China represents the largest market for ecommerce in the world. Check out some statistics below to get an idea of how big the Chinese eCommerce market is. 

• The Chinese ecommerce market has become the largest in the world. 
• With a projected market volume of $1.4 trillion USD in 2022, most revenue is generated in China.
• Ecommerce is expected to amount to 1.2 billion users by 2025.
• User penetration will be 71.9% in 2022 and is expected to hit 83.9% by 2025. ‍
• eCommerce revenue in China is expected to reach $2 trillion USD by 2025. 

Launching Boutique Luxury Brands in China

Traditionally launching a brand in China was an extremely expensive exercise and to go it alone you needed a large amount of investment and even then it was no guarantee for success. Recently however with the growth of WeChat and especially Little Red Book, a new generation of Chinese consumers are using these platforms to hunt out existing and emerging Luxury brands.

Market research shows that top China eCommerce players & leading marketing channels are Wechat (微信), Little Red Book(小红书) , Weibo(微博) and Tmall(天猫).

• WeChat is known as the “App for everything” with its many functions and platforms. Brands can share, message, engage and interact with followers, in addition to selling products and services through WeChat Mini Programs or Wechat Shop.
• Little Red Book is both a network community and a cross-border ecommerce app. It is a sharing community based on user generated content - very popular with the millennial demographic.
• Weibo is a Chinese microblogging website/APP - often referred to as the Chinese version of Twitter. 
• Tmall is the biggest eCommerce platform in China and has recently pushed more into the luxury market with Tmall Pavillion and a joint partnership with Farfetch. At the same time they have developed a strong European-based team to help brands grow on the channel. 

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These platforms are now open to all, and are especially useful for boutique brands to help grow their presence in the Chinese market. 

No Website Required

China is changing how ecommerce is run. No longer do you need a huge infrastructure inside of China to compete online, you can simply test the market and use Chinese platforms to develop an online presence and ecommerce business. 

Using a WeChat Mini Program and Little Red Book platforms means you could quickly enter the market, with logistics based in Europe. Build awareness using these social channels and connect the eCommerce channels of these platforms to sell direct (even connecting to Shopify direct).

How Skywire Can Help

Overall the entry levels into the Chinese market for smaller luxury brands are lowering. However, it can still be a difficult challenge and you need to invest in the right platforms, In addition, it is not a short term win and building brand equity overtime and developing sales requires consistency, investment and patience to create long term success. 

Is your brand gunning for emergence or growth in the huge China market? Here at Skywire we’ll help you choose the right platforms and execute spot-on strategies to build brand awareness over time. Get in contact with our team at Skywire and we will be more than happy to help define your strategy and tap into the great potential of the Chinese market.

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