Moreover, a string of Chinese cross-border e-commerce platforms are ratcheting up efforts to expand their overseas presence amid a broader drive to cultivate new users and diversify revenue sources.

Online discounter PDD Holdings, the parent company of Chinese e-commerce platform Pinduoduo, recently launched its cross-border e-commerce platform Temu in South Korea and Japan as part of its strategy to serve price-conscious consumers.

Temu offers clothing, electronic products, jewelry, shoes, handbags, cosmetics and baby products at competitive prices since it was first rolled out in the United States last September. So far, it has entered more than 20 countries in North America, Europe and Asia.

Pinduoduo said it plans to invest 10 billion yuan to help China's manufacturing enterprises stretch their global reach. The first phase of the initiative will help 100 Chinese brands go global and assist 10,000 manufacturers in connecting directly with overseas markets.

Fast-fashion online retailer Shein has announced further expansion of its product categories through collaborations with selected global brands and third-party sellers, to fulfill customers' increasing demands for diversified products.

Customers can now buy products that go beyond fashion and apparel, including categories like home appliances such as portable washing machines and smart home products like remote-controlled lighting.

The company has announced that it will officially launch an integrated marketplace in Mexico, following Brazil and the US, that offers products from third-party sellers alongside Shein's own products, while launches in Germany, Spain, France and Italy will soon follow suit.

As growth of domestic e-commerce enterprises is slowing, China's e-commerce platforms are trying to pursue new revenue sources through expansion in overseas markets, said Zhang of the Internet Economy Institute.

Zhang said competition among cross-border e-commerce companies is expected to focus on supply chain construction. "The core competitiveness of Temu and Shein lies in products with competitive prices and fast delivery, which are highly dependent on the establishment of the supply chain."

He noted that Chinese online retailers who are making inroads into overseas markets should learn about the preferences of local consumers and relevant laws, regulations and quality standards, as well as seek development strategies to differentiate themselves from competitors.

Chen Tao, an analyst at internet consultancy Analysys in Beijing, said price, quality and service are the most important factors consumers consider when buying products, and cost-effective goods have been attractive to consumers against the backdrop of a gloomy economic outlook.

Meanwhile, Chinese cross-border e-commerce platforms will face intense competition from established players in overseas markets such as Amazon and Ali-Express, Alibaba's cross-border platform, Chen said, adding that the platform, which provides good shopping experiences and service, will gain an advantage in the fierce competition.

Related

Go to Forum >>0 Comment(s)