If 2020 was seen as a year that ecommerce platforms were here to stay, this year these online marketplace will be a dominant concept which cannot be disregarded. With Covid-19 still in vogue, and Malaysia experiencing the resurgence of cases which has put doubt if we will ever see normalcy returning to our lives, shopping will be conducted online for most parts of time. The trend is all pointing to this fact and brands who resisted are now flocking to virtual malls, shown most evidently at the biggest online consumer market in the world.
IF China already leads in the eCommerce space, what else can it do to grow its profile? Organise a large scale consumer expo and attract every brand possible and show just what virtual shopping can do to generate sales.
On its first day of the China International Consumer Products Expo, Tmall Global, an online marketplace of Chinese e-commerce giant Alibaba Group, held a four livestreaming sessions to promote its products on its virtual stores this simple act garnered more than 1 million viewers for each of the platforms. That’s how powerful these platforms have become, can any mall or grand sales be able to generate that type of footfall?
The four-day expo, which took place in south China’s island province of Hainan, Tmall Global showcased products of over 100 foreign brands, ranging from cosmetics, beauty devices, to smart devices for pets and imported wine. While many items are from local businesses, the platform owned and operated by Alibaba is aggressively looking to expand its offering to include international brands. Chinese consumers are becoming more discerning and have taste for foreign products. Just at the Expo, Alibaba signed over 100 brands with Tmall Global, with the aim to sell their new products displayed at the expo via Tmall in the coming year.
“The consumer products expo not only serves as an important window to display the progress of the Hainan free trade port construction, but also helps foreign businesses to better understand the Chinese market,” said Marcella Li, head of Global Business Development and Operations at Tmall Global.
Last year, an average of approximately 400 overseas brands opened stores on Tmall Global each month, according to the company. To date, more than 29,000 overseas brands from 87 countries and regions have established storefronts on Tmall Global. Malaysia must tap into this faster, we many many local manufacturers who have yet to expand outside their country or even states. The time ripe for our local businesses to think glocal, we are known in the world for great foodstuff- our nasi lemak and laksa is world reknown yet they are stuck in the annals of coffee shops and food courts. D24 and Musang King have sailed out and made success in China, Hong Kong and Taiwan, there is still Harum Manis and our very popular MD2 pineapples regarded as being very sweet but yet to gain such success as the durians.
According to China’s Ministry of Commerce, consumer goods imports into China grew 8.2 percent in 2020, reaching 1.57 trillion yuan (about RM992 billion). Such growth was echoed on some of online platforms 2020 Singles’ Day shopping festival, with total sales during the period increased by 50 percent year on year.
With a total population of over 1.4 billion and more than 400 million middle-income residents, China has become the world’s most promising consumer market. Foreign brands are attaching great importance to the Chinese market, especially amid the pandemic, said Viya, one of the most well-known e-commerce livestreaming anchors in China, at the expo.
E-commerce platforms are a channel for Chinese consumers to purchase quality products of foreign brands without going abroad, and with borders closed until further notice, why not target this ready market.
Kazunori Tokura, executive vice president of Japanese company Omron Healthcare (China), said Omron expects to accelerate its entry into the Chinese market. Via the expo, the company is willing to cooperate with local firms such as e-commerce platforms to help more customers become familiar with their products and services. We should emulate the Japanese, co-collaboration can accelerate the entry and quicken the process if local establishment is necessary.
