145.2 billion last year. Consumers expect huge discounts and promotions, flash sales, and pre-sales events, usually heavily promoted by influencers and big advertising campaigns.
618 Shopping festival (June 18th) – Founded by JD.com, this is a mid-year shopping event where online brands offer special promotions and huge discounts, similar to Single’s day promotions.
Chinese Valentine’s day (7th August usually, aligned with the lunar calendar) - Known as the Qixi Festival, this is similar to the western event where products like jewellery, chocolates, flowers, and romantic getaways are in high demand.
Mid-Autumn Festival (September or October depending on the lunar calendar) – another time for family reunions, where sales of food -especially mooncakes - and other gifts rocket. Brands should promote gift items with festive packaging that emphasize family and togetherness.
National Day (October 1st) – This is a weeklong holiday called ‘Golden Week’ which results in increased spending on travel, leisure, and luxury goods. Brands selling travel related products, outdoor equipment, and leisure activities will profit from promotions around this time of year in China.
Final thoughts
Remember: adapting to cultural differences is not just a strategy but a necessity for thriving in the global e-commerce market. Brands that excel in meeting the expectations of a Chinese consumer online can build trust and loyalty, driving long-term success in this lucrative market.
Watch out for the next article in our series of country specific guides for ecommerce merchants, as we focus on doing business in Germany.
Check out the Department for Business & Trade individual market guides for more information on export opportunities and selling to these and other countries worldwide.
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