Understand China’s cross-border e-commerce industry: a market entry mode

Abstract

Cross-border e-commerce is emerging explosively globally while China as the world’s largest trading country is gradually shifted its traditional trading market to the online marketplace to fit new retail norms of buying online across borders. The supply-demand dynamism and infrastructure readiness are two key drivers governing the exponential growth; however, multiples factors including cultural differences in consumer behaviour, unstructured laws and regulation, the inefficiency of transformed value chain management, limitation on currency payment, and distancing logistics remain unsolved challenges. Hence, this paper aims to deliver some key takeaways for the foreign company to take advantage of cross-border e-commerce as the channel to entering China’s consumer market. Using a combination of various keywords as the searching formula, a total of 17 relevant papers exacted from the Scopus database is in inclusion for the reviewing works. Only the journal paper published in the year 2021 and the content is highly relevant are included. From there, four predominant themes identify are the national-based regulatory environment, market-driven value creation, service-based ecosystem reformation, and digitally drive business transformation. Viewing the huge market potential, cross-border e-commerce is, therefore, a good start points for the foreign company to step into China market.