China’s e-commerce market continues its impressive trajectory, accounting for a third of the global market. Even amidst economic fluctuations, it remains a driving force in retail, bolstered by cutting-edge logistics and expansive internet penetration.
Since its inception by Tmall in 2009, Double 11 has grown into China’s largest shopping extravaganza. Transitioning from a single day to a month-long event, it has consistently expanded, with 2024’s sales hitting a record CNY 1.4418 trillion – a 26.6% year-on-year growth. This evolution has fostered more measured consumer behaviour, with shoppers prioritising quantity and genuine value over sheer quantity in the sea of discounts.
China’s e-commerce ecosystem is as competitive as it is diverse. While established giants like Tmall and JD.com dominate with their extensive offerings and logistics capabilities, challengers like PDD and Douyin are rewriting the rules with aggressive marketing and innovative engagement strategies.
Strategic alliances among platforms
A notable aspect of this year’s festival was the increased collaboration between platforms. Tmall and Taobao embraced WeChat Pay, while JD Logistics established delivery partnerships, breaking down traditional barriers and fostering a more interconnected e-commerce ecosystem.
Livestreaming: the new sales frontier
Livestreaming has emerged as a powerhouse in Chinese e-commerce, with a staggering 54.6% year-on-year growth. As this industry matures, the emphasis is shifting from celebrity endorsements to the quality of products and services being showcased.
A more discerning consumer
Chinese consumers are setting new standards in consumption patterns, valuing functionality, aesthetics, and personalisation. Home appliances, beauty products, and food brands are adapting by offering smarter, more engaging products tailored to individual preferences. Gen Z and small-town youth are driving these trends – Gen Z seeks emotional connection and personalisation, while small-town shoppers focus on affordability and convenience.
Key takeaways for brands
For Swedish consumer brands eyeing the Chinese market, these six insights are critical:
- Know your customer: Develop a deep understanding of Chinese consumers.
- Establish a clear brand positioning: Craft a distinctive and unique brand identity.
- Educate early: Build awareness through pre-campaign education.
- Ensure pricing consistency: Maintain structured and transparent pricing strategies.
- Leverage multi-channel resources: Utilise live streaming and social media effectively.
- Fortify your supply chain: Be prepared to meet peak demand during sales events.
Partnering for success in China
Business Sweden has a long experience of supporting Swedish consumer brands in the Chinese market, including market entry, blueprint strategy, and partner search. To learn more about how we can support in your growth journey, reach out to our team in China Windy or Daisy.
