Brand Strategy: “JIA YOU!” – How to “Give Some Gas” to Your Fledgling China E-Commerce Business

In previous decades, breaking into the Chinese market felt as challenging as conquering the Great Wall for many companies. Rewind to the 1980s and 90s, and it seemed that unless you were a corporate giant like Coca-Cola or General Motors, the China market was out of reach. Fast-forward to 2017, and the scenario has drastically changed; China is now just a click away. E-commerce giants such as Alibaba, T-Mall Global, JD.com, and others have simplified access, providing an “easy” gateway to tap into the lucrative Chinese consumer market from virtually any corner of the world. Navigating this shift requires a strategic brand strategy tailored for success in the digital landscape. Explore insights on effective brand strategies to thrive in the ever-connected global market.

But is succeeding in the China e-commerce game as “easy” as most think?

While there are some amazing success stories of foreign players who have entered China through e-commerce, the reality for most is quite different. Most new players will enter into the e-commerce market in China with high expectations, but soon have the unpleasant reality hit them in the face. Many of these companies will inevitably try to change to another platform or partner with an effort to boost slow sales, only to later realize equally unimpressive results. Some of them will fail so miserably, that they will withdraw from China altogether and blame the e-commerce players for their disappointment.

Is it fair to blame your China e-commerce logistics partner for your failure?

Not really. In the rush to enter the China e-commerce bonanza, many companies and their marketing managers forget that rules of marketing and branding apply to China just as much (if not more so) as they do in other markets. It would be naive to manage your branding strategy on the hope that your Chinese e-commerce partner will do it for you. It simply will not happen. Your partner may allow you to access millions of potential buyers, but it is only a platform. Only you yourself are able to generate the needed demand by building your brand and marketing strategy for the Chinese market.

So what to do?

1. Plan, plan, plan!
2. Define your brand strategy first for China before you hop on the e-commerce platform. Take the time to analyze the market, do proper segmentation, study your competitors.
3. Base your brand strategy on thorough research and insights – rather than “shooting from the hip” intuition. A local research partner who knows the intricacies of the market is fundamental.

For most brands, China is an entirely different “animal” compared to other markets. A cut-and-paste strategy you have used for other markets will not work. Rather, in many cases you will have to reinvent your branding strategy altogether to meet the ever-growing needs and sophistication of the demanding Chinese consumer.

Will this strategy be cost effective?

Indeed, entering the Chinese market is now more accessible than before, but it’s crucial to dispel the notion of doing so on a shoestring budget. Many small and medium enterprises mistakenly believe they can secure a share of the vast Chinese market with minimal investment, a strategy destined to fail. Instead, a prudent approach involves dedicating a significant portion of your marketing resources to enter China strategically. Developing a robust brand strategy and marketing plan is key, facilitating quicker and more effective sales generation. In the competitive and cut-throat Chinese business landscape, this investment significantly enhances the likelihood of success. Explore insights on crafting a winning brand strategy tailored for the intricacies of the Chinese market.

To summarize:

1. Invest the time and resources to define your brand in the Chinese context.
2. Localize your brand with the help of a local branding partner.
3. Develop your e-commerce strategy in alignment with your branding strategy, and coordinate properly between your different local partners.

Following these simple steps will make the difference between success and failure.