With more Chinese companies emerging on the global market, now is the time to start talking about China's role in becoming the next cross-border eCommerce frontier.
As eCommerce companies compete for a share of global economy dollars, it's never too early to start thinking about the next big shopping day.
In China, that day is known as Singles' Day — an online shopping day created by Alibaba, and held on Nov. 11 to encourage single people to buy something nice for themselves. While the day has evolved far beyond its initial purpose — now known as a popular Chinese online shopping holiday for all — the holiday itself shows how the tide is turning for Chinese brands overseas.
As Chinese companies become bigger players in the global eCommerce market, companies are putting more stake into how much cross-border commerce plays a role in their sales. Lenovo, for example, generates over 50 percent of its revenue from overseas sales, and home appliance maker Hisense attributes a third of its revenue to international sales in 2013 alone.
China's Singles' Day, which is its own twist on Valentine's Day, has the title of the single largest eCommerce sales day — more than double the amount of sales seen out of Cyber Monday in the U.S. Last year alone, Alibaba recorded a record-high single-day sales of $9.3 billion.
“Whilst recent attention in the payments industry has been on China as the next eCommerce frontier - with Alibaba’s Jack Ma recently courting U.S. businesses to cross the border - we are starting to witness the rise of Chinese companies breaking into European markets," said Simon Black, CEO at PPRO Group.
“Driven by the hunger of fast growth and the increasing acceptance of customers to purchase online internationally, Chinese brands are keen to get a slice of the European market and bring their offerings to a new audience," he added.
As Singles' Day approaches, it's clear that Chinese brands have a chance to make a name for themselves in the global market. This means a variety of payment methods are needed to spur more cross-border commerce now more than ever. As is the need to optimize for various language and other national settings.
“With perceptions of Chinese brands changing, Payment Service Providers (PSPs) have a huge opportunity to help local merchants take advantage of a potentially lucrative market that is ready and waiting to see what China has to offer on Singles’ Day and beyond," Black concluded.