today we're going to talk about where to
sell your products in china 2020.
is it t-mall is it taobao is it a wizard
store
or at jd.com let's find out
me how my name is magnus detmer i'm an
entrepreneur here in shanghai china
i've helped a lot of people start
companies here i helped a lot of people
source products from china
and i'm now helping a lot of people sell
products here in china so today we're
gonna dig
deep into selling products in china so
what we're going to go through
is tmall taobao wechat store and jd.com
which is the biggest e-commerce stores
here in china
so in each and every one of these
e-commerce stores i'm going to tell you
about okay general information
i'm gonna tell you what type of products
are selling there what requirements you
need
in order to start a store at these
e-commerce
platforms i'm gonna talk about a little
bit how much does it cost
i'm gonna talk about pros and cons and
more general information
about each store so if you want to learn
more about selling products in china
then keep on watching so in china's
e-commerce jungle there are basically
two
giants so you have alibaba and tencent
and alibaba
owns tmall and taobao and they're very
much focused on e-commerce
then we have tencent that's the owner of
wechat and they're very heavily invested
in jd.com
as well and we have more social and we
have more e-commerce but
they start to merge more and more that's
why it's really important to know the
difference between
each and every one of them so let's jump
into it so first of all let's talk about
tmall tmall is alibaba's biggest
b2c store where official stores
sell their products and when i talk
about big stores it's basically
big companies like apple adidas nike
all these big companies have their
official store on the tmall
shop this is because when you register a
shop at tmall you
actually have to register a company here
in china
or sell through tmall international and
there you have to register and show
all your trademark that is actually you
owning the brand
rather than on taobao we're basically
selling other people's products
so tmall is for the shops that have
official
a brand around in the world and they're
basically two
different type of stores there is teemo
classic and teemo international
if you if you start a tmall classic you
actually have to have a company here in
china
you actually have to register your
trademark here in china
and you have to have stock here in china
with your products
if you're selling on tml international
you actually have to register your
trademark and your company in another
country that you already probably have
there you can sell your products and
there you have to have stock
in your home country not here in china
in your home country
and then you send it but there are
certain requirements for sending it so
you can't just send it like half year
later
you have to send it pretty quick because
people here in china are very used to
fast paced when it comes to e-commerce
so what type of products are actually
selling
on tmall these type of products are
basically the official ones like iphones
are of course selling there all the nike
shoes are
of course selling there samsung is of
course selling a lot of their phones and
their computers off of there so it's
actually official stores
official products so who are the target
audience for buying on tmall
well you can basically think like okay
who are the ones that actually go
into let's say a official apple store
those are the same
type of consumers that actually go to a
physical
branded store rather than a random store
on the street so these are the type of
people that buy
these products and 70 percent of the
people on tmall are between 24 and 32
that are very
interested in imported products rather
than the local ones like you buy on
taobao so these are the ones that have
the official brands
all over the world and these young
people with high purchasing power
want these products and they don't trust
anyone they trust
only the official stores these are your
target audience
so what type of payment system do they
use yeah of course they use
alipay because it's part of the alibaba
ecosystem
you can also buy it with credit card but
usually people
buy with alipay so you have to have a
alipay account in order to run
a tml store so how much does it cost to
start the tmau store
well you have to put in a deposit of 25
000 yes it's very expensive
also when you do that you also have to
pay between 5 to ten
thousand dollars annually to run the
tmall store
and this depends on what type of
products that you're selling so what are
the pros and cons of having a tmall
store well
first of all teemo have very high
traffic a lot of people go on there
each and every day so it's very likely
that people will find your product
if you have an official really well done
store
and that people are looking for the
products that you're selling it is also
very legit
marketplace compared to like taobao
where you can find a lot of fakes
a lot of yeah different type of product
that you're actually looking for
so this is only for the official stores
people here in china very much
trust teemo and you also get to expose
yourself
among other big brands so if you have a
teemo shop you're probably on the same
page as probably
i don't know canon or apple or prada
like these
big brands then you gain a little bit
more credibility
the negative side of tmall is of course
the high
cost because when you start a store
there it costs first twenty five
thousand dollars in deposit
then maybe ten thousand dollars each and
every year to run the store
and then you have to have a lot of
developments and stuff like that so it's
very costly to have
a tmos store compared to like a taobao
store so that's one thing what you also
have to consider
just because you have a store on tmall
it's not like that's the only flat fee
that you pay
you also have to do a lot of marketing
you have to drag people
in you have to have some form of like
volume on this platform because
otherwise you'll be very low
ranked so having a teemo store is very
expensive and also if you
want to have a teemo classic you
actually have to register a company here
in china that i can help you with no
problem but you have to register a
company here
in china if you want to have the classic
the international one
you can do it from home but i suggest
you to do a classic one because
if you want to enter this market you
have to go hard you have to go big
because otherwise you won't make a lot
of money here so in conclusion i would
say
team all is very good if you have a high
budget you really want to enter the
chinese market
so you should think about starting a
team shop like
you're setting up a fancy store on a
fancy street that's basically the same
way when you do it in
e-commerce here in china because it will
cost a lot but you can also gain
a lot of money if you have a team all
store
now off to the next one taobao so taobao
is the app that probably most foreigners
here in china
uses taobao is also under the umbrella
of
alibaba and what a lot of people don't
know is that taobao is actually a seed
to see a consumer to consumer
type of platform these type of stores
that people set up there
are actually small companies one two
three people setting up companies
and they're setting up their stores so
they can sell two consumers around here
in
china everybody i kid you not everybody
in china
have a taobao account everybody buy
their stuff from there it's super
convenient it's super good
it's super fast and you can find
everything from like
soap to a private yet yes you can find
everything on this store i love it right
now there's about 10
million merchants here in china that
actually have a store on taobao
so the competition is super duper high
that's why you can find
everything there to a super cheap price
and i've heard that it's around
800 million products listed on taobao so
if you're browsing around there you
probably will find whatever you're
looking for
if not you have very very difficult
taste
what you also have to consider is that
taobao also have started to sell
used stuff so second-hand stuff you can
actually buy there
and you can also buy pets on this
platform so basically taobao is a store
for
everything so setting up a taobao store
is way easier than setting up like a tml
store you have to register a company
here in china but i'll tell you first
the seven steps that you have to do
when you want to register a taobao store
so first of all you have to register a
taobao account
and register yourself as a seller then
of course you have to connect your
alipay account
to that taobao store then of course you
have to verify that you
are you through an identity check then
you have to create your store connect
all the plugins and
open a ali one one which is basically
the customer service
on taobao then of course you have to
design your store but
the limitation of a taobao store is way
bigger than
compared to like a teemo store where you
can brand it in a way better way
when it comes to taobao you can add
pictures you can add text and stuff like
that but you can't make it as beautiful
as you have on tmall then of course you
have to upload your product so everybody
can see them
then you have to do a lot of promotion
and marketing on the platform where you
actually buy yourself
up to the top and then of course you
have to engage a lot of taobao
influencers they are actually using your
product selling your product
in order to get engagement otherwise no
one will find your product
unfortunately this whole process and
also taobao itself is
only in chinese if you don't understand
chinese you have to hire someone
or get help from a company to actually
set up the store because otherwise it
will be very very difficult you can buy
the service of course where people
actually set
up your store however you can also sell
your products
through chinese sellers that manage the
whole selling process
and in that way you can just focus on
creating the best product
and you leave the selling part to the
chinese seller
i would suggest you do that because it's
a little bit difficult but of course i
have a lot of contacts here in china if
you need help
comment below or send an email to this
and i'll help you set up a store
so what are the products that you are
selling on taobao as i said before
these are not official stores but you
can basically find
everything and anything on this app
there's
800 million type of products on this
platform
so it's very difficult to be unique on
this platform because
whatever you're trying to sell probably
i don't know 10
000 other people are selling exactly the
same type of
product so keep that in mind when
selling on taobao you can find
any type of products there so who is the
target audience well basically everyone
everyone in china everyone that i talk
to everyone that i see in the subway
everybody have taobao in their phone so
keep that in mind
when you're selling product so what are
the requirements well
as i said before you cannot set up a
taobao shop
unless you have a company here in china
and i can help you set up a company
within like 10 days or up to six weeks
so that's not a big problem however you
have to have presence here and you
cannot
only have like a post box office where
you're selling your products
the products have to be here in china
you have to have an office
and a company here in china in order to
sell your product so
it's a little bit more difficult and you
have to be more presence than like
teemo international however it's way way
cheaper and it's not that difficult to
set up a company here in china actually
i've done a video here where you can
check it out how i start a company and i
can start a company for you so what type
of payment do they use
on taobao well of course they're using
alipay here as well you can buy with
credit cards some type of credit cards
but usually people pay with alipay so
sitting at the table shop is
not expensive it doesn't cost anything
however since you have to start a
company here in china
it costs about 20 to 30 000 rmb to
actually set up a company here
so you have to consider that as a cost
also when you have set up a taobao shop
you have to have a bit of a turnover
because in the beginning no one is going
to find your product so in order to be
ranked higher you actually have to buy
your own products a lot
in that way you can actually get higher
volume then they will rank you higher
so it will come with some cost also a
lot of marketing costs and stuff like
that but actually just setting up a
taobao store
doesn't cost anything so what are the
pros and cons of starting a taobao shop
here in
china well the positive side is that
it's way cheaper than a tml store and a
jd.com
store it's way faster to set up you
don't have
as many requirements you don't have to
have as high volume as maybe a lot of
other platform has
and it's an easy way to just test your
product test
if the clients are actually using this
type of product if there is a demand
for your type of products here in china
so if i would come here and really want
to sell your product i would definitely
start with the taobao shop and then
upgrade to like a team shop so the
negative side of selling your products
on taobao
is first of all that the competition is
super duper high since everybody can
start a taobao shop here in
china you find products that are amazing
and the consumer will probably find
exactly the same product as you have
cheaper and
better so you have to consider that why
should people actually buy your product
because here in china they produce
everything
so they can probably buy it cheaper
faster and better so you have to
consider that before starting at taobao
shop
another thing that i also wanted to
mention like the branding opportunity is
not as
big on taobao compared to like tmall or
jd.com where it's more like a
customized type of store more like um i
don't know
amazon store where you just show your
product to the best price and then
people buy it if you understand what i
mean the cons is also that when people
are buying products from this platform
it's not as an official store as some
teemo so when you're
buying a product there you hope that
everything is fine with this product you
hope that it
is exactly the one that you want so the
consumer on teemo are way more secure of
getting the real deal
compared to on taobao or sometimes get
stuff and you're like
what the hell is this just consider that
so if we should sum
all this up i would say that a taobao
store is very good if you want to get
into the market
faster and cheaper and just test if your
product is actually something that the
chinese consumer wants
i would set up a store there if you want
to get into the e-commerce business
super duper fast
and don't want to spend too much money
on it so
if you should compare this to something
in the western world this is absolutely
amazon where you can find everything
super cheap you're not actually going to
amazon to actually buy a brand you're
going there to buy a product
so if you're selling your product on
amazon your product will probably go
well here in china as well
now off to the next one so let's do a
little mid-paws
stretching how are you feeling am i
talking too much
you made it all the way here you're very
good at listening i have to tell you
that
let's do some stretching okay
perfect now let's dig into the next one
jd.com
so jd.com is more of the tencent side
tencent is not owning it so jingdong is
the biggest self-operated e-commerce
store
in china it has about 25 percent market
share
compared to t-mall or alibaba and jd.com
focuses very much
on delivery and electronic devices so
keep that in mind when you're trying to
sell products on jd.com so why sell on
jd.com
well is that they have the most advanced
fulfillment
infrastructure in all of china it's way
more developed than maybe alibaba's
so they're very much focusing on
delivering products super duper fast and
jd.com is actually the one
that have tried to deliver a lot of
packages with
drones so they are really really focused
on the liver super fast so it's a little
bit of a
more high-end type of service than maybe
tmall and taobao so what are the type of
products that are actually selling on
jd.com
on jd.com you can basically find the
same thing as you find on tmall or
taobao so who are the target audience
the target audience here is the one that
actually expects more from the delivery
service those that really really want
the product fast
easy with no problems then they choose
jd.com over like tmall or taobao because
taobao and teemo are actually relying a
lot on third parties when it comes to
delivery while jd.com delivers a lot of
things by themselves so they're way
faster and way more secure than maybe
taobao and tmall
so what are the requirements for
starting a shop on jd.com
so basically two different type of
stores on jd.com this is the
international one and the local one
so for the international one you
actually don't have to have a physical
presence here in
china you actually can sell your
products from abroad
it's a little bit more difficult because
you have to register a company and you
have to have
all the licenses for it but you can
actually sell the products from abroad
as well so when selling a product on
jd.com you actually have to be the brand
owner you have to show trademark to the
platform so it's actually you that
producer and you that are selling this
type of product so there's a lot of
documentation
a lot of registration that needs to be
done it is a little bit like
time consuming but eventually you will
probably get there you also have to have
a bank account with
u.s dollars so when you're starting a
jd.com store you should not actually
sell your products in china from the
beginning because they will do some
research for that
so it's better if you're not selling
products already in china you should
only sell it through jd.com furthermore
you also have to provide
business registration forms to show that
it's actually you
owning the company you also have to show
identifications for all the stakeholders
in the company and when you're starting
a store at jd.com
as of course the other one as well you
actually have to provide
information in chinese when you're
selling the products it cannot be in
your home language or
in english you actually have to provide
a service where the chinese consumer can
actually read it and that is mandarin
and when you're starting your store and
actually selling products your product
actually have to be dispatched
within 72 hours after the consumer
clicks buy
so in that way you have to be super
duper fast when it comes to delivery
compared to like the other ones and
lastly if the consumer doesn't like the
product
then the product return center actually
have to be here in
mainland china you can't expect all the
consumers to send it back to your home
country so think about that before
starting at jd.com store
and because this is kind of the rival to
taobao and teemo
on jd.com you actually accept bank cards
and we should pay they don't accept
alipay as for now maybe in the future
they will do
but we should pay in the main payment
platform that people use
on jday.com so you have to have a
wishart pay account so how much does it
cost to start the jd.com store
well it's a little bit expensive so when
you're setting up a store and everything
has been approved
then you have to put in a fifteen
thousand dollars deposit
does it cost that but the fifteen
thousand dollar deposit in order to be
able to run
the actual service through jd.com so
again this is not a fee this is a
returnable deposit
however you have to actually put the
money in in order to run
the store then jd.com charges you
thousand dollars each and every year
from each and every store that you start
so if you have the deposit
you can start several stores however it
cost a thousand dollars for each and
every store
each and every year and then jd.com
actually charged two to eight percent of
the order value from your store so you
have to
add that into the thousand dollars in
order to see how much it costs to
actually run a store on jd.com so if
you're comparing jd.com compared to
teemo
jd is way cheaper on the international
version however you have a way bigger
reach
on tmall compared to jd.com so what are
the pros and cons of
jd.com well the pros is of course that
you can have a cross-border store so you
don't actually have to have a company
or a physical presence here in china you
can also reach a big audience since
there's a lot of people buying on jd.com
and the consumers can actually expect
that you deliver super duper fast you
create
more of a like a high-end product
compared to like taobao or sometimes you
have to wait a little bit longer
however the negative side is that jd.com
is way way smaller than t-mobile and
taobao
so you will not reach out to as many
people as under the alibaba umbrella
it's a little bit higher entrance point
than taobao because
on taobao is way cheaper to actually
start up a store
compared to jd.com however you don't
have to have a company here so it
depends
if you want to be in china or if you
don't want to be in china and lastly
these are kind of high-end
products so the marketing is very
expensive especially on the platform but
also
since most people are not on jd.com you
have to do a lot of marketing on other
social media so the marketing
budget have to be a little bit higher in
order to actually sell products on
jd.com
so in conclusion i would say that jd.com
is the biggest competitor and they're
aiming super duper much to become the
biggest e-commerce platform
in china they really really push these
fast deliveries so
if you have a product that you want to
give super duper good service to the
actual consumer
you want to deliver it super duper fast
and maybe you're selling electronic
devices of any kind
then i would aim for jd.com when it
comes to foreigners in china not a lot
of people actually use
jd.com however a lot of chinese use it
so it's a very very good alternative if
you don't want to start a t-mall or a
taobao shop
now to the last one we shot store are
you with me guys or
are you falling asleep let's talk about
the official
wechat store so as you probably know
already if you watch my channel about
social media
then you probably know that wechat is
the biggest social media here in china
everybody uses it for communication here
you use it to order taxes you use it to
pay you use it for a lot of different
stuff
what a lot of people don't know is that
you can actually have a store
in wechat so you have an official
account and there you can go in
and buy your product or if you're the
seller you sell your product
through that you can go into the same
messaging app as you're sending to your
friends and family messages
there you can actually go in and buy
products so in that way
the target audience for your products is
basically everybody that uses wechat
here
in china and right now they have over 1
billion users
in mainland china so you can reach a lot
of people with this however it has some
cons as well that will tell you in just
a second
so what are the products that actually
sell on wechat
well a lot of cosmetics a lot of food a
lot of drinks are actually sold
on wechat because what you do is you
start to follow all these official
accounts where someone is sending that
to you
it's very very seldom do that you're
actually searching for
oh i want to buy let's say an ice cream
or an iphone or whatever it is
you actually don't search that in the
app you actually get recommended by
someone else
if you're looking for let's say um
smoothie bowl here in shanghai
usually we order it from liz's and there
you click into the app and there you
actually buy it from their stores but i
find it just because i've already been
in there if no one has actually
recommended that to me before
i wouldn't really look for it and this
is way different from taobao because on
taobao you're actually just searching
for
the product that you're looking for but
on wechat you're just searching for the
store that
might sell the product so that's the
difference between like taobao
and wechat store so what are the
requirements for starting a
wee chat store you can start one with
the chinese company
but there's no requirements to actually
have a chinese company you can register
it
with your foreign company it will take a
little bit longer time
it is a little bit difficult because
there's a lot of documentation that
needs to be provided
however it is possible without official
chinese company so what are the payment
system we shall pay
of course sometimes you can pay with a
credit card but 99
is always always we should pay that you
have to pay with
in the wish at store so what are the
costs for actually setting up a
wechat store actually setting it up is
free however it is difficult because
it's a lot of chinese
so there are three firms that can
actually help you set up a wechat store
so you sun
is one of these providers that can
actually help you set up a wee shot
store and they charge between
7 000 up to around 30 000 rmb depending
on the features
of this store and this they charge for
each and every year
then we have way done that's a little
bit cheaper than yosun because they
provide not
as good service basically so if you just
want to go super duper cheap
way down is probably the way to go and
then we have walk the chat which is a
very very good provider
they created the triva store on wechat
you know the watch brand that i made a
commercial for in my
last video however they are very very
good at creating stores they do it very
nicely it's very easily so they can
actually help you
go to the website if you want to know
more about how to start a we should
store
that right so what are the pros and cons
of having a wii shed store well
first of all it's super easy to set up
compared to maybe taobao or tmall or
jd.com
super duper easy it's also very easy to
find
your company because you can just search
in the search bar and
you find your company another benefit is
of course that
we chat pay is built into the wechat app
so when you're buying a product you just
click
pay and then everything is settled which
is super good when it comes to
e-commerce another great feature is we
should log in so when the consumer goes
in they can just click
log in with wechat so you don't have to
put in like email and passwords and yada
yada you just click
login with wechat and you're in the
store registered and by that you can
also collect the phone number and the
email from the consumers so you can
actually verify that it's a real person
and what's super good with it is that
you can actually
recommend other people in wisha to
actually
use your store so for example here in
shanghai when people are using different
type of stores
usually someone in my friends group that
actually send me the link
like check out this official account
then i click in on it and then it's
always in my feed so in that way i
always see
update from that store and by that as a
store owner you can actually sell
products directly
so the recommendation in wechat and
since everybody use wechat
is a super duper good benefit the
negative side of wechat is that i said
before
is usually you don't search for products
in weejet you find the store and
in the store you actually find the
product so for example if i want to buy
some food some healthy food
i don't go in and search like salad in
my wechat bar what i do
is i go into the accounts that i already
follow and there i search for it so it's
a little bit more difficult to actually
find the product
but if you can attract the clients to
actually follow your account and create
a lot of excitement around that account
then you can actually benefit a lot from
that because you already have the
customer
hooked in another negative side is that
wechat is kind of a closed ecosystem so
you can't go into like
i don't know taobao or t-mall to
actually buy the product
when you're in when we chat when you're
sending recommendation you're always
in we chat so think about that so
creating a research store is very good
if you just want to start off you don't
have a big
marketing or starting a company budget
you just want to try to sell your
product super fast in
china within a few months then we should
store is super duper good
a we should store is super duper good
also if you want to try to see
how your consumers react to the product
how they interact with the product
what are the requests what goes right
what goes wrong
it's super good to start off with the
wechat store because then you can test
the market before you actually open a
big account on tmall or maybe jd.com
and as i said even triva have one wechat
store so it's not
only the small companies that have these
stores
really good way to also start off here
in china
that was a lot of talking hope you have
enjoyed this video if i should
draw a conclusion for all of these
stores i would put it like this
if you are an official brand like adidas
apple triva like these big brands where
you're selling
the brand not only the product but we're
selling the brand
and you want to enter the chinese market
hard then i would go for a team all
store if you just want to try out if you
want to
reach all the audience that team mall
has but you don't have the marketing
body they don't have the body
to actually create an official store
then i would go for
teemo if you want to reach out to your
clients super duper fast
if you want to be more like electronic
devices type of company
if you want to be then maybe the next
big thing
jd.com is absolutely the way to go if
you're a smaller company
if and you're just starting out if
you're selling maybe local products from
your hometown
something like that i would start with a
wee chat store but that's just a very
very generalized
conclusion over all of this if you have
any more questions please email me here
or comment below
and i'll help you as much as i can to
make your brand successful
here in china my name is magnus detmer
hope you have enjoyed this video
see you in the next one