It also provides training for merchants to help them adapt to China's market. Yhd.com aims to provide more imported goods and expand its market share in areas outside first-tier cities. All photographs reproduced in this publication are used by permission of the rights holders. China's online grocery industry is further propelled by the growing disposable income of people. Source: Euromonitor, 2016. E-commerce marketplaces in China are an ideal market entry point for Canadian agri-food producers wanting to expand into the Chinese's market. Tmall is an online mall (B2C) marketplace founded by Alibaba Group. JD.com, … One of the companies that is making strides in online grocery sales is Tmall.com, the big B2C marketplace owned … For all online mall approaches, Canadian companies would be responsible for shipping their products to China, ensure orders meet regulatory and customer requirements, and establish a relationship with third party logistic companies for warehousing, fulfilment and delivery (including reverse logistics to handle returns). China Online Grocery Market will be US$ 219 Billion by the end of the year 2026. In 2016, JD.com acquired the Yhd.com marketplace from retail giant Walmart to leverage its brand awareness in eastern and southern China, as well as to expand its online grocery sales. In this model, Canadian companies can work with the platform or a third party service provider to develop promotional activities that generate traffic to their page. The coronavirus pandemic has profoundly changed the way people buy groceries, says the vice president of China's Pinduoduo. Online grocery shopping in China is driven by the country’s rapidly growing middle class, high smartphone usage and strong internet connectivity. Ecommerce in China is aided by a rapidly growing middle class, high smartphone usage and strong internet connectivity. *: Compound annual growth rate Source: Euromonitor, 2016. Alibaba, Tmall's parent company, has prioritized online-to-offline retailing for the near future. Working with a Chinese partner/distributors can be risky as there is potential to loose control of brand. Ecommerce in China … Within online marketplaces, there are two formats, which a Canadian producer can participate, in when entering China's market: online hypermarket and online mall. Also, main leading marketplaces are embedding their websites into well-known social networking sites or apps to draw more traffic to their platforms. China’s Pinduoduo forecasts 100% growth in online grocery sales this year. We leverage our cutting-edge technology, our access to trusted databases, and our knowledge of the current models used in the market to deliver you research solutions that are tailored to your needs and put you ahead of the curve. This law is expected to promote the development of cross-border e-commerce that allow Chinese consumers to purchase products from online merchants located in other countires and the establishment of a supervision and management system for those activities. As purchasing power and the pursuit of higher quality imports increases among Chinese consumers, more and more international players are entering China's e-commerce market (BMI Research, 2017). Issues of trust surrounding the safety of domestic products have pushed consumers to look abroad for brands with strong heritage and focus on safety. The platform provides cross-border payment services by collecting payments on web, mobile or in stores from Chinese consumers in Chinese Yuan (CNY) and settling the payment to the merchant in a foreign currency at a real-time rate. This trend is driving retailers to develop a new marketing strategy which integrate the following aspects: online sites, social media campaigns, brick and mortar stores, physical distribution and logistics infrastructures in order to provide customers with the best service and most enjoyable shopping experience. Baby foods and dairy are the most purchased items in this category, accounting for the highest sales. International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice. Independent websites are another entry point for a Canadian company to enter China's e-commerce market. Consumers from the most economically developed cities in China (for example, Shanghai) with strong consumption capabilities are turning their eyes to high quality imported goods. *: Compound annual growth rate It provides multiple payment options such as official account payment and in-app payment. Apple Pay is a payment app created by Apple Inc. The online platform manages all aspects of sales and distribution. The country's grocery market reached a value of almost 1.3 trillion in 2017. The market has a lot of potential but, ominously, the government is getting involved. “However, despite South Korea maintaining a higher online grocery market share in 2023, China will strengthen its position as Asia’s largest online grocery market, with sales set to reach US$205bn. N: Non-caculable Sales via online channels are expected to make up a fifth of overall the group’s sales in 2020, up from 15 per cent last year, Huang said. RMB. It provides the platform for online retailers to open virtual stores and sell their products directly to consumers. -: No data available The market is being driven by the robust growth of China’s grocery market. JD.com is an online hypermarket (B2B2C), and the second largest online player in China. The US grocery market is expected to increase 21 per cent to $1.3tn in 2020, second only to China. That was an increase of 32.1% compared to data from three months prior to that. Along with its discussion panels, consumers benefit from its word-of-mouth (WoM) marketing strategy by commenting and rating they have products purchased from different merchants. CMS Legal, 2017. The sector is being driven by increased infrastructure assistance and continued enhancement of technology for e-commerce enterprises. Merchants who do not have entities in China can set up a WeChat cross-border payment account to complete transactions. By the end of 2016, Yhd.com offered more than 10 million products, covering 15 product lines, such as food and beverages, imported foods and fresh products. Online hypermarket – business-to-business-to-consumer (B2B2C). E-commerce has given Chinese consumers access to a wider arrangement of products in which they never had access to before, especially for those in low-tier cities and rural areas. BriefingWire.com, 11/27/2017 - The report on China Online Grocery Sales Market is the latest addition to the huge database of DecisionDatabases.com. These include investing in online-to-offline business models and self-pickup strategies that will shift more of the last-mile delivery costs to purchasers, and automating their warehouse operations (McKinsey and Company, 2016). The government and leading mobile operators continued to prioritize rural internet coverage and expansion of cellular networking in the remote areas. 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