Canadian retailers and brands have a remarkable opportunity to sell to consumers in China, which has a population of more than 1.4 billion people and a middle class that spends on international goods. China is the world’s largest online consumer market with nearly 50% of global transactions, creating a great opportunity for Canadian businesses.
Next month is a free seminar for retailers and brands interested in selling to Chinese consumers online. The Canada China Business Council, along with Alibaba and Tmall Global, are hosting an exclusive information session in downtown Vancouver on Tuesday, March 19 at the Sheraton Wall Centre Hotel. The seminar will provide invaluable insights into Chinese market trends and will explain and break down how convenient it can be to do business in China through Tmall Global and its comprehensive vendor support for Canadian businesses. A lawyer will also be on hand to discuss protecting intellectual property.
The opportunity to sell to Chinese consumers is massive. By 2025, McKinsey predicts that the number of upper-middle and high-income households in China could reach 200 million and by 2030, that number could reach 260 million. Continued urbanization and rising income levels are expected to drive consumption growth sustainably in the medium to long term, McKinsey said.
China’s consumer market is growing, and the population is demanding quality modern products in categories such as health food and supplements for the entire family (including pets) as well as beauty, fashion, and modern baby goods, among other categories. China’s population is also becoming pickier as consumers recalibrate spending with a focus on shopping for value and high-quality international products.
About a billion Chinese residents shop online, with a penetration rate much higher than in North America. Chinese consumers see shopping as an enjoyable pastime rather than a chore while going online for convenience and selection.
China’s consumer economy has an overall positive outlook for the coming years. McKinsey is predicting retail growth in China this year of about 5%, with similar predictions for the coming years. By 2027, this growth would translate into $1.4 trillion USD in retail sales in China.
Given the ongoing growth in China, the opportunity for Canadian retailers to do business in China is great. Tmall Global, China’s largest B2C cross-border platform, helps brands from around the world enter China via its massive online marketplace. With over 900 million monthly active users in the ecosystem, Tmall Global has over 46,000 brands from 90 countries and regions, in over 5,000 categories.
Livestreaming with commerce is an extremely effective and popular marketing tool for businesses selling in China, and new vendors joining platforms such as Tmall Global can take advantage of it. In China, livestreaming is now responsible for more than USD$600 billion in sales with a high growth rate and more than a billion residents on social media. The popular Single’s Day shopping event in November of each year utilizes livestreaming to sell products every second. Alibaba invented Single’s Day, where brands launch new key products and consumers rush to buy.
Tmall Global provides comprehensive support and a range of services to help Canadian retailers enter the Chinese e-commerce market, including consumer analytics, translation services, and marketing tools. Payments to vendors are convenient as well – Chinese consumers shopping on Tmall Global use AliPay and other mobile wallets to pay in their local currency, which is seamlessly converted to Canadian dollars for the local vendor.
Canadian retailers and brands interested in selling on Tmall Global to Chinese shoppers are encouraged to attend the free exclusive seminar in downtown Vancouver next month, hosted in conjunction with The Canada China Business Council and Tmall Global. It will be held on Tuesday, March 19 at the Sheraton Wall Centre Hotel at 1000 Burrard Street.
The seminar will provide invaluable insights into expanding one’s brand into the Chinese ecommerce market, leveraging the robust ecosystem provided by Tmall Global and its comprehensive support to help ensure retail success. All companies and manufacturers of retail and consumer brand goods are encouraged to attend, whether they intend to sell now or are curious about Chinese retail opportunities. The event will be especially beneficial for companies involved in health products, as experts from the Tmall Global Health Category Team, from Alibaba headquarters in Hangzhou, will be available to share their insights.
For more information and to register for the event, please visit the event website.
*Retail Insider partnered to create this event announcement.
