Now is the time to consider exporting to China. Over the last decade, since Beijing joined the World Trade Organization (WTO), U.S. exports to China have risen over 400% with an impressive 32% increase in 2010. China has become the 3rd largest export market for the U.S. at a staggering $91.9 billion. The e-commerce industry is exploding in China, led by Alibaba’s Taobao.com. For U.S. businesses looking to export to China, understanding the economic landscape and the status of e-commerce industry actors in the region are of paramount importance.
Taobao.com, through its highly successful and consumer-friendly partner site TMall.com, is the most effective B2C platform in Chinese e-commerce, but there are other e-commerce actors to on the Chinese market. Dangdang, previously dubbed China’s equivalent to Amazon, has suffered losses in its e-commerce sector, reporting an operating loss of $7.7 million and $4.4 million in the second quarter of 2010 alone.
Despite intense competition, more streamlined forms of e-commerce leave room for entrepreneurship and new business. Xiu.com, an E-Tailer platform in China, recently raised $100 million in investment and venture capital, mainly contributed by Warburg Picus and KPCB China respectively. This secured Xiu.com as one of the top players in the Chinese e-commerce industry.
Tencent, the Chinese internet giant, is currently developing a B2B2C platform which is expected to be complete in the fourth quarter of 2011. This will surely make the Chinese e-commerce market more competitive, with Tencent planning to dedicate CNY 500 million to accelerate platform development.
For U.S. exporters working with Export Now, businesses will have access to the most successful B2C e-commerce platform in China, namely Taobao. Taobao and TMall are essential tools in exporting to China because they are easily recognized as having the most diverse range of Chinese consumers purchasing products, both American and Chinese. Patience may be a virtue, but in this case initiative is the best course of action. Export Now can help businesses looking to enter this lucrative market.
For further reading, visit the links below:
Broad US export growth to China: report
Dangdang Not Easy to Become Chinese Amazon Shortly
Warburg Pincus and KPCB China Pumps $100M to Chinese E-Tailer Xiu.com
Tencent’s New Chinese E-commerce Platform Will Launch Soon