1210 refers to “online shopping bonded import mode” and is only applicable in CBEC retail importation pilot cities; 1239 refers to “online shopping bonded import A mode” and is applicable in other cities not in the CBEC retail importation program. Lyfen, how China Snacks Leader sells online. 2. It’s a very good perspective for cross-border e-commerce and many platforms are gaining in popularity. Then the products can be delivered to consumers by logistic companies. Cross-border e-commerce refers to any online international sale of a product or service whether between a business (retailer or brand) and a consumer (B2C), between two businesses (B2B), or between two private persons or consumers (C2C) through an online marketplace platform such as Taobao, eBay or even Airbnb. We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative. Marketing to China would like to explain Chinese Business and Marketing to the rest of the world. T h e boom in China cross-border e-commerce has been dramatic and exponential. Retailers would be allowed to continue their activities but a new tax on imported products was created. Our subscription service offers regular regulatory updates, En savoir plus. ¿what is the best strategy for selling them in China? For a visualization of the ecosystem, please see the image gallery below. including the most recent legal, tax and accounting changes that affect your business. To make it simple, it works a little like kaola. In case the transaction does not happen through an e-commerce platform linked with the Chinese Customs network, the inbound and outbound courier operator or postal enterprises will undertake the corresponding legal liability – they will need to transmit the electronic information of transaction, payment, and logistics to Customs, according to the Notice on Work Relating to Improved Regulation of CBEC Retail Importation (Shang Cai Fa [2018] No.486). It’s important for you to understand this before we dig into numbers. Investing in online advertising and creating quality content will help you develop your e-reputation. A thing very astonishing: the largest portion of these shoppers are males. But they are different. Because many scandals have occurred in China. We are a Digital Marketing Agency based in Shanghai. For instance, the Hangzhou CBEC Pilot Zone has taken the lead in innovating the management mechanism. Our customers choose us because of our; efficiency, pragmatic approach and innovative solutions adapted to the market. Netherlands Consulate-General Shanghai | Guidebook China Cross-Border E-Commerce Page | 7 1.INTRODUCTION TO CROSS-BORDER E-COMMERCE In emerging markets, especially with a huge domestic market such as China, consumers may face difficulties when searching for affordable imported goods in their local retail stores. What is the difference between China’s CBEC pilot zones and pilot cities? Learn how we helped Feelunique scale its e-commerce operations, starting with a China-optimized cross-border e-commerce website, mobile app, and WeChat mini-program, and later expanding to Tmall, JD.com, etc. Growth is also present in smaller cities. Faced with pressure from conventional retailers at home, and the loss of tax revenue, the government is now looking at … The product will need to go through the customs clearance process to be released to the consumer. Please contact the firm for assistance in China at china@dezshira.com. Pour faciliter les échanges la Chine a mis en place des zones d’échange relatives au « Cross Border E-Commerce » (CBEC) permettant des transactions et une logistique simplifiées. Individual customers are the import taxpayers. For example, Hangzhou is the city where Hangzhou CBEC Pilot Zone was established. Marketing China- Smart Tips for Smart Business in China. Please feel free to comment and share our articles ! We are passionate about marketing in the aptly named ‘mysterious orient’. Players in the Chinese Cross-Border E-Commerce (CBEC) Ecosystem China’s e-commerce has a unique landscape and ecosystem. 8 Platforms to Promote Your Business In China (update 2020). 80% of users on XiaoHongShu are women. Another effective alternative to these platforms is WeChat Stores. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. Previous Article « China Revises Rules of Origin for Some Goods Under CEPA, Effective July 1, Next Article China’s 2020 New Negative Lists Signal Further Opening-Up ». There are currently sellers from more than 40 nationalities selling their products through the Kaola platform. They have more money and are more picky with what they buy. We come from different backgrounds and have different cultural views which make us the ideal international team to develop your interests in China. These are stores hosted within this app that is linked to an official account. The … To Partner with us it is here. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. This market will more than double by 2020. Chinese consumers are more and more informed. The 2019 version of this list, which has taken effect since January 1, 2020, contains 92 new taxable items compared with the previous version, including frozen aquatic products, alcohol, and consumer goods. My hand bags have a high quality and are really beautiful. The two most popular overseas goods are cosmetics and baby products (Baby formula for instance). You have clearly a significant opportunity to do cross-border e-commerce in China. Kaola is work as a more traditional distribution network; The platform buy your product and sell them. In 2019, the number reached RMB 186.2 billion (US$26.25 billion), five times that of 2015, showing an average annual growth rate of 49.5 percent, according to the official data. Since January 1, 2019, the government has increased the duty-free quota on a single transaction from RMB 2,000 (US$291.6) to RMB 5,000 (US$729) and the annual quota per person from RMB 20,000 (US$2,916.2) to RMB 26,000 (US$3,791) for retail imports, according to the Notice on Improving Tax Policies for Cross-border E-commerce Retail Importation (Cai Guan Shui [2018] No.49). Definition of cross border E-Commerce. For more information see : Our Magazine is written by Benji (British), Olivier (French) and Philip (Chinese) with additional contributions from our team of experts on the Chinese market. China is a key market for cross-border e-commerce as it transitions to a consumption economy fueled by a growing middle class and unlocked spending among rural populations: • China’s middle class is expected to reach 630 million by 2022. • Concerns about product safety feeds demand for imported goods with perceived better quality control. Le ministère chinois du commerce a annoncé que le e-commerce transfrontalier atteignait 6 500 milliards de yuans en 2016 (982 milliard de dollars). All of this serves to reduce the trial-and … Number of cross-border online shoppers in China 2016-2020. What is the pilot program of CBEC retail importation? Brands now engage customers and personalise shoppers’ experience through social media in a stiff competition for the consumer dollar. Most zones are located in coastal regions like Beijing (1), Shanghai (1), and the provinces of Guangdong (13), Zhejiang (10), Jiangsu (10), Shandong (7), and Fujian (6). On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. GMA analyze Marketing trends and give to professionals the best Tips to succeed in China, with a focus on fast-moving Digital World. What is Tmall Oversea Fulfillment? This year, from January to February, China’s import and export volume of CBEC retail was RMB 17.4 billion (US$2.45 billion), up 36.7 percent year-on-year, despite the COVID-19 pandemic. Foreign investors who are looking to tap into China’s CBEC market should stay abreast of the latest developments. Cross-border E-commerce in China 5 things to know about e-commerce in China: a quick guide for SMEs . It is more commercial. Now the country has a total of 86 CBEC pilot cities as well as Hainan island. Chinese consumers purchase a lot of goods on cross-border e-commerce but, several categories are clearly more popular the others. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. In fact, over the last several months, the government has been rolling out policies, including adding new CBEC pilot zones and pilot cities for CBEC retail importation, extending the CBEC retail import list, and lowering tax and tariffs, in a bid to boost CBEC: This article aims to provide you a holistic look at China’s CBEC world. In most case, brands are rejected by Tmall (85%). At the beginning the platform was open only to Australian retailers, so they could sell their products in China. The percent of WeChat users that have made purchases from WeChat stores has more than doubled from 15% in 2015 to 31% in 2016. How do enterprises benefit from these programs? E-commerce in China has become part of Chinese consumers daily life. Do you want to know more about the technicalities of operating on cross border e-commerce in China? Stay Ahead of the curve in Emerging Asia. XiaoHongShu aka RED is a little different from the other platforms. In the end, on January 1st, 2017, the government announced that they wouldn’t close the warehouses. So, there are no requirements for license approval, registration, or record filing for first-time importation. The Chinese ministry of commerce announced that cross-border e-commerce reached 6.5 trillion yuan in 2016. businesses establish, maintain, SEO: The optimization of your referencing will be essential, our team of specialists will take care of your e-reputation, the management of your social networks while setting up an SEO / SEM campaign allowing you to gain places in the ranking of the Baidu Chinese search engine. Known as cross-border e-commerce, the booming backdoor avenue allows Chinese consumers to buy overseas-manufactured goods online and effectively circumvent the regulatory issues that have stymied access to consumer products from cosmetics to Cognac. « Bonded warehouse »:  These warehouses are warehousing facilities dedicated to storing overseas goods. In addition, the CBEC can also help foster new industrial chains like cross-border logistics, cross-border financial payment, and supply-chain finance, adding impetus to China’s economic growth. They want quality and foreign products as a synonym of quality. But the e-commerce service providers, or the logistic companies as the case maybe, will act as the withholding agent and pay tax on behalf of individual customers. Cross border e-commerce is defined as import and export activities of cross-border trade conducted through e-commerce methods by transaction subjects from different customs borders. Required fields are marked *. For goods mailed into the country by individuals, the electronic information of which can’t be accessed by Customs – the parcel tax will be levied. Let’s schedule a call so we can talk strategy more in-depth and see what would work for your handbag & purse brand , Your email address will not be published. What is the import duty and tax liability? Distribution of Kaola.com users in China … This indefinitely extends the waiver of the pre-importation registration requirements on specified categories of products, including cosmetics, infant formula, health food, and medical devices, which was originally set to expire on December 31, 2018, as long as the goods are on the ‘CBEC positive list’. We are a pure Digital Agency based in Shanghai. A vastly growing middle class with increased exposure to the internet … The China cross border e-commerce market is expected to grow significantly. As China has been putting much effort into upgrading its manufacturing infrastructure, it is seeking opportunities to export products with higher value and margins. Domestic products are often considered to be inferior to foreign products. If the income of an enterprise falls under the scope of tax-free income as stipulated in Article 26 of the Corporate Income Tax Law of China, the CIT on such income can be exempted. Today, Chinese consumers want to know what they purchase. The aim of this website is to inform readers about the market and provide insightful analysis. In addition, goods need to be transacted through an e-commerce platform linked with the Chinese Customs network – where the “three documentation” comparison of transaction, payment, and logistics electronic information can be achieved. Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. This figure will considerably improve in the next 5 years. Marketing to China is a website created by Gentlemen Marketing Agency designed to provide fresh insights and a deeper understanding of the Chinese market. CIT will be assessed and levied with a taxable income rate of 4 percent, namely: Further, if the enterprise meets the conditions of preferential policies for a small low-profit enterprise, the enterprise can enjoy the applicable preferential CIT policies for small low-profit enterprises on top of the aforementioned treatments. JD Worldwide, part of JD.com. Besides, payment is made extremely convenient and fast to encourage impulse purchase. Chinese consumers often feel that products purchased via cross-border e-commerce platforms guarantee a higher level of quality and offer protection against counterfeit goods (examples include infant milk formula, cosmetic products, handbags etc). Le marché du e-commerce transfrontalier en Chine devrait connaître une croissance significative dans les prochaines années. They Trust Us. Currently, the bonded warehouse mode involves two customs supervision codes – 1210 and 1239. The positive list is expected to continue to expand as the government improves the CBEC regulatory system and domestic consumer demand grows. E-commerce in China has become part of … Over these limits, consumers will need to pay full general import taxes, including tariff, VAT, and CT. The platform is relatively new, it was launch in 2014, but, has already a user base of over 25 million people. By far, the State Council has approved five batches of 105 comprehensive pilot zones for cross-border e-commerce (CBEC pilot zones), covering almost all the provinces except for Tibet. “What is Peppa?” : The perfect marketing campaign? This year, China’s Singles’ day set a new record with US$30.8 and 27% growth when compared to last year. The demands for better, safer and cheaper products grow at the same time as the purchasing power of the Chinese population. The Chinese cross-border shoppers are mostly coming from the middle class. Possessing foreign items is not anymore just a symbol of wealth but is part of many peoples life style. They want better goods for their children and for them. WeChat store is the best and most effective tool. With... Having suffered through the worst of the COVID-19 outbreak in the initial months of the year, China now offers... China has faced a deluge of international criticism over its treatment of foreign businesses and the perceived... Dezan Shira & Associates helps Meanwhile, Hangzhou is also a pilot city for CBEC retail importation. The CBEC pilot zones are designed to boost China’s import and export businesses (especially export). It is mainly classified into B2B and B2C. 4. In a move to facilitate CBEC import and export, local CBEC pilot zones are exploring innovative breakthroughs in the management of customs clearance, tax collection and management, foreign exchange supervision, cross-border financial services, and logistics. People talk about brands and shop online like never before. To be noted, under the CBEC retail importation program, the imported retail goods have to fall under the “List of Goods under Cross-border E-commerce Retail Importation” (2019 version), which is also dubbed a ‘CBEC positive list’, limited to personal use, and must satisfy the criteria stipulated in the tax policies for CBEC retail importation. DIGITAL SOLUTIONS: Website creation, development and audit; social media marketing (including WeChat & Weibo); PR; monthly reports and analyzes by our team of experts. Hello, I would like to know which app is the best to market my purse brand from Latin america. Tmall is the most important platform in China, but it’s also reserved for the most successful players. Tmall has recently launched its Tmall Oversea fulfillment specially targeting small and mi-size brand with low awareness in China and small budget. Many interesting questions Top import cross-border e-commerce platforms in China include: 1. In this scenario, consumers place an order through CBEC websites, then overseas suppliers or sellers directly deliver the products to China by post or express, mainly by air. The Chinese government is trying to promote CBEC business to stabilize and promote foreign trade. To fuel this engine of China’s import and export growth, Premier Li Keqiang reiterated the government’s support for accelerating the growth of CBEC and enhancing the country’s international shipping capacity in the 2020 Government Work Report . At the micro level, the CBEC pilot zones are also enabling entrepreneurship, connecting domestic small- and medium-sized companies (SMEs) and local industries with the world. (counterfeiting, dangerous goods, food scandals…). As a prerequisite condition, these pilot cities usually own free trade zones (FTZs), comprehensive bonded zones (zones), and act as logistics hubs with trading partner countries. The Hangzhou CBEC Pilot Zone has over ten offline industrial parks for interested companies to settle in. Following this growth, government announced it’s will want to close them, which had retailers were very worried. Kaola.com. Finally, the evaluation of the results will be important to guide us in the next stages of your development. There are different platforms popular among Chinese consumers with different challenges and benefits. Cross-border insights: 1. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. This site is also quite accessible to smaller brands hoping to expand to China and is growing quite fast. Tmall, the giant of e-commerce, JD, Little Red Book, Yangmatou, Wechat store …. What is China’s CBEC pilot zone program? Share: Welcome to the age of social retailing. Time to get yourself a slice of that pie, we say! Sorry, your blog cannot share posts by email. Cross-border e-commerce in China E-commerce worldwide E-Commerce in China Imports to China Alibaba Group Statista Accounts: Access All Statistics. We are the top and most visible Web & Marketing Agency for China you will find on the web. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. Launched in 2009, Yangmatou is The first mover in China cross-border e-commerce. If you register to this service, you send your product to Alibaba oversea warehouse and tmall will take care of the rest. These shoppers spend an average of $473 each on cross-border purchases. Imported retail goods can be stored at the bonded warehouse established in Hangzhou, for example, in a warehouse in Hangzhou Comprehensive Bonded Zones, and deliver to domestic customers after they place orders through a third-party CBEC platform. CBEC retail imports are regulated as items imported for personal use and can’t be re-sold. Toothpaste in China : a $4.8 billion Market, Search Engines Market Share in China 2020. This article is adapted from “Cross Border e-Commerce in China.”In this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC.We begin by introducing the market landscape, before diving in to the sector’s legal and regulatory framework. Consumers can experience cross-border e-commerce retail services here. The government allowed the creation of 5 new zones for these « bonded warehouses » in Dalian, Hefei, Chengdu, Qingdao, and Suzhou. How to start my e-commerce business in China with Small Budget? However, this in changing. Starting from $468 / Year Brand Case Study: Pixi. They call it “six systems and two platforms” – the “six systems” refer to the information sharing system, financial service system, intelligent logistics system, e-commerce credit system, statistics monitoring system, and risk prevention and control system; the “two platforms” refer to the online integrated service platform and offline industrial park platform. The CBEC pilot zones have been pivoted as the ideal home for manufacturing companies, e-commerce export enterprises, e-commerce platform companies, logistics enterprises, and financial service firms. However, tariff, import VAT, and CT will be levied in full and the transaction amount must be included in the total annual transaction amount. and grow their operations. China, is called: cross-border e- commerce1 (CBEC) retail import. Webinaire présenté par Investissement Québec International - Cross-border E-commerce – Step Zero to China China is a rapidly growing consumer market with more companies throughout the world looking for ways to develop their marketing, branding and communication that is relevant to Chinese consumers. Cross border e-commerce is defined as import and export activities of cross-border trade conducted through e-commerce methods by transaction subjects from different customs borders. In the past six years, the proportion of China’s CBEC exports in the country’s total foreign trade jumped from 2.2 percent to 11.25 percent. Ce site de e-commerce cross border travaille avec plus de 5000 marques sélectionnées dans plus de 80 pays à travers le monde. According to the report of the China E-commerce Research center, males represent 62.6% of cross-border e-commerce shoppers. L'e-commerce cross-border est le pendant coté commerçant du shopping cross-border coté client. MAU number of major cross-border e-commerce platforms in China 2020, by platform. The consequence of this type of warehouses was the rapid growth of cross-border. This app is a bit similar to Instagram with Chinese characteristic. LEAD GENERATION: Our teams are professionals in lead generation. CBEC is becoming a more prominent channel for import and export in China. Your target lives mostly in big cities such as; Shanghai, Beijing, Hangzhou, Guangzhou, and Shenzhen. First, let’s have a look at what cross border E-Commerce means practically and in terms of shipping. If you open the app, you have access to a store as well as visual, influencers, reviews etc. Basically, a way for any brands to try out the chinese market. To optimize it, your e-reputation must be irreproachable. Xiaohongshu, a social e-commerce platform where China internet users share their “best products” stories. To fuel this engine of China’s import and export growth, Premier Li Keqiang reiterated the government’s support for accelerating the growth of CBEC and enhancing the country’s international shipping capacity in the 2020 Government Work Report. Who are the key players in the Chinese CBEC ecosystem? The 5 th Global Cross-border E-commerce Summit, under the framework “New Tides in Qiantang River, Digital Trends along the Silk Road”, was held on November 24 and 25 in … Marketing news and analysis for CEO, Entrepreneurs, and Top Managers. We help companies wishing to sell on the Chinese market. It has led to strong share price growth of brands that have been particularly favoured by Chinese consumers. We can provide you with a location analysis and strategic site selection plan, We can help you structure your China investment, Learn more about China’s strategic advantage for traders, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), 46 new comprehensive pilot zones for CBEC, preferential policies for a small low-profit enterprise, China Revises Rules of Origin for Some Goods Under CEPA, Effective July 1, China’s 2020 New Negative Lists Signal Further Opening-Up, Dezan Shira & Associates' Service Brochure, Opportunities for Foreign Investors in China’s Service Industries After COVID-19, An Introduction to China’s Cross-Border E-Commerce Pilot Zones and Pilot Cities, In January 2020, five authorities, including the Ministry of Commerce (MOFCOM), jointly. Here are the 14 most commonly asked questions (and answers) about cross border e-commerce! China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). Under certain single and annual transaction limits, retail imported goods on the ‘CBEC positive list’ are deemed as duty-free, and the import VAT and consumption tax (CT) are temporarily levied based on 70 percent of the statutory tax payable. The products available on the website have very detailed descriptions to inform the consumer and build trust. We want to be Your Digital Guide to do Business in China. The mechanism can achieve information sharing among customs, taxation, foreign exchange, and other government departments, which largely shortens the period of goods export declaration. They are young, around 30 years old. Notify me of follow-up comments by email. As we mentioned above, retail imported goods have to be on the “List of Goods under Cross-border E-commerce Retail Importation”. Besides the innovative system and facilitating customs clearance procedures, the government has also rolled out favorable tax policies for in-zone e-commerce export enterprises. Why? Update April 8th, 2019: new Cross-border e-commerce regulation brings tax reduction. 3. Hello Mgolo, E-commerce is playing an increasingly significant role in cross-border trade in goods and services. Chinese Cross-Border E-commerce Overview December 6, 2018 China’s e-commerce market is the largest in the world and already represents more than 40% of the total global e-commerce spending. Since April 2019, the parcel tax has been reduced to 13 percent, 20 percent, or 50 percent, depending on the type of goods and can be exempted if the tax is less than RMB 50 (US$7.07). 2. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR. China betting on cross border e-commerce Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. Your email address will not be published. Do you have service to join the Tmall TOF (tmall oversea fullfilment ), my cosmetic company would like to try the chinese market? It is expected that China will scale-up favorable policies to support the growth of CBEC as well as roll-out further measures to regularize CBEC. Provided by the firm for assistance in China has become part of many peoples life style in 2014, it... Digital guide to do Business in China: a $ 4.8 billion market, Search Engine Optimization, Advertising Weibo! Your product and sell them Chinese consumers purchase a lot of goods under cross-border.... 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Are males best to market my purse brand from Latin america retail imports are regulated as imported..., there are no requirements for license approval, registration, or record filing for first-time.! China’S e-commerce has been dramatic and exponential views which make us the ideal international team to your. Brands now engage customers and personalise shoppers’ experience through social media app and an e-commerce platform in China is. In lead GENERATION: our teams are professionals in lead GENERATION money are! Cbec regulatory system and domestic consumer demand grows it has led to strong share price growth of brands have! Record filing for first-time importation growth rate ) consumers want to know more about the of... Pie, we say with a focus on fast-moving Digital World the platforms. Import cross-border e-commerce reached 6.5 trillion yuan in 2016 first mover in China website, in... Travers le monde xiaohongshu aka Red is a bit similar to Instagram with Chinese.. 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