Summary of Shira, D. & Associates (2016). China Investment Roadmap: the e- Commerce Industry. China Briefing. Issue 163.
Logging in: Understanding e-Commerce in China
Currently, China is undergoing massive growth in the industry of e-commerce. In 2010, online shopping recorded a 96.9% increase, and has continued to rise. Predictions indicate that, by 2020, China’s e-commerce will be larger than that of France, Germany, Japan, UK, and U.S. The statistics are based on the number of citizens using the Internet, which indicates that by 2015, the country had 688 million connected users. 2020 will see over 750 million people in china shopping online. The main players of e-commerce market in china include JD and Tmall, which controls 25.1% and 75% respectively ( Shira & Associates, 2016) . The cross border sector of e-commerce has equally gone up, with estimates showing that, 2016 was supposed to reach RMB 6.5 trillion, up from RMB 2 trillion in 2015. Owing to the shrinking trend of the China’s traditional export and import market, the authority has deemed it fit to establish policies for boosting e-commerce across the borders.
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Choosing an investment Model to Access China’s e-Commerce Market
In the case of Chinese companies intending to reach consumers online, they have numerous platforms available. Model 1 involves selling directly using a website hosted outside China. Although a convenient and attractive option, the website will not be found by customers, despite having a Chinese version. In the same vein, it will result to consumers incurring higher costs considering that, they will be charged import and shipping fees ( Shira & Associates, 2016) . Model 2 is an excellent method, although it does deliver products to the customer, and besides ICP filing, a local registration is mandatory. Model 3 involves selling via a third party B2C platform. It is an effective method considering that, investors manage to reach customers directly, and the company avoids the approvals of different departments. Even so, B2C demands that the organization is presented in China, with support to provide pre-and-after sale services. Model 4 entails selling via cross border e-commerce pilot platforms. The platform enjoys preferential import tax and simple procedures for clearing at the custom. China launched a customs clearance procedure that ensures products imported using the cross border model is cleared within 24 hours. The pilot platform has two models namely direct shipping model, and bonded warehouse model.
Special Feature; Ensuring e-Commerce Brand Protection in China
Platforms of e-commerce in China are likely to experience individuals selling illicit goods. Considering that major commerce sites have dominated the e-commerce market, companies operating on those platforms should strive to protect their brands ( Shira & Associates, 2016) .
The companies can ensure they have registered intellectual property. Creators of various products should seek voluntary to enjoy ownership, and as such they will be safeguarded from legal disputes in future. Although registration is time consuming, a trademark can only be secure once application is fully done.
Organizations should monitor e-commerce sites as it ensures counterfeit products going round on the Internet are identified. Proactive search on e-commerce platforms for similar products in Chinese and English is recommended ( Shira & Associates, 2016) . Chinese search engine can equally be used to obtain search. Companies should look out for listings posted by vendors, which are not connected to the official channels of distribution.
Lastly, companies should make requests for counterfeit goods to be pulled down. The B2C platforms always volunteer information on requests to remove goods that have infringed IPR rights ( Shira & Associates, 2016) .
References
Shira, D. & Associates (2016). China Investment Roadmap: the e-Commerce Industry. China Briefing. Issue 163.
