How Brands Can Utilize New Social E-Commerce in China During COVID-19

China’s e-commerce market for imported luxury brands have seen tremendous expansion due to the stay at home order put in place by the government of China.

Date:2020-01-17 by GLOSKU


Ever since COVID-19 struck the world and the World Health Organization declared it as a global pandemic, the world of retail has come to a virtual standstill. Many businesses in the United States, and all over the world have been struggling with keeping their doors open.

The regulations, and the need for safety measures such as social distancing, and the selective reopening of businesses regarded as being essential have further put retailers in a financial tight spot.

However, amid this whole pandemic, China’s e-commerce market for imported luxury brands have seen tremendous expansion due to the stay at home order put in place by the government of China. It is no surprise that China’s e-commerce market has seen such expansion, after all, compared to the population of 328 million found in the United States, China has a population of about 1.4 billion. This is a huge market for many retailing businesses. It is no surprise that China is the second-largest retail market in the world with over $5.8 trillion in retail sales in the year 2019 alone. This is largely due to the large consumer’s population that China possesses, as well as the fact the China’s e-commerce technology is more advanced than that of any other country.

Also, while e-commerce will not overtake traditional commerce completely, it has shown tremendous growth in recent years. For instance, recent research shows that B2C e-commerce in Italy gained a revenue of €41.5 billion in 2018 alone which was 18% growth in e-commerce sales over that of the previous year.

Lots of retailers are eager to dive head-on into China’s e-commerce marketplace. However, the lack of funds to keep an inventory system for China orders, the time required to integrate their own e-commerce websites and protocols with that of China and the risk involved with entering a new market, cause many smaller retailers and brands to stay away from this huge market.

However, there is good news. Many retailers are reluctant to enter the China e-commerce retail market because of how labor and finance intensive it is. Also, there is a risk of not knowing just how much interest the people of China have in their product.

 

One of the major problems with platform-based e-commerce is the problem of click-through rate (CTR). CTR for an AT&T ad on Hotwired.com (the magazine now called “Wired”) was a whooping 78% in 1994. Nowadays, ads are way more expensive, and a CTR of 2-3% is regarded as good.

Currently, platform based social e-commerce provided by big platforms like Tmall and JD.com getting increasingly expensive. This makes it very costly for most retailers from outside China to penetrate China’s e-commerce market.

This is why a lot of retailers and brands are moving towards decentralized e-commerce strategies that cost less, and allow them to have a more personal experience with their consumers, which is very important in the current e-commerce market.

These decentralized platforms such as GLOSKU help to increase consumer intimacy with retailers and brands.

There is a platform that alleviates all of the problems that retailers face when entering a foreign market like China. It is called GLOSKU

GLOSKU is an automated global store deployment and social e-commerce affiliate program that helps retailers grow their sales exponentially, especially in the Asian e-commerce marketplace.

GLOSKU is a platform that serves as an all-in-one tool to help promote and sell your products in the Asian e-commerce market; the fastest growing e-commerce market in the world. With a platform like GLOSKU, you would have access to unique markets with integrated mobile app, AI-Powered analytics, logistics, payment, and compliance modules.

All you have to do is integrate your current ecommerce platform with GLOSKU then sit back while you let the platform do the rest for you. GLOSKU handles everything from product deployment to payment and local law compliance.


As a retailer in this COVID-19 era, you need all the advantage you can get, and GLOSKU can give you the advantage of having your products being accessible to the broader customer pool of Asia. All you have to do is visit GLOSKU now.