Trends & Developments in Chinese eCommerce

Despite the Chinese economy goes down, we notice an ongoing steady growth in Chinese e-commerce business and more international brands are taking active roles with their entry into and business expansion in the Chinese e-commerce market. To ensure successful entry and long-term development, it is of importance to understand how the market operates, what the consumer profile is and where the regulatory limits lie.

We have therefore invited Mr. Damian Maib, Founder & CEO of Genuine, and  Mr. Fabian Sinn, Managing Partner of Genuine for an interview on their observations of the current trends in the Chinese e-commerce market and key takeaways for international brands when engaging with Chinese consumers via e-commerce platforms.

With a strong track record in providing comprehensive legal, tax, audit and bookkeeping services, our firm is uniquely positioned to support the compliance needs of e-commerce business operators, from assisting with market entry and daily regulatory compliance checks, such as data privacy, intellectual property, consumer rights protection and compliance with advertisement law to offering guidance on international trade, cross-border transactions and dispute resolution.

Together with Genuine, we aim and ensure that our clients navigate the complexities of e-commerce with confidence.

Interview

Gerald Neumann: How would you describe the current state of e-commerce in China?

Genuine: The Chinese e-commerce market remains the largest and one of the most dynamic globally, currently valued at around $1.43 trillion and projected to grow significantly in the coming years. It’s super fast-paced and competitive, with big players like Alibaba and JD.com facing serious challenges from newer platforms like Pinduoduo and Douyin. While there are challenges, including an economic slowdown and intense price wars, the market continues to evolve with robust infrastructure and innovative consumer engagement strategies.

Gerald Neumann: What are key trends that are currently most relevant in the Chinese e-commerce market?

Genuine: Social commerce and live streaming are huge right now. People love shopping while being entertained—it’s a whole experience. In many categories Social Commerce platforms like Douyin have been the main growth driver in the last 2-3 years and have overtaken traditional platforms like TMALL. AI and data-driven personalization are also shaping how companies interact with customers. Another trend is sustainability—more and more consumers are looking for eco-friendly options. And of course, cross-border e-commerce is booming because Chinese shoppers love international brands.

Gerald Neumann: What makes it unique compared to other markets? And what can other markets learn from China?

Genuine: E-commerce in China is super integrated. Everything from discovering a product to paying and getting it delivered happens seamlessly, often within one app. Social elements are also a big part of the shopping experience—live-streams, influencer recommendations, and group buying all play a role. Other markets could definitely learn from this by making online shopping more engaging and social. We actually increasingly see the livestreaming trend from China being adopted in Western markets. TikTok Shop is quite successful in the US and expanding to European markets like Spain and Germany soon. In addition, German retailers such as Otto, Zalando, DM and Douglas are adopting similar strategies, hosting live sales events to attract younger audiences. Compared to China, it still accounts for a very small share of sales, but with more brands and platforms adopting the trend, it could shape future consumer behaviour in Western markets.

Gerald Neumann: How do consumer preferences in China differ from those in Western markets, and how should companies adapt?

Genuine: Chinese consumers are incredibly digital and expect things to be fast, seamless, and highly convenient. They rely heavily on mobile platforms for almost everything, from browsing to purchasing, and have little tolerance for slow or clunky user experiences. Social proof plays a massive role in their decision-making process—reviews, influencer endorsements, and live-streams are often the key drivers of trust and engagement. Additionally, they’re more open to discovering new products through social commerce and are highly influenced by trends and real-time interactions.

To succeed, brands need to adopt a mobile-first strategy and integrate into platforms where Chinese consumers spend most of their time, like WeChat, Douyin, or Xiaohongshu. Collaborating with local influencers (KOLs) is crucial, as they can help bridge the gap between foreign brands and local audiences. Finally, companies should invest in localizing their products and messaging to align with Chinese tastes, values, and cultural nuances—what works in Western markets often doesn’t resonate in China without significant adaptation.

Gerald Neumann: There has been a lot of negative news about the economic development in China recently. What impact does that have on your business?

Genuine: It’s true the economy has slowed down, and people are being more careful with their spending. But e-commerce is still doing well, especially in categories like health, affordable luxury, and anything that offers good value for money. For us, it means helping brands adjust their strategies to match what consumers are looking for right now.

Gerald Neumann: What are common mistakes foreign brands make in China?

Genuine: A big one is not taking localization seriously. It’s not just about translating your website—you need to adapt your products, marketing, and even your customer service to fit the expectations and habits of Chinese consumers. Another common mistake is failing to invest in brand-building. In such a crowded and competitive market, standing out is crucial. Some brands also underestimate how complex the regulatory landscape can be, which can lead to costly setbacks.

Beyond that, many foreign companies don’t take the time to build up local know-how. Truly understanding the market, the regulatory limits and the Chinese consumer is essential. Success requires careful research and the development of strategies tailored specifically for China, rather than relying on what worked in Western markets. To help our clients navigate these challenges, we launched a weekly e-commerce newsletter this year, sharing key insights and updates about the Chinese e-commerce market to ensure they’re well-informed and prepared.

Gerald Neumann: You are the founder & CEO of a “TP”. What is a TP and how do you help foreign brands in China?

Genuine: A TP, or Tmall/ Trade Partner, is a service provider that helps foreign brands establish and thrive in China’s complex e-commerce ecosystem. We act as a bridge between the brand and the Chinese market, managing every aspect of their online presence. This includes setting up and operating stores on major platforms like Tmall, JD.com, and Douyin, as well as handling marketing campaigns tailored to Chinese consumers.

But it doesn’t stop there. We also take care of logistics and supply chain management, ensuring fast and reliable delivery, which is crucial for maintaining customer satisfaction. On top of that, we provide customer service in local language and style, which is key to building trust and loyalty in such a competitive market.

Our role is to simplify the process for foreign brands, allowing them to focus on their core business while we navigate the unique challenges of the Chinese market—whether that’s dealing with ever-changing regulations, optimizing store performance, or leveraging data analytics to refine strategies. Essentially, we’re here to help brands not only enter the market but succeed and grow in the long term.