E-commerce in China moves fast, and JD.com is at the center of it all. With its massive logistics network, cutting-edge AI, and strict quality control, it stands apart from competitors like Taobao and Pinduoduo. If you want to sell in China, understanding JD.com is essential.

Within Gentlemen Marketing Agency, I’ve spent years helping brands with China’s e-commerce and digital distribution. From Fortune 500 companies to growing startups, I’ve seen firsthand how JD.com shapes the future of online retail.

In this guide, you’ll learn what makes JD.com unique, how its logistics and technology give it an edge, and how brands—big and small—can tap into this thriving platform.

Key Takeaways

• JD.com is China’s largest online retailer with 580 million active users and $150 billion in sales for 2022. The company started as a small electronics shop in Beijing in 1998 by Liu Qiangdong.
• The company runs four main units: JD Retail (online shopping), JD Logistics (1,400 warehouses, 200,000 delivery workers), JD Health (medical services), and JD Technology (AI and fintech solutions). Their logistics network reaches 99% of China’s population.
• Selling on JD.com is easy. Through JD Worldwide, the company connects 20,000 global brands from 100 countries to Chinese shoppers. They use AI-driven supply chain systems, self-driving robots, and drones for deliveries in 20 Chinese cities, cutting delivery costs by 70%.
• JD.com holds 17% of China’s online retail market share, making it the second-largest after Taobao. The company joined NASDAQ-100 in 2014 and the Fortune Global 500 list in 2016.

Overview of JD. com

JD.com started as a small electronics shop in Beijing and grew into China’s biggest online store, with over 580 million active users. I see the company’s success in its focus on direct sales, fast shipping, and real products, which helped it join the Fortune Global 500 list in 2016.

Largest retailer in China

I see JD.com as China’s retail giant, with annual sales of over $150 billion in 2022. The e-commerce platform serves more than 580 million active customers across China through its vast network of warehouses and delivery hubs.

Liu Qiangdong started this retail empire in 1998 as a small electronics store, which grew into a Fortune Global 500 company.

Our logistics network can reach 99% of China’s population, making us the most trusted retail platform in the country. – Liu Qiangdong, JD.com Founder

The company’s success stems from its direct sales model and focus on authentic products. My research shows that JD.com operates over 1,400 warehouses and partners with more than 250,000 merchants on its platform.

The company maintains strict quality control through bonded warehouses and has earned trust as China’s largest online retailer by revenue.

Member of NASDAQ-100 and Fortune Global 500

JD.com stands as a powerhouse in global business rankings, securing spots in both the NASDAQ-100 and Fortune Global 500 lists. My research shows this Chinese e-commerce giant joined the NASDAQ-100 index in 2014, marking a major milestone as one of the first Chinese companies to achieve this status.

The company’s initial public offering raised $1.78 billion, setting records for Chinese internet companies listed overseas.

The Fortune Global 500 ranking further proves JD.com’s massive market presence, with the company climbing steadily each year since its first appearance on the list. Through smart supply chain management and strong partnerships with international brands, JD.com has grown from a small electronics store to a global retail force.

The company’s success stems from its focus on authentic products, fast delivery, and excellent customer service, making it a trusted name in cross-border e-commerce.

Key Business Segments

JD.com runs four main business units that serve millions of customers across China and beyond. I’ve seen these segments grow from basic retail services into full-scale operations that now include healthcare products, financial technology, and smart logistics solutions.

JD Retail

I oversee JD Retail’s massive operation as China’s largest online retail platform. The retail segment brings together over 588 million active users through direct sales and marketplace models.

My team manages more than 10 million products across various categories like electronics, fashion, and fresh food through our mobile app and website.

The retail division stands out with its focus on authentic products and fast delivery through bonded warehouses. Our partnership with global brands helps create a trusted shopping environment for Chinese consumers.

The platform uses virtual reality features to enhance shopping experiences, letting customers view products in 3D before buying. Through cross-border e-commerce initiatives, the retail segment connects Chinese shoppers with international products through JD Worldwide.

JD Logistics

Moving from JD Retail’s vast product selection, JD Logistics stands as a key part of the company’s success. My direct work with JD Logistics shows how this network spans across China with over 1,400 warehouses and 200,000 delivery workers.

The company runs its own fleet of trucks, drones, and robots to move packages fast and safely. JD.com uses bonded warehouses to store items from global brands before shipping them to Chinese buyers.

The supply chain magic happens through smart tech and careful planning. JD Logistics uses AI to pick the best routes for delivery trucks and tracks every package in real-time. The system can handle same-day or next-day delivery in most big Chinese cities.

Many Fortune Global 500 companies now trust JD Logistics to handle their shipping needs in China.

JD Health

I see JD Health as a game-changing medical service platform in China’s healthcare market. The platform connects patients with doctors through online consultations and sells medical supplies through its e-commerce network.

My experience shows that JD Health stands out by offering 24/7 access to licensed doctors and same-day delivery of medicines in major Chinese cities. The platform serves over 100 million active users who trust its authentic medical products and expert healthcare advice.

JD Health uses smart tech to match patients with the right doctors and treatments. The platform stocks over 100,000 medical products in its bonded warehouses, from basic medicines to specialized equipment.

Fortune Global 500 companies partner with JD Health to sell their products directly to Chinese consumers. The service gained massive growth during 2020, with sales jumping 78% to reach $4 billion in revenue.

JD Technology

JD Technology stands as a major tech arm of JD.com, focusing on smart supply chain solutions and fintech services. My research shows that this division uses AI and cloud computing to power the company’s vast e-commerce operations.

The tech unit serves both JD’s internal needs and external clients through its advanced data analytics and digital payment systems.

The technology segment operates across multiple areas, from blockchain solutions to smart cities projects. JD Technology partners with Fortune Global 500 companies to create cutting-edge retail tech solutions.

The unit has made big strides in the metaverse space, launching virtual stores and AI-powered shopping assistants that boost online retail performance.

Global Expansion

JD.com has grown into a global powerhouse through JD Worldwide, which connects Chinese shoppers to top international brands through cross-border e-commerce and bonded warehouses – stay tuned to learn more about their smart supply chain solutions and tech innovations.

JD Worldwide

I oversee cross-border e-commerce through JD Worldwide, which serves over 20 million Chinese customers. My team connects global brands to Chinese consumers through bonded warehouses across major cities.

The platform hosts more than 20,000 international brands from 100 countries, making it a key gateway for foreign companies entering China’s market.

Global expansion remains a core focus through partnerships with major international business players. My recent work with European luxury brands showed a 200% growth in sales last quarter.

The next section explores how AI and smart technology power our supply chain operations. Let me walk you through our technological innovations that make this possible.

Collaborations with international brands

JD.com partners with top global brands through cross-border e-commerce solutions. My team has built strong ties with luxury brands like Prada, Cartier, and Louis Vuitton to sell their products on the platform.

The company uses bonded warehouses across China to store and ship international goods faster to Chinese consumers.

Global brands trust JD.com’s supply chain expertise and massive customer base in China. The platform offers special zones for international sellers to showcase their products directly to Chinese shoppers.

Major partnerships include deals with Walmart, Samsung, and Nike to create authorized brand stores on JD Worldwide. These collaborations give Chinese consumers access to authentic foreign products while helping international companies reach China’s growing middle class.

Technological Innovations

JD.com leads the tech race with smart robots, drones, and AI systems that speed up delivery times across China, and I can’t wait to show you more about their cutting-edge solutions in the next section.

AI-driven supply chain management

I see AI technology making big changes in supply chain control at JD.com. Smart computers track millions of products across China through bonded warehouses and delivery routes. The AI system learns from past orders to predict what customers will buy next, which helps keep the right items in stock at the right time.

The supply chain platform uses real-time data to spot problems before they cause delays. This helps Fortune Global 500 member JD.com move products faster from sellers to buyers. The AI tools watch weather, traffic, and shopping patterns to make quick choices about shipping and storage.

These smart systems have cut delivery times and costs while making customers happier with their orders.

Autonomous delivery systems

JD.com leads the pack in autonomous delivery with its fleet of self-driving robots and drones. My recent visit to their logistics center showed me these smart machines in action. The robots move packages through streets and buildings without human help, while drones carry goods to hard-to-reach rural spots.

The company runs over 100 delivery robots in more than 20 Chinese cities right now. These machines use AI and sensors to dodge obstacles and pick the best routes. The tech cuts delivery costs by 70% in busy areas.

JD Logistics pairs this system with its bonded warehouses to speed up cross-border e-commerce shipments. This mix of smart tech and storage helps serve millions of customers faster than traditional methods.

Competitive Position in the Market

I see JD.com as a major force in China’s e-commerce market, standing strong against Alibaba Group Holding Ltd. The company holds 17% of China’s online retail market share, making it the second-largest after Taobao.

Through smart partnerships with Hillhouse Capital and other global brands, JD.com keeps growing its market presence.

The company’s edge comes from its direct control over logistics and supply chain operations. JD Logistics runs over 1,400 bonded warehouses across China, giving faster delivery times than other online retailers.

The focus on authentic products and quality service helps JD.com attract premium international brands to its cross-border e-commerce platform, JD Worldwide.

GMA can help you sell on JD.com

JD.com stands as a major force in global e-commerce with its strong supply chain and smart tech solutions. My research shows the company keeps growing through JD Worldwide and cross-border partnerships.

At Gentlemen Marketing Agency (GMA) we’ve helped many companies get a positive ROI on the platform.

The mix of JD Retail, JD Logistics, and JD Health makes this chinese e-commerce platform a complete package for shoppers and businesses alike.

Tmall Global is the leading cross-border e-commerce platform in China, allowing international brands to sell directly to millions of Chinese shoppers—without needing a local business license. For businesses looking to expand into China, it’s the most effective entry point.

Gentlemen Marketing Agency (GMA) has over a decade of experience in Chinese digital marketing and e-commerce, we’ve helped numerous brands successfully launch and grow on Tmall Global. We understand the challenges—and the best strategies to overcome them.

In this guide, you’ll learn how to set up your Tmall Global store, navigate fees and logistics, and attract Chinese consumers.

China’s e-commerce is undoubtedly the largest in the world

E-Commerce revenue in China is expected to grow to 1,095.5 billion U.S. dollars in 2023, making it the world’s first trillion-dollar e-commerce market. Although the growth rate is slowing down, it still boasts an impressive 18% annually compared to 10% in developed countries.

More than 70% of the Chinese population shops online and each person spends approximately $984.91 USD annually compared to $899.06 USD as of current, waiting for brands to capture the opportunity.

The rapid economic development, increasing middle class with strong purchasing power, and high penetration of the Internet have fuelled such fast adoption of online shopping among the Chinese. Any brand owner, who wants to expand and gain fruit in China market, should definitely understand and invest in its e-commerce strategy.

There are dozens of Chinese marketplaces and both consumers and sellers will find the one that works best for their needs. The Chinese eCommerce market is one of the most innovative and dynamic in the world but also a very competitive one. This competition is one of the reasons for the success of online shopping in China, as it encourages Chinese e-commerce groups to come up with offers that profit brands and consumers.

The Alibaba Empire

When you talk about China e-commerce you have to mention ” Alibaba“. Alibaba is China’s largest e-commerce group which founded different platforms:

• Alibaba.com, the largest B2B e-commerce platform in the world
• Taobao.com, China’s largest C2C platform
• Alipay is China’s largest e-payment platform
• Aliyun which is China’s largest cloud computing platform
• AliExpress which is helping Chinese companies sell to foreign buyers
• AliHealth is the most comprehensive online retailer of pharmaceuticals in China
• Lazada is the leading e-commerce platform in South East Asia

The domestic B2C eCommerce market is dominated by Tmall, part of Alibaba Group founded by entrepreneur Jack Ma, and its closest competitor Jingdong’s JD.com. Together they account for over 80% of the total China eCommerce market share.

A few other players account for the remainder of China eCommerce market, which typically is more specialized in particular product categories. Big players include JD.com, Kaola, Pinduoduo, Wechat etc.

Chinese cross-border e-commerce landscape

As their spending power climbs, Chinese consumers are increasingly looking for high-quality products from reputable international brands.

However, the requirements for opening an online store on domestic platforms like Tmall or JD are difficult, ranging from having a physical warehouse and physical store in China to other regulations of opening a physically present business in China, which is out of reach for many international startups and SMEs.

In order to overcome this obstacle, Alibaba Group and JD.com opened Tmall Global and JD.com Worldwide respectively as a new gateway for foreign brands to sell their products in the Chinese e-market without Chinese business licenses.

On top of Tmall and JD, smaller and newer players such as Kaola, VIP.com, YangMaTou, and XiaoHongShu are also taking on a significant share of China’s cross-border e-commerce market. We would talk about these smaller sites in part 3 of the series.

What should you know about selling on Tmall and Tmall Global?

Tmall and Tmall Global are the definite leaders in the market when it comes to B2C shopping so it’s best to get to know those platforms, so you can decide whether it’s worth it for your brand to start selling on Tmall Global.

Tmall vs Tmall Global 

The Tmall vs Tmall Global question is one of the most commonly asked questions by companies that contact us. And it is a legit one! Tmall, as mentioned, is the largest domestic B2C online platform in China.

So Tmall enables businesses to sell directly to millions of customers throughout China. As an open platform marketplace, Tmall provides the infrastructure to host your storefront and unfiltered access to hundreds of millions of shoppers.

A storefront is much like operating your own B2C eCommerce website.

Tmall Global, on the other hand, allows international businesses with no physical presence in mainland China – that is you don’t need to have a physical store or a warehouse, you don’t need to be registered with the Chinese authorities, and you also don’t need to have a Chinese business license – to set up an online store on the platform and tap into a huge and profitable consumer base who are excited about online shopping.

Tmall Global: a link between foreign brands and Chinese consumers

Tmall Global is a dominant cross-border e-commerce platform, the first choice for many well-established international brands to land if wish to sell in China.

It currently hosts more than 20,000 brands in over 4,000 categories from 77 countries and regions.

The aim of Tmall Global is to source the latest and most popular overseas products for Chinese consumers and on the other hand, help overseas vendors capture Chinese consumers’ booming appetite for imported products.

Who can sell on Tmall Global?

All the companies in Tmall Global are corporate entities outside of mainland China, with overseas retail qualifications. Merchants with a turnover of at least 100.000.000 RMB are prioritized.

The goods sold on Tmall Global are originally produced and sold overseas, then imported legally into China.

Domestic consumers can use Alipay or other methods that are used on the domestic platform, Taobao, to buy goods on Tmall Global. Meanwhile, merchants will receive payment in their local currency directly in their home country bank accounts, if they don’t have their own Chinese bank account.

Business models offered by Tmall Global

Tmall Flagship Store

Tmall Global allows foreign brands without a Chinese business entity to sell to consumers directly by opening their exclusive flagship stores. Though, since March 2015 companies are required to use authorized third-party service providers, also called ‘Tmall Partners’ – GMA for instance is a TP.

Via the ‘Partnership Business Structure’, a local TP will help the foreign brand to open a Tmall shopfront. The brand is responsible for the products, branding, and marketing strategy whilst it outsources daily operations of the storefront to the TP.

For some foreign brands which are unable to open their own retail store in China, opening a Tmall Global Flagship store is a good way to reach their target, Chinese customers.

The platform also offers brands a number of marketing tools available throughout the Alibaba ecosystem such as livestreams to create content that appeals to Chinese consumers born after 2000, or Generation Z, the fastest-growing customer base on Tmall Global.

Requirements for merchants to operate a Tmall Flagship Store:

• Commodities: products originally produced or sold abroad must be genuine and come with a certificate of origin. Therefore, products must pass Chinese international customs and Tmall Global security.
• Webpage & Labelling: product descriptions, as well as labels, must be provided in Chinese, with the international metric system adopted as the unit of measurement.
• Chinese language customer support: must be available, for which Tmall recommends employing Chinese Alitalk customer service.
• Logistics: products should be dispatched within 120 hours and be delivered to customers within 14 days
• After-sales: merchants are required to set locations for handling returns in mainland China, Hong Kong, and Taiwan if they sell commodities to those respective regions.

Recently, the shopfront registration for Tmall Global can be conducted directly by merchants via the new English website (https://merchant.tmall.hk/) of Tmall Global (more about this later).

After investing considerable time and resources into entry preparations, setting up a shop will take 4-8 weeks.

How much will you need to pay?

Before you can open the store, you need to pay a US$25,000 security deposit. Notice that this is a deposit. The money will be refunded if you decide to close the store. Tmall may also deduct from the security deposit, to compensate customers.

Tmall also charges a fixed yearly fee, based on the product category you want to sell in. Most categories cost around $5,000 to $10,000 per year. If you want to sell in multiple categories, you will pay for the category with the highest fee.

In addition to the yearly fee, Tmall is also charging a commission based on the order value. The commission depends on the product category and normally varies between 2 to 4%.

In addition, Alipay, which is the payment processor for Tmall.hk, charges a 1% service fee.

Tmall Overseas Fulfillment (TOF)

TOF is a consignment solution that allows brands to place a small batch of products at one of the TOF centers to be sold on the Tmall Global platform.

This gives businesses around the world a chance to try out and fine-tune their product assortment before making a full entry into China.

TOF centers are currently available in Japan, South Korea, and the US, with plans to expand into Europe later this year.

As part of the TOF solution, the Tmall Global team provides brands with marketing advice and tools to help boost brand awareness.

Analytics generated from platforms, such as sales performance and consumer preferences, can help brands make more informed decisions about their China strategy.

One example is Everden, an American baby skincare brand that leveraged TOF when it was considering a move into China. By using celebrity endorsements and live streaming as suggested by the TOF team, Evereden increased its brand recognition and found the right mix of products for Chinese consumers. Three months after first signing up for TOF, Evereden opened a flagship store on Tmall Global and later achieved a visit-to-purchase conversion rate of between 15% and 20% in its first month on the platform.

Tmall Direct Import (TDI)

In addition, brands and suppliers can participate in Tmall Global’s new centralized import procurement program, which leverages six warehouses around the globe to source goods for all of the online and offline outlets within the Alibaba ecosystem, including technology-driven grocery chain Freshippo (also known as “Hema” in Chinese) and Tmall Supermarket.

Similar to TOF, this program is another efficient way for international brands to reach nearly 700 million active users on Alibaba’s platforms.

Through the TDI program, the Italian olive oil brand Clemente was able to place its product in Alibaba-owned outlets. In two months, Clemente Olive Oil had become a top seller in Freshippo and Tmall Supermarket.

We are a Certified Tmall Partner ready to help you get started!

We hope this first part has successfully given you an overall understanding of China’s e-commerce market as well as Tmall Global specifically.

We are a growing team of marketers with a passion for China, e-commerce, and digital marketing. We are constantly looking for new ideas in order to renew our solutions packages and always be on top of the market trends.

What do we offer?

E-COMMERCE PROJECT AUDIT (for New Comer)

• What is your place in the market?
• What is the best solution for your specific project and budget?

REGISTRATION & SHOP DESIGN/WEBSITE (for New Comer)

• Paperwork and store development don’t have to be a burden. Hand it to our dedicated team and get done with it.

SHOP MANAGEMENT & CUSTOMER ACQUISITION

• Upload, update & manage content following your guideline
• Set up KPIs for Acquisition, and running eCommerce campaign.

PROMOTION & LOYALTY MANAGEMENT

• Create & manage campaigns following the various events of the China E-commerce Calendar.
• Work on Branding, because in China Branding is everything

MULTI-CHANNEL MARKETING STRATEGY

• Brand awareness with PR, Kol, Seo, and Packaging design … We make sure consumers know who you are.

PERFORMANCE

• We offer our customer performance Marketing
• We are Results Driven and are focused on real results

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation and learn about your brand. Let’s get you started on Tmall!

For luxury brands, entering the Chinese market is both an opportunity and a challenge. With fierce competition and evolving consumer expectations, having the right strategy is crucial. Tmall Luxury Pavilion offers a trusted, high-visibility space designed specifically for premium brands.

GMA (Gentlemen Marketing Agency) has years of experience helping foreign brands succeed in China, we understand what it takes to thrive on platforms like Tmall. Our insights come from real-world experience in luxury e-commerce, marketing, and market entry strategies.

In this guide, we’ll break down everything you need to know: what Tmall Luxury Pavilion is, why it matters, and how to join. Whether you’re exploring market expansion or looking for a competitive edge, this article will help you make informed decisions.

What Is Tmall Luxury Pavillon?

Tmall Luxury Pavillion is a luxury platform launched by Alibaba in 2017 with the goal of connecting the world’s luxurious brands to Chinese shoppers. The platform is a great success, with over 200 high-end and luxury brands currently signed up to the site and growing numbers of Chinese consumers using it to purchase luxury items.

The platform offers a unique space where brands can customize their online stores and provide consumers with a new way of online shopping. They also have live streaming, which is a very popular feature in China, to show off products and engage with potential customers.

What Are the Implications? 

For brands, Tmall Luxury Pavillon offers a great opportunity to increase their sales in China. The platform is exclusive and you must meet certain requirements to be able to sell your products on it. Therefore brands who do join it get a lot of positive attention from both Alibaba and Chinese consumers.

For shoppers, Tmall Luxury Pavillon is a more trustworthy site for purchasing luxury items.

Tmall Luxury Pavilion has been created with luxury brands and luxury shoppers in mind. It offers brands marketing and communication features adapted to their products.

What Brands Are in Tmall Luxury Pavillon?

With the growing popularity of Tmall Luxury Pavillion on Chinese luxury consumers’ radar, more and more brands are interested in being a part of it.

Some top luxury brands that have a presence on Tmall Luxury Pavillon include:

• Guerlain
• Chanel
• Burberry
• Ralph Lauren
• Maserati
• Hugo Boss
• Salvatore Ferragamo
• Bvlgari
• and so on

With these brands trusting Tmall Luxury Pavillion, it is not surprising to see more luxury names joining the platform as time goes by, especially considering that Chinese consumers are getting more and more interested in shopping for luxury brands online.

Tmall Luxury Pavillion is a great channel for these brands to reach the Chinese market. With an increasing number of foreign brands going multi-channel, this is one of the channels that they cannot afford to miss out on.

How Can You Tell if Your Brand Is Eligible for Tmall Luxury Pavillon and How Do You Apply?

Tmall Luxury Pavillion, unlike its mainstream counterparts (Tmall Classic and Tmall Global), is not open to all brands. It is an exclusive platform aimed at luxury brands and is only open to those that meet the requirements. Your brand must already have an existing presence in China and have a good reputation. It must also be an authentic luxury brand with high-quality products.

The application process is fairly simple and straightforward but it can be time-consuming. You can then contact the Tmall Luxury division if you feel like your brand meets the requirements.

Negotiations and a brand presentation will then take place where both you and the platform will decide if it’s a good fit. If all goes well, your brand will be accepted onto the platform and you can begin setting up your store.

The Benefits of Being in Tmall Luxury Pavillon

As an inclusive and trusted platform for luxury brands, Tmall Luxury Pavillon is perfect for companies that are looking to reach and engage with high-end Chinese consumers.

Here are some of the benefits of being on the Tmall Luxury Pavillon:

• You have 100% control of your brand: By joining Luxury Pavillion, you have full control over how you want your brand and products to be presented. The platform gives you the freedom to customize your shop. If you want your audience to experience the same vibe when buying in your brick-and-mortar store, Tmall Luxury Pavillion gives you the ability to do so. Moreover, if you have an existing marketing and development team, it will be beneficial as the platform allows you to fully handle your strategies and activities.
• Boosts exclusive product sales: Exclusive products and limited editions are one of the most effective ways to boost your sales. And China is a country filled with consumers who love to have the latest and trendiest products. In fact, back in 2017, a Burberry limited editor bag was sold out immediately just within the first 10 minutes of release.
• Get the benefits of live streaming: The Chinese are avid users of live streaming. Back in 2020, it was recorded that at least one live streaming session is watched by more than 613 million people in China. With live streaming, you are to see a better and higher ROI for your product sales. The engagement and audience attachment are also personalized since you get to see the interactions in real-time.
• Attract Chinese shoppers: Aside from obvious audience numbers in China, every Chinese tends to use e-commerce sites rather than going to retail stores. On average, the Chinese spend at least 6 hours a day using their phone for different purposes, and a good portion of that time is dedicated to online shopping.

Another benefit worth mentioning is that Tmall Luxury Pavillion is one of the most viewed e-commerce platforms in China. This is due to its reputation for housing a lot of big brands and luxury items. If your company plans on targeting high-end buyers, Tmall may be the best platform to do so.

The Future of Luxury Brands in China and What This Means for Foreign Brands

The Chinese market is a strict but profitable place for brands to enter. Unlike before, having an access to online shoppers has made it easier for foreign brands to establish themselves in the country. With the power of e-commerce and social media, brands have more power to reach Chinese consumers which is a promising opportunity for companies in the future.

The demand for luxury goods in China is expected to exponentially as multiple platforms that carry these goods are already rising. With an exclusive space where you can buy luxury items, Chinese consumers are becoming more comfortable as they see how platforms like Tmall Luxury Pavillion are taking care of counterfeits and ensuring the authenticity of their products.

For foreign brands, it is an opportunity to widen their customer base as well as to increase their revenues. And what’s the best thing to do than to enter the Chinese market? On a global scale, China’s share in the luxury goods market is 8.9% which is the second-largest in the world.

In addition, since Chinese consumers have a large spending power when it comes to luxury goods, this trend is likely to continue upwards, especially with how accessible these purchases are now through online platforms like Tmall Luxury Pavillion. 

Need help launching your luxury brand in China?

Drop us a request to discuss your project with our China Luxury Expert and ask about our previous work

Expanding into China can be challenging, especially with strict regulations and unique consumer behaviors. But with JD Worldwide, foreign brands can tap into this massive market without needing a local business presence.

Gentlemen Marketing Agency (GMA) has over a decade of experience in Chinese e-commerce, our team has helped international businesses successfully launch on platforms like JD, Tmall, and Xiaohongshu. We understand the market, the process, and what it takes to succeed.

In this guide, you’ll learn everything you need to start selling on JD — from account setup and store types to marketing strategies and costs. Whether you’re a brand owner, retailer, or distributor, this article will give you the knowledge to enter China’s e-commerce scene with confidence.

Quick Summary

• JD.com’s Market Position: JD.com is the second-largest B2C e-commerce marketplace in China, holding a 20.1% market share. It has over 1400 warehouses and a sophisticated logistics network, including autonomous vehicles.
• JD Worldwide: This is JD.com’s cross-border e-commerce extension, enabling foreign companies to sell online products in China. It targets a variety of product categories like fashion, personal care, beauty, and electronics.
• Sales Models on JD: JD operates three sales models – JD direct sales, JD marketplace, and JD worldwide, each catering to different types of sellers and products.
• Benefits of Selling on JD Worldwide: It offers international merchants access to the Chinese market without a physical presence in China, global shipping and warehousing solutions, and a platform open to brands, franchisees, retailers, and traders outside China.
• Basic Requirements for Entry: Sellers must be established non-Chinese companies, brand owners or licensees, have a USD bank account, and provide Chinese customer support and Mandarin product descriptions.
• Types of JD Stores: JD Worldwide allows for different types of stores including Brand Flagship Store, Outlet-Type Flagship Store, Franchised Store, and Exclusive Store, each with specific requirements.
• Application Process: The entry process involves contacting JD Worldwide Business Development Manager, preparing documents, and following a registration and approval process.
• Cost of Investment: Opening a store on JD requires an initial deposit of US$15000 (refundable) and a yearly fee of US$1000 per store, plus a 2-8% commission fee on sales.
• Strategic Considerations: Building a strong online presence and reputation in China is crucial before entering the marketplace. JD offers an alternative to Tmall Global, particularly for household appliances and consumer electronics.

What is JD (Jd.com)

JD.com is the second-largest B2C e-commerce marketplace in China, with a 20.1% market share. While Tmall Global is getting a lot of attention from cross-border e-commerce companies, few are aware of JD’s own cross-border program: JD Worldwide. Tencent, Walmart, and Google are partners. The group has developed a warehousing and delivery infrastructure with supply chain technology.

JD in Numbers

As of 2023, the company operates more than 1400 warehouses across China. Its logistics network uses high-tech tools and in particular: autonomous vehicles. Since 2017, JD has grown rapidly with an increase in revenue of 32% between 2018 and 2019 and 47% from 2019 to 2020. In 2021, JD reported net revenue of RMB 951.6 billion (about US$149.3 billion) which is an increase of 27.6% from 2020.

Despite a net loss of around 4 billion yuan in 2020 linked to a decrease in government support due to the COVID-19 pandemic; JD remains today one of the e-Commerce giants in China. Additionally, the company ranked 46th on the 2022 FORTUNE Global 500 list released on the 3rd of August 2022, moving up 13 places from last year and making its debut among the Top 50 biggest listed companies in the world. Overall, selling on JD.com can be a great way to reach more consumers and grow your business.

JD has pre-provision for the sale of certain examples of products, such as household appliances. Indeed, when a Chinese consumer goes to a site, he often has a predefined idea of what he wants to buy, for example on the contrary: few Chinese people will buy food products that they find in their daily life on a platform of cross-border e-Commerce. On these platforms, certain criteria are expected, notably in terms of quality, scarcity, or even current trends that influence purchasing behavior.

What is JD Worldwide?

JD Worldwide is the cross-border e-Commerce extension of the JD.com Chinese marketplace. Its function is to enable the sale of online products from foreign companies. In 2018 Jingdong officially upgraded its “Jing Dong Global” to “Haitun Global”, and then in 2020, JD came back to JD Worldwide.

It is one of the biggest B2B2C Chinese markets, especially in the field of audio products, entertainment products as well as electronic products, and household appliances. Other big examples of popular product categories present on the website are:

• Fashion Products
• Personal Care Products
• Beauty Products
• Paper Products
• Fresh Food
• Pet Food and accessories etc.

JD Worldwide offers Chinese customers a user experience of exemplary ease and convenience. This is the reason why today Jing Dong has more than 301.8 million active customers per year and 1400+ warehouses and is China’s Second-Largest eCommerce marketplace. 

On JD Worldwide, the majority of users belong to the Y and Z generation, mostly younger and well-informed consumers.

The platform is open to franchise brands, retailers, and legally registered Foreign (non-Chinese) brands that sell products to overseas companies and customers. 

How to Sell on JD Worldwide?

The Different Sales Models of JD

JD operates 3 sales models which are JD direct sales, JD marketplace, and JD worldwide.

• The direct sales model: JD.com sources products directly from brands and suppliers and then sell them directly to customers through the company’s online stores and mobile channels. JD can be characterized as one of China’s largest B2B2C platforms and dominates in home appliances and consumer electronics. The direct sales model guarantees that Jingdong provides its users with a faster and better consumer experience. It is open to well-established, reputable brands and merchants with operations in China.

• JD marketplace: It enables well-established, reliable third-party sellers to set up stores and sell products directly to customers. Approved sellers may also use JD.com’s industry-leading fulfillment infrastructure, marketing, and customer targeting services, financing, and other value-added services.

• JD Worldwide: It is JD.com’s cross-border ECommerce platform, which enables Chinese customers to purchase products from foreign sellers with the ease, and convenience that they expect from JD.com. Similar to Tmall, Jing Dong Global operates as an online mall where the organization hosts foreign brands’ online stores.

Examples of Product Categories in Hypermarkets:

JD Worldwide also hosts several national and regional pavilions.

What are the Benefits of Selling on JD Worldwide?

JD Worldwide offers international merchants the ability to tap into the Chinese market even if they do not have a physical presence in China.

• JD Worldwide provides global shipping and warehousing solutions that ensure products from foreign merchants are delivered to the doorsteps of customers in China with ease thanks to its partnership with international logistics companies such as DHL, Australia Post, and YAMATO and its own nationwide logistics network.

• JD Worldwide is open to brands, franchisees, retailers, and traders that are legally registered outside China and selling products that originate from outside China.

• Payment is also a fairly easy process for a foreign seller, or at least for someone with a registered USD bank account. In fact, only US dollar transfers are made for now.

• Chinese consumers generally do not buy from independent stores on their own. JD is considered a springboard for brands, particularly in household appliances. Thanks to this robust platform, there is an alternative to Tmall Global for market entry, as being a Tmall Partner is quite pricey, especially for small and medium-sized enterprises. 

• One of the main benefits for merchants is that thanks to JD it is possible to develop your e-Commerce export more easily due to the restrictions of the Chinese government. Indeed, even if your website is translated into Mandarin, going through a Chinese cross-Border e-Commerce platform will offer you much more visibility through promotion solutions on the site. As a freelancer, the chances of a Chinese stumbling across your site are unlikely.

• JD reduces the risk of problems related to sales support such as refunds, exchanges, logistics costs or even accounting with the different payment methods in China.

JD Tools and Features for Marketing Strategy

• Banner ads on the different pages of the website
• Pay-per-Click: this method consists of using sponsored links which are most often ads in the form of text, placed near the search results. The advertiser pays for each click of the Internet user.
• It is possible to find the most trendy products from famous brands based on the SEO referencing of the JD.com website.
• Promotions are displayed on the main page.
• There is a coupon system to have money on the site.
• There is a recommendations page.

Basic Requirements to Enter JD & JD Global

• You need to be an established non-Chinese company (you need products and a track record before you can start selling).
• You need to be a brand owner or at least license a brand. Thus, you must be able to provide trademark registration documents or licensing agreements.
• You need to have a USD bank account.
• Further, you must also provide business registration documents, the ID of the major shareholders and directors, and so on
• Chinese customer support representatives must be provided, and you should have proper product descriptions written in Mandarin with professional product images and all additional product details listed. 
• Products must be dispatched within 72 hours after order placement.
• Product return centers must be available in Mainland China.

Furthermore, JD Worldwide targets well-known overseas brands, brand agents, or well-known retailers and B2C websites that have not yet entered the Chinese market in the following kinds of products: mother and baby, health products, food, clothing, bags, and cosmetics.

The Different Types of JD Stores

The Brand Flagship Store

• The products shall have the relevant trademark registrations overseas.
• If Merchant is a brand owner, he shall provide the trademark registration certificate for their products.
• If Merchant is an exclusive authorized dealer, he shall provide the trademark registration certificate for the products and the letter of authorization for selling his products.

Outlet-Type Flagship Store

• Merchants shall have or have applied for a Class 35 trademark (the “Service Mark”) overseas for their brand.
• If a Merchant is the owner of the Service Mark, the Merchant shall also provide its trademark registration certificate.
• If Merchant is not the owner of the Service Mark, the Merchant shall provide the Service Mark and evidence of their exclusive authorization to use or operate a store on JD Worldwide Website using the Service Mark.

Franchised Store

• The products shall have their trademark registration overseas
• If Merchant is not the owner of the trademark of its products, he shall also provide evidence of his authorization to operate a store on the JD Worldwide platform.

Exclusive Store

• Evidence of product source, and invoice of the products purchased.
• The name of the shop shall not infringe the legitimate rights of others.
• Special store types may sell products of up to two categories

JD Worldwide Application Process

The entry process for JD Worldwide differs somewhat from the JD Domestic Marketplace as you are required to seek contact with the JD Worldwide Business Development Manager for the particular product category in which you wish to sell.

JD worldwide company registration process will resemble the following:

• You must prepare all the documents which were aforementioned and send them to the relevant Business Development Manager.
• After an initial check, you will receive a registration link (you must closely follow the directions provided as the system is in Chinese).
• Approval process.
• After approval, you must pay the regular deposits and platform service fee.
• After payment is received the shop status will be changed to ‘open’.

More about materials preparation here (In Chinese).

Cost of investment when opening a store on JD

Once you have been approved, JD requires that you pay an initial deposit of US$15000. This is not a fee, but a refundable deposit.

In addition, JD.com also charges a yearly fee of US$1000, per store. And, a 2-8% commission fee based on the order value, for each sale. While this may change in the future, JD Worldwide is so far charging significantly less than Tmall Global and the commission rates are lower.

In Conclusion

Opening an online store on JD Worldwide is a great way to start selling your products to Chinese consumers. It offers an alternative entry strategy from Tmall Global, that is also a bit cheaper. This alternative is especially suitable for merchants wishing to sell household appliances and consumer electronics. However, a downside is that creating a storefront on JD also requires significant capital.

The best way to start selling on Jing Dong is to create a reputation for your brand on the Chinese Internet and social media before you enter this marketplace. This way you will have a community that allows the company to have the first resources to finance advertising.

Subsequently, the platform can only simplify the customer experience around your company on a lot of points which will have cost a lot of time and money with a classic independent store. In addition, thanks to these different sales and store models, there is a wide choice in the way of distributing its products, which remains personal to the entrepreneur.

With the help of our guide, you can have your store up and running in no time! Have you started selling on JD Worldwide? What has been your experience so far? Let us know in the comments below.

We can help you start selling on JD.com and JD Worldwide!

We are a growing E-Commerce agency of Chinese and foreign marketers passionate about China’s e-commerce and digital. We are constantly looking for new projects in order to renew our solutions and always be on top of the market trends.

With 10 years of existence, we have gained significant experience in the field. Contact us to get a free consultancy and a quote.

What can we offer you?

E-COMMERCE PROJECT AUDIT JD/TMALL (for New Comer)

• Market Survey
• Estimation of your best solution  (project /budget)?

REGISTRATION OF JD ESTORE +  DESIGN

• Paperwork and store development don’t have to be a burden. Hand it to our dedicated team and get done with it.

E-SHOP MANAGEMENT & CLIENTS ACQUISITION

• Upload, update & manage social media & e-Commerce content following your guideline
• Setup KPIs for Acquisition, and running e-Commerce campaigns.

PROMOTION & LOYALTY PROGRAM

1. Create & manage campaigns following the various events of the China E-commerce Calendar.
2. Work on Branding, because in China Branding is everything

MULTI-CHANNEL DIGITAL MARKETING CAMPAIGN

• Boost Brand Awareness with PR, influencers, Baidu SEM & SEO … We make sure consumers know who you are.

PERFORMANCE

• We offer our customers performance Marketing
• We are Results Driven and are focused on real results

With over 200 million active users, XiaoHongShu (also known as “Red Note”) is more than just another shopping app—it’s a powerful mix of e-commerce and social influence. But selling here isn’t as simple as listing products. Brands need the right strategy to stand out.

At GMA, we’ve helped brands successfully navigate XiaoHongShu, from setting up stores to launching influencer campaigns. We know what works and what doesn’t in this fast-moving marketplace.

In this guide, we’ll walk you through everything you need to sell on XiaoHongShu, from choosing the right store type to leveraging KOL marketing and paid ads. By the end, you’ll have a clear roadmap to turn Red Note into a profitable sales channel for your brand.

Key Takeaways

• XiaoHongShu reaches 200 million active users, with 80% of Chinese Gen Z using it to find products.
• The platform offers three store types: Personal (up to 100 products), Individual/Commercial (30-100 items), and Enterprise (unlimited listings with premium features).
• Sellers must provide business licenses, valid ID cards, and bank details for account verification, which typically takes 2-5 business days.
• Marketing success comes from mixing KOL partnerships (influencers with 10,000-100,000 followers), user-generated content, and paid ads through Bytedance’s platform.
• Commission rates range from 5-20% based on product type and store level, with payments processed through WeChat Pay and Alipay.

Understanding XiaoHongShu Store Types

XiaoHongShu offers three main store types to match your business goals and sales volume. Each store type comes with its own set of rules, fees, and perks that can help you reach Chinese shoppers through social commerce.

Personal Store Options

Personal stores on Red Note offer a simple entry point for small sellers and individual merchants. We’ve helped many clients start with basic store features, including product listings, payment processing through Alipay and WeChat Pay, and basic analytics tools.

Our marketing team finds these stores perfect for testing new products or starting a small business without major investment.

Personal stores need minimal documentation for setup, just an identity card and basic business information. We can list up to 100 products on these stores, which works great for fashion items and small consumer goods.

The platform’s user-generated content features help build trust through authentic reviews and social proof. Our clients often start here before upgrading to larger store types as their business grows.

Individual and Commercial Store Features

XiaoHongShu offers distinct store options for sellers at different business levels. We have helped many brands set up their stores on this social media platform through our direct experience with both individual and commercial accounts.

• Store verification requires a valid business license and proper documentation for commercial accounts
• Social proof plays a vital role through user reviews, ratings, and engagement metrics on product listings
• Live streaming features allow real-time product demonstrations and customer interaction
• Payment processing happens through integrated Chinese payment systems like WeChat Pay
• Product listing limits vary between 30-100 items based on seller performance and account type
• Quality control measures help prevent counterfeit products from entering the marketplace
• Cross-border selling needs special permits and customs documentation
• Marketing tools include in-platform ads and KOL collaboration options
• Analytics dashboard shows real-time sales data and customer behavior patterns
• Inventory management system connects with major logistics providers
• Customer service tools enable quick responses through built-in messaging
• Return policies must follow XiaoHongShu’s standard guidelines for consumer protection
• Commission rates range from 5-20% depending on product category and store type

Our next section explores the essential steps needed to launch your XiaoHongShu shop successfully.

Enterprise Store Benefits

Enterprise stores on Red Note offer top-tier benefits for large-scale sellers. We see major brands gain direct access to premium store features, advanced analytics tools, and priority customer support.

Our enterprise partners enjoy exclusive rights to create live streams, run flash sales, and tap into the platform’s vast user base of over 200 million active buyers.

Enterprise stores turn social proof into sales success – Leading E-commerce Expert

We get enhanced brand protection through verified status badges, custom shop designs, and direct integration with payment processors. These stores link smoothly with Tmall, JD.com, and other major e-commerce platforms.

Our enterprise clients use crowd-sourced data to shape their marketing plans. Let’s explore the essential steps for setting up a successful shop on this growing platform.

Essential Steps for Setting Up a XiaoHongShu Shop

Setting up a shop on XiaoHongShu needs proper planning and attention to detail. We’ll show you the basic steps to create your store on this popular Chinese social commerce platform, from picking the right store type to getting your account verified.

Sign Into Your Account

We start our XiaoHongShu selling journey by signing into xiaohongshu.com through our mobile phones. Our first step involves downloading the app from any app store and creating a new account with valid contact details.

The platform asks for basic information like phone numbers, email addresses, and QR code verification to ensure secure online transactions.

Our account setup needs proper verification through credit cards or other payment methods to start selling on Red Note. The process takes about 10-15 minutes to complete, with clear prompts guiding us through each step.

We must fill in all required fields accurately to avoid delays in account approval.

Choose Your Shop Type

XiaoHongShu offers three main store types to match different business needs. Our personal stores suit small sellers who want to start their online retail journey. Individual and commercial stores fit medium-sized businesses with steady sales volumes.

Enterprise stores serve large companies that need advanced features and broader reach.

Each store type on Red Note comes with specific perks and rules. Personal stores need basic identity proof and let us sell up to 30 items per month. Commercial stores ask for business licenses but allow unlimited product listings.

Enterprise stores give us premium tools like touchpoint analytics and crowd-sourced data. The right store type depends on our sales goals, product range, and target audience on the platform.

Provide Business and Shop Information

We need to fill out key business details to set up our shop on Red Note. Our shop name must match our business license, and we’ll need to upload clear photos of our products. The platform asks for basic contact info, bank account details, and tax registration numbers for proper verification.

Our shop’s success depends on accurate product descriptions and high-quality images that follow Red Note’s guidelines. We must list our items under the right categories and include clear pricing details.

The platform’s user-friendly interface makes this process simple, letting us add product specs, shipping info, and return policies with ease.

Verify Your Account Details

After submitting your business details, our next crucial step focuses on account verification. XiaoHongShu requires strict identity checks to maintain platform integrity and prevent false advertising.

Our team must upload clear photos of business licenses and valid ID cards to the platform. The system matches these documents with our submitted information through a quick verification process.

Most approvals happen within 48 hours, though some cases might take up to five business days. Our store can’t start selling until we complete this step, so accurate document submission remains vital for quick approval.

Effective Marketing Tactics for XiaoHongShu Shops

Marketing success on XiaoHongShu needs a mix of smart promotion methods and brand building. We’ll show you proven tactics to boost your sales through KOL partnerships, content creation, and paid ads on the platform.

Partnering with Influencers / KOL

We partner with Key Opinion Leaders (KOLs) on XiaoHongShu to boost our brand reach and sales. These influencers create authentic content that speaks to their followers through photos, videos, and livestreams.

Our partnerships with KOLs help us tap into ready-made audiences who trust their recommendations.

Building strong ties with XiaoHongShu influencers needs clear goals and careful planning. We focus on micro-influencers with 10,000 to 100,000 followers for better engagement rates and cost-effective results.

Our team picks KOLs who match our brand values and target market on the platform. Through word-of-mouth marketing, these partnerships create natural buzz around our products and drive traffic to our XiaoHongShu shop.

Utilizing User-Generated Content

User-generated content drives success on XiaoHongShu. Our customers create authentic posts about their shopping experiences, which builds trust with other buyers. XiaoHongShu’s crowd-source model helps us gather real feedback and honest product reviews from our target demographic.

Our marketing efforts thrive on authentic content from real users on RedNote. The platform’s integrated marketing features let us share customer photos, videos, and reviews across different sections.

These genuine posts create a strong brand image and boost our search results naturally. Many consumers trust other consumers’ opinions more than traditional advertising campaigns.

Using XiaoHongShu Ads

Moving beyond organic content, we need to tap into XiaoHongShu’s paid advertising system. Our marketing efforts on Red Note must include strategic ad placements to reach more shoppers.

XiaoHongShu ads offer precise targeting options that match products with interested buyers. We can set up display ads that show up in users’ feeds or place them in search results.

Paid promotions through XiaoHongShu work best with clear goals and budgets. We start by picking the right ad format – feed ads, search ads, or KOL partnership posts. Our team tracks metrics like click rates and sales to adjust campaigns for better results.

Bytedance’s ad platform makes it simple to manage spending and reach the right audience segments.

GMA, your Marketing Agency in China

Success on XiaoHongShu needs smart planning and steady action. We see many brands grow fast on this platform through good content and strong connections with users. Our team helps brands start small and expand their reach on XiaoHongShu through clear steps and proven methods.

Smart sellers mix social posts with shop features to build trust and boost sales. XiaoHongShu offers great chances for brands to reach Chinese shoppers who love finding new products.

Contact us todat get started!

We have guided companies of all sizes through JD’s requirements, marketing strategies, and logistical hurdles, ensuring a smooth and successful launch.
By reading this step-by-step guide, you’ll learn exactly how to set up a store on JD.com, reach Chinese consumers effectively, and increase your sales through proven marketing and e-reputation strategies. Let’s get started!

What are The Steps to Start Selling on JD.com?

Chinese consumers are extremely cautious when it comes to buying goods online, and as one of the most popular e-commerce websites, it is no surprise that customers recognize that JD.com guarantees quality products. Thus, you will have to prove that you are qualified to sell your products on JD.com by following a long process of application in order to obtain a verified account.

How to become a seller on JD.com?

First of all, you have to know that JD.com only accepts well-established, reliable third-party sellers on its platform. In order to apply for it, you will have to use JD.com’s industry-leading fulfillment infrastructure, in terms of marketing, financing, customer services, delivery, etc.

Moreover, before you can start selling on JD’s platform, you must complete several steps:

Step 1: In terms of preparation, be sure to understand the conditions mentioned in JD’s merchant contract, and prepare all the documents to prove that you are qualified to do business in China. Then, set up your JD wallet (which is JD’s online payment platform).

Step 2: To apply, you will first need to register your account and enter all the information about your company and your future store. Then, submit the contract and submit your application.

Step 3: JD.com will examine your application as well as all the information provided. You’ll be able to check the status of it anytime you want.

Step 4: Once your application is approved, you will have to give your contact information and address maintenance, verify your account’s security, and then pay the fees to open your online store.

Globally, if you want to sell your products on JD.com, you will have to pay between $8000 – $50,000 as a deposit, and between $1,500 to $10,000 USD fee per year. You will also have to give JD a commission between 5-8% once you sell your products.

Don’t forget that you will also have to pay the management fees. All these fees will depend on the sector of activity in which you operate, the scale of your company, your revenues, etc. If you want more information about that, you can contact us directly.

Moreover, as you can see, you will need to have a translator or a Chinese employee to apply for JD.com as everything is written in Mandarin Chinese. If you need help, we have experts in this field who can take care of your application on JD.com, do not hesitate to contact us.

What company can apply to register on JD Worldwide?

If you’re not present in China, JD Worldwide is an option for you, as it’s JD’s answer to Tmall Global. On JD Worldwide you can sell to Chinese consumers from abroad, so it’s a Chinese marketplace made especially for foreign companies that are not present in Mainland China.

But you need to be aware, that even though the Chinese market is full of opportunities for foreign brands and overseas companies, the truth is that Chinese consumers tend to focus only on the biggest brands that are already well-known in China and have a strong presence online. So, since the amount you’ll have to invest is quite important, you should be careful when planning your marketing and advertising strategy on JD.com, but also on Chinese social media.

How to register an official account on JD Worldwide?

Suppose that you are not established in China yet, you will have to follow a few steps in order to be able to sell your products on JD Worldwide.

First of all, you have to know that JD will treat in priority famous brands, famous retailers, department stores, etc. in order to be sure that Chinese consumers will be interested in buying your products. So, if you are a small brand, it might be more difficult, but not impossible! You can contact us to talk about your projects in China, and we will be able to give you some tips and advice.

Then, you will have to complete this process that will be different according to the type of store you want.

Moreover, you will also have to respect these criteria:

• Be a brand owner or have a license
• Have a company established abroad with a trademark registration
• A track record of your products
• An operational history to demonstrate that you are not a fake foreign company
• A USD bank account
• A business registration

How to Effectively Increase Your Sales on JD?

Using the e-commerce platform JD might be different than using Amazon for example. Moreover, you will need to attract customers and increase your brand awareness both on JD’s website and on social media which you have to include as part of your marketing and advertising plan. Here are some tips to sell more on Jingdong.

Optimize your JD flagship store according to Chinese consumers’ taste

Chinese consumers indeed have different tastes when it comes to the layout of the website. While we tend to prefer a simple layout with a white background, Chinese consumers tend to prefer colorful websites.

Moreover, don’t forget that you target Chinese consumers, so you should write your content in simplified Chinese. You also have to consider the fact that Chinese consumers like to scroll for pictures, so you will have to put lots of pictures (between 5 and 10) and videos if possible. Then, put a detailed description of your product.

Advertising on JD

If you want to do advertising on JD.com, you can either use banner ads or PPC (pay-per-click). These two solutions are great for getting traffic to your online store but not necessarily optimum for an acquisition strategy. Moreover, advertising in China requires a different approach from what we are accustomed to, especially on Chinese e-commerce platforms such as JD.com. However, some tools of advertising are quite similar to ours.

If you want to increase your ROI (Return on Investment) be careful not to throw money away by investing in massive paid advertising. The best way to benefit from advertising is to plan a detailed advertising campaign that will include Baidu SEO, PR, Social media, KOLs, and of course, a Chinese website!

You can also use forums to increase your visibility and e-reputation such as Zhihu (知乎) the most popular Chinese Q&A forum, or apps like RED (aka Xiaohongshu 小红书)

Work on your e-reputation in China

Driving traffic to your store won’t be necessarily an issue, but getting consumers’ trust is harder. In order to do so, you’ll have to work on your online presence and e-reputation.

Indeed, Chinese consumers are extremely suspicious of products and brands that they have never heard of before. They will most of the time rely on other users’ experiences, recommendations, and reviews. Word-of-mouth is actually one of the best ways to attract new customers, and this is why your brand e-reputation is essential when it comes to entering the Chinese market.

You will also have to be careful when it comes to consumers’ feedback on your products, as it will influence potential consumers and even e-commerce platforms such as JD.com. As soon as you get a few hundred sales, you have to encourage your customers to write reviews in order to attract new customers.

To maintain and increase your e-reputation in China, you can use the following methods:

• Social Media: WeChat, Red, Weibo, Douyin, Kuaishou… there are plenty you can join. They are great for building a following and improving customer loyalty. They allow you to interact directly with your target audience run paid advertising for traffic acquisition and even get customers’ detailed reviews (RED). Some of them also tend to rank quite high on Baidu which is great for credibility and for your search engine optimization.

• KOLs & Influencers: They are well-trusted and highly influential. There are many ways you can collaborate with KOLs offering you some flexibility in the way you want to promote your brand.

• PR, forums, and Q&A: The best way to build brand credibility. Third-party recommending your brand will always be more effective in increasing conversion than official brand communication. Just like social media posts, they rank high on Baidu.

To put it in a nutshell, we can say that e-reputation can be a significant opportunity to improve the consumers’ perception of your brand without investing in massive advertising campaigns. According to a report from Mintel, 75% of the Chinese population using e-commerce platforms are posting online feedback after buying their products.

WeChat: A Powerful Tool to Promote your JD Flagship Store

As the most popular app in China, WeChat is a must-have if you want to build a community and succeed in China. You have to know that more than 1.3 billion Chinese citizens are using WeChat in their daily life.

By using WeChat, you’ll be able to communicate directly with your clients, share content, create an H5 brochure, send e-vouchers, and advertise your online store. On top of that, take into consideration that both WeChat and JD.com belong to Tencent, so the links of your JD store will work smoothly on WeChat and people will be able to find it on the search bar.

Why Should You Consider JD eCommerce When Selling in China?

If you want to start your business in China, selling on e-commerce platforms is almost considered mandatory as the majority of Chinese consumers are shopping online. Even though Tmall is the leading e-commerce platform in China, JD.com also generates a lot of traffic.

If you had the idea of creating your own Chinese website and selling your products on it, you should forget that idea. In fact, Chinese consumers are really cautious when it comes to buying products online, so they prefer to buy on popular e-commerce platforms.

Between 2009 and 2023, Alibaba’s Tmall and Taobao, JD.com, and Pinduoduo ranked as the leading three Chinese e-commerce retailers, accounting for nearly 80% of the total online retail sales in the country. JD.com was the second leading B2C retailer just after Tmall, with 26.51% of the share of sales.

JD.com can be a good alternative to Tmall or even a way to expand your activities even more if you want to be on both Tmall and JD.com. Given the popularity of these two e-commerce platforms, you will be able to quickly gain Chinese consumers’ attention if you adapt your marketing strategies to the Chinese market.

Is JD e-commerce suitable for your brand to sell in China?

JD.com is the partner of choice for both local and international brands wanting to reach Chinese consumers online. JD.com provides a full range of services from marketing, consumer targeting, big-data-driven analytics, logistics and warehousing, and financing.

JD com: One of China’s eCommerce Leaders

Unlike other e-commerce platforms, JD.com is not just an e-commerce website. It’s a whole ecosystem of innovations, from futuristic brick-and-mortar stores using AI, to drones and autonomous trucks. JD.com was able to compete with other e-commerce giants such as Alibaba and Taobao as well as attract many famous international brands.

Short History of Jingdong (JD)

Founded in 1998 by Liu Qiangdong in Beijing, JD (which stands for Jingdong 京东) was at the beginning only a magneto-optical store, which diversified over the years with electronics, computers, mobile phones, etc.

In 2004, it opened its online retail platform and quickly became one of the two massive B2C online retailers in China with its competitor the Alibaba-run Tmall. Now, JD.com is partly owned by the giant Tencent, which has 20% of its stake. As of 2023, JD.com has over 580 million active customers.

In 2023, the total net revenues of the online shopping company JD.com amounted to 287.9 billion yuan ($US39.7 billion). JD.com runs one of the biggest online marketplaces in China, other platforms being Tmall, Pinduoduo, and Suning.

What has made the success of JD?

JD.com has set its standards for online shopping through its commitment to quality, authenticity, and the variety of products it offers, covering everything from fresh food and apparel to electronics and cosmetics. Another asset of JD.com is the delivery time, which is, in general, the same day (or less than 24 hours).

Since its partnership with Tencent, JD.com was able to stand out in terms of marketing, benefiting from Tencent’s database.

For example, 7Fresh is a grocery store chain that is really popular in China for its fresh food products.

What are the most popular categories of products sold on JD?

According to JD.com’s data report, beauty products and cosmetics, maternity & child health supplements are the most popular imported categories for JD Worldwide’s consumers.

Dyson, Casio, Philips, Vtech, and Shiseido were among the best-selling brands. Top-ranked supermarket brands are also featured on JD Worldwide for Chinese customers, including Walmart, Rakuten, and 24Shopping.

JD.com: The Future of Retailing

These past few years, JD.com has invested a lot in high-tech and AI delivery through drones and robots and has the largest drone delivery infrastructure in the world. Following the COVID-19 pandemic, it has started testing robotic delivery services by drones, as well as operating driver-less delivery by unveiling its first autonomous truck in the streets of Wuhan.

In 2017, JD.com introduced its JD.ID X-Mart in three cities (Shenzhen, Dongguan, Guilin). These stores are using AI, facial recognition, and radio frequency identification that allows users to pick their items and then directly walk out of the store without even queuing to pay as they are automatically debited the moment they get out of the store.

JD Position in the Chinese E-Commerce Industry

These past few years, China has become one of the world’s largest e-commerce markets. As the major driver of the country’s retail economy, e-commerce sales have experienced considerable growth from 12.4% in 2014 compared to 36.6% in 2019. In 2023, the e-commerce industry in China is expected to reach around 64% of the total retail sales market with an estimated amount of $1.9 trillion.

How the growth of e-commerce is reshaping JD’s logistics?

JD.com is known as one of the fastest e-commerce websites in terms of delivery, using its nationwide logistics network and sophisticated data-driven delivery technologies. The growth of e-commerce in China has greatly contributed to innovations in terms of logistics for many companies.

JD.com has one of the largest infrastructures in the world in terms of logistics. As of 2023, JD.com operated more than 28 “Asia No. 1” logistics parks, which are among the largest and most automated centers in Asia. JD.com also leverages a network of over 1400 warehouses.

It is the only e-commerce platform in the world to provide different sizes of warehousing, cross the border, cold chain delivery, frozen and chilled warehousing facilities, B2B, and crowdsourcing logistics. Thanks to its logistics and deliverymen, JD.com is able to have over 90% of its orders delivered the same or the next day.

JD.com vs. JD Worldwide

JD has three methods of sales which are: JD Direct sales, JD Marketplace (= JD.com), and JD Worldwide. JD direct sales allow you to sell directly your products to consumers through the company’s website. JD Marketplace (= JD.com) enables well-established and reliable third-party sellers to set up their own stores and sell their products to customers.

If you are looking into expanding your activities in China, you have probably heard of JD Worldwide. But, you might be wondering what are the differences between JD.com and JD Worldwide?

As a matter of fact, JD.com’s platform enables well-established and reliable third-party sellers to sell their products via the JD.com website directly to Chinese consumers. However, most of the sellers on JD.com are already well-established in China.

On the other hand, JD Worldwide (jd.hk) is just JD.com’s cross-border platform that enables international brands from around the world to sell their products directly to Chinese consumers. Thus, even those that do not have physical stores in China can get to sell their products on the platform.

JD Worldwide provides global shipping and warehousing solutions that ensure products from countries around the world are delivered to the doorsteps of Chinese customers at ease. It means that you will be able to send your products via DHL, Australia Post, etc.

Then, it’s also important to take into account that JD Worldwide was mainly created for brands, franchises, retailers, and traders that are legally registered outside China selling foreign products. So, if you are not well-established in China yet, you should go for JD Worldwide instead of JD.com.

JD vs. Tmall

Tmall and JD are the most popular e-commerce platforms in China. However, you might be wondering which one to choose in order to expand your activities? Even though the two of them are quite equivalent in terms of services and notoriety, there are a few differences between the two of them that you should into consideration beforehand:

• JD.com focuses more on new technologies (home appliances and electronic equipment), while Tmall focuses on clothes, cosmetics, and F&B.
• Subscription and management fees are pretty much the same
• The process to have an official and verified account is pretty much the same too. Both of them require to have an online presence in China, the quality of your products and your brand’s reputation are also important.
• Both Tmall and JD.com have their own cross-border platforms enabling foreign businesses to sell directly to China: Tmall Global and JD Worldwide.

If you want more information on how to choose between Tmall or JD, you can contact us directly.

Contact us to Start Selling on JD!

The Chinese market is one of the most promising in the world in terms of opportunities, both for smaller companies like startups, but also for larger international companies. However, in order to succeed, you will need to use local e-commerce websites, such as JD.com, one of the leaders in the Chinese e-commerce sector.

To do so, you will need to do a lot of research beforehand as well as be prepared to complete quite a long procedure in order to sell your goods on the platform. That’s why working with specialists in the Chinese market can be the key to success.

Working with an agency that has both Western and Chinese points of view like Gentlemen Marketing Agency can help you overcome the pitfalls of the Chinese market. Our agency has accompanied many companies entering the Chinese market through JD.com.

Proud of the success of the companies that contacted us, our experts are ready to help any company willing to do business in China. So, if you are interested in doing business in China, do not hesitate to contact us and we will reply within 24 hours.

Read more on Chinese e-commerce platforms:

• Tmall
• TaoBao
• JD
• Little Red book / XiaoHongShu
• Douyin
• PinDuoDuo
• VIPSHOP
• Suning

It is certainly the most well-known shopping festival in China, but it isn’t the only Chinese shopping holiday by a long stretch!

These shopping festivals are already rooted in the Chinese culture and have immense potential for high sales volume over a short period of time. They offer a great opportunity for brands to expose themselves to Chinese consumers.

Our Agency, GMA, has over a decade of experience in Chinese digital marketing and e-commerce, we’ve helped countless brands thrive during these high-stakes events. This is our Super Bowl.

I’ll walk you through how our agency tap into China’s top shopping holidays to boost our clients visibility, and drive record-breaking sales.

What are the most popular shopping festivals in China?

Singles Day or 11.11 Shopping Festival

Every year on 11.11, Chinese people celebrate this iconic shopping festival which is the biggest of its kind in the world.

Created as a way for university students to celebrate being single, Double 11 has become an annual event due in part to Alibaba’s promotion. Some of the largest discounts of the year are expected during this festival. Promotions start at the beginning of November, with pre-sales starting weeks before.

For most brands, the Singles Day shopping festival alone has become the primary source of growth and massive sales.

The Spring Festival

Chinese New Year is the most important holiday in China and also the longest and happiest holiday season, when most of the people meet with their families to celebrate new year. It happens according to Chinese lunar calendar, around January and February. It ends with Lantern Festival.

As it’s the most important holiday, domestic and international brands started celebrating it not only by posting wishes, but also offering many deals.

What is more, every year in China is represented by a different animal (from 12 zodiac animals), and many brands like to celebrate the occasion by offering special patterns, designs, products with that years’ animal symbols.

Valentines’ Day

Valentine’s Day may have started in the West, but it has become very popular among couples in China as well. Many e-commerce platforms offer great deals on gifts for this special days (in fact, in China there are more than one day to celebrate love). Not only women but also men. The most popular products include jewelry, watches, accessories, cosmetics, and makeup products.

Mid-Autumn Festival

The Mooncake Festival also referred to as the Mid-Autumn Festival, is a prominent holiday in many Asian cultures that has been celebrated for over 3000 years. This significant event takes place on the 8th month of the Chinese calendar and occurs during a full moonlit night. Brands often customize special products or mooncakes for this occasion. And families and friends give each other gifts to celebrate the day

Below you can see one of GMA case studies – Lyfen snacks, with a limited edition packaging designed solely for the Mid-Autumn Festival.

618 Mid-Year Shopping Festival

The 618 shopping festival was first started by JD.com (as a contrary to Alibabas’ Singles Day). To start with, 618 was promoted as a marketing scheme but has since developed into a festival and eventually became China’s second biggest retail promotion event next to Singles Day in November as other e-commerce platforms participated, like Taobao and Tmall.

The shopping festival begins with a pre-sale in mid-May that provides an entire month of promotion, leading up to the main event on June 18.

818 Shopping Festival

818 is a shopping festival that is held every year on the 18th of the 8th month. It is created by Suning as a way to celebrate its anniversary. After its creation, some other major companies, like Douyin and Tmall, have followed suit and created their version of the shopping event. They turned it into a shopping festival. One important thing about this festival is, this festival has not yet gone global. Meaning there is potential for international growth and marketing ventures.

Double 12 or Couples Day

Couples day Chinese shopping festival, 12.12, is analogous to America’s Cyber Monday. Just as Singles Day reflects China’s version of Black Friday.

With only six weeks left in the year and Singles Day over, brands are hosting bigger promotions to get rid of their end-of-year stock products.

8th March Women’s Day & 7th March Girl’s Day

International Women’s Day is an annual celebration on March 8. in China that has grown into a shopping festival for many brands focused on female empowerment. Many e-commerce platforms promote campaigns to support this global theme.

In China, International Women’s Day is usually thought of as a holiday for middle-aged women, leaving younger women feeling excluded. So to celebrate being a young girl, some students created Girls’ Day on Mar 7th. Soon the movement became viral. Even if it is not an official shopping festival yet, giant e-commerce platforms are creating special deals and themed promotions for this day.

99 Wine Festival

Jack Ma, the founder of Alibaba, declared that September would be a month for wine and alcoholic drinks and spirits sales. It is called ’99 wine’ because the number 9 is pronounced the same as wine in Mandarin.

Tmall offers great discounts on alcohol between the 1st to 9th of September. During this festival, both traditional Chinese alcohol brands, like Baijiu, and famous and international wine brands participate.

520 Shopping Festival

In Mandarin, the pronunciation of “520” is similar to “I love you” So May 20th is known as China’s I love you Day.

Though it is typically celebrated by couples, I love you Day also encompasses spending time with family and friends. Although its popularity fluctuates, it offers many opportunities for brands to sell their products using the romance and love theme.

Numerous e-commerce platforms and physical stores offer discounts on this romantic celebration day.

National Day Golden Week

Every year on the first day of October China celebrates its National Day in honor of the country’s founding in 1949. It is a national holiday that lasts for a week and it is called the golden week. During this time millions of China travel and shop.

During this special time of the year, brands give their customers special deals and promotions. In 2018, Xiaomi, the famous tech company in China, made a discount on certain phone models. This boosted its sales significantly.

From the biggest shopping malls to local convenience stores to e-commerce channels themed promotions are offered to the customers.

How can foreign brands cash in on China’s lucrative shopping festivals?

If you want to make the most of Chinese shopping festivals, you have to adjust your marketing strategies accordingly. Plan ahead, research well, and get to know your market and your target Chinese shoppers.

In the China market, Over 90% of shopping festival purchases are made through mobile phones

With the advancement of mobile payment, shoppers are increasingly paying for their purchases directly on the app. Therefore, optimizing the user experience and the purchase process on the app can improve the conversion rate dramatically.

Market your products on Chinese e-commerce platforms

Forget about your western websites. If you want to sell your products you have to utilize Chinese e-commerce platforms. These platforms control the majority of the online shopping market in China, and they have the biggest reach.

Develop an effective marketing plan and brand awareness

You will need to come up with an effective marketing plan for the Chinese market. This should include strategies to increase the visibility of your brand and products on the different Chinese e-commerce platforms, as well. To create brand awareness, the use of social media platforms, such as WeChat and Weibo, is essential.

Promote your shopping festival deals in advance

Attracting traffic to your newly launched brand on a Chinese e-commerce site is essential. To do so, you have to start giving adverts across marketing channels that correspond with any upcoming shopping festivals. Be sure to offer discounts on products you are selling in celebration of the festival. These ads should entice customers by specifically targeting the event and linking directly to discounted items.

Devise a marketing strategy centered around key opinion leaders

During China’s shopping festivals, KOLs can magically enable brands to stand out from the competition. To work with the right KOLs is essential and the best way to do this is by researching their past performances.

You can also check out the comments and reviews left on the products they have promoted in the past. Having a good understanding of KOL’s audience will help you tailor your message accordingly, making it even more effective during the festivals.

Want to start a shopping festival campaign in China?

We got your back. We can help you to stand out during the festivals by creating a powerful marketing strategy to reach Chinese consumers.

Our team has extensive experience in helping brands stand out during shopping festivals by developing effective campaigns.

We understand the importance of having the right visuals, the right influencers, and the right strategy to get the most out of the festival.

We also understand the importance of understanding the audience and tailoring the message accordingly.

Don’t hesitate to leave us a comment or contact us, so that one of our experts can learn about your brands and the needs you have. Let’s keep in touch!

In the West, we know it better as Temu.

Pinduoduo business model allows consumers to participate in group buying, where they can team up with others to get discounts on a wide range of products. With Pinduoduo, you can tap into its vast user base and reach potential customers who are looking for great deals.

Pinduoduo provides various tools and resources to help you set up your online store, manage your inventory, and promote your products.

If you want to sell on Pinduoduo and are looking for an e-commerce Agency/partner to open your store and start operation… You are at the right place. Probably unknown in foreign countries, it’s the new leading Chinese APP for social e-commerce, but also the fastest-growing App in the history of the Chinese internet.

What is Pinduoduo?

Pinduoduo in a couple of words:

• Above 100 billion RMB per year of merchandise sold on the platform 2 years after its launch (while it took 10 years for JD.com to reach that point)
• Today, the average monthly active users were 881.9 million
• Mostly female users, 70.1%, living in 3^rd tier cities
• An average order of $6, against $30 on Taobao/Tmall and $60 on JD

Purchasing behavior on the App:

• Most users who made a purchase are between 25 to 40 years old (63.3%)
• Most of the active buyers are also women (67.8%)
• Students represent 19.1% of non-purchasing users against 9.3% of active buyers

Core features of the App:

• Group buying (allow discounted price)
• Free products if you convince enough new users to follow Pinduoduo official account
• Short terms coupons (2 hours) push people to faster their purchasing decision
• Ask friends to bargain. Yes, your friend can help you bargain for a cheaper price
• Red envelopes to reward users for inviting friends (viral marketing)
• Lotteries: pay a small fee (0.01RMB), invite friends, and get a chance to win a product
• Customer service messages are customizable that can be sent 48h after the user followed the account or interacts with it.
• Automatic payment on this Chinese eCommerce platform

How to sell products through Pinduoduo?

Pinduoduo’s success in the Chinese e-commerce landscape is based on the current model used by e-commerce players: social e-commerce. A concept consisting to integrate e-commerce channels into social media platforms and vice versa is creating a sharing community into e-commerce platforms.

Pinduoduo got a C2B model that allows shipping products directly from the manufacturers and therefore eliminates layers of distributors. It doesn’t only reduce the price tag for buyers but also raises the profit of manufacturers. A very effective approach for perishable goods such as agricultural and fresh products.

“The more you are, the better you’ll save money”

A method that allowed to increase in the application’s awareness among Chinese. Plus, they are doing an active promotion campaign and sponsoring many well-known reality shows followed by a large number of Chinese such as “Happy Camp” or “Where is Daddy going?”.

In terms of collaboration, Pinduoduo prefers not very well-known brands over famous brands to erase all the premium stuff coming along with branding. And the costs for advertising/marketing are also lowered through users sharing the products by themselves through social media (they send product information directly to their friends and groups having similar income and consumption habits).

This leads us to a big challenge for foreign companies:

In a country where fake companies and counterfeits jeopardized the trust people have in a business relationship, how to build brand awareness and credibility when the platform business model focuses on low-cost products and big discounts?

As a foreign company, how to proceed?

As an outsider, you’ll still have to gain the trust of Chinese people. Offering discounts and low prices don’t mean that everybody will buy your product. In fact, you’ll still have to convince them that your brand is worth it.

And as Pinduoduo’s business model is mainly focused on Chinese social media, you’ll have to develop your e-reputation. Being a famous brand is not just reserved for high-ended & luxury brands. Remember that Chinese people are always connected. It’s now in their culture to check on brands before buying anything, but also to give a comment or review on the product after buying this one.

Whatever the price of your products, a lack of visibility and a bad reputation can kill your chance of success in China.

China got a close communication system, meaning: no Google, no Facebook, no Instagram, and other Western platforms. 

Focus on a good branding strategy

Step 1: Make your company visible

• Create a website in Chinese

Even if more and more people speak English, their mother tongue is still Chinese. Therefore, you have to adapt yourself to the local market and write down everything in Chinese, register your website on a Chinese domain name, and design it following local standards.

• Open a social media account

It corresponds to Chinese Twitter. Very popular in China, if you intend to target a large audience and engage with your customers, Weibo is a must-do. Very interesting platform to develop the KOL strategy as well.

Step 2: Develop your brand image in China

Even if you get cheap products, nobody will buy from you or cooperate with you if don’t seem to be a reliable brand. A platform such as Pinduoduo, Tmall, or JD.com receives thousands of demands a day from companies interested in distributing their products in their stores.

So, consider that you’ll face strong competition just to get access to these platforms.

To get their attention, you’ll have to show your sexy side and attract them. You’ll have to build a strong fan base in China, be present everywhere on social media, to get articles talking about you…

If you want to play in the big leagues, you’ll have to pretend to be a big boy.

Here’s how to build your online reputation:

• WeChat

WeChat is the Chinese Facebook? A messenger APP and one of the most popular social media channels in the world, which gets two main features for users such as:

1. WeChat moment: system allowing people to share content (messages, pictures, videos) and personal feedback.
2. Wechat groups: to communicate solutions to their problems and therefore recommend brands or products.

Not very efficient for direct advertisement but is a super tool for community management and building engagement. Keep in mind that Pinduoduo users are sharing a lot of products through WeChat to get these famous group discounts… You definitely need it.

Our recommendations:

1. Open an official account
2. Create an e-brochures
3. Community management
4. Engage with your followers
5. Use mini-programs

• Douyin

Douyin is the video King in China. Extremely famous among young and middle-aged generations, it’s the perfect app to create content and share it with a very large audience. Very intuitive, it’s an amazing app for KOL strategy. Douyin is the Top entertainment mobile APP in China.

• Baidu

It’s the Chinese Google. And they use it a LOT. Consider that Chinese people don’t trust corporate communication. Instead, they check information about brands or companies directly on Baidu. For them, buyers’ comments or reviews will be more reliable than anything you could say. And before buying your product, be sure they’ll control your reputation online and compare your brand with other brands offering similar products.

Here’s how to optimize your reputation on Baidu:

1. Use Baidu Zhidao & Zhihu: a good way to deliver information.
2. Create a page on Baidu Baike: it’s a kind of Chinese Wikipedia. And they trust it a lot here.
3. Forums: it’s important to develop your online presence. The more people talk about you, the better.
4. PR: if you’re a good quality brand, there should be articles about you. If not, it means you’re not worth it.
5. Comments/reviews: Chinese people are always giving a comment or review about what they bought. And you’ll need plenty of positive comments to convince Chinese people that they could distribute or buy your product.

NB: SEO is Different from PPC. SEO is organic results SEA/PPC is paid traffic;  

How to distribute your products through Pinduoduo?

As Pinduoduo is an online platform, you’ll need to determine how will ship your product to your future clients. And you can choose between two main models here:

Cross Border system

It’s basically the importation of goods through sellers from foreign countries. And the good part of this model is that you can use a bond warehouse. Which will definitely lower your investment when starting your activity. Cross-border eCommerce is an excellent alternative for a brand to distribute its goods in China without registering there.

Developing your company in China

Whether you plan to establish a new factory in China or simply open a commercial office to shorten delivery time and make your operations easier, you can develop a Wholly Owned Foreign Enterprise (W.O.F.E). Very effective and gives you 100% control of your operation in China, it also allows you to get your own warehouse in China.

By choosing this model, you’ll get a Chinese business license (allowing you to sell products on every Chinese e-commerce online platform) and all the required certifications.

Once you’ll know how you will operate, you can register to Pinduoduo:

1. Login the website
2. Start the registration process
3. Choose a type of store
4. Fill in the qualification information
5. Fill in the store information
6. Wait for the platform review
7. Sign contract
8. Start selling

How much does it cost?

You’ll just have to pay a deposit entrance fee from 10,000RMB to 50,000RMB according to your industry category. Deposit is mainly used to pay back unsatisfied clients. And if there is no problem with your products, you’ll get your deposit back.

Pinduoduo takes no commission at all on your product sales. However, there is a 0.6% service fee for the payment function supplier.

To resume, if you plan to sell products on Pinduoduo you’ll need:

• Build up strong visibility and e-reputation
• Establish an effective delivery system
• Register to the Chinese platform

Impact of Key Opinion Leaders

KOLs, or Key Opinion Leaders, can have a significant impact on brands selling on Pinduoduo.

KOLs on Pinduoduo are influential individuals who have a large following and are trusted by their audience. They have the ability to sway consumer opinions and drive sales through their recommendations and reviews. When KOLs endorse a brand or product on Pinduoduo, it can greatly increase brand visibility, credibility, and ultimately, sales.

Many brands leverage KOL partnerships on Pinduoduo to promote their products. KOLs often create engaging content, such as product reviews, unboxing videos, or live-streaming sessions, to showcase and recommend the brand’s products to their followers. This can lead to increased exposure, higher conversion rates, and improved brand reputation.

For example, L’Oréal partnered with a popular KOL on Pinduoduo to promote their beauty products to a wider audience. The KOL created engaging content, such as makeup tutorials and product reviews, to showcase L’Oréal’s offerings and attract potential customers. This collaboration helped L’Oréal to tap into Pinduoduo’s user base and increase brand awareness and sales.

It’s important for brands to carefully select KOLs that align with their target audience and brand image. Collaborating with KOLs who have a genuine interest in the brand’s products and a loyal following can yield better results. Additionally, brands should also consider the authenticity and transparency of the KOLs they work with, as these factors can impact consumer trust.

Case Study

MUJI, a Japanese retail company known for its minimalist products, partnered with Pinduoduo in 2020 to tap into the platform’s vast user base and boost its online sales in China. Pinduoduo provided MUJI with a platform to reach a wider audience and offered various promotional activities to attract customers.

The collaboration allowed MUJI to leverage Pinduoduo’s social commerce features, such as team purchases and sharing discounts. This approach aligned well with Pinduoduo’s business model, as it encourages users to invite friends and family to join group purchases, thereby increasing sales and lowering prices for everyone involved.

By joining forces with Pinduoduo, MUJI was able to reach a younger demographic and expand its customer base in China. The partnership helped MUJI increase its online sales and gain valuable insights into consumer preferences and behavior through Pinduoduo’s data analytics.

This case study highlights the benefits of collaboration between traditional brands like MUJI and innovative e-commerce platforms like Pinduoduo. It demonstrates how brands can leverage the unique features and user base of platforms like Pinduoduo to expand their reach and boost sales in the Chinese market.

We are your local e-commerce agency in China! Contact us!

Selling on Pinduoduo can be a profitable venture for businesses. Pinduoduo is one of the largest e-commerce platforms in China, known for its group-buying model and competitive prices. It offers a wide range of products and attracts a large customer base, especially in lower-tier cities.

Selling on Pinduoduo can be beneficial due to its low entry barriers, allowing small and medium-sized businesses to participate. The platform also provides various marketing tools and promotional activities to help sellers increase their visibility and attract more customers.

However, it is important to note that selling on Pinduoduo may come with certain challenges. The competition can be fierce, and sellers need to constantly optimize their listings and pricing strategies to stay competitive. Additionally, communication with customers may be limited, as Pinduoduo primarily acts as an intermediary between buyers and sellers.

Overall, Pinduoduo can be a valuable platform for businesses looking to expand their reach in the Chinese market. It is crucial to thoroughly research and understand the platform’s policies, fees, and customer expectations before getting started.

We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese eCommerce market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.

Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.

Read more on Chinese e-commerce platforms:

• Tmall
• TaoBao
• JD
• Little Red book / XiaoHongShu
• Douyin
• PinDuoDuo
• VIPSHOP
• Suning

And I found it gives some of the best ROI I’ve ever seen for my agency’s customers.

Let me guide you through why I think it is a great way to start or expand your sales in China.

Key Takeaways

• Social commerce is rapidly growing in China, accounting for 16.3% of online retail e-commerce sales in 2023.
• In social commerce, people use apps like WeChat and Xiaohongshu to shop and interact with other buyers, sellers, and influencers before making a purchase.
• The shift from traditional e-commerce to social commerce has led to changes in marketing strategies, focusing on platforms that integrate social interactions and shopping experiences.
• China’s successful social commerce model is being replicated globally, offering new opportunities for businesses worldwide to increase brand visibility and engage customers effectively.

What is Social Commerce in China?

Social commerce is when social interactions and online shopping come together, creating a smooth and enjoyable shopping experience. It’s about combining the convenience of e-commerce with the fun and connection of social media.

With social commerce, people can buy products directly within their favorite platforms like WeChat and Xiaohongshu, without having to leave the app. It’s all about making it easier for customers to shop while also allowing them to interact with others and share their experiences.

So, instead of just browsing through products on a website, social commerce lets you explore items in a more interactive way, discover recommendations from friends or influencers, and make purchases with just a few clicks.

How did it all start and why China is a definite pioneer in social commerce?

Back when I first started observing China’s digital landscape, things were just taking off. Everywhere I looked, people were glued to their smartphones, browsing, chatting, and, of course, shopping. What fascinated me was how naturally social interactions blended with commerce.

At the heart of this was the trust Chinese people placed in recommendations from friends, family, and even popular figures online. I remember seeing a makeup tutorial on Douyin and being amazed when the influencer directly linked to the lipstick she used. It was genius – shopping made as easy as a single click.

With time, new platforms were sprouting up, each adding its twist to the social shopping experience. And the giants – Alibaba, Tencent, JD.com – they weren’t just watching. They were at the forefront, pushing boundaries and integrating more engaging, social features.

But it wasn’t just about the tech. It was the people. Young Chinese shoppers were adventurous. They didn’t just want products; they craved experiences, stories, and connections. As platforms catered to this desire, social commerce naturally took the lead, and China emerged as its global champion. What began as a curiosity turned into a revolution, and I was right there, watching China reshape the future of shopping.

What’s the current size of China’s social commerce?

Thanks to the fact that China has the largest social media population worldwide (only WeChat gathers 1.26 billion monthly active users), it’s no wonder that it is the country pioneering in social commerce.

On average, Chinese Internet users spend more than two hours a day browsing different social media platforms. In 2022, around 84% of Chinese consumers bought at least one product on Chinese social media platforms, in comparison to only 36% in the US.

As of 2023, social commerce sales account for 16.3% of total e-commerce retail sales value in China and they will record a steady growth in the future. In comparison, the US stands at around 5%.

It is predicted that next year (2024), social commerce sales will reach $507.94 billion, with an annual growth of more than 10%.

ResearchAndMarkets.com forecasts that China’s social commerce industry could hit $2 trillion by 2028 from its 2022 value of $363 billion. The market research firm said the sector’s value would grow at a compound annual growth rate of 33.7% between 2022 and 2028.

Changes in marketing strategies due to digital content growth

The rapid growth of social commerce in China has led to significant changes in marketing strategies, particularly due to the increase in digital content. Companies are now shifting their focus from traditional e-commerce channels to platforms that integrate social interactions and shopping experiences.

This shift requires brands to adapt their marketing tactics by incorporating elements such as interactivity and informativeness on social media platforms. In the US, companies are looking towards China’s social commerce market for inspiration and insights into consumer shopping trends.

Benefits of social commerce

Social commerce offers several benefits that can help companies increase their brand visibility, enhance customer engagement, and streamline the customer journey.

• Increased brand visibility: Social commerce allows businesses to reach a wider audience and gain more exposure for their brand. By leveraging social media platforms, companies can showcase their products and services to a large number of potential customers.

• Enhanced customer engagement: Social commerce provides a more interactive shopping experience on social media platforms. Customers can engage with brands through comments, likes, and shares, fostering a sense of community and connection. This engagement helps build trust and loyalty among customers.

• Streamlined customer journey: With social commerce, customers can discover products, read reviews, and make purchases without leaving the social media platform. This seamless integration makes the shopping process convenient and efficient for customers.

Key Players and Platforms in China’s Social Commerce Market

China’s social commerce market is dominated by key players and platforms such as Xiaohongshu, Pinduoduo, WeChat, and Douyin. These platforms offer personalized customer experiences and shoppable content that are driving the growth of social commerce in China.

Discover more about these influential players and the emerging trends in this dynamic market by reading on.

WeChat

WeChat is a super popular social media platform in China, developed by Tencent. It has over one billion users! In 2021 alone, WeChat made $17.4 billion from social network revenue.

In fact, WeChat is where everything started. With the introduction of WeChat mini-programs, an e-commerce solution within the platform, Chinese Internet users started enjoying online shopping within their favorite social media platform. Mini-programs allowed them to share their favorite products and brands with their friends and more.

Thanks to an extensive user base and an integration of many commerce-friendly features, like in-app shops, e-brochures, and the WeChat Pay payment method, WeChat became a leader of social commerce in China.

Check our guide to WeChat eCommerce to learn more!

Xiaohongshu (Little Red Book)

If you’re looking to tap into China’s social commerce market, you can’t ignore Xiaohongshu (Little Red Book). As China’s most trusted social shopping platform, it has gained popularity among young female shoppers in top-tier cities.

With 200 million monthly active users, it is a popular platform, especially for Chinese women who are interested in beauty products. So, if your target audience includes these demographics and you want to reach them with your brand or product, XiaoHongShu could be the perfect platform for you.

Xiaohongshu has its own integrated marketplace, where you can sell your products directly to the users of the app. It’s especially profitable for fashion and beauty brands, that can promote their products, collaborate with Key Opinion Leaders and Key Opinion Consumers, and organize live-streaming sessions, during which they will present products and sell them directly.

It’s a very convenient platform for shopping, and it’s the most trusted one, in terms of product reviews and recommendations.

Here is our Little Red Book eCommerce Guide!

Pinduoduo

Pinduoduo is the one of biggest social commerce platforms in China, and it’s making a big impact in the digital marketplace. It has quickly become the third-largest e-commerce player in China, just behind Alibaba and JD.com, the most popular traditional e-commerce platforms in the country.

In fact, Pinduoduo didn’t start from social media, but from e-commerce. It gained popularity thanks to its unique business model, where people can engage in group buying, inviting friends to purchase products in bulk, to get a better price. This model turned out to be a big hit, especially during the COVID-19 pandemic, when people were teaming up inside their buildings, to buy the necessities without leaving the house.

Here is how it works:

One of the reasons for its success is that it has gained popularity among consumers in lower-tier cities and rural areas. In fact, Pinduoduo achieved a market capitalization of USD 100 billion in less than five years! This shows how significant social commerce is becoming in China’s digital market, especially when it comes to reaching Chinese consumers who are shopping online.

Here is our more detailed step-by-step guide

Douyin and its integration of shoppable content

Douyin, a prominent player in China’s social commerce market, has successfully integrated shoppable content into its platform. This means that users can seamlessly purchase products directly from video creators within this social commerce platform.

Douyin Stores, introduced in May 2018, is a native e-commerce system that allows for this convenient shopping experience. This integration reflects the growing trend in China of blending entertainment and e-commerce together.

With its explosive growth in e-commerce sales, Douyin has become a key platform for brands looking to target Chinese consumers.

Here you can check our guide to Douyin Flagship Stores

Taobao

Alibaba’s online behemoths, Taobao and TMall, have seamlessly woven social commerce into their fabric via the pioneering GuangGuang platform. Bolstered by the star power of live-streaming mavens like Li Jiaqi, the “lipstick king,” and an assortment of vibrant sales events beyond just the famed 11.11 festival, GuangGuang has set new standards for the e-commerce realm.

At its core, the massive reach of Taobao and TMall ensures that a vast audience is constantly engaged in the social shopping arena. Moreover, the platform’s retail-centric approach ensures that users are primed for purchasing, making every interaction count. The regular splash of unique sales events further spices up the shopping journey, offering irresistible deals and memorable moments to shoppers.

Emerging Trends in Social Commerce

Shoppable Content, Livestream Shopping, Shoppable Chat, Merging Marketing and Transactions, and Personalization through First-Party Data – are just a few of the emerging trends in China’s social commerce market.

Shoppable Content

When it comes to social commerce in China, shoppable content is a big trend that brands should pay attention to. Platforms like Douyin have become popular for their ability to integrate entertainment and shopping seamlessly.

With short videos and live streaming, these platforms create engaging experiences for consumers while giving them the opportunity to make purchases directly. In fact, brands like Taobao have achieved great success by leveraging shoppable content on platforms like Douyin.

This emerging trend is gaining traction in China’s social commerce landscape and provides an exciting opportunity for brands to connect with their target audience in new and innovative ways.

Livestream Shopping

Livestream shopping has experienced remarkable growth in China, becoming a booming market worth $720 billion. It has revolutionized how brands engage with and sell to their customers.

In fact, live-streaming has become an integral part of e-commerce in China. The numbers speak for themselves – live-streaming commerce sold over $720 billion in 2023 and continues to grow at a rate of 53%.

This trend has had a tremendous impact on boosting brand recognition and driving sales performance in the Chinese market. With such impressive results, it’s clear that livestream shopping is here to stay as an effective way for businesses to connect with consumers and generate revenue.

Shoppable Chats

WeChat and Douyin are essential platforms when it comes to social commerce in China. They have become vibrant shopping hubs, offering high-value content that is highly social and relatable.

Shoppable chat, which allows users to seamlessly shop within the chat interface, is becoming increasingly important in social commerce. With WeChat being one of the most powerful e-commerce platforms in China, and Douyin’s integration of shoppable content, these platforms are leading the way in shaping the future of online shopping in China.

Merging Marketing and Transactions

In China, platforms like WeChat, Weibo, and Douyin have undergone a transformation by merging marketing and transactions. These platforms offer messaging and blogging features combined with e-commerce and online payment options.

By integrating these functionalities, they create a comprehensive ecosystem for social commerce. This trend reflects the growing popularity of social commerce in China, where brands can learn from the merging of marketing and transactions to leverage this trend for their success.

It presents an opportunity for marketers to engage with customers through multiple channels while facilitating seamless transactions within the same platform. Such integration allows businesses to reach their target audience more effectively and provide a convenient shopping experience all in one place.

Personalization through First-Party Data

First-party data is the information businesses collect directly from their customers, such as purchase history, browsing behavior, and preferences. By leveraging this data, marketers can create more personalized and targeted marketing strategies.

Personalization allows businesses to understand their customers on a deeper level and tailor their messaging accordingly. It helps to deliver relevant content and offers that resonate with individual customer preferences, increasing engagement and driving conversions.

Moreover, personalized marketing has become a growing trend as customers expect brands to understand their needs and provide a tailored experience.

Through first-party data, businesses can segment their customer base into specific groups based on behavioral patterns or demographic information. This segmentation enables targeted advertising campaigns that are more likely to reach the right audience at the right time with the right message.

Shopping in the Metaverse: Introduce the concept of “Metaverse Shopping”.

Have you heard of “Metaverse Shopping“? It’s an exciting new trend in social commerce. Basically, it means shopping in a virtual reality world. Instead of going to a physical store or shopping online, customers can step into a virtual environment and browse and buy products using their avatars.

It offers a more immersive and engaging experience for shoppers. And guess what? Gen Z, who grew up with 3D experiences, is expected to be the first to embrace this kind of shopping.

So, get ready for the future of retail in the metaverse!

Virtual Influencers as Brand Ambassadors

Let me tell you about the rise of virtual influencers as brand ambassadors in China. Virtual influencers are digitally created personalities who are gaining popularity among China’s young consumer base.

These virtual influencers serve as online ambassadors for brands, leveraging their strong presence on social media platforms to engage with their Gen Z audience. The emergence of virtual influencers is closely tied to the growing influence of social media and the power it holds in shaping consumer behavior.

Chinese tech giants like Tencent and Alibaba are leading the way in developing this market by creating their own virtual human characters. This trend is not limited to China alone, as virtual influencers have also gained traction in other Asian markets such as Japan and South Korea.

Success Factors of Social Commerce in China

Social commerce in China offers numerous benefits, including integrated social media, e-commerce, and content creation, enhanced user engagement through influencer marketing, and the rise of community group buying.

Integration of social media, e-commerce, and content creation

In China, the integration of social media, e-commerce, and content creation is a game-changer for businesses. It allows them to reach customers directly through platforms like WeChat and Douyin and sell their products seamlessly.

By combining engaging content with shopping features, brands can attract and retain customers more effectively. This integration not only enhances brand visibility but also provides a personalized customer experience.

So, when it comes to social commerce in China, integrating social media, e-commerce, and content creation is key to success in social commerce growth.

User engagement and influencer marketing

Influencers play a significant role in driving consumer engagement and online retail sales on social network platforms. In fact, it is predicted that 60.9% of Chinese social commerce sales in 2023 will come from influencer marketing.

The influence of social media influencers helps to build trust, increase brand visibility, and enhance customer engagement. By leveraging influencers’ reach and credibility with their followers, brands can effectively promote their products or services to a highly engaged audience on various social media channels.

This type of marketing strategy has become essential for brands looking to tap into the growing social commerce market in China.

The rise of community group buying and live streaming commerce

In China’s e-commerce market, two trends have gained significant traction: community group buying and live-streaming commerce. Community group buying allows consumers to pool their resources together for discounted bulk purchases, while live-streaming commerce enables brands and influencers to showcase products through interactive live streams, allowing viewers to make purchases in real-time.

These emerging trends have rapidly grown in popularity due to their ability to create a sense of community engagement and offer unique shopping experiences. With China’s advanced influencer economy and high e-commerce penetration rate, the rise of these trends further strengthens the social commerce industry in China.

Conclusion

In conclusion, understanding and leveraging social commerce is crucial for brands looking to succeed in the Chinese market. With its rapid growth and impact on consumer behavior, embracing new ways of shopping on social media platforms is essential for staying ahead in China’s digital economy.

By integrating social interactions, e-commerce, and content creation, brands can enhance customer engagement and capitalize on the opportunities presented by social commerce trends such as livestream shopping and personalized experiences.

To thrive in this evolving landscape, proactive adaptation is key. In this rapidly evolving landscape of Chinese social commerce, brands need a guide, a partner, and a strategist – that’s where Gentlemen Marketing Agency steps in.

With our unparalleled insights into the Chinese market and a deep understanding of social platforms like WeChat, Xiaohongshu, Douyin (we are a certified Douyin Partner!), or Taobao, we are primed to help your brand make its mark.

Whether it’s collaborating with top-tier KOLs or creating standout campaigns for special sales events, our expertise ensures that your brand not only enters the Chinese social commerce space but thrives in it.

Join us and be part of China’s next big social commerce success story. Social commerce adoption is your key to success in today’s China!

Contact us to schedule a free consultation

Social commerce never really took off in the west. Social commerce on Douyin however is a true competitor to regular Chinese e-commerce platforms. I’ll answer this question here and also give you my personal best practices: in establishing your store on Douyin, maximizing the use of video content, and effectively utilizing KOL collaborations for success.

Douyin Social Commerce

• Douyin’s Gross Merchandise Volume hit US$150 billion in 2021, making it a top choice for brands looking to enter China’s market.
• Brands can use features like group livestreams and in-video search on Douyin to engage customers directly and sell products easily.
• Setting up a store on Douyin requires following strict rules, including registering your business and paying deposit fees that range from 100,000 RMB to 400,000 RMB.
• To succeed on Douyin, make engaging short videos and work with Key Opinion Leaders (KOLs) who can help reach more people quickly.
• Despite the competition and strict selling guidelines on Douyin, smart strategies like using targeted ads and picking the right influencers can help brands stand out.

Overview of Douyin as an E-commerce Platform

Douyin makes e-commerce easy and fun. It’s not like regular online shops.

Unique features that facilitate social e-commerce

Group livestreams, voice comments, in-video search, pinned posts, location tagging, and business accounts make Douyin a powerhouse for online shopping. I launch products directly through group livestreams where hundreds can watch and buy without leaving the app.

It is easy. Viewers leave voice comments to ask about my products which feels more personal than typing. The in-video search feature helps customers find my products by simply searching within a video they are watching.

I use business accounts for deeper engagement with my target audience on Douyin Shop. This lets me pin posts about new arrivals or sales at the top of my account page so they don’t get lost in the feed.

Tagging my shop’s location brings local shoppers directly to me. The customization options available in flagship stores allow me to design unique shopping experiences that match my brand’s style — making it stand out among others.

Leveraging Douyin’s e-commerce features has transformed how I connect with customers and sell products online.

Social E-Commerce vs traditional e-commerce platforms

Transitioning from the unique features that make Douyin a powerhouse for e-commerce, it’s critical to understand how it stacks up against traditional e-commerce platforms. The landscape is evolving, and Douyin’s position is both distinct and influential. Let’s break down the differences in a clear, comparative format.

In my experience setting up stores on both Douyin and traditional platforms, these differences aren’t just academic; they translate to real-world strategy shifts. For one, the focus on short videos means you’re crafting stories, not just listing benefits. This drives deeper engagement. The affordability of advertising has been a game-changer too. Compared to other platforms where costs can spiral, Douyin’s model has allowed me to experiment and optimize with less financial risk.

Moreover, the user engagement on Douyin isn’t just about the numbers. It’s the quality of interaction. Users aren’t just browsing; they’re engaging, sharing, and often converting based on influencer recommendations. The Key Opinion Leaders (KOLs) collaboration has been particularly impactful. Their endorsements can catapult a product to viral status overnight.

Lastly, the product categories thriving on Douyin reflect a vibrant marketplace for lifestyle and consumable goods. While traditional platforms offer a broad range, Douyin’s focus on trending products adds a layer of market agility. It’s about catching waves at their peak.

In summary, while traditional e-commerce platforms offer stability and breadth, Douyin’s dynamic, video-centric, and cost-effective environment represents a fertile ground for brands aiming to capture the attention of the Chinese market. This contrast shapes my approach, focusing on narrative-driven marketing and agile strategies to leverage Douyin’s unique ecosystem.

Setting Up a Store on Douyin

Starting a shop on Douyin takes some steps. First, you meet certain must-haves, like having the right papers and a plan for your goods.

Requirements for opening a Douyin store

I want to share my knowledge on setting up a Douyin store. This is crucial for marketers looking to enter the digital market in China.

1. The first step involves understanding Douyin’s unique e-commerce solutions. As an app owned by ByteDance, it offers a space where brands can sell directly to consumers through short videos and livestreaming.
2. You must register your business with Chinese authorities before anything else. This means having all necessary legal documents ready and approved.
3. Prepare to upload at least ten short videos of your products or brand story. Douyin uses these videos to attract and engage users, making them essential for your store’s success.
4. There’s a mandatory approval process for businesses wishing to open a store on Douyin. It checks if your business meets all requirements set by the platform.
5. A deposit fee is required, ranging from 100,000 RMB to 400,000 RMB ($14,000 to $56,000 approx). This acts as a guarantee for compliance with platform rules.
6. Opening a store comes with costs too – expect fees between 500 RMB and 20,000 RMB ($70 to $2,800 approx). This varies based on the type of store and features you choose.
7. Integrating social commerce tools like WeChat for customer service and payment options is necessary. This provides customers with a seamless shopping experience from discovery to checkout.
8. Partnering with influencers or KOLs (Key Opinion Leaders) can vastly improve your reach on the platform. They help promote products through their vast networks of followers.
9. Utilize Douyin’s advertising campaigns effectively by targeting specific audiences based on interests and behaviors stored in their analytics systems.
   10.Adherence to content and product restrictions is critical due to strict regulations in China over online retail platforms.

Our Agency (GMA) can of course help you streamline this process, and avoid most pitfalls encountered by brands starting out.

Steps to launch a (successful) flagship store

Launching a flagship store on Douyin isn’t just about setting up shop. It’s about crafting an experience that hooks viewers and turns them into customers. Let me walk you through the steps I took to get my client’s flagship store up and running on Douyin since their launch in March 2021.

1. Understand Douyin’s policies for flagship stores. This was my first step, making sure my products met their guidelines.
2. Create engaging content that showcases my brand’s personality and values, vital for attracting and retaining customers in the social media sphere.
3. Partner with key opinion leaders (KOLs) in my niche — these influencers have the power to boost brand visibility significantly through short videos and live streams.
4. Utilize Douyin’s live streaming feature by planning interactive sessions where potential buyers can see products in action and ask questions in real-time.
5. Integrate high-quality product visuals within my store — clear, attractive images are crucial for convincing shoppers to make a purchase.
6. Implement Douyin’s data analytics tools to understand customer preferences better and tailor my offerings accordingly — customization is key in today’s market.
7. Engage directly with customers via comments or private messages, ensuring they feel valued and supported throughout their buying journey.
8. Offer exclusive deals or flash sales only available through my Douyin store, encouraging users to follow the page closely for updates.
9. Update content regularly to maintain relevance and keep potential buyers interested — consistency is essential for staying top of mind among consumers.

Strategies for Successful Douyin Social Commerce

To win on Douyin, making eye-catching short clips is key. Partnering with popular users also boosts your visibility big time.

Leveraging short videos for product promotion

I focus on making short, catchy videos that grab attention fast. Douyin is great for this because it’s all about quick, engaging content. I make sure each video shows off a product in action or tells a story around it.

This way, viewers can see the value right away and are more likely to buy.

A picture is worth a thousand words; a video is worth even more.

I use tools like mini programs within Douyin to link directly to my store. This makes shopping easy for users. They watch my video, get interested, and with just one click, they’re ready to purchase.

I track how many viewers turn into buyers by looking at the data Douyin gives me. This helps me know what works and keep improving my sales strategy.

Collaborating with Key Opinion Leaders (KOLs)

Working with influencers on Douyin boosts my store’s visibility. It’s a sure way to connect with the younger urban crowd, who are eager for fresh and authentic content. I choose KOLs carefully, focusing on those whose followers match my target audience.

This strategy helps me ensure that my product promotions reach interested viewers, increasing the chances of making a sale.

To maximize success, I plan collaborations around trending topics and popular hashtags. This approach keeps my brand relevant and top-of-mind among potential customers. By leveraging influencers’ creativity in video content, I make sure each promotion feels personal and engaging.

The result? More views, more shares, and ultimately, more sales through Douyin’s platform.

Utilizing Douyin’s in-built advertising tools

I use Douyin’s advertising options because they’re cheaper and bring better returns than other platforms. Their tools let me create ads that feel natural in users’ feeds, making my promotions stand out without being annoying.

I’ve seen firsthand how effective group livestreams are for direct sales. They allow real-time interaction with viewers, boosting engagement and trust. Voice comments add a personal touch to videos, encouraging more interactions.

Douyin’s in-video search feature lets users find my products easily by just tapping on items shown in videos. This direct path from discovery to purchase shortens the buying process dramatically.

Pinned posts keep important promotions at the top of my page, ensuring visibility. With these tools, I craft campaigns that speak directly to my target audience’s interests and needs—maximizing impact with minimal spend.

Challenges and Limitations of Social Commerce

Selling on Douyin isn’t a walk in the park. You’ll face strict rules about what you can sell and a tough crowd of rivals.

Content and product restrictions

Douyin sets strict rules for what I can sell and show. They check everything to make sure it fits their guidelines. This means I need to know the rules very well. If I don’t, they might block my store or products.

For example, selling fake goods is a big no-no. Douyin works with companies like GLOBALEYEZ to catch anyone breaking this rule.

Social commerce on Douyin isn’t just about posting videos and selling stuff; it’s serious business. Both real sellers and scams exist here, so being careful matters a lot. Before listing any item, I double-check if it meets all requirements.

This helps keep my shop safe from getting into trouble with Douyin or hurting my reputation among buyers looking for genuine products.

Navigating the competitive landscape

Selling on Douyin means stepping into a tight race. Every brand, big or small, fights hard for attention. I learned fast that success doesn’t just happen; it’s built through smart moves.

WPIC helped me cut through the noise. They showed me how to use Douyin’s tools right and partner with KOLs who match my brand voice.

I’ve seen firsthand how tough the competition can be. But with a clear strategy and the right partners, you can stand out.

On this platform, ads are more than just promotions; they’re your handshake to users scrolling by. My ads had to pop. Using data visualizations made them eye-catching and easy to understand at a glance—a trick that paid off well considering Douyin’s user base is educated and craves authenticity.

To really make an impact, I tapped into influencer marketing but chose influencers wisely—those whose followers align with my target market of 24 to 45-year-olds. This wasn’t just shooting in the dark; it was targeted outreach based on research and numbers.

So here’s what works: know your audience inside out, create bold ads that stick, and collaborate closely with influencers who speak directly to your potential customers.

Conclusion

Douyin, China’s version of TikTok, has become a powerhouse for brands. By setting up stores and using videos to promote products, companies reach millions. Working with popular creators boosts their visibility even more.

The platform’s unique algorithm ensures that content reaches the right people. This makes Douyin an essential tool for any marketer eyeing China’s vast market. With its growing e-commerce success, I see it as an unmatched opportunity for brand growth in this digital age.

Read more on Chinese e-commerce platforms:

• Tmall
• TaoBao
• JD
• Little Red book / XiaoHongShu
• Douyin
• PinDuoDuo
• VIPSHOP
• Suning

I’m going to help you to make sense of it. From what are your options (top Chinese e-commerce platforms and websites), to which one(s) is the best for your company.

I’m Olivier and I’m the CEO and founder of GMA E-commerce Agency.

This article will go through the basics of Chinese eCommerce and my advice on how to successfully enter the Chinese market as a foreign brand.

And of course, the e-commerce platforms that are worth considering.

What are the most popular online marketplaces in China?

The Chinese e-commerce landscape is diverse and each of you should be able to find one that fits your needs and business goals. Each and every Chinese eCommerce platform has its pros and cons depending and who you are. Let’s have a look.

Tmall

Tmall was founded in 2008 under the famous Alibaba group ( Chinese tech Giant founded by Jack Ma), Tmall (天猫), is a subsidiary of the e-commerce website Taobao (淘宝网) and China’s largest eCommerce platform in terms of revenue. Tmall stands out from its competitors thanks to its strict standards in terms of quality. Indeed on Tmall customer experience comes first.

Tmall was able to grab the majority of China’s e-commerce market shares, establishing itself as the most popular Chinese eCommerce platform and becoming the best online gateway for local and international retailers as it added a whole advertising ecosystem at the disposition of its merchants.

Tmall is China’s eCommerce leader with the majority of the market share. It is also the leader in the Chinese Cross border e-commerce market with its Tmall Global Platform (天猫国际).

In short, Tmall is an excellent online channel to reach out to Chinese customers as it enjoys their trust, however, because of entry requirements and high fees it is best suited to high-end and niche international brands.

Taobao

Taobao was one of the first Chinese eCommerce platforms out there and in terms of mobile devices traffic is still one of the leaders. It has almost become a product search engine for Chinese consumers. Unlike Tmall which operates on a B2C model, Taobao operates on C2C, where customers and small entrepreneurs can sell their products directly to consumers in China.

Many innovations come from Taobao before being adopted elsewhere. For instance, Taobao was the first Chinese eCommerce platform to play with the concept of social e-commerce with its integrated social media Weitao in 2014 way before anyone else.

Alibaba-owned Taobao is Tmall’s sister app. It differs from Tmall mainly by its entry requirements but also some of the features on the platform such as Taobao live. Taobao live is integrated live streaming and Kol features that merchants can utilize for promotion.

When scrolling on Taobao, users can be redirected to Tmall, the contrary is not true. For online retailers, that already have a Chinese business license and limited resources, Taobao is a great way to enter the market.

JD.com

JD (京东) aka JD.com was founded in 1998 by Liu Qiangdong in Beijing, JD (which stands for Jingdong 京东) was at the beginning only a magneto-optical store, which diversified over the years with electronics, computers, mobile phones, etc.

In 2004, it opened its online retail platform and quickly became one of the two massive B2C online retailers in China with its competitor the Alibaba-run Tmall. Now, JD.com is partly owned by the giant Tencent, which has 20% of its stake. JD.com has over 500 million active customers and is China’s second-largest e-commerce platform.

JD.com has set its standards for online shopping through its commitment to quality, authenticity, and the variety of products it offers, covering everything from fresh food and apparel to electronic appliances and cosmetics.

JD offers a cross-border option JD Worldwide to foreign businesses that have yet to settle in China but still want to reach out to Chinese customers.

Xiaohongshu: social e-commerce business model

Founded in 2013 by Charlwin Mao and Miranda Qu, Xiaohongshu (小红书) also known as ‘The Little Red Book’ and ‘RED’, is a social media and one of the world’s largest community Chinese eCommerce platforms. Over the years, it has grown from a lifestyle-sharing platform to become China’s foremost shopping platform for beauty, fashion, and luxury products.

As of 2023, Xiaohongshu is boasting over 300 million registered users and 85 million monthly active users.

In its beginning, Xiaohongshu was a social media platform focused on user-generated content on which users were able to review products and share their shopping experiences. However, in order to expand its activities and monetize, it has become a sort of combination of Pinterest and Instagram, with e-commerce features. RED also created its own cross-border eCommerce platform: ‘Fulishe’ (福利社).

On Xiaohongshu, people are able to post and share product reviews, travel blogs, and lifestyle stories via pictures and short videos. Xiaohongshu is also running RED Mall, a platform on which Chinese consumers are able to purchase international products.

Although RED is not a major eCommerce player, it has its benefits as a secondary selling channel for brands in the lifestyle and beauty industry. Its integrated eCommerce program, offers, a smooth customer experience when purchasing an item.

Pinduoduo: low-cost e-commerce in China

Pinduoduo, despite its huge monthly traffic, is one of the latest players that has made its way into the Chinese eCommerce world and is experiencing rapid growth. Founded in 2015, Pinduoduo quickly became the fastest-growing tech company in the world.

If you want to export your fresh products in China, you should definitely choose Pinduoduo, as it is the largest agriculture-focused e-commerce platform in China and its business model differs from the competition. It directly connects farmers and distributors with consumers. Pinduoduo has revolutionized e-commerce, becoming a social commerce platform as well as a consumer-to-manufacturer (C2M).

On Pinduoduo, consumers can discover and purchase products from a wide range of sellers. What sets Pinduoduo apart is its social aspect, because users can easily share what they have browsed or purchased with their social network.

They can also invite them to join teams within 24 hours, in order to benefit from lower prices. Thanks to Pinduoduo, consumers can enjoy a group tariff while receiving the product individually directly at home.

It is also important to know that Pinduoduo is very low cost for both consumers and merchants, thanks to its policy of “no commission”. In fact, you will just have to pay a 0.6% service fee to the payment function supplier. Now you might wonder how does Pinduoduo makes profits?

Pinduoduo mainly monetizes through advertising, with 90% of its revenues coming from online marketing services such as affiliation programs, flash sales, and so on. This explains why Pinduoduo really revolutionized Chinese eCommerce platforms, with an innovative marketing strategy, and its low-cost system and fast process.

Moreover, another asset of Pinduoduo is that you can directly advertise and promote your products on the app. For example, you can use live streaming to explain the benefits of your products. You can also hire KOLs to attract a wide audience.

Douyin

With more than 730 million daily active users in China as of 2023, Douyin, known as Tik Tok in other parts of the world, is one of the most lucrative and promising apps in China. In March 2021, Douyin launched its flagship stores, available for brand accounts on its platform, marking a major step into e-commerce.

Until now, Douyin was just a way to promote new products and popular items to consumers through short videos and live-streaming. Moreover, it was also possible for companies to send vouchers to their followers and add links to e-commerce platforms such as JD.com and Taobao. However, the novelty of these flagship stores is all about marketing.

Brands are now able to create their own flagship store directly on Douyin, which allows them to increase their conversion rate. This feature also includes the possibility to create campaign banners, send vouchers and recommendations, and offline store information. Consumers are then able to claim these vouchers, which can be used both online and offline.

More Chinese Cross-border eCommerce platforms

• Suning: Offers both local and cross-border platforms. Ideal for home appliances and electronics brands.
• Kaola: Kaola is China’s largest cross-border eCommerce platform with most of the market share. The Alibaba Group bought the platform.
• VIP: China’s biggest flash sales app. Focuses on beauty and lifestyle product categories.

E-commerce in China: a tough competition

In recent years, being present on Chinese eCommerce platforms has become a must for both local and foreign brands that want to succeed in the market. In fact, brands are ready to invest a lot of money in order to be on the most popular Chinese eCommerce platforms such as Tmall or JD.com. The majority of the Chinese population regularly purchases products online, as it is now incredibly easy and convenient do to so notably thanks to great user experience and digital payment platforms.

The graphic below shows the incredible growth of the Chinese e-commerce market: From 108 million online shoppers in 2009 to 842 million online shoppers as of 2021. Now the numbers exceed 900 million. China’s digitalization and the daily use of smartphones connected to the internet have greatly contributed to this growth as consumers spend a lot of time on their smartphones.

Following the Covid-19 global pandemic, the recorded growth of Chinese eCommerce platforms was even more significant.

It is estimated that by selling on the Chinese eCommerce market, companies can increase their sales by 20%. In China, E-commerce is not only essential for businesses, but also for the country’s economy.

Now, if we look at the projected increase in e-commerce sales worldwide, China is by far the leading country with 862.6 billion dollars as of 2019 and is expected to reach 1,556.2 billion dollars in 2024. It’s expected to represent more than 60% of total retail sales in the country.

As with anywhere else in the world, selling goods on e-commerce platforms is not always as rewarding as expected. Because the Chinese domestic market is in constant evolution, attracting the world’s biggest companies, there is tough competition comprising both Chinese and international businesses.

Chinese eCommerce platforms are not for small players

If your brand is already well-known in China, it is quite easy to be invited to join Tmall or JD.com. But if you’re just starting, it’s better to start generating online sales elsewhere (for example on WeChat).

But on the other hand, it is much harder for small companies to be accepted on big Chinese eCommerce platforms (and even impossible in some cases). The majority of foreign companies expanding their activities in China have already at least an online presence in China. (This is set to change as more and more platforms are trying to become attractive for all types of brands.)

Why is it hard to make it if my company does not have strong brand awareness in China?

In reality, Chinese consumers are kind of reluctant to buy products from companies that they have never heard of before. So, it is necessary to sell your products through renowned Chinese eCommerce platforms such as Tmall or JD.com, but at the same time, it is almost impossible for small companies to do so because of the strict rules and conditions each platform has set up.

Chinese eCommerce platforms want to be sure that your business will be lucrative and reliable enough, in order for them to get their commission while offering their users an ultimate shopping experience.

Do I need a physical store in China?

No, and yes. Chinese eCommerce platforms would be reassured that your customer base is able to directly look at your products before buying them on their platforms. Having a physical store on the mainland is also proof (to both consumers and eCommerce platforms) that you are not a scam and of your success. Chinese consumers do like to see a product before buying it online where they can find good deals. The practice has become more mainstream notably with high-end brands. But it’s not necessary to have a physical store to succeed in China.

Can I create my own website to sell my products instead of using Chinese eCommerce platforms?

You can, but note that it’s going to be extremely difficult for you to be profitable. Indeed, as mentioned earlier, Chinese consumers only trust renowned Chinese eCommerce platforms because they know that brands are selected and that merchants are subjected to strict rules when it comes to customer service. In case of any issue, they will be refunded. A company website does not offer this guarantee.

Having a website in Chinese however, is a critical step to your success in China. Having a website means you can be visible on the internet, being visible means you are credible.

ROI (Return On Investment)

For many people, ROI (Return on Investment) is a taboo topic. You might be wondering how much money brands can make thanks to e-commerce and what percentage of local and international brands succeed on Chinese eCommerce platforms. Well, according to some Tmall employees, it is estimated that 20% of the brands that are on Tmall make profits, 20% do not make profits but are not losing money either, and 60% are losing money.

How is it possible for 60% of brands to lose money on Chinese eCommerce platforms?

• Products are not adapted to the Chinese market

The products are not competitive enough, not unique enough, too expensive, not advertised enough, lack visibility, etc. If you are not familiar with the subtleties of the Chinese market, it can be hard to plan and adapt your marketing and advertising strategies t compete against local brands.

• Fees are too expensive for the company’s budget

In order to sell your products on Tmall or any other big large Chinese eCommerce platform, you will need to pay some fees, pay for your online store, advertise your store, redesign your webpage, etc. Moreover, it is not enough to just spend money on eBranding to gain Chinese consumers’ trust. So in order to be profitable, companies need to work in general with 3 specialists: a designer, a web traffic specialist, and someone who will manage all your marketing strategies.

How to optimize your ROI from eCommerce platforms in China

You should conduct market research beforehand. The data will help to plan the budget and strategy to open your store and succeed on the Chinese eCommerce platform of your choice. Need market research? Feel free to ask us, we have a dedicated team.

Discounts on Chinese eCommerce platforms

Chinese consumers are the best when it comes to bargaining. Even though their purchasing power has increased these last few years, Chinese consumers still want to bargain for everything in order to pay as little as possible (well, who does not…). And this does not only happen in real life but also online!

If you want to attract consumers, you might need to give some vouchers and e-coupons to your WeChat followers for example. These promotions and exclusive offers will push them to buy your products.

Some of the most popular Chinese eCommerce platforms have become specialists in the art of discounts. We can think of Taobao and Pinduoduo for instance (these two platforms also happen to be great for companies with limited budgets). The cheapest your products will be, the more you will be able to sell. Don’t forget that Chinese consumers are ready to compare your products with others, even by asking their friends or on Q&A platforms like Zhihu (知乎).

Some tips and advice to succeed on Chinese eCommerce market

• Be proactive: A brand’s success is tied to how active on e-commerce websites as well as on social media it is. JD and Tmall require businesses to be active, by optimizing and redesigning their online store, managing their ads, optimizing their traffic, etc. It is also important to take part in special events (Single’s day, Golden Week, Valentine’s Day, Christmas, etc) in order to boost your sales and gain visibility.
• Be responsive: the majority of Chinese consumers like to ask questions about your brand or your product, so you need to be ready to reply to them. For example, it is essential to have a WeChat official account, so that they can discuss with you via online chat (make sure to optimize the live chat available on every single Chinese eCommerce platform). You must also encourage them to purchase your products by giving them vouchers or e-coupons.
• Be creative: whether it is for advertising or marketing your products, you will need to be creative in order to stand out amongst your competitors. If you want a cost-effective solution, you can start by creating an H5 brochure on WeChat to present your company. There are many ways to create one, however, you can contact us and we’ll create a personalized and creative H5 brochure for you.

How to succeed on Chinese eCommerce Platforms as a foreign Brand?

The important thing to understand is that just being present on Chinese e-commerce platforms is not enough to generate sales in China. The competition is big and you need to stand out from the crowd for Chinese shoppers to notice you. To do so, you need to take care of your marketing strategy, so that people start to recognize your brand.

Websites, Baidu SEO & SEM for traffic & credibility

To succeed in China, you will need to increase your visibility. How? You can start by focusing on the most popular search engine in China: Baidu (百度). As a matter of fact, more than 70% of online research is conducted through Baidu.

After creating your Chinese website (in Mandarin), you will have to focus on Baidu to increase your visibility and e-reputation. Baidu SEO is one of the most cost-efficient ways of not only gaining traffic but also controlling your online brand reputation. In short, it’s one of the best investments for the traffic you can make that will subsite in the long term.

To develop your visibility on Baidu, you can use different marketing solutions such as:

• Pay Per Click advertising (PPC)
• Search Engine Marketing (SEM)
• Search Engine Optimization (SEO): you will need to create qualitative content, and shareable information, use keywords to increase your online presence on Baidu, etc.

Use the top Chinese social media platforms

With the country’s digitalization, the way of advertising and promoting products has shifted to social media. Chinese users are very active on social media platforms and are used to commenting, sharing their purchasing experience as well as giving purchasing advice.

WeChat 微信: #1 social networks

With more than 1.26 billion monthly active users, WeChat is the most popular app in China. Even though it was at first a messaging app, the app released under the giant Tencent in 2011 quickly became a vast ecosystem of services. Nowadays, WeChat is a must-have for every citizen and business as it became a new player in the e-commerce industry.

One key point for successfully promoting your brand through WeChat is to create a WeChat Official Account. Don’t worry, if your brand is still not present in China, we will help you find and reach your target audience by improving your brand awareness as well as creating your WeChat official account.

Then, to successfully promote your brand, we can launch campaigns to create buzz, as well as create an H5 brochure in order to promote your brand. There is also a possibility of launching a WeChat store, one of the most efficient marketplaces in the Chinese e-commerce market in 2023.

Weibo 微博: The place to be commercial

Weibo is one of the most popular social media apps in China with more than 600 million monthly active users. 94% of its user base uses the mobile app. Weibo is an open social media, and just like Twitter, is one of the most efficient platforms to create buzz and gain visibility.

Contrary to Wechat, which is private, Weibo is open to advertising and its users are as well. That is the place to advertise and engage in a commercial way with your followers.

The social media platform attracted more than 150 000 companies wanting to develop their e-reputation. Brands have to create Weibo Official Accounts to improve their presence in China by attracting followers.

It is estimated that more than 62% of Weibo users follow at least one brand on Weibo.

Our favorite Weibo marketing tools are:

• Weibo Paid Ads
• Weibo Influencers
• Weibo Lucky draw & lottery
• Weibo #hashtag

When compared to other social media platforms in China, Weibo’s relatively cheap advertising options, as well as its open nature, make it an interesting platform for foreign players. The app audience is also varied and reaches users in many (most) Chinese cities.

KOLs in order to promote your brand

In China, one of the best ways to promote your brand and your product is to collaborate with KOLs (Key Opinion Leaders). They act like influencers who are able to sell hundreds (or millions) of products in a short amount of time. If you want to hire a KOL, do not hesitate to contact us as we have a list of KOLs.

Focus on your branding

Branding is one of the most important aspects in order to conquer the Chinese market, even for pure e-commerce players. Most Chinese consumers want to buy a product because of its brand. Thus, they want to buy premium and reputable brands.

E-reputation to increase your sales on Chinese eCommerce platforms

In China, brand reputation is the key to success. You have to do everything you can to always have a good image. If you lose your reputation, you will lose everything.

You need to make sure that you get good comments for your brand on forums, social media, and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms.

If we look at the main sources of new brand discovery, word-of-mouth is the most effective way to get new clients. It is even more powerful than search engines and brand websites.

Encourage conversation about your brand to develop traffic, good comments, and recommendations.

If you want to successfully manage your brand image in China, you can contact us and we’ll take care of everything.

Need an E-Commerce Agency in China? Contact us to get started

It is clear that China has become the market to conquer for brands that want to expand their activities worldwide. However, the Chinese market is completely different from what you might be accustomed to. In order to successfully enter this competitive market, you will need experts who fully understand the subtleties of China.

GMA is a digital marketing and eCommerce agency based in Shanghai, with experts all around the world. Depending on your needs and the scope of work, we will adapt our marketing strategy in order for you to get the most out of e-commerce in China. Feel free to ask for a free consultancy session, we will be happy to discuss your china project no matter the size of your company!

• Digital Marketing
• SEO and SEM
• Online Reputation
• Social Media Marketing
• Kols & Live streaming
• Lead Generation
• E-Commerce

Tmall Certified Partner

We are certified Tmall Partners. Collaborate with us for a smooth journey on Tmall.

Get in Touch with us to get started. We offer a free consultation with one of our experts, where we will learn about your brand and present the best e-commerce solutions for your China strategy. Let’s keep in touch!

Selling wine on Douyin, a major social media and e-commerce platform in China, taps into a vibrant trend leveraging digital marketing to boost alcohol sales in an expansive and diverse market. Here are some key data points, trends, and facts about selling wine on Douyin:

Data and Performance Insights:

1. User Base: Douyin boasts a massive daily active user base of 750 million people, offering unparalleled exposure compared to other e-commerce platforms.
2. Alcohol Sales Figures: According to the “2023 Douyin Platform Alcohol Industry Report,” Douyin hosted 416,000 alcoholic drink products, with live streaming sessions related to alcohol exceeding 2.071 million in the past year. While the report does not disclose specific figures for wine, the alcoholic beverages category saw revenue growth of 35.57% and a volume increase of 29.91%.
3. Shift to Livestreaming: The wine sales landscape on Douyin is heavily influenced by livestreaming, with it being the primary mode of introducing new wines, educating consumers about different brands and varieties, and driving sales through real-time interaction.
4. Influence of KOLs: Key Opinion Leaders (KOLs) and influencers play a pivotal role in marketing and sales, with their endorsements and live sessions significantly impacting consumer purchases.
5. Consumer Engagement: Engaging content that includes tastings, pairings, and virtual vineyard tours tends to attract more viewers and potential buyers, turning casual viewers into customers.
6. Content Demands: Successful selling on Douyin requires high-quality, engaging content. This includes well-produced videos, interactive livestreams, and appealing storytelling that highlights the uniqueness of the wines.
7. Regulatory Navigation: Wine sellers must navigate China’s strict advertising regulations regarding alcohol, which prohibit claims about health benefits and restrict depictions of consumption.
8. Evolving E-commerce Features: Douyin is progressively enhancing its e-commerce capabilities, as evidenced by the launch of Douyin Mall and Douyin Supermarket, aiming to streamline the purchasing process within the app.
9. Special Events and Festivals: Leveraging Chinese festivals and special events, wine sellers often see spikes in sales during these periods due to themed promotions and increased consumer spending.

Strategic Takeaways for Wine makers

• Diversification of Sales Channels: Integrating both traditional e-commerce methods and innovative social commerce strategies like those on Douyin can cater to a broader audience.
• Collaborative Opportunities: Partnerships with popular Douyin personalities can reduce the high costs associated with independent content creation and boost sales through their established audiences.
• Navigating Challenges: The complexity of content creation and the dynamic nature of Douyin’s platform policies require ongoing adaptation and investment in digital marketing strategies.

Wine & Spirit is a popular topic on Douyin

800 million daily active users

With its 800 million daily active users—a number that dwarfs the user base of China’s largest e-commerce platform, Taobao—Douyin is reshaping how wine is marketed and sold in China.

Douyin User Engagement Douyin not only captures but also holds the attention of a massive audience, significantly outperforming traditional e-commerce platforms even during peak shopping events like China’s Singles Day. Unlike Taobao, which saw its user numbers peak at 500 million during the shopping festival, Douyin consistently maintains higher engagement rates.

Integrated Shopping Experience Douyin combines social networking with an embedded marketplace, where 416,000 alcoholic beverage products, including wines, were listed for sale in 2023. Despite alcohol making up a small fraction of the total product listings, the sector saw a substantial 35.57% increase in revenue and a 29.91% growth in volume over the year, as per a third-party “2023 Douyin Platform Alcohol Industry Report.”

Brand Presence Leading wine brands like Penfolds, Lafite, and others have established a presence on Douyin, tapping into its vast user base and integrated selling features. The platform’s strength lies in its ability to host over 2.071 million alcohol-related livestreaming sessions, making it a prime venue for product exposure.

Watch this

https://www.douyin.com/search/%E6%8B%89%E8%8F%B2%E7%BA%A2%E9%85%92%E7%85%A7%E7%89%87%E5%A4%A7%E5%85%A8

Douyin’s effectiveness hinges on dynamic content delivery through short videos and livestreams—methods that are now more effective than traditional search-based sales strategies on platforms like Taobao

Despite the challenges, many merchants find success by collaborating with content agencies or popular Douyin KOLs, navigating the platform’s complex content rules and potential account limitations.

Emerging Trends and Platform Evolution Douyin continues to evolve, launching initiatives like the Douyin Mall app and Douyin Supermarket to enhance its role in traditional e-commerce, suggesting a strategic pivot that might further integrate search-based sales into its framework.

Douyin’s Wine Dilemma: Low Prices, High Stakes

Douyin’s wine market thrives on rock-bottom prices. With deals like six bottles for RMB 88.8, single bottles at RMB 9.9, and eight bottles for RMB 159, affordability is the main draw. Yet, this focus on budget-friendly options has its pitfalls.

Misleading Marketing Runs Rampant During live sessions, some hosts use deceptive tactics to suggest luxury—like heavy bottles and winery signatures—mislabeling products from famous brands like Lafite and Penfolds, or falsely advertising local wines as imported. Despite Douyin’s efforts to clamp down on such practices, challenges linger. For instance, while some labels now correctly state “Made in China,” others continue to mislead by resembling well-known brands or claiming to be imported. read more here

This pattern of deceit doesn’t just confuse buyers—it risks tarnishing Douyin’s reputation in the wine market. The flood of low-end, misleadingly marketed wines may alienate discerning drinkers, potentially confining Douyin to a niche of only budget-conscious consumers.

Premium Wines Lag Behind The preference for cheap wines means slow sales for premium offerings. For example, at the Shenzhen-based Pinshanghui Wine Shop, the top seller barely reached 3,347 bottles, with most premium wines selling much less. Low viewer engagement, like during the “14th Anniversary Celebration” livestream which only drew 41 viewers, highlights the struggle.

Popularity Powers Sales The success of wine sales on Douyin often hinges on the host’s fame. NBA star James Harden, for example, helped sell 16,000 bottles in just 10 seconds during a livestream. But securing such high-profile figures is expensive, with fees for product placements potentially costing hundreds of thousands of RMB.

In conclusion, while Douyin’s wine market offers the allure of accessibility through low prices, the challenges of misleading marketing and the struggle to sell premium products pose significant hurdles for the platform’s broader market appeal.

Douyin the transformative e-commerce App

Douyin is not just a social media phenomenon but a transformative e-commerce platform that offers a unique and powerful channel for wine sellers aiming to tap into the lucrative Chinese market.