China, by far the largest economy of Asia is gradually shifting from investment-led growth towards consumption. With slower growth forecast and changing government priorities it is important to know where your target audience is positioned and where the biggest opportunities lie.
A sub-sector tempting to foreign investors because of its increasing demand is e-commerce. According to research firm Frost & Sullivan, 57% of B2B sales decisions are formed online and the digital trend will continue its evolution, with worldwide B2B sales projected to reach $12 trillion by 2020 (up from $5.5 trillion in 2012). China has the largest e-commerce market in the world, with B2C sales growth of 25% annually. There is even a dedicated annual online shopping day – ‘Singles Day’ – which in 2015 alone accounted for the equivalent of EUR 12 billion in sales. Among the most searched for items online and the fastest-growing import products in China are electronics and designer clothes.
With e-commerce forecast to maintain its strong growth and a consumer base particularly inclined towards online transactions, companies trading with and in China should consider selling online. However, investing in online platforms and appealing to a Chinese audience requires more than dealing with a language barrier. Foreign companies hoping to make their mark in e-commerce or other sectors in China need to understand the market they are looking to establish themselves in and the rules applying to cross-border trade.
Our ‘’Trade successfully with China’’ guide is designed to help businesses prepare to trade with China. The 10 principles summarised in the report are meant to provide insight into potential issues one might encounter when doing business in the country.
Atradius will also broadcast a free webinar (click here) on this topic on 15, November at 10:00 Central European Time. You can register to attend the webinar and download the ‘’Trade successfully with China’’guide free of charge on the Atradius website: atradius-tsw-china-2016-en
About Atradius Atradius provides trade credit insurance, surety and collections services worldwide through a strategic presence in 50 countries. Atradius has access to credit information on 200 million companies worldwide. Its credit insurance, bonding and collections products help protect companies throughout the world from payment risks associated with selling products and services on trade credit. Atradius forms part of Grupo Catalana Occidente (GCO.MC), one of the leading insurers in Spain and worldwide in credit insurance.