Brand’s perception in China: from coolness to substantiality

If customer – target for luxury segments in China is much bigger than its counterpart in US , it means that society is still growing up towards new era for consumptions that makes two different middle classes facing with the market : approximately 110 millions of chinese are going to represent the new upper middle class with specific “commercial identity” that’s clear representation of new awareness about products and quality in particular in terms of substantiality.

It’s like how we are passing from the commercial equation for middle class that was used to say “foreign brand = cool = prestigious = not for all = I must have it” toward much more consciousness for foreign products and in particular for their ” substantiality” as crucial point to define characteristics like quality, tradition and luxury.

That’s why two specific ways of doing advertising and promotional campaigns are characterizing the commercial scenario in China for those segments that concern fashion, luxury and design for example.

  1. Regular promotion for middle class that is mainly focus about spreading logo’s attractiveness through digital marketing with discount and special campaigns and some offline events in department stores with parallel events to promote special offers doing brand and product placements in strategic location
  2. Innovative promotion for upper middle class, which make on focus the “characterization” of brand going beyond the “logo-strategy”. It represents a competitive solution for those corporate that got something to educate about. That’s what upper middle class is looking for: values, imagination and charm

If we are choosing as potential target the new upper middle class (that according with McKinsey’s analysis  is growing for 12% on annual base and it  registers as household income more than 35.000 dollars x year) we should consider that we are dealing with mature customers with international vision and high-competence in purchasing. This segment will go probably over 160 millions in the next five years and it will improve household income reaching peaks of 40.000 dollars.

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They are people aware of their status,  and their style is basically going toward  something of “well characterized”. Maybe they discovered european brands in some multi brands stores during their leisure travels in Asia (Hong Kong, Singapore, Macao, Japan, Korea) and now they are much more interested to buy products that have something to say beyond the logo. It represents a good opportunity for those operators that maybe even they got good placement on international commercial scene with specific distribution they for sure didn’t have the funds to be a well-known world-wide label.

chinese consumers bis

Of course foreign nature of brands could be a plus (however it’s not always the best selling point for this target  ‘cause they also like chinese style,  in particular when the product is result of research and commingling with exotic influences from external scenarios) but this target wants to understand them now not only enjoy the equation “foreign brand is cool and it’s definitely for nice people like us”

History, own identity  but also care about renovation of distinctive features in step with time’s changes are elements which strategical plan for marketing  toward upper middle class must be focused about.

Certainly the “regular” middle class is still majority and it’s embracing, in particular in second tier’s cities ,  the boom for brands in department stores and  before that they are used to follow with  big interest the “foreign sounding”  of some advertisements and online commercial campaigns (sometimes it doesn’t matter if the brand was originally born in Italy or not but it’s the communication’s strategy used to make the brand featured with international elements as distinctives to make it a cool brand)

I don’t want to say that the importance that chinese people gives to “name” and “logo” is going to disappear but we have for sure to consider as new and mature commercial perception is becoming part of their behavior. How can this influence on functional way the marketing strategy of high level’s brands to improve sales? As follows some tips that should be added on marketing agenda of things to do

  • The history of brand means something to tell to your customer. In China it’s used to say “business got eyes”, it means that besides the quality of the product, first of all the value of the goods is emanation of human skills, vision about particular style or way of living, adaptability with social needs. Make your advertising like an educational tour in your group’s history, show your competence and why not the challenges you joined, it doesn’t matter if you’ve been the loser for some particular choices, what you’ve done is part of your commercial charisma
  • Make your target sure that you are really into to talk with people who are conscious of their status and are abel to understand your message. Try to communicate with them before making them your clients. They are looking for brand that can create such cultural and emotional liaison
  • Events. The scenario where upper middle class is proud to show and communicate own goals is the world. If you are not part of this world you cannot be part of their life. Don’t waste time of improving distribution’s channel if you are not ready to support him being present beyond the campaign to launch new products. We’ve already seen a lot of “cathedrals in deserts” in China, some investments for launch of specific brand or nee jv with chinese potential distributors never followed by specific and intense mission aimed to be in the market with consciousness of communicate own features.
  • Be yourself but take care of chinese taste. We don’t have to configure all our style elements in function of chinese mass target. The Upper middle class wants something different by us. And if we served them in periods when they still was “regular” middle class we should show that now we are aware of their new status and needs (some players are going to diversify their brands keeping on mind that they are talking with mature segment that maybe will not continue of being client if not satisfied on way that respect such awareness)

Our Made in Italy is for sure good horse to ride but now more than ever we need to show that’s not only a “logo” if we want to be one of favorite purchases by chinese middle class.

Annunci

China, UK and Italy: A bridge from London, the chinese way of investing in EU

Chinese direct investments in Europe are reaching a peak in terms of volume and definition of specific sector of development. The target market has been recognized as UK and the operative frame for investing operations are for sure real estate and infrastructure fields.

china_1876897aComparing with Beijing, London is still cheaper as long as one of most dynamic markets for those aspects may concern financial services, M&A operations and fiscal benefits for foreign investors inside EU area. China has defined the perfect place to create a network of big players involved on mutual business.

The Industrial and Commercial Bank of China for example  is going to invest more than 650 millions of pounds to create new business district near Manchester’s international airport: the project that inaugurates new direct flight from Manchester to China and viceversa, includes 500 thousands sqms of offices, shops and park.

The chinese way of making something concrete from theoretical base follows usually a pilot-scheme: if investment’s plan or structural reform or whatever put in pro-active agenda for chinese operators  will have be done with successful results according with preliminary expectations, for sure there will follow more operations on the same way, going to create a perfect standard of action.

The dynamism we are seeing around UK represents an intense pilot-action for direct investments towards a country and for those particular fields that are functional for chinese strategy:  they are boosting concrete presence with well framed operators from key-sectors in Europe.

An important building constrution’s company like the  Advanced Business Park, is investing in London nearly 1 billion of pounds to build the new HQ of the chinese group in Royal Dock near the city airport: so the equation is pretty clear: they are chinese companies working for chinese groups on foreign markets.

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As happened for some korean jaybol in the recent past, UK represents the perfect scenario for chinese holding companies to launch a concrete bridge on relocating profits and savings towards manufactural and strategical business opportunities in continental Europe. As long as shares are  hold in UK, the chinese asset for trading can be for easy managed through network of operators in Europe (some sister companies); and cash pooling through London allows the holding to re-place the liquidity of the group to different branches or countries-

Italy is the second manufactural player of Europe after Germany, and it’s also one of most important area about twinning projects for R&D in Europe and ToT (transfer of technology) for China (ranked as third european country on transferring technology towards China).

Milano EXPO got crucial role in terms of building a  common interest from chinese investors about Italy (China Entrepreneur Club is only one of most recent example), and the connection between Shanghai EXPO and Milan EXPO is still part of institutional speech for the chinese class-action about commercial and development’s opportunities in our country.

It’s for sure important to say that something is changing in chinese perception about Italy recently: governative actions are going to made developments that are “welcoming foreign investments” and political reforms are looking much more at “european dimension” with its specific parameters of operation; even if China has been always an active player to sign bilateral agreements much more than regional agreements (so they’ve been always interested to consider case by case specific actions according with contingent situations of each country in Europe than mediate with EU as geopolitical and economical institution) recently they are moving from Import- dimension (as requested by Party in last Five Years Plan) to wide strategy for direct investments worldwide in strategical assets. That’s why London represents the gate for continental Europe.

750_dettaglio2_Chairman-ICBC-Jiang-Jianqing--1It’s news of few days ago the making operative of branch of ICBC – The Industrial and Commercial Bank of China in Rome, after Milan; they are going to be concrete support for financial and commercial operations in south of Europe for chinese clients and they’ve chosen for Italy as place to be to make that bridge from London longer towards strategical area in the centre of Mediterranean. (before Italy the ICBC already made operative more than 15 branches in Africa).

Even if there’s big part of political opinion in Italy that is figuring out this operation as chinese colonization of our productive and financial environment, I warmly suggest to these speakers to analyze what’s  happening on international scenario for those aspects concerning commercial agreements (TPP and TTIP), it’s a concrete, wider perspective where Italy as “no-Europe” will never exist anymore: such scene (it doesn’t matter if you like it or don’t) confirm the primary role of China and, in particular, of chinese market on influencing stability of any productive area in the world; chinese investments are supporting (if we can say it in this way) government debts and they have central role for their assets acquisition strategy in many important groups worldwide. I think it would be much more better for us trying to understand this strategy and facing with chinese investments with skillful awareness about the entity of these operations than shouting against new colonizers who will get for some reasons 30% of the world already in terms of assets control and market volumes in approximately 10 years. (in particular if TPP and TTIP will continue on getting delayed).

 

Why does Milano EXPO represent an integrated strategy to relaunch Italy

Recently I started working on some analysis about Italy as most favorite destination for main target of tourists from East Asia in particular chinese, japanese and south korean users. To demonstrate it we should just consider that Italy is 1st country in EU-zone for number of nights spent by asian people (2,8 millions of nights by chinese, 2,8 millions of night by japanese and 800 thousands by koreans – source Unioncamere)

It’s common for marketing advisor to spend some hours x day on researches that may concern strategies on providing business services for specific market’s segments trying to figure out the method which companies consolidate their brand / services with promotion.

I decided to put on comparison some important players involved on services for tourism and I’m not only referring  about tour operators but I’ve also included in my prospect some national agencies (government) that operate in tourism industry like JNTO (Japan National Tourism Association) or Official Korea Tourism Organization.

Usually such kind of public agencies are mainly focused on attraction of foreign tourists toward their countries so they are well specialized on own territorial marketing. But if we consider the contents introduced through their websites about Milano EXPO 2015 in occasion of announcements about delegations or packages for business groups we can understand how promotion of Italy, in particolar of Milan, boosted following some key- value points, has been adopted by these agencies as functional method to make on focus some features of their country.

In particular, using this retrospective method of analysis I would like to explain the functionality that an integrated strategy for national tourism can have if managed with well framed marketing tools based on some specific elements like

1) History: Italy represents for asian users the center of Europe for that it may concern its origins. Rome for example is one of most important cities in the world for chinese political representatives and it’s considered the valid scenario to introduce bilateral issues (China – Europe) due of long history generated by roman empire and chinese dynasties in two part of the world that for long time have been considered like yin and yang of our globe, west and east. Lot of delegations are coming to Milan to present territorial focuses during EXPO and on doing so they are also introducing new cooperation’s opportunities in some specific areas of fresh developed China.

2) Food: italian agro-food’s system dominates the international markets. According with recent research by Coldiretti we got primate of exportation in the world for more than 20 classifies of products and we are in the second and third place for more than other 54 classifies. But pretty interesting is the first place we received thanking innovation, as it has been implemented for biologic production recently by more than 43.000 companies, that represent 17% of european players. These successful results are introduced  in many articles and scientific argumentations posted on some websites of japanese prefectures in the sections that refer to delegations that are joining Milan EXPO 2015,

3) Creativity: Milan is the capital of creativity according with official statement signed by korean ministry for trade and development during important anniversary that celebrated in Milan 150 years of bilateral relations between Italy and Korea (6 june 2014). And when we talk about italian creativity usually we think about arts, design, fashion but in last report issued by ISTAT and Eurostat, Italy is the first country in Europe that adopted creative skills for optimization of dynamics inside corporate governance and to regulate production in innovative and efficient way as well (more than 60% of companies in the survey declared the involvement of creative personalities in their corporate-assets)

We can easily understand as Milan EXPO well combines in its programs and entertainment’s structure some high value elements like history, creativity, quality, and of course food (introduced by main topic of Expo like energy for life and for the planet) that are featured as default’s contents in many strategic plans of companies and agencies specialized in services for tourism.

Thanking of this combination of elements we’ve been able to reach immediately great target of diversified users like those, in particular from East Asia, want try and enjoy Italy in the shape they always studied, imagined or, why not, tasted even only once in their life.

Milano got the big opportunity to experiment how to make this big structure (EXPO) moving ahead for 6 months with participation of well framed operators and cooperation of public offices with private organization and thanking concrete action boosted by all social counterparts for the first time we improved the awareness of potentiality that such diversified structure and skills put in sharing can offer to our Nation and economy.

Now we have to continue to consider that to re-launch Italy we needs definitely an organic system for tourism and hospitality in general where cooperation with strategic segments can be a fundamental base to provide high level services and meet international needs.

As consulting company and no profit organization i’m in charge of we are following this perspectives on two different ways. About business solutions we are developing marketing events inside some prestigious hotels in Milano making as main target of the program international guests.

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We are selecting operators from food and tourism industry and we are arranging calendar of contents that we are going to communicate on social networks and online using directly some interfaces well known in Asia and not so common in usual online campaigns. It’s important for us to associate online marketing tools with concrete offline occasions to promote and meet potential clients. At the same time the companies are joining the project can receive special visibility as creators of promotional event in Milan during Milano EXPO.  http://fuoriexpo2015.eventsmilano.com

At the same time we are boosting international participation for those aspects may concern creativity as key value for italian economy in particular for Milan city. Recently we produced international cross cultural contest in cooperation with Milano Expo and during the Gala Night for the assignment of the awards we introduced a new board aimed to concentrate and develop proposals about youth international creativity in Milano.

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This group of creative personalities joined for the constitution of Charter of Values for Youth Creativity that has been presented to the institutions which are aware of our intentions for creation of cooperation’s network on this theme.

We are already planning calendar with productions and contents starting by september 2015 and we’ll follow the mentioned strategy to assure  international participation as featured characteristics of our agenda.

Marketing online: If China reinvents Milan EXPO…

Chinese people are really interested about Milan EXPO 2015 for some specific reasons: first of all their holistic and circular vision on proceeding of situations in terms of cause and effects inevitably links Milan EXPO as important consecution of successful edition of Shanghai EXPO in 2010, then recently Milan is going be configured as one of most preeminent places for style, design and luxury among european cities.

expo_cina_21_gennaio_2013

We should consider that one good selling point about “Italian Dolce Vita” for common chinese visitor would be more  fashion, design and luxury as part of prestigious life than italian tradition about food and gourmet, that’s because China also got important and long tradition for that concerns food and cooking experience. For sure the main topic of this italian edition of EXPO will be a great opportunity to educate chinese visitors about our well framed production of excellences that we can offer as special selection from wide italian gourmet’s scenario.

As international event with some hundreds of  thousands of participations from China (maybe more than 1 million of visitors from China) the occasion is great to boost communication and promotion concerning business ventures in particular for those chinese companies or investors who are improving their operative presence in Europe starting from Italy.  And cause China presents specific own system for those online applications regarding social networks, video sharing platforms, search engines, instant messaging and blogging and all those tools that are necessary to reinforce online marketing, it means that from chinese side it’s going to be created a new image of Milan EXPO on communicating contents and specifications that are useful to introduce chinese vision of EXPO.

In particular if we check some comments in chinese using sina weibo among thousands of “tweets” about Universal Exposition of Milan 2015 we can understand how sceptic they are about completion of pavilions, general organization and logistic issues in Milan comparing with Shanghai 2010.  But chinese operators who are involved in business issues from Europe to China and viceversa are introducing the semester of EXPO as special prosecution of glorious start for  boosting of chinese economy from 2010 and they are focusing on strategical campaign managed on chinese social networks keeping on feature those elements that are more connected with their business purposes than with those analysis could promote Milano EXPO itself.

So we can understand, following a concrete aptitude that is intrinsic of chinese behavior, how is important for italian companies and investors too to plan marketing strategy that should emphasize our presence or brand or business focusing on elements and discussions that have been already set up by chinese people in their structure of communication.

If China doesn’t allow any campaign on Facebook let’s start on practicing contents on Sina Weibo; if it’s not convenient to invest on optimization of keywords, tags and corporate’s web address on Google as search engine, let’s consider to analyze Baidu; if our corporate videos, produced to communicate something to potential chinese partners, cannot be uploaded on Youtube or Vimeo  let’s check the efficiency of YouKu: if we wanna communicate on wide range directly to chinese visitors we should consider to buy campaign on “we chat” or informing them through this instant massaging system about calendar of events will take in Milan during Milan EXPO.

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There are already more than 20.000 events collected in EXPO IN CITTA’ official website promoted by Milan City and it’s not easy for sure to put one of them on feature to attract specific target of international users but I think that if China is re-inventing parameters to understand EXPO with online social networks, that could represent a specific solution to underline those events or marketing campaigns we want to manage in behalf of chinese visitors (for specific strategic market’s purposes).

My consulting company with other partnered organizations is already involved on providing marketing services during Milano EXPO for operators from Food & Beverage industry and we’re planning specific onhere's expo tooline and offline promotional contents managed for chinese target. It means we are guiding clients on duplex way: first of all as  offline segment we are providing services to organize small exhibitions and promotional product – placements (promotional corners, gadgets, events, products tasting, educational contents) in some hotels in the center of Milan, on the other hand we are following the chinese way to approach Milan EXPO online, and on doing so we are exactly reinventing campaigns as chinese users are used to do through chinese social media: discussions, word of mouth’s methods, advertising for cultural events with specific sponsors from food and beverage industry, surveys etc everything is perfectly adapted for chinese destination in their online crossing media system.

China represents always challenge and opportunity at the same time. It’s up to you to choose the way to get the best.

If Milano EXPO 2015 means improvement of standards for tourism operators let’s provide high qualified trainings to support development of corporate services

Probably, as common perception,  the range of international participation to next Milano EXPO 2015  is still lower estimated in terms of affluence and business appeal by investors and international operators. For sure I think we need to improve some structural elements in the event’s management and co-related services, in particular for that regards Milan City’s transportation system and facilities for participants (over 20.000.000 joiners expected in approximately 6 months).

But I well know how from some countries, in particular the “chinese side”, they are looking to participate to this event like natural prosecution of Shanghai EXPO 2010 that was successful to inaugurate the role of chinese market on international scenario also as new destination’s market (for investments, retail, trends, business model and business dynamics in general)

We remember also the big investment issued by Vanke LTD, giant of real estate from China for the development of chinese pavilion in Milan EXPO’s area. For most of people not familiar with chinese perception about this event it was like an unexpected news but the country that hosted previous edition of EXPO cannot “lose its prestigious face” in front of new opportunity to show to the whole world the concrete attitude and powerful approach to western markets reached by China

vanke pavillon

This ferment is well expressed by number of tickets already sold by official agents and network that cooperate with Milano EXPO 2015, as reported officially for something like 900.000 tickets sold in China. In such scenario I firmly think that companies operating on tourism and hospitality as well as service providers for business development, private TicketExpoequity and international business ventures that are already planning to develop some aspects in their corporate management to facilitate commercial matching with chinese counterpart should invest on time in specific tools to improve their standards.

For example, it’s already well known as the italian private railways company NTV received recently the “Welcome Chinese Certification” official attestate of guarantee about the quality and number of services that the company can offer in Italy to Chinese guests.

Viceversa the Chinese Tourism Academy, partnered institution and specialized institute under control of Party Committee of China National Tourism Administration(CNTA), in joint with Welcome Chinese Certification Association and key operators in the tourism field, is going to promote officially on chinese chain the sales of services and cooperation’s activities with those operators.

As Studies Centre for oriental studies, our Asian Studies Group started two years ago trough our branches in main cities in Italy, on providing new courses in behalf of tourism operators (hotels, tour operators, recognized guides, transportation’s companies, agents involved in hospitality field etc).

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Recently we have introduced new specific module of Mandarin classes focused on speaking skills and intensive training about chinese characters pointed towards specific operators like tour guides. The program consist of 4 or 6 months of training (4 or 6 hours x week) and it aims to train attendants to pass HSK exam (levels 1-2-3) in very short period.

Separately the centre offers some short courses about business culture and cross cultural communication for commercial operators or for those services companies are looking to Milano EXPO 2015 as  new frame to boost B2b opportunities.

As part of the same program we provide 1 or 2 days seminars to train hotels and restaurants about hospitality’s features, lifestyle’s elements, and specific characteristics of chinese guests according with regional differences of origin.

Consider as follows some scheduled training programs for our quarters of Milan – Lodi – Turin – Rome

Intensive Mandarin Course for tour guides : read and speak (it includes simulation and preparation HSK 1-2-3 levels)

– September Registrations and level check

– 1st part: October from 6th official start till 19 of december (preliminary test module 1-2)

– 2nd part: from 12 of January till 27 of March (final test module 3 -4)

– April: simulation of HSK exam and preparation for oral interview with chinese external teachers.

– May: HSK exam / get ready for Milan EXPO 2015 official opening

In the same period our organization will introduce the institutions or corporates that joined our linguistic programs to Welcome Chinese Certification’s representatives.

It’s also available Iper Intensive program that takes 4 months of classes and it aims to complete preparation around 6 week before the official start of Milano EXPO 2015.

For more info about mandarin course for specific operators or for other programs like business culture and cross cultural communications please contact our general secretary at info@asianstudiesgroup.net 

The dynamism about a new and more “towards Asia oriented”  profile for corporate’s management in Italy drived by Milan EXPO 2015 could represent a new “era” not only for improvement of language skills achieved by specific operators but also for building of cross cultural  scenario into social environment that for sure will have a part in the completion of business joint projects between Italy and China. Maybe the baton from Shanghai 2010 and Milano 2015 would be well represented by such goal.

EXPO 2015 – Events and Delegations are going to get ready. Introducing Nagoya

As italians we are well informed about agenda of activities that every day are going to make the schedule for next Milan EXPO  2015 full of participations. Usually we are more into updates that regard italian pavilion and public administration involved in dynamics of management and general organization for the most important event of the year than news concerning business opportunities linked with EXPO scenario.

But we well know that big expectations from companies and professional operators are in particular towards international opportunities that such event could represent as pole of attraction for dozens of millions of participants (more than 20.000.000 of visitors are expected in 6 months )

Beyond institutional participation and delegation that usually follow specific schedules according with standards of interest not always addicted to market – segments or operative business needs,  I already collected some requests from specific associations and consulting firms as well as group of promoters for investment’s solutions and similar operators that are really up to introduce specific contents and develop mutual potential cooperation on commercial front with counterparts from different markets.

bg_event‘Cause I’m specialized advisor with strong competence on eastern asia markets, and thanking knowledge on japanese and chinese languages, following such needs, as consulting studio, we are already getting busy on specific researches about participation of prefectures and regional delegation from East Asia.

The purpose of such activity is for sure to identify concrete events that can represent good point of start for boosting services, involvement of volunteers, business matching for well framed operators as long as setting up nice framework to plan twinning perspectives for territorial administrations from both sides.

Today we have completed our first selection of special contents / participations about Japan Pavillon and we are preparing official analysis about the presentation of Aichi Prefecture for contents and operators from this prefecture during 5 days in August 2015, when the events square of Japan Pavilion will host performances and contents from Aichi end in particular from the main city of Nagoya.

At the moment the organizers are expecting to introduce around 40 organizations from Aichi and the new has just been introduced as official announcement from website of the prefecture recently.

Honestly we didn’t find more details on websites and official channels managed by organizers of Milan EXPO 2015 (Italian and english version) about such micro – attendance in August and due of the intense planning it would be for sure difficult monitoring so many contents but as japanese side is already collecting participations and interests to finalize delegations profiles, I think it is really important getting ready to select functional opportunities on time.

Thanking our network of partnered consulting firms and official relations with local institutions in Japan we have prepared letter of proposal as supporting studio for what it may concern matching of operators, official introduction and services providing. About services could be interesting for such delegations or events we are including some elements that should be useful on bilateral dynamics of involvement like

– accommodations with transfer service included

– interpreters and volunteers (japanese speakers) in cooperation with Asian Studies Group Italia© already involved on official selection for volunteers and professional profiles for Japanese Pavilion

– communication agency to develop specific contents on international dimension in cooperation with japanese PRs

– business tours in Italy according with shared schedule after selection about specific fields of interest

– B2b corner in Milan with participation of specific event during Fuori EXPO (list of events that will take place in the city with involvement of private operators)

– Training opportunities or joining specific seminars on well framed series of contents according with purpose of analysis

– General Assistance

We are going to introduce more well detailed info about those delegations from East Asia that we consider interesting to approach and meet with direct cooperation ‘s opportunity during the Universal Exposition of Milan 2015 as we invite you to send us comments or introduce your profile (as organization or company) if you want to get in touch with my studio and network of structures involved in these dynamics in Milan.

Our main office is in the centre of Milan and we are really focusing on such business agenda for preparation of internationalization’s tools during Milan EXPO 2015

E-commerce in China: when platforms support to master the market

E-commerce in China is for sure becoming literally a boom-phenomenon.  It’s like the first fast crazy running we got towards East at the end of 90’s  when everybody was looking at China as new economic power in the world.

And it must be so when we are facing with the biggest market in the world in terms of demand and wideness for online sales.

According with recent analysis we are going to overpass 600 millions of internet users until 2015 and around 150 millions of users in 2010 have been confirmed as already frequent buyers online; but more interesting to know,  the number of buyers should grow till approximately 520 millions of users before the end of 2015: effectively an incredible result if we consider that in Europe according with Statista© we will be able to reach approximately 190 millions of buyers at least in the same period.

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Usually when we think about e-commerce in China we could be stunk referring to complicated and un-protected system to develop online selling platforms. I think that problems concerning property rights and copycat’s risks should be pointed out as first element of the matters, but I would like to remind you that “the democracy of buying whatever you want” is one of most important perspectives followed strongly from 2010 by central Government and in general the legal system and also the awareness of consumers on buying original brands are bringing investors and developers to enjoy more safe and equilibrate environment.

Let’s check what kind of de-regulamentation nowadays represents a concrete step ahead for the development of the e-commerce environment in China

1500px-Flag_of_the_Peoples_Republic_of_China.svg_– 2010 with the  shangzizi 2010 n 272 the online sales are accepted as regular and natural prosecution of usual commercial activity for foreign companies so also  foreign investors are now allowed to make their products on sale online without any particular requirement as involvement of chinese co-investor and without any particular approval or distinctive business license issued by MOFCOM

– Then if you are not service provider for other operators but if you want to sell throughout your online platform your goods you don’t have to apply for specific ICP (internet content protocol) as it’s compulsory for providers that create online stores in name of  third operators

The second point is very interesting and represent a boost for online businesses: if you are a foreign company with base in China you can immediately open your e-commerce service without any other specific approval or license.

I’m used to suggest to follow this way to my clients ‘cause it represents a great system to educate customers to approach specific brand or production enjoying in particular sharing opinion’s tools and crossing information through social networks. I really think that even if volume of sales are one of most important goals for an online-store, we have to remember that in China the access to information through browsers represent the first step to get well detailed info and in particular comments from other users.

Chinois-shopper

Even if it seems more easy and quick try to being represented by third platforms like some services that T-Mall (owned by giant Alibaba) in particular when the company doesn’t present any legal entity registered on chinese market, we should remember that in this cases it’s more difficult to guarantee legal safety against fraudulent dynamics and payment is required oat of the times in foreign currency by exporters (due of absence of corporate- presence on chinese market) and it’s not always easy to pay for common users.

As researcher on marketing strategy for China I well recommend to place own brand or group of brands through e-commerce platform after registering own WOFE into chinese market , not only because it would be for real a concrete internationalization’s goal but also due to head for more well framed condition to boost own identity and at the same time to speed the realization of direct online store in safe and well guarantee condition without any specific additional business license.

as i’m used to say, chinese market follows specific P’s to ensure successful results on sales then

– Products: quality and distinctive features must be mediated with concrete perception of what chinese consumer is looking forward; and sometimes such elements cannot be put on focused so much through general e-commerce portal not directly managed by own management and partially created with third operators.

– Popularity: being online doesn’t mean only be sold on the web. The strategy of “word of mouth” needs to be boosted through social networks and specific promotion about brand and production that sometimes needs more intensive effort than general information  summed up in general categories of multi brand online sales.

– Price : information without price it’s not so attractive for chinese customers. They need to feel they are enjoying special bargain (it doesn’t matter if we are talking about middle level products or luxury). In particular if we have something to sell that fits with medium target, the announce of special sales are really attractive among young customers, otherwise the placement of products with high price for luxury field should be successful among specific senior targets

– Passion: chinese people loves to join shengyi (business) on both sides, as sellers as long as clients; being present in the market make us more aware about chinese culture and market’s needs. I think that e-commerce can express for real such passion on doing business into chinese market as more as you can be aware about what does China represent not only as producer but also as commercial operator who choose to invest in China.

I think that chinese law’s system will proceed on more concrete and responsible way to protect property rights against copycat’s actions and government will do all the best to boost  development for one of crucial factors for contemporary chinese economy like online businesses.