China, world’s largest e-retail market, enjoys massive growth. According to research conducted by Daxue Consulting, e-tailing accounted for 11 percent of total retail sales of consumer goods in 2015 and is estimated to reach 15-18 percent by 2020. E-commerce in China is expected to obtain CAGR of about 30 percent in the next years. Hu Yuwan, project manager at Daxue Consulting, explains: “Traditional offline channels are losing market share to e-commerce. However, big e-commerce platforms in China are now looking for ties with offline distributors to maximize mutual benefits which can be seen at the example of JD.com and Walmart, who formed a strategic alliance. Thus, both channels, on- as well as offline are important in China.” 71 percent of Chinese consumers use Online to Offline (O2O) services, according to research by Daxue Consulting.

Daxue’s client joins the e-tailing trend in China

Daxue Consulting’s client, a European trading company, sought to step into the shoes of e-commerce in China. Therefore, the firm approached Daxue Consulting to assist with an in-depth online environment analysis, comprising competitors, distribution, and advertising channels, as well as to provide an overview of current demand and supply and trading specificities on the Chinese market.

Which aspects did the research team take into consideration to meet the client’s requirements?

As a first step, Daxue Consulting executed an extensive desk research. It helped the team not only to gain a general overview of the market but also obtain data about its size, sales volume, as well as it supported the following analyses:

Finally, Daxue Consulting conducted in-depth interviews with competitors to particularize their distribution strategy and client base, and to gain first-hand insights into market trends, regulations, drivers of success and failure doing e-commerce in China, or also most popular product segments.

Daxue Consulting delivered a detailed report about the potential and risks of e-commerce in China

It comprised a general overview of the market size and trends, as well as the analysis of online offers involving products, pricing, and distribution strategies of competitors. Furthermore, it included the identification of the client’s key selling point, which is important due to the intensity of rivalry online, and the identification of potential customer segments. Also, the research team provided the client with a clear strategic business plan. It included recommendations on which online distribution channels to focus, and which marketing channels to use, and the team provided the client with comprehensive information about costs, return on investment, as well as risks and threats which may arise when doing e-commerce in China.

Read more about e-commerce in China:

Chinese Retail Market: Chinese Consumer Embraces O2O Services

O2O Food Delivery Market in China: Transforming From a Price War to Service Differentiation

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