Online retailers should translate their product content for the local audience. Something that resonates culturally in Australia might not make sense in Shanghai.
Since slow network speeds are commonplace, consumers may have trouble navigating rich-media sites, and commerce sites should be optimised for all levels of client devices – flash animation should be avoided. When determining site design, rating and review modules are unnecessary. However, smooth integration with local social sites will be essential.
Australian retailers planning to do online business in China should retain an in-country legal counsel to navigate the various levels of bureaucracy within the Chinese government. This is especially true when securing an Internet Content Provider (ICP) License, which is mandatory when selling anything online in China.
Online sales policies, sales terms and conditions, and policies governing returns and exchanges should all be cleared with a local expert who can advise the best way to address all relevant legal mandates and cultural norms.
Collaborating with local native-speaking implementation partners familiar with all cultural, technical, legal, political and governmental issues can help facilitate acceptance during the planning and design phases to ensure the most effective solutions are implemented and project delays or costly overruns are avoided.
An eCommerce platform for the Chinese market needs to be built at the earliest phases of development to cope with the unique standards that apply in China, and should be capable of integration with home-grown ERP and other enterprise systems.
Payment solutions and fulfilment operations need to cater to the unique needs of local buyers. Alipay, an electronic payment system similar to PayPal, is ubiquitous in China and cash on delivery (COD) is another popular payment preference. Mobile commerce is on the rise in China, and implementing seamless integration with a mobile commerce solution should be a high priority.
China leads the world when it comes to highly personalised fulfilment models. In metropolitan areas deliveries are largely fulfilled by couriers, with options such as FedEx and UPS offered as express delivery alternatives, but shipments to more remote areas can be tricky. Many major eCommerce sellers will only ship to the 300 largest cities in China, and eCommerce systems have to be built to accommodate these shipping prohibitions.
Alongside currency and language customisation, doing online business in China includes some lesser-known technical nuances.
Internet Explorer 6 remains the browser of choice for about a third of China’s internet users. Optimising sites for IE6 and scripting languages is important, as is avoiding any integration with Google technologies (such as Google Analytics) as in the past the Chinese government has denied access to Google websites.
Finally, China’s internet infrastructure has yet to be optimised. Australian retailers should consider integrating with a local Content Delivery Network (CDN) such as China Cache or gaining a thorough understanding of local caching rules. Knowing when and how to distribute content across a CDN is also critical.
Australian brands looking to build a thriving eCommerce business will need to address the distinctive needs of Chinese consumers, navigate the local government/legal landscape, and build their eCommerce strategies on an agile commerce platform flexible enough to handle the technical requirements that are unique to China.
Stefan Schmidt is the vice president of product strategy at eCommerce software provider Hybris, which has successfully expanded into China.
