Recent weeks have seen a flow of news from China pointing to continued stellar growth in eCommerce in what has become the world’s largest retail market.
Global fast moving consumer goods (FMCG) brands such as Rudolf Wild’s Capri Sun and Fonterra’s Anchor have been talking about their efforts to gain a foothold in the market, through partnerships and the eCommerce channel.
Anchor for example gained a 5% share of the premium milk market after setting up a flagship brand store on Alibaba’s eCommerce marketplace Tmall.
In parallel news this month, Tmall’s rival and second-largest e-commerce company in China, JD.com announced that it is taking on its bigger rival on the international stage. It unveiled JD Worldwide, a new sales platform, which it says enables overseas brands to sell directly to Chinese consumers without having to set up a business in the country.
Industry experts disagree on risk / reward balance created by cross board trade sites such as this. Some say the ability sell from one country into another poses a significant compliance risk, as products designed and regulated for one market enter the supply chain of another country untested.
Meanwhile China insiders say that the stringent regulation of health, beauty and food products in the US and Europe is what attracts Chinese consumers to foreign brands in the first place. It seems the eCommerce market in China is developing so fast that nobody has time to think about the potential risks.
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