The headquarters of Alibaba in Hangzhou, east China's Zhejiang province [File Photo] |
Chinese e-commerce companies have accelerated the pace of their global expansion. Whether in the U.S., Russia or Brazil, we can see the influence and impact of Chinese online shopping firms. However, culture and language may become barriers to further progress as they struggle to succeed in foreign cultures.
The Russian logistics company SPSR Express recently signed a cooperation agreement with JD.com, a Chinese electronic commerce company. This contract is expected to multiply the orders of SPSR and place JD.com as one of the major e-commence companies in Russia.
In August, 2014, AliExpress operated by Chinese e-commerce company Alibaba Group ranked as one of the top 10 most popular sites.
Mark Zawadzki, director of business development AliExpress in Russia, said in an interview with People’s Daily that Aliexpress users are spread throughout Russia. Aliexpress not only helps to sell Chinese goods to Russia, it also helps Chinese companies to establish cooperation with local manufacturers in Russia.
China has an edge in the developing cyber economy. First, China has a huge market as it has the world’s largest group of netizens and mobile users. Second, Chinese products are cost-effective and can be taken abroad easily. China leads the market to some degree and contributes to the fair order of the cyber economy, according to Vinogradov, director for political prediction and research center at the Far East Division of the Russian Academy of Sciences.
In the U.S. Alibaba Group has purchased 9.3 percent shares of Zulily.com, an online store for baby and mother products, becoming the largest foreign investor in the website. Analysts think this is a kind of win-win cooperation. It will accelerate Alibaba Group’s development in the US market and also help Zulily.com get close to the Asian Market.
As the biggest Internet country in Latin America, Brazil has more than 100 million netizens. Statistics indicate that the number of online shoppers now exceeds 51 million, 40 percent of whom have made purchases on international shopping platforms like Aliexpress.
Though China’s e-commerce companies have made some progress, they still need to further improve their competitiveness.
An analyst from the e-commerce market at Forrester Research Company said that it is not easy for e-commerce companies to enter a foreign market like the U.S.. Chinese e-commerce companies need to understand the spending patterns of the locals, the characteristics of the retailers, and the local rules for e-commerce, including means of payment, logistics systems, and follow-up services. Intellectual property is another important issue in the U.S., where Chinese e-commerce companies must strictly obey related regulations.
Andre Sousa, Brazilian analyst for applied economy, points out that Chinese e-commerce firms have a great potential in Brazil. Their cost-effective products are welcomed by Brazilian people, but due to the language and culture barriers, many foreign companies are struggling to make progress.
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