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Profit not only incentive for Chinese manufacturers to go online

Profit not only incentive for Chinese manufacturers to go online

Interestingly a recent survey in China, of manufacturers with an online presence, found that the main drivers for setting up an online store were to create additional sales volumes, build brand image and communicate with shoppers. Only 31 percent said that they were in it for the additional profits.

– Enterprise TV Editorial Note
JD.com, Tmall top e-tailing sites
JD.COM emerged as the top online retailer, followed by Alibaba’s Tmall, with over 90 percent of respondents in a survey praising both the e-commerce sites for the quality of their services.

The ranking list was a comprehensive assessment which took into account the sites’ performance and capability in commercial, strategic, operational and marketing, according to Digital Power Study by Kantar Retail, which covered more than 200 multinational and local consumer goods manufacturers.

“We would strongly recommend any brand that is serious about e-commerce should have their flagship stores on both these sites,” said Bernhard Wessels, managing director of Kantar Retail North Asia.

Vip.com rose to 4th from 6th last year. Xiaohongshu also made it to the top 10 list for the first time, standing in the 8th position thanks to its community operation capability and unique business model.

Creating additional sales volume is still the main reason that motivates manufacturers to turn to online channels, with 80 percent of respondents saying they target online sales for more sales income.

Consumer goods manufacturers also find e-commerce companies playing a crucial role for building brand image and communicating with shoppers.

Only 31 percent of respondents said that e-commerce provide additional profit for their businesses, with severe competition pushing them into price wars to win consumers.





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