Have you heard about cross-border e-commerce, whose popularity has skyrocketed in recent years due to the spread of the Internet and smartphones?Cross-border EC is a form of business that involves online mail order sales across national borders.
The cross-border e-commerce services that exist in Japan are not geared toward Japan, but rather toward foreign countries. Consumers in China, Japan’s neighbor, use many Japanese products. So, can this business model of using cross-border EC to enter the Chinese market be successful?
In this section, we will explain in detail the characteristics of popular Japanese products. We will also introduce some of the secrets and cautions for success when entering the Chinese market.
目次
Characteristics of Japanese products
Do you know why Japanese products are so highly regarded around the world?
There are two main characteristics common to Japanese products that are recognized around the world.
- of good quality
- Interesting idea.
The above features will now be described in detail.
of good quality
One of the characteristics of Japanese products is that they are of good quality. This is because many Japanese products are highly functional and safe.
Below are products that are considered to be of good quality in Japan.
- automobile
- electronic equipment
- cookware
- mourning
- Beauty Products
Especially in the current world where the new coronavirus is spreading, gasoline prices are skyrocketing on a global scale. For this reason, Japanese automobiles are highly popular even among developed countries, as electric vehicles are being developed and are considered to be extremely fuel-efficient.
In connection with cooking utensils, Japanese food products are also very popular overseas. The world is increasingly emphasizing health, and among these, “Japanese food” is attracting attention as a healthy food that also tastes good.
Based on the above, Japanese products are considered to be of good quality.
Interesting idea.
Have you ever seen on TV or other media that Japanese products are being picked up and noticed overseas?
In many cases, products from Japanese hundred-yen stores or department stores are featured. For example, products that can peel apples in an instant.
The above products are attracting attention and ideas from around the world and are generating a great response.
In addition, Japan’s traditional and modern anime and manga cultures are attracting significant attention from abroad.Products that combine these two different cultures have also become popular overseas.
The world is paying attention to the ideas behind Japanese products, so products with solid ideas tend to sell well in cross-border e-commerce.
How can Japanese companies succeed?
What should Japanese companies practice when entering the neighboring Chinese market through cross-border EC? There are five main secrets for Japanese companies entering the Chinese market through cross-border EC business.
- Understanding China’s Needs
- Open a store on a mainstream e-commerce site in China
- Have a larger supply available.
- Promote your products on social networking sites.
- Understand products that cannot be imported or require a permit
We will now discuss the above secrets in more detail.
Understanding China’s Needs
If you are in the business of selling products in the Chinese market, you need to understand the needs of China. This is because understanding China’s needs will help you understand what kind of products you should sell.
In particular, the following Japanese products are popular in China.
- apparel (clothing) goods
- precision instrument or machine
- necessities
- security articles
By understanding the needs of China and selling Japanese products, large profits can be expected.
Open a store on a mainstream e-commerce site in China
When developing a cross-border EC business in China, be sure to open a store through a mainstream EC site or EC mall in China.By opening a store on a mainstream Chinese e-commerce site, you can expect to attract a high number of customers.
By opening a store on a mainstream Chinese e-commerce site, even companies that are not well known in Japan have more opportunities to sell their products. However, it is important to understand that you will need to pay settlement fees and other fees when using Chinese e-commerce sites.
Have a larger supply available.
China is a country with a large population. Therefore, when a product becomes a hit, the demand for the product goes up enormously.
In particular, it is said that there are a total of 70 million users of cross-border EC in China. In addition, as evidenced by the term “Bakuhai Chinese,” which has become a social phenomenon in Japan, Chinese people tend to purchase Japanese goods in large quantities.
The fact that we are doing business with foreign countries means that it will take time to stock up if we run out of inventory. This is why we know that it is important to keep a larger supply.
Promote your products on social networking sites.
Promoting products on SNS is another way for Japanese companies to succeed in the Chinese market. The key here is to advertise your products on SNS, which have a high usage rate in China.
In Japan, social networking services such as Twitter and Instagram are popular. In China, however, other SNS such as “WeChat” and “Weibo” have become popular. Therefore, it will be difficult to attract customers if you do not advertise your products through popular SNSs in China.
Also, when advertising your products on Chinese SNS, try to advertise your products to young people, who are the most likely users of SNS.
Understand products that cannot be imported or require a permit
In China, as in other countries, there are different products that cannot be imported or require a permit. Therefore, it is necessary to understand what products cannot be imported.
If you attempt to sell a product that cannot be imported, you will be penalized or prohibited from selling the product.
The following products are banned for import and export in China.
- Weapons and explosives
- Counterfeit Currency and Counterfeit Securities
- illegal drug
- perishable foods
In addition, some products are restricted for import and export in China, so be sure to check each time you are in the country.
Points to keep in mind when entering the Chinese market
So far, we have shared with you the secrets to success in the business of cross-border e-commerce in the Chinese market, but there are also a few things to keep in mind when entering the Chinese market.
There are three main things to keep in mind when entering the Chinese market.
- Understand that there is a new system regarding cross-border EC
- Selling products in Chinese
- Use mainstream payment methods in China
The following are some of the above notes.
Understand that there is a new system regarding cross-border EC
As mentioned earlier, cross-border e-commerce is becoming increasingly popular in China. For this reason, the government has instituted a new system for 2019.
China has enacted three main things.
- Electronic Commerce Tax for Cross-border EC
- positive list
- transaction limit
The positive list refers to items that are allowed to be handled in cross-border EC. Those who wish to enter the Chinese market through cross-border EC should understand the new system described above.
Selling products in Chinese
If you are selling products through cross-border EC, be sure to sell your products in Chinese. If you do not sell your products in Chinese, you will not be able to get people to purchase your products.
Therefore, those who do not speak Chinese should take measures such as requesting a translation.
Use mainstream payment methods in China
When entering the Chinese cross-border EC market, it is necessary to create a system that is easy for consumers to use. One of the most important things to do is to enhance your payment methods. Be sure to research and introduce the payment methods that are mainstream in China.
In particular, it is important to understand the means of payment, as systems that link payment with social networking services and mobile payment are now mainstream.
summary
So far, we have explained in detail the characteristics of Japanese products and the secrets and cautions for Japanese companies entering the Chinese market.
Japanese products have gained support not only in China but also around the world. In particular, high profitability can be expected when trading Japanese products in China because of the large number of cross-border e-commerce users.
When using cross-border EC to enter the Chinese market, it is also important to attract customers by using multiple other sites and social networking services.
However, while cross-border EC is very popular in China, it is important to understand that there is a cross-border EC system and that there are multiple precautions to be taken. If you conduct business without understanding the precautions, you may suffer various disadvantages. Therefore, it is important not to neglect gathering information in advance.
With the above in mind, enter the cross-border e-commerce market in China.
