With a nearly 100 per cent penetration rate among young urban, well-educated, and relatively affluent Chinese consumers, the Internet is proving more and more to be the most efficient sales and marketing channel in China. The eCommerce market, like so many others in China, is vast in terms of size and potential. Approximately one-third, or 142 million, of Chinese Internet users shop online.
Astonishingly, however, most companies in China do not yet cater to the enormous online retail market. Though many companies in China’s consumer goods industry already offer online sales, they do not use the potential of the Internet to generate awareness and its profitable conversion into the digital sales channel.
According to aquarius asia, the top 100 manufacturers of consumer goods (in the Amazon product categories) are giving away a large part of their online potential. The aquarius study “eCommerce in China today” shows that three out of four major companies do not efficiently use sustainable tools like SEM or SEO to reach their target groups:
There is clearly high demand for eCommerce offerings and potential to better structure the buying process and lead customers. Choosing the right distribution model is essential for sustainable online growth. The choice whether to sell via an own or third-party eShops depends on the evaluation of different factors. Therefore, aquarius has identified 15 success factors along the eCommerce purchasing cycle.
A greater use of digital sales potential can have a lasting effect on the profitability of a manufacturer of consumer goods in China. The selection of the ideal sales model, as well as understanding the specific success factors are of utmost importance. The initial investment during the preparation pe-riod might be high, but given the huge potential and growth of the market, it is definitely worth to do it and to be well prepared.