What It Takes to Break Through in China

From starting a hedge fund to owning the DTC beauty market in China is a career path you don’t hear too often. But that’s the winding road that Julian Reis has traveled and along the way he’s picked up some critical intel about the ecommerce world and Chinese trends that he shared with me on this episode of Up Next in Commerce.

There are a bevy of factors to take into account when entering the Chinese market. From the vast differences in the way consumers shop in China to the sheer volume of consumers that can make a huge boom in sales in a matter of moments, there is a lot to contend with. And how does a brand even get in front of a consumer without traditional ads or email marketing? And what about social media? Or regulations? Julian explains how to take all that information into account and build an ecommerce strategy that lets you win abroad. Plus, he dives into how his company, SuperOrdinary is working with top skincare brands to enter the Chinese market, and some of the experiences that can be expected when embarking on this new path. What a fascinating discussion that was so different than any interviews I have had so far, enjoy!

Main Takeaways:

• It’s All Chinese To Me: Brands might want to expand to the Chinese market and believe that there is a huge opportunity there, but rushing into the market without doing the proper research could be a huge mistake. Despite the fact that a lot of information is censored in Chinese, consumers there still find ways to access the content that is important to them. Brands need to get more social awareness, learn about what Chinese consumers are interested in and let their actions reveal whether or not you have a product-market fit before trying to make a splash in that market.
• Platforms vs. Pages: There has been a bifurcation of ecommerce between platforms and webpages. The debate about where to invest more is coming down to how you see your customers acting. SuperOrdinary’s theory of the case is that platforms are the way of the future because at the end of the day, customers spend more time on Amazon and Tmall than on a company’s website. Therefore, more focus should be on creating content that drives engagement on those platforms.
• Boom and Bust: In China, the volume of consumers is so much higher and there is so much more emphasis on influencers and celebrities, that if something goes viral, a brand could do millions of sales in a matter of seconds. Being prepared for that kind of boom is very different from working in the U.S., where you prepare for steady growth over a longer period of time.

For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length.

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