Rule Optimization and Competitiveness in China’s E-commerce
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
3.3 PRICE COMPARISON RULES – RULE PORTRAIT (1/3)
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness. The competition for price comparison advantage is an important focus of low-price competition among various platforms. Price comparison rules such as compensation for overpriced products, automatic price tracking and price guarantee services are important starting points for establishing price comparison advantages. Among them, compensation for overpriced products and price guarantee services help reduce the time of price comparison for shopping and the hesitation time for worrying about price cuts, and automatic price tracking helps to dynamically adjust the prices of platform products and ensure the leading price competitiveness of platform products.
The main price comparison rules of e-commerce platforms
3.3 PRICE COMPARISON RULES – RULE PORTRAIT (2/3)
The price comparison rules still have significant room for optimization, offering key opportunities for platforms to enhance their low-price competitiveness. Platforms are actively exploring more consumer-friendly price comparison rules to reinforce their reputation for low prices. For instance, the “Guaranteed Compensation for Overpricing” service provides some consumer protection but varies in terms of duration, applicable scenarios, and price comparison platforms. To strengthen competitiveness, platforms can further refine these rules by aligning with their strategic positioning, leveraging resource advantages, and addressing consumer demands in different contexts.
3.3 PRICE COMPARISON RULES – RULE PORTRAIT (3/3)
Price comparison rules are conducive to quickly identifying efficient merchants and their products, but the platform should guarantee merchants a reasonable profit margin, thereby enhancing merchants’ willingness to continue operating and differentiated innovation, so as to prevent platform merchants from falling into the path dependence dilemma of low-quality development. This is conducive to forming a virtuous cycle of merchant value chain advancement and consumer sense of gain continuously enhanced.
Consumer Advantages:
Merchant Advantages:
Platform Advantages:
3.4 TRAFFIC RULES – RULE PORTRAIT (1/2)
Under the overarching context where cost-effectiveness dominates consumer demand, how to strengthen low-price orientation in traffic allocation has become a critical point of competition for various platforms.
Comparison of traffic rules of major e-commerce platforms in 2024
3.4 TRAFFIC RULES – RULE PORTRAIT (2/2)
Balance the relationship between low-price-oriented and GMV-oriented traffic distribution to enhance the driving force of traffic rules to guide the platform ecosystem to advance in the direction of high value.
1. Low-Price Orientation
Advantages:
Hidden Dangers:
2. GMV Orientation
Advantages:
Hidden Dangers:
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
Evolving Dynamics in the Chinese E-commerce Market: Supply and Demand Trends, Strategic Shifts, and Rule Optimization
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase, driven by stratified and segmented consumer demand that emphasizes value-for-money and quality-of-life improvements. Platforms are shifting from a one-size-fits-all low-price strategy (prominent in 2023) to a “dual-track” approach in 2024, combining price competitiveness with differentiated value propositions tailored to platform-specific strengths.
On the demand side, economic challenges reinforce value-oriented consumption, but diverse consumer needs support differentiated growth strategies. On the supply side, the market faces growth pressures but has opportunities in quality-of-life categories.
Key platform rules play a pivotal role in strategy execution:
Future Trends: Platforms will deepen strategic differentiation and explore niche opportunities. Merchants must align their product strategies with platform goals, while consumers should choose platforms wisely to meet their evolving needs efficiently.
1.1 CHANGES IN THE DEMAND SIDE
Consumer demand in the e-commerce market is increasingly showing a clear trend of stratification and segmentation.
During the current economic downturn, Chinese consumers’ income expectations are generally cautious, leading to more rational consumption. Value-for-money demand now dominates the consumer market. However, the complexity and diversity of consumer demand in the Chinese market provide strong support for the diversified and varied development of China’s e-commerce market.
Main Features of the Stratification and Segmentation of Consumer Demand in China’s E-commerce Market
The demand for an improved quality of life in China is driving the growth of specific product categories, particularly in the outdoor sports economy and the silver economy.
The outdoor sports economy is booming, with activities such as trekking, cycling, diving, surfing, camping, fishing, and skiing gaining popularity. Corresponding product categories include outdoor footwear and clothing, functional products (e.g., sun protection, waterproof, quick-drying gear), food supplies, protective gear, scenario equipment, outdoor tools, and accessories. The market size for outdoor products was 197.1 billion yuan in 2022 and is projected to expand to 2400 billion yuan by 2025, reflecting a significant growth trajectory.
The silver economy, catering to the elderly, is also witnessing rapid expansion. Products that enhance the quality of life for seniors include comfortable and functional clothing, health monitoring and protective gear, rehabilitation equipment, exercise tools, nutritional supplements, wellness products, and entertainment items such as books and music. The silver economy market size was 7 trillion yuan in 2023 and is expected to soar to 30 trillion yuan by 2025, underscoring its immense potential.
On the supply side, the Chinese e-commerce market has reached a bottleneck, with increasing pressure to identify new growth areas. Traditional e-commerce platforms face slowing growth, and conventional promotional strategies are losing effectiveness. Meanwhile, live-streaming e-commerce, though still growing, is experiencing a deceleration in growth rates.
An analysis of the 618 sales growth rates highlights this trend. In 2022, overall online sales grew by 20.3%, but this slowed to 14.8% in 2023, with a sharp decline to -7.0% projected for 2024. Similarly, comprehensive e-commerce sales growth fell from 17.5% in 2022 to 5.4% in 2023 and is expected to contract by -6.9% in 2024. Live-streaming e-commerce, which saw explosive growth of 124.0% in 2022, slowed to 27.6% in 2023, with further moderation to 12.1% growth anticipated in 2024.
These trends underscore the growing importance of differentiated strategies and niche market opportunities to overcome the challenges facing China’s e-commerce market.
From the perspective of meeting the demand for improved quality of life, the Chinese e-commerce market still holds rich structural development opportunities.
The demand growth for categories driven by the improvement of quality of life is strong
2.Strategic Changes in Chinese E-commerce Platforms
2.1 STRATEGIC CHANGES IN THE E-COMMERCE PLATFORM
In 2023, major e-commerce platforms focused on low-price strategies to stay competitive, responding to high demand for cost-effective products and fierce competition during the economic downturn. Platforms prioritized price competitiveness, aiming to help consumers save money, time, and effort. However, the success of these strategies varied due to differences in their strategic goals and core strengths. Cost-performance became a key driver for attracting consumers in challenging economic times.
Taobao:
Effect: The low-price strategy had little impact. In Q2 2024, Taobao’s retail revenue dropped by 2% year-on-year, and Alibaba’s net profit fell by 27%.
Reasons:
1. Taobao’s wide range of non-standardized categories, like clothing, complicates price comparison and increases price sensitivity.
2. Taobao’s customers prioritize product diversity and high-quality services over low prices, leading to fewer orders despite discounts.
JD.com:
Effect: The low-price strategy worked well. In Q2 2024, JD’s retail revenue grew by 1.5% year-on-year, and net profit surged by 69%, exceeding expectations.
Reasons:
1. JD’s standardized categories, like home appliances and 3C electronics, make price comparisons easy and enhance price sensitivity.
2. JD’s strong supply chain boosts its low-price competitiveness.
TikTok (Douyin):
Effect: The low-price strategy showed limited success. GMV growth slowed to below 40% in March 2024 and under 30% in Q2, missing expectations.
Reasons:
1. Brand owners control pricing tightly, making it hard for TikTok to compete on price.
In 2024, the core characteristics of strategic adjustments for e-commerce platforms can be summarized as the “dual approach”:
1) Combining platform characteristics, focusing on creating low-price competitive advantages that match their strategic positioning.
2) Focusing on creating differentiated competitive advantages beyond low-price competition.
Implementing the ‘dual approach strategy’ and actively creating differentiated competitive advantages has become the mainstream development model for e-commerce platforms
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
3.Rule Changes of Chinese E-commerce Platforms
3.1 RULE OPTIMIZATION GUIDANCE FOR E-COMMERCE PLATFORMS
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction. Then cooperate with the implementation of platform strategy Source: Public information, independent research and drawing by iResearch Consulting Research Institute.
In order to effectively cope with the dual impact of higher cost-effectiveness requirements during the economic downturn and the increasingly fierce competition for effective purchasing power, each platform continues to optimize platform rules. The fundamental motivation is to enhance the appeal to users by giving consumers a greater sense of gain, thereby improving the platform’s competitiveness and consolidating and expanding the platform’s basic base.
Platform rule optimization orientation: giving consumers a greater sense of gain
3.2 REFUND RULES ONLY – RULE PROFILE (1/4)
“Refund Only” Rule: Simplifying Returns and Boosting Trust
The “Refund Only” rule allows consumers to get refunds without returning the product in certain cases. It has become an industry standard, introduced to enhance platform competitiveness and improve customer satisfaction.
Purpose:
When It Applies:
This rule simplifies the shopping experience, ensuring higher satisfaction and trust in e-commerce platforms.
3.2 REFUND RULES ONLY – RULE PROFILE (2/4)
How the “refund only” rules of major e-commerce platforms evolved
3.2 REFUND RULES ONLY – RULE PROFILE (3/4)
“Refund Only” Rule: Usage and Platform Differences
The “Refund Only” rule is widely applied in scenarios involving low-priced, non-standard products and weak brand presence. Its usage varies based on platform type:
Platforms with White-Label Merchants (e.g., Pinduoduo):
Platforms with Brand Merchants (e.g., JD.com):
This rule enhances consumer trust on white-label platforms but is less common on brand-focused platforms with higher service standards.
3.2 REFUND RULES ONLY – RULE PROFILE (4/4)
The impact of refund rules on all parties in the platform ecosystem
Positive Aspects:
Negative Aspects:
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
China’s outbound tourism industry is recovering rapidly, with improvements in visas and transportation enhancing the market’s recovery pace.
In 2023, China reclaimed its position as the top spender on international tourism, with $196.5 billion and travel reaching 88% of 2019 levels, projected to reach 97% by mid-2024. Full recovery of global tourism is expected in 2024, with a 2% increase in traveler numbers over 2019, driven by demand and better air connectivity in China and Asia.
China’s tourism industry has grown rapidly due to economic expansion, rising incomes, and a larger middle class, with 155 million outbound travelers spending $255 billion in 2019. In 2023, outbound travel hit nearly 101 million, aided by visa waivers. Ctrip’s hotel bookings now exceed 2019 levels, and by the second half of 2024, China’s outbound tourism is expected to reach 90% of pre-pandemic figures.
User Needs: Rapidly Changing Travel Demands
The post-90s and post-00s generations are now the dominant force in outbound tourism, driving significant changes across the industry. Just as the post-80s generation fueled the e-commerce boom, these younger generations are reshaping outbound tourism and influencing all market segments.
The following are key trends associated with these younger travelers:
1. Independent Travel: Flexibility is key, with more young travelers designing personalized itineraries.
2. YOLO Philosophy: Driven by a desire for self-expression, they seek meaningful, diverse experiences.
3. Experience Over Traditional Tourism: Young travelers prioritize immersive, unique adventures over typical sightseeing.
New Trends in Outbound Travel:
The Challenge: Challenges Facing Outbound Tourism Recovery
Despite positive trends, outbound tourism recovery faces challenges. A UNWTO survey shows that economic factors and travel safety concerns are major obstacles, affecting travel plans and consumer confidence. The industry must address these issues to ensure a full recovery.
Economic Environment and Travel Budgets:
The uncertain economy and unemployment risks are reducing travel budgets, with some travelers cutting back while others continue to spend despite inflation.
Geopolitical Instability and Safety Concerns:
Geopolitical instability, such as the Russia-Ukraine conflict, raises safety concerns, impacting travel to affected regions and neighboring countries.
Over-Tourism and Declining Travel Experiences:
Over-tourism in popular destinations like Barcelona and Venice is straining local infrastructure, lowering the quality of tourist experiences. To address this, the industry should improve capacity and promote less crowded destinations.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
OTA platforms are the main platforms for outbound travel users to book, fulfill, and obtain information, while short video and graphic platforms serve as important channels for gaining inspiration for outbound travel.
Ctrip holds nearly half of the market, leading the outbound travel market, while Fliggy Travel has quickly risen, capturing nearly 30% of the market, ranking second.
Ctrip’s strong competitiveness in flight and hotel services has helped it dominate the outbound group tour market. Outbound group tours involve travel agencies organizing and planning trips for groups, where participants follow set itineraries and pay for the entire trip as a package, often benefiting from group discounts. This travel style typically includes round-trip transportation.
Fliggy actively embraces the rising demand for independent travel driven by a younger user base, ranking first in the outbound independent travel market.
Ctrip leverages a vast user base and robust distribution and supply chain capabilities in flights and hotels to establish its core competitiveness in outbound tourism. The company has consistently invested in and acquired assets within the travel ecosystem, further strengthening its position in the market.
The OTA Platform Outbound Tourism Business Competitiveness Assessment Matrix evaluates seven modules—visa, traffic costs, transportation, accommodation, dining, local transport, and entertainment—across five dimensions, scoring a maximum of 50 points per module and 350 points total. Higher scores indicate stronger competitiveness.
Fliggy, backed by Alibaba, enhances traffic from Taobao, improving user acquisition and marketing synergy while strengthening its fulfillment capabilities in the outbound tourism market.
Alibaba and Ant Group have a massive user base, covering nearly all online consumers.
Fliggy’s outbound tourism business has been steadily gaining momentum, securing the top position in multiple segments of the outbound travel market.
Leveraging the WeChat ecosystem, Tongcheng Travel is focusing on the transportation and accommodation sectors, demonstrating significant competitive advantages that highly overlap with Ctrip’s areas of strength.
Meituan’s outbound tourism business is in the early stages and is actively expanding its overseas hotel, dining, and ticketing services.
Competitive Landscape: Ctrip has strong competitiveness in the transportation and hotel sectors, while Fliggy has clear advantages in visas, SIM cards, local transportation, and entertainment. Meituan is leading in the dining sector.
Competitive Landscape: The Chinese outbound tourism market exhibits a “2+2” competitive structure, with Ctrip and Fliggy firmly in the leading tier, while Tongcheng Travel and Meituan continue to strengthen their positions in their respective advantageous sectors.
Ctrip leads the outbound tourism market with strong brand recognition in transport and hotels. Fliggy, popular with younger travelers, excels in visas, communication services, and local experiences. Tongcheng Travel leverages the WeChat ecosystem and Ctrip collaboration, showing strength in transport and hotels with growth in vacations. Meituan is expanding in outbound tourism, focusing on hotels, ticketing, and leading dining.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
In 2023, China became the largest overseas tourism market, with 101 million outbound travelers and $196.5 billion in spending. China’s outbound tourism recovery is robust, with 60.71 million travelers in the first half of 2024—a 50.4% increase year-on-year, now 74.7% of 2019 levels. This growth is focused on nearby destinations like Southeast Asia and the UAE, driven by demand for independent, flexible travel over organized tours.
Industry players, especially OTAs, adapt to big data and AI to meet evolving preferences. With better visa policies and restored airline capacity, the market is expected to reach 90% of 2019 levels by late 2024 and fully recover by early 2025.
Key Concept Definitions
Outbound Tourism refers to Chinese mainland residents traveling for vacations to countries, regions, and areas like Hong Kong, Macau, and Taiwan outside the Chinese mainland.
Outbound Group Tours are organized by travel agencies, which plan itineraries and make transportation arrangements. Travelers follow the agency’s set plans and typically pay a lump sum in advance, benefiting from group discounts.
Independent Outbound Travel encompasses all forms of outbound tourism that do not involve group tours.
UNESCO defines young users as individuals aged 15 to 44, the age range used in this report.
Point of View: Accelerating Recovery of China’s Outbound Tourism Market
The “2023-2024 Cross-Border Travel Consumption Trend Report” by the World Tourism Alliance, Mastercard, Ctrip, and Alipay highlights the strong recovery of China’s outbound tourism. As travel demand rises and flights resume, outbound travel and per capita spending steadily increase. Chinese travelers initially prefer nearby destinations, with the UAE emerging as a top destination due to its visa-free and tax-free policies, attracting business and independent tourists alike.
1.Current Status of China’s Outbound Tourism Industry
Global outbound tourism is rebounding, with the Middle East and Europe surpassing pre-pandemic levels. According to the UNWTO’s 2024 Tourism Barometer, international tourism revenue reached $1.4 trillion in 2023, or 93% of 2019 levels, with 1.3 billion travelers, representing 88% of pre-pandemic figures.
The Middle East exceeded 2019 levels by 22%, Europe reached 94% due to strong regional and U.S. demand, and Africa and the Americas hit 96% and 90%, respectively. The Asia-Pacific region is recovering slower, at 65% of 2019 levels, with South Asia at 87% and Northeast Asia around 55%.
Europe, the region with the highest number of outbound and inbound tourists, is continuing its recovery in the second quarter of 2024. The number of inbound tourists has increased by 6% compared to 2019 levels.
China’s tourism market is experiencing a strong overall recovery, with tourism expenditure growth outpacing the increase in the number of travelers, leading to an accelerated release of consumer spending power in tourism.
China’s outbound tourism market is experiencing a strong recovery, with 60.71 million outbound trips in the first half of 2024, reflecting a 50.4% year-on-year increase. Key highlights include
Passports Issued: 12.34 million, a 23.2% year-on-year increase.
Permits for Hong Kong and Macao: 46.15 million, a 7.8% increase.
International Flights: 267,000 flights operated, recovering to 70.5% of 2019 levels, with 44 million passengers, also at 70.3% of pre-pandemic numbers.
Visa and Entry Policies China has made significant progress in visa facilitation, signing agreements with 157 countries, simplifying procedures with 44, and establishing full mutual visa exemptions with 23. Visa-free or visa-on-arrival policies are available in over 60 countries. Notable developments include:
Transportation In the first half of 2024, international flights increased by 179.3% year-on-year, averaging 1,468 flights per day. The recovery reached 78% of 2019 levels by June, with significant growth in flights to Italy, Qatar, the UK, and the UAE.
Local Activities As Chinese tourists return, local services and activities at destinations are rapidly recovering, improving the overall travel experience.
Travel Preferences The younger generation is increasingly favoring flexible and independent travel, showing a higher enthusiasm for outbound travel compared to older age groups.
More than half of outbound travelers are from the post-90s and post-2000s generations, with teenagers increasingly influencing family decisions on travel. This trend highlights the growing impact of younger travelers in the outbound tourism market.
Middle-aged parents are now allowing their children to influence outbound travel decisions, aiming to enhance the experience and develop their skills, showcasing teenagers’ growing impact on travel planning.
Young travelers are reshaping outbound tourism with diverse, flexible styles:
Social media—especially Douyin, Xiaohongshu, and WeChat—is a key source of travel inspiration.
Independent travel is becoming the preferred choice for Chinese outbound travelers, with more group tour participants transitioning to self-guided trips. This shift is leading independent travel to dominate China’s outbound tourism market
The rise of independent travel is changing the existing consumption structure of outbound travelers, with the proportion of spending on local entertainment and activities continuously increasing.
Independent travel is reshaping Chinese outbound tourism, with air travel still dominant. Travelers increasingly avoid peak times, reducing transport costs, and seek less popular destinations, lowering accommodation expenses. Personalized itineraries focused on local culture, cuisine, and unique experiences are driving up spending on local entertainment, while overall travel and lodging costs may decrease.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
Brands Seek Omni-Channel Integration in Live-Streaming E-Commerce
Brands are increasingly utilizing live-streaming e-commerce across multiple platforms to reach consumers through a multi-channel marketing strategy. This expansion is driving a need for better omni-channel integration and monitoring. Challenges include higher operational costs, difficulties with data aggregation, and price control issues. To overcome these hurdles, brands need to adopt digital tools for effective omni-channel integration and monitoring to improve the efficiency of their live-streaming e-commerce operations.
Consumers’ diverse purchase factors challenge brands
Consumers consider multiple factors when making purchase decisions, making it challenging for brands to accurately capture the diverse needs of consumers.
At the primary level, consumers base their decisions on factors such as “product quality/function, brand, emotional connection, and price,” with varying priorities for different categories.
At the secondary level, the importance of these factors can differ by product category. For example, in the “brand” dimension, consumers place more importance on brand recognition for non-food products, while for food products, brand reliability is more crucial.
Overall, consumers take multiple factors into account when making purchasing decisions, leading to diverse needs for the products they buy. If brands cannot accurately capture these needs, it can result in poor sales conversion rates during live-streaming.
Shift to Detailed Content in Live-Streaming E-Commerce
From 2021 to 2023, live-streaming e-commerce views and purchase conversion rates on platforms like Douyin and Kuaishou have steadily increased. In 2023, these platforms recorded 563.53 billion views with a 4.8% conversion rate. Consumers are increasingly relying on “content seeding” for purchasing decisions, showing greater interest in detailed product knowledge rather than aggressive sales tactics. According to iResearch, 78.1% of consumers seek comprehensive information about products during the sales process. To improve conversion rates, live-streaming sessions should focus on providing detailed product information and aligning marketing content with product attributes to enhance the overall viewing experience.
Enhancement of Live-Streaming E-Commerce Through Digital and Intelligent Upgrades
Accelerating the Digital and Intelligent Upgrading of Live-Streaming E-commerce Business Processes to Enhance Service Efficiency on Both Supply and Demand Sides.
Live-streaming e-commerce service providers are increasingly adopting digital technology to enhance their processes. While many are using outsourced business intelligence (BI) systems to boost internal efficiency, these systems offer limited support for both supply and demand sides. Providers with R&D capabilities are developing their own digital platforms that go beyond BI functionalities, incorporating data analysis, forecasting, and intelligent business processes. Some have integrated SaaS tools into these platforms to support brand owners’ live-streaming activities, aligning with the trend of brand-owner live-streaming. Overall, core service providers are improving their digital and intelligent capabilities to enhance sales efficiency, operational performance, and communication of consumer needs, thereby increasing service efficiency for both supply and demand sides.
Adoption of Generative AI for Digital Human Hosts in Live-Streaming
Riding the Wave of Generative AI Technology: Actively Developing Digital Human Hosts to Supplement Brand Live-Streaming Roles.
Digital humans, powered by Artificial Intelligence Generated Content (AIGC), are increasingly being used for live-streaming by brands due to their cost-effectiveness. They are especially popular among brands looking to streamline their store operations. However, for brands dealing with non-standard products or leading brands, digital human hosts are less common due to the high costs of development and training, which may not justify the investment.
Core live-streaming e-commerce service providers are either outsourcing digital human hosts or partnering with technology suppliers. Outsourcing can lead to a disconnect between technology and business needs, while partnerships with technology suppliers enable better alignment and customization of digital human hosts to meet live-streaming e-commerce requirements, enhancing brand store operations efficiently.
The Value of Digital Human Anchors in Brand Store Broadcasting
1. Reduce the cost of setting up live streaming rooms
The cost required for brand owners to build digital live streaming rooms is significantly lower than that of traditional live streaming rooms,
The reduced costs include hardware equipment expenses such as cameras and personnel expenses such as anchors.
2. Low cost capture of non-prime time traffic
Brand owners can use digital influencers to seize non-prime time traffic and coordinate live streaming operations to maximize input-output efficiency.
Non-standard brand merchants and top brand merchants have higher requirements for digital human anchors, which has led to the previous
The cost of building a database is relatively high, and on the other hand, the frequent iterations required in the later stage result in higher training costs.
Advancement of Digital Flexible Supply Chains
Emphasizing the Development of Digital Flexible Supply Chains to Help Brands Precisely Address Consumer Needs
Live-streaming e-commerce initially improved supply chain efficiency by shortening the sales process, but a one-sided push supply chain is now insufficient for meeting diverse consumer demands. To build competitive advantages, practitioners must enhance supply chain efficiency and address varied consumer needs. Core service providers are leveraging technology to develop digitally flexible supply chains, enabling brands to improve product iteration efficiency and better align with evolving consumer demands.
Adoption of Advanced Technologies for Enhanced Product Presentation
Introducing New Technologies to Enhance Product Information Touchpoints and Utilizing Large Models for Intelligent Product Selling Point Creation
Core live-streaming e-commerce service providers are adopting advanced technologies like VR panoramic live-streaming, 4K/8K ultra-high-definition live-streaming, and 5G real-time cloud rendering to enhance product presentation and user engagement. These technologies help consumers gain a detailed understanding of products, boosting shopping conversion rates. Additionally, Artificial Intelligence Generated Content (AIGC) is being used to automate the creation of product selling point copy based on product features and audience profiles. This allows content operators to optimize and improve content efficiency and quality significantly.
Key Industry Development Trends in Live-Streaming E-Commerce
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
We:
We’re committed to providing deep insights into the rapidly changing Chinese market and leveraging our rich experience to facilitate your growth in this dynamic environment.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
Since 2020, government departments have established explicit regulations to supervise parties in the live-streaming e-commerce industry, such as merchants, platforms, streamers, and service providers. The sector has transitioned from unrestricted expansion to more tight regulation and established standards. In 2023, regulators issued compliance rules to handle new hazards such as “lowest price agreements” and “virtual human streamers,” with the goal of improving consumer protection and ensuring fair operations.
Overview of Policies Related to China’s Live-Streaming E-Commerce Industry
2020 China Commerce and Media Shopping Committee’s “Basic Standards for Video Live Shopping Operations and Services” China Advertising Association’s “Code of Conduct for Online Live Marketing” The National Radio and Television Administration’s “Notice on Strengthening the Management of Online Showroom Live-streaming and E-commerce Live-streaming” | 2022 Cyberspace Administration of China and Three Other Departments’ “Opinions on Further Regulating Online Live-streaming Profit-making Behavior to Promote Healthy Industry Development” National Radio and Television Administration’s “Code of Conduct for Online Live-Streaming” |
2021 State Administration for Market Regulation’s “Measures for the Supervision and Administration of Online Transactions” Cyberspace Administration of China and Six Other Departments’ “Measures for the Administration of Online Live-streaming Marketing (Trial)” | 2023 Shanghai Municipal Market Supervision Bureau’s “Compliance Guidelines for Online Live Streaming Marketing Activities (Revised Draft for Comments)” Hangzhou Municipal Bureau of Justice’s “Compliance Guidelines for the Live E-commerce Industry (Draft for Comments)” |
Growth Potential in Live-Streaming E-Commerce Amidst Cautious Consumer Spending
Consumers are currently being cautious with their purchases, preferring online outlets that provide both price and experience advantages. In 2023, China’s per capita consumer expenditure to per capita disposable income ratio was 68.3%, which was still lower than it was before the epidemic. Despite this cautious expenditure, online retail sales of tangible items grew steadily from 2019 to 2023, strengthening their market dominance. The transition to online shopping has offered continued growth potential for the live-streaming e-commerce business.
High Penetration of Short Videos Drives Growth in Live-Streaming E-Commerce
The widespread use of short videos has created a substantial consumer base for the live-streaming e-commerce industry. By June 2023, there were 1.03 billion short video users, representing 95.1% of internet users, with many platforms also offering live-streaming content. This high penetration rate has facilitated the conversion of short video users into live-streaming e-commerce participants. As of June 2023, there were 530 million live-streaming e-commerce users, or 59.5% of online shoppers, making it a major channel for purchasing goods. As the number of live-streaming e-commerce users continue to grow, the industry’s traffic pool is expected to expand further.
Technological Advancements Fuel Digitalization and Efficiency in Live-Streaming E-Commerce
Advancements in technology are driving the live-streaming e-commerce industry towards greater digitalization and intelligence, improving operational efficiency. Initially, digital technologies were used primarily in product selection and recruitment. However, as digital transformation accelerates, these technologies are now being applied throughout the entire live-streaming e-commerce process. This includes using advanced data analysis for smarter product selection, which enhances efficiency and helps identify trending products. Service providers are continually integrating new technologies at every stage, fostering the industry’s shift towards digital and intelligent operations.
Rising Capital Investment Accelerates Growth and Diversification in Live-Streaming E-Commerce
Capital institutions are increasingly investing in live-streaming e-commerce service providers, leading to more investment and faster development of the industry ecosystem. Tighter regulations since 2020 have made professional service providers essential for standardizing operations, boosting their appeal to investors. In 2023, all 11 financing events in China’s live-streaming e-commerce sector involved service providers. These leading providers are now also investing in upstream enterprises, offering capital and additional services like marketing, consumer insights, and R&D support. This diversification of investment stakeholders is accelerating the development of the industry ecosystem.
China’s Live-Streaming E-Commerce Market Shows Robust Growth and Stable Future Prospects
In 2023, China’s live-streaming e-commerce market reached 4.9 trillion RMB, marking 35.2% year-on-year growth. Although the growth rate has slowed compared to earlier stages, the industry continues to expand. iResearch forecasts an annual compound growth rate (CAGR) of 18.0% from 2024 to 2026, suggesting a stable growth trajectory and a trend toward more refined development in the future.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
Key Elements in International School Operations
International schools have numerous operational factors, including faculty quality, curriculum, student advancement, facilities, and cultural environment. Among these, teaching quality is central and is influenced by various factors such as faculty expertise, curriculum, and management.
Brand reputation, an invaluable intangible asset, is affected by student outcomes and growth, which in turn are shaped by enrollment quality, teaching standards, international collaborations, and holistic student development. The effectiveness of education mechanisms remains opaque, with interconnected factors affecting each other—e.g., faculty quality impacts reputation, and reputation can affect faculty quality. Key factors influencing teaching quality include:
International School Operation Element: Faculty Quality
In 2019, data from the FarReach Education International School Database revealed that the student-to-teacher ratio in Chinese K-12 international schools averages 5.9:1, with ratios concentrated around 5:1 to 6:1. This is significantly lower compared to non-international K-12 schools in China, which had an average ratio of 15.6:1 in 2018.
A lower student-to-teacher ratio indicates more personalized attention and resources for each student. International schools often employ small class sizes, a hallmark of personalized education. This approach, common in developed Western countries, focuses on individual student development and includes tailored teaching methods and evaluations.
According to the data:
54.3% of international schools have average class sizes of 20–30 students.
24.2% have class sizes of 10-20 students.
20.4% have class sizes of 30–40 students.
Classes with over 40 students are rare.
International School Operation Element: Curriculum System
International schools, catering to a global student body, offer a diverse range of curricula to align with various national education systems. In China, K-12 international schools primarily adopt the British, American, IB, Canadian, and Australian curriculum. Many schools blend foreign educational philosophies with aspects of the Chinese system to create their own curriculum.
According to the FarReach Education International School Database:
88% of international schools in China offer high school programs.
The main high school curricula include A-Level, IB-DP (International Baccalaureate Diploma Programme), and AP (Advanced Placement).
Other less common options include Canadian curriculum (e.g., BC and Ontario), Australian curriculum (e.g., VCE), and PGA/ACT courses.
International School Operation Element: School Management
As international schools grow in popularity among middle-to-high-income families in China, parents have several concerns regarding school management. These concerns span across pre-enrollment, during enrollment, and post-graduation.
These concerns reflect the need for effective management practices in international schools to address the diverse needs and expectations of students and parents.
International School Operation Element: School Management
Cultural Conflicts:
A central issue in managing international schools is navigating the cultural conflicts between Eastern and Western educational practices. Parents are particularly concerned about whether their child will receive a high-quality and suitable education after enrollment.
Key Management Challenge:
International School Market Size
As of August 31, 2018, there were 1,309 international schools in China, with an average student enrollment of 392 per school, totaling 513,000 students. The average annual tuition fee was 108,000 RMB per student, resulting in a market size of approximately 55.4 billion RMB for 2018.
Driven by factors such as economic growth, the expanding middle class, increasing demand for studying abroad, and rising education spending, the market is expected to grow. Considering the increasing number of students, tuition fees, and the expansion of international schools, the market is projected to reach 79.7 billion RMB by 2021, with an annual compound growth rate of 12.9%.
international school industry chain
The international school industry chain has become increasingly sophisticated, with education and teaching supply being the core components.
Establishment of International Schools
45.6% of international schools were established in the past decade. Most schools in the current data are relatively new, with 45.6% founded between 2011 and 2019, and 30.6% between 2001 and 2010. The past ten years have marked a golden period for the development of international schools in China.
The growth of international schools in China has been particularly prominent in recent years, with a significant number of new schools being established. This trend is expected to continue as the demand for high-quality education from expatriates and local families remains strong.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110
In the 1970s, as New China was founded and reforms were implemented, the presence of foreign embassies, consulates, and expatriates in China increased, bringing their children who required education. This need led to the establishment of China’s first international schools, which initially provided native language education for expatriate students. Over time, these schools evolved to primarily serve domestic students.
Typically, Chinese students progress from local schools during compulsory education to high schools in counties or cities, and then to higher education institutions in urban areas or other provinces. They follow a curriculum set by the Ministry of Education, including subjects like Chinese, math, English, and political science.
As studying abroad became more popular, the number of students going overseas surged from 860 in 1978 to 662,000 by 2018, with an increasing trend of younger students. As reforms continued, many parents preferred their children receive advanced international education within China rather than abroad, which spurred the growth of international schools across the country.
Definition of International Schools
International schools are distinguished by their use of international curricula. They can be broadly classified into three types:
1. Narrow Definition: Schools specifically designed for expatriate children in China, offering education in their native languages.
2. Broad Definition: Schools within China that provide full or partial international curricula, serving both Chinese and foreign students.
3. Types of International Schools:
The primary difference between international schools and other schools is their curriculum. International schools offer international courses, while non-international schools adhere to domestic curriculum standards.
Parents’ Perspective on International Schools
Parents often view international schools as a stepping stone to studying abroad, with many preferring their children start attending high school. Surveys by Yuanbo Education and iResearch show that parents generally believe the best path is for children to begin international school in 10th grade (equivalent to domestic high school), study abroad for their undergraduate degree, and complete their master’s degree overseas. Specifically, 30.7% of parents feel that starting in high school is ideal, while 19.6% prefer starting in middle school. Additionally, 15.6% and 11.6% of parents believe beginning in elementary school or kindergarten respectively would provide early exposure to international education, preparing their children for future international high school or study abroad opportunities. This data also highlights a growing trend of parents planning their children’s educational journey early, opting for international schools during foundational education to prepare for studying abroad, reflecting a trend toward younger ages in international education.
Brand Reputation is an invaluable intangible asset for international schools, shaped by students’ academic outcomes and future growth. This reputation is affected by several factors, including the quality of student enrollment, teaching standards, international collaborations, and the holistic development of students. The effectiveness of educational mechanisms is complex and often opaque, with interconnected factors influencing each other. For instance, the quality of faculty directly impacts the school’s reputation, while a strong reputation can, in turn, attract better faculty.
Key Factors Influencing Teaching Quality include:
Overall, these elements work together to ensure a successful and well-regarded international school.
Thank you for exploring our content. We aim to provide valuable insights into the Chinese market to aid your decision-making and support your business at every step.
Our blog is your resource for Chinese marketing tips and Chinese market guidance. Contact us with questions or for more service details below.
Website: www.mmgthailand.com
Tel: 06-3167-8206
Email: info@mmgthailand.com
FB: MMG Thailand
IG: mmg_thailand
About MMG Thailand:
MMG Thailand is the first and only Chinese-owned Chinese marketing company in Thailand that aims to connect Sino-Thai cultures and power partners’ success.
Creating a price comparison advantage is an important starting point for platforms to establish price competitiveness.
The Chinese e-commerce market is transitioning from rapid growth to a bottleneck phase,
The underlying logic of platform rule optimization is to enhance platform competitiveness by improving consumer satisfaction.
Contact us
Due to high demand of our services, we offer only a 40-minute free consultancy session
Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110
211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110