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

Main Article Content

Choy Soon Tan

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.

Article Details

How to Cite
Tan, C. S. (2021). Understand China’s cross-border e-commerce industry: a market entry mode. Systematic Literature Review and Meta-Analysis Journal, 2(2), 74-85. https://doi.org/10.54480/slrm.v2i2.23
Section
Articles

References

Reference

Accenture and AliResearch. (2016). Global Cross Border B2C e-Commerce Market 2020. https://unctad.org/meetings/en/Presentation/dtl_eweek2016_AlibabaResearch_en.pdf

Areddy, J. T. (2021). China Creates Its Own Digital Currency, a First for Major Economy. Wall Street Journalj. https://www.wsj.com/articles/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118

Cai, J., & Wohn, D. Y. (2019). Live Streaming Commerce: Uses and Gratifications Approach to Understanding Consumers’ Motivations. Proceedings of the 52nd Hawaii International Conference on System Sciences, 6, 2548–2557. https://doi.org/10.24251/hicss.2019.307

Ding, F., Huo, J., & Campos, J. K. (2017). The development of cross border e-commerce. Advances in Economics, Business and Management Research, 37, 370–383. https://doi.org/10.2991/ictim-17.2017.37

Elsevier. (2019). Scopus Factsheet (Issue February). https://www.elsevier.com/__data/assets/pdf_file/0017/114533/Scopus_GlobalResearch_Factsheet2019_FINAL_WEB.pdf

Evelyn, C. (2021, February 4). China says it now has nearly 1 billion internet users. CNBC. https://www.cnbc.com/2021/02/04/china-says-it-now-has-nearly-1-billion-internet-users.html

Fan, Q. (2019). Cross Border e-Commerce in China: What Does This Mean to Australian Small to Medium Size Enterprises (SMEs)? Journal of Economics, Business and Management, 7(2), 50–54. https://doi.org/10.18178/joebm.2019.7.2.580

Giuffrida, M., Jiang, H., & Mangiaracina, R. (2021). Investigating the relationships between uncertainty types and risk management strategies in cross-border e-commerce logistics. International Journal of Logistics Management. https://doi.org/10.1108/IJLM-04-2020-0158

Guan, S. (2021). Smart e-commerce logistics construction model based on big data analytics. Journal of Intelligent and Fuzzy Systems, 40(2), 3015–3023. https://doi.org/10.3233/JIFS-189340

Gutfreund, J. (2016). Move over, Millennials: Generation Z is changing the consumer landscape. Journal of Brand Strategy, 5(3), 245–249. http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,shib&db=bsu&AN=121940910&lang=de&site=ehost-live

Hao, J. (2021). Research on the construction of international logistics supply chain based on cross-border e-commerce. Proceedings - 2nd International Conference on E-Commerce and Internet Technology, ECIT 2021, i, 331–334. https://doi.org/10.1109/ECIT52743.2021.00075

Hu, X. (2021). The influence of logistics mode on cross border e-commerce business scale. E3S Web of Conferences, 235. https://doi.org/10.1051/e3sconf/202123503006

Hua, Z., Be, K., & Shi, Q. (2021). Research on the information tracing model for cross-border e-commerce products based on blockchain. E3S Web of Conferences, 235, 1–4. https://doi.org/10.1051/e3sconf/202123503018

Jue, Z., Junbo, L., Zhiping, H., & Mang, C. (2018). A study of the research hot topics and visualization analysis of cross-border ecommerce in China. Proceedings of the International Conference on Electronic Business (ICEB), 2018-Decem, 82–89.

Lin, C. (2021). Exploration of intellectual property protection strategies for cross-border e-commerce. E3S Web of Conferences, 245. https://doi.org/10.1051/e3sconf/202124501062

Ma, S., Chai, Y., & Zhang, H. (2018). Rise of Cross-border E-commerce Exports in China. China and World Economy, 26(3), 63–87. https://doi.org/10.1111/cwe.12243

Ma, S., Lin, Y., & Pan, G. (2021). Does cross-border e-commerce contribute to the growth convergence? Journal of Global Information Management, 29(5), 86–111. https://doi.org/10.4018/jgim.20210901.oa6

Mi, C., Wang, Y., & Xiao, L. (2021). Prediction on transaction amounts of China’s CBEC with improved GM (1, 1) models based on the principle of new information priority. Electronic Commerce Research, 21(1), 125–146. https://doi.org/10.1007/s10660-020-09434-z

Min, J. K. (2017). How to promote e-commerce exports to China: An empirical analysis. KDI Journal of Economic Policy, 39(2), 53–74. https://doi.org/10.23895/kdijep.2017.39.2.53

Ordun, G. (2015). Millennial (Gen Y) consumer behavior their shopping preferences and perceptual maps associated with brand loyalty. Canadian Social Science, 11(4), 1–16. https://doi.org/10.3968/pdf_294

Peng, Q. (2021). A study on the influence of internet cross-border e-commerce on China’s import and export trade and development strategy. Proceedings - 2nd International Conference on E-Commerce and Internet Technology, ECIT 2021, 255–258. https://doi.org/10.1109/ECIT52743.2021.00062

Qi, X., Chan, J. H., Hu, J., & Li, Y. (2020). Motivations for selecting cross-border e-commerce as a foreign market entry mode. Industrial Marketing Management, 89(November 2018), 50–60. https://doi.org/10.1016/j.indmarman.2020.01.009

Qing, H., Zheng, G., & Fu, D. (2021). Risk data analysis of cross border e-commerce transactions based on data mining. Journal of Physics: Conference Series, 1744(3). https://doi.org/10.1088/1742-6596/1744/3/032014

Qiu, L. P., & Yang, L. H. (2021). The research of co-evolution mechanisms between cross-border e-commerce and manufacturing cluster: An Agent-based model. E3S Web of Conferences, 235. https://doi.org/10.1051/e3sconf/202123503048

SWIFT. (2021). RMB Tracker Monthly reporting and statistics on renminbi ( RMB ) progress towards becoming an international currency - May 2021.

United Nations Conference on Trade and Development, T. (2020). Estimates of global e-commerce 2019 and preliminary assessment of COVID-19 impact on online retail 2020.

United Nations Conference on Trade and Development, T. (2021). The UNCTAD B2C e-commerce index 2020: Spotlight on Latin America and the Caribben.

Wang, N. (2021). Research on the influence of the cross-border e-commerce development of small and medium-sized enterprises in Dongguan in the post-epidemic era. Proceedings - 2nd International Conference on E-Commerce and Internet Technology, ECIT 2021, 176–180. https://doi.org/10.1109/ECIT52743.2021.00047

Wang, Y., Jia, F., Schoenherr, T., Gong, Y., & Chen, L. (2020). Cross-border e-commerce firms as supply chain integrators: The management of three flows. Industrial Marketing Management, 89(December 2018), 72–88. https://doi.org/10.1016/j.indmarman.2019.09.004

Wong, D. (2020). China ’ s FTZ Count Rise to 21 After Beijing , Hunan and Anhui Are Newly Added. China Briefing. https://www.china-briefing.com/news/chinas-ftz-count-rise-to-21-after-beijing-hunan-and-anhui-are-newly-added/

Xu, X.-Y., Tayyab, S. M. U., Chang, F. K., & Zhao, K. (2021). Hierarchical value-attainment paths of CBEC consumers: a means-end-chain perspective. Internet Research, 31(2), 699–736. https://doi.org/10.1108/INTR-10-2019-0397

Xu, X., Bu, Z., & Fan, Z. (2020). Research on Marketing Strategy of B2C E-Commerce Platform Based On Marketing Strategy Triangle Model. 126(Icfied), 314–319. https://doi.org/10.2991/aebmr.k.200306.055

Yang, G., Wang, Y., Lu, F., Yu, L., & Ma, S. (2021). What determines the pattern of China’s cross-border e-commence with the world? Journal of Global Information Management, 29(5), 55–70. https://doi.org/10.4018/jgim.20210901.oa4

Yin, Z. H., & Choi, C. H. (2021). The effects of China’s cross-border e-commerce on its exports: a comparative analysis of goods and services trade. In Electronic Commerce Research (Issue 0123456789). Springer US. https://doi.org/10.1007/s10660-021-09483-y

Yu, G., & Cho, N. (2019). A study on the sustained use of mobile payment services: Comparison of Alipay and WeChatpay in China. Journal of Information Technology Applications & Management, 26(5), 1–12. https://doi.org/10.21219/jitam.2019.26.5.001

Yu, Y., Huo, B., & Zhang, Z. (Justin). (2021). Impact of information technology on supply chain integration and company performance: evidence from cross-border e-commerce companies in China. Journal of Enterprise Information Management, 16, 460–489. https://doi.org/10.1108/JEIM-03-2020-0101

Zhang, J. (2018). Cross-border e-commerce development strategy under the “Internet + Logistics Finance” model. Proceedings of the International Conference on Electronic Business (ICEB), 193–203.

Zhang, Z. (2020). 46 New Cross-Border E-Commerce Zones Unveiled by China. China Briefing. https://www.china-briefing.com/news/china-unveils-46-new-cross-border-e-commerce-zones-incentives-foreign-investors-faqs/

Zhou, B. Y. (2021). A study of the risk prevention and protection establishment of the intellectual property rights of the cross-border e-commerce, based on the law-and-economics analytic model. Proceedings - 2nd International Conference on E-Commerce and Internet Technology, ECIT 2021, 10–15. https://doi.org/10.1109/ECIT52743.2021.00010