Introduction to e-commerce in China

Table of contents

  • Trade Commissioner Service
  • Introduction 
  • The chinese consumer 
    • Demographics & consumer profiles 
      • Unveiling China’s Generation Z: Shaping the future of consumption 
      • Navigating the silver tide: Understanding China’s silver generation 
    • The Chinese consumer journey 
    • Consumer behaviour 
      • Embracing wellness: The surging interest in health and wellness in China in 2024 
      • Environmental sustainability 
      • Key behavioral trends: “Steady progress” and “exploring the new” 
    • E-commerce trends 
      • Social commerce 
      • Livestreaming 
      • New retail 
      • Festivals and online promotions 
  • Preparation for the China market 
    • Category analysis 
    • Competitor benchmarking
    • Consumer understanding 
    • Platform selection 
    • SKU/Product selection 
    • Compliance and intellectual property 
    • Branding and localization 
    • Market budgeting
  • Methods of e-commerce entry 
    • General trade 
    • Cross-border e-commerce
  • E-commerce platforms 
    • Platform overview 
    • Traditional platforms (Tmall and JD) 
    • Social commerce 
      • RedNote 
      • Douyin 
    • Livestreaming
    • Cross-border e-commerce 
      • Tmall Global 
      • JD Worldwide 
      • Douyin 
    • New retail, Eleme and Meituan 
    • Flash sales, group buying and other platforms 
    • Consumer to consumer (Taobao)  
    • TP partner selection  
  • Logistics 
    • General trade logistics 
    • Cross-border e-commerce logistics 
      • Bonded warehouse 
      • Direct mail
      • Major players 
  • Payments 
    • How does payment work? 
    • Payment providers  
    • General trade: Receiving payment 
    • Cross border e-commerce: Receiving payment 
  • Intellectual property management 
    • Protecting your IP in China 
    • Trademarks 
    • Identifying IP infringements online 
    • Managing IP infringements and take-down systems 
  • Regulations 
    • China’s regulatory framework 
    • Import tariffs 
    • New e-commerce law 
    • Benefits for Canadian retailers
  • Marketing 
    • The importance of marketing (e-commerce APP and social platform) 
    • An overview of the platforms 
      • WeChat and Weibo 
      • Douyin – Short videos and livestreaming 
      • RedNote 
    • Key opinion leaders
    • The impact of AI on e-commerce 
    • Working with a marketing agency 
  • Approaching the market 
    • Phased China market entry 
    • Issues faced by new entrants 
    • Category understanding 
    • Increasing brand presence 
  • Case studies 
    • Brand 1: Gold Bond 
    • Brand 2: Jung Saem Mool 
  • Appendix 
    • Frequently asked questions 
    • Glossary 

Introduction

The growth of e-commerce in China over the last decade has shaped global trade dynamics, with foreign brands vying for success in the world’s largest e-commerce market. 

China, which accounted for just 1% of the global e-commerce market in the early 2000s, now dominates with a share of almost 50% in 2024. The market's scale is staggering, handling more transactions annually than Japan, France, the United Kingdom, and the United States combined. Digital innovation, policy support, and increasing consumer sophistication have fueled this growth.  

For Canadian brands, China presents unparalleled opportunities, bolstered by its openness to foreign goods. Over the past decade, this shift has been driven by significant factors such as rising middle-class income levels, the popularity of cross-border e-commerce platforms such as Tmall Global and JD Worldwide, and heightened exposure to foreign products through outbound tourism and digital connectivity.  

China remains at the forefront of e-commerce innovation. Integrating technologies like artificial intelligence (AI) in retail, livestreaming e-commerce, and social commerce exemplifies the industry’s forward-thinking approach.   

A key driver of China’s e-commerce boom has been the enthusiastic adoption of digital innovations by the massive consumer base in China. The government's supportive policies, including significant investments in logistics networks and tax incentives for cross-border trade, have cemented the country’s leadership in global e-commerce.   

However, the vast opportunities are matched by considerable challenges for Canadian brands. The regulatory landscape remains complex, with evolving policies and stringent compliance requirements. Additionally, with e-commerce becoming a mature market in China, the environment is highly competitive, with thousands of foreign brands vying for consumer attention on platforms such as Tmall, JD, Pinduoduo, and Douyin.   

 To succeed, Canadian brands must prioritize intellectual property (IP) protection, adapt to the distinct preferences of Chinese consumers, and develop sophisticated market-entry strategies. Products need to be tailored to meet localized tastes and marketing strategies should leverage popular social channels such as WeChat, RedNote, and livestreaming platforms. Moreover, sustained investment in marketing, human resources, and supply chain management is critical for achieving long-term success.  

This guidebook is designed to provide Canadian businesses with an overview of the Chinese e-commerce market, helping brands make decisions about entering the Chinese market.  

For further assistance, the Canadian Trade Commissioner Service (TCS) provides a network of resources in China. Interested Canadian companies can learn more about the services provided by TCS by visiting: www.tradecommissioner.gc.ca, or contacting the TCS directly at shngi-ecommerce@international.gc.ca.  

For access to the full e-commerce in China guidebook, please contact Jennifer Wang (Trade Commissioner) at jennifer.wang@international.gc.ca.

Additional Information

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