Mapping China: Fashion - Online-to-offline
If you talk about online business, you talk about China. Nowhere else in the world so many people purchase their products online. From 2006 to 2014 the number of people purchasing online in China has risen from 33.57 million to 361.42 million. A crucial factor to keep in mind, says Daphne Tuijn from Webshopinchina.com.
Daphne Tuijn: ‘In China it's all about online platforms'
Nowhere in the world people purchase online as much as the Chinese. There is a market with amazing opportunities, says Daphne Tuijn, e-commerce expert and managing director of Webshopinchina.com. But, she adds, remember it’s a ‘different ball game’ they play in China.
There is no shortage of online fashion offerings In the Netherlands. Each brand has its own website where, usually, also items can be ordered. But here is a big difference, says Daphne Tuijn, who is specialized in e-commerce between China and Netherlands, together with her business partner Angela Tabak.
“’Stand alone’ is hardly used as platform in China when it comes to fashion purchases. Your own website is fine, but it's about platforms on which all sorts of offerings can be found. Especially for international brands these are the sales channels. Think of VIP shop, Tmall Global (from the Alibaba Group), as well as JD Worldwide. "
There are already several Dutch companies which have entered these platforms. Noppies, which sells maternity wear and baby and children clothes, is a good example. And the Dutch men's fashion brand Suit Supply has now also entered this market.
“A combination is the best strategy”, is the opinion of Tuijn.” Only online presence is difficult because for most Chinese people, many Western brands are unknown – except the world famous ones of course - and therefore they do not know what the quality is and what they need to think of it."
Therefore, she argues, ‘online-to-offline’ is more advisable. Exactly like Noppies has done. "If you are physically present as a brand in China, you are 'touchable', customers can literally visit and see what you offer. Offline presence does not imply you need your own shop, you can also use the principle of shop-in-shop, like Bijenkorf in Netherlands in fact also does. A fashion brand can also be included in the offer of a Chinese retailer. "
Of course there are costs, but an investment is inevitable. "And you are not finished then. You should not sit back and then wonder why customers do not visit you. Your entrance on those platforms is only the beginning. The real start is yet to come. From that moment it is about marketing, promotion, proper use of social media, and finding the right partner."
Plus, of course, understanding the Chinese customer. "It is important that you give lots of information, offline and online. Chinese want to know more than Westerners. You need lots of photos, lots of explanation on materials, for example. "
The entrepreneur (born in the northwest city of Alkmaar) has previously cooperated with the seminar ‘Dutch Fashion2China’, and she was also present at several Chinese 'fashion weeks'. She frequently travels to Asia. Webshopinchina.com also has an office in Chengdu, a city in southwest China which is experiencing a rise because of the 'Go West' strategy that the Chinese government implemented.
Partly because of her familiarity with the city, known for its panda breeding park, she knows there are not only opportunities in the major cities like Beijing, Shanghai and Hong Kong.
“The so-called ‘first tier cities' have a big shopping mall on every street corner, different than ‘second tier cities' as Chengdu - but also, for example Chongqing, Xiamen and Tianjin. For this reason people in those cities rely more on online purchases. "
The market outside the major cities is huge, she realizes. "Nowadays there are more than 600 million Internet users in the country who you can reach. They are not all very fashion-sensitive and have less knowledge of Western brands than many residents of the largest cities, which also include Guangzhou and Shenzhen. But development goes fast in this country. "
In some cities, local governments have a policy to attract international fashion brands in their streets, and they create platforms for it. China has anyway opened more to Western brands, knows Tuijn.
“You do not only see this in the free trade zones, but also from the fact that small brands also can relatively easy enter the market. Previously, a form of cooperation as a joint venture with a Chinese partner was required. Not anymore. This course also offers opportunities for Dutch brands. "