China's e-commerce is a fascinating phenomenon of unprecedented scale and pace of innovation. In a country where more than a billion Internet users shop online, sales platforms have not only changed the way people shop, but also revolutionized the entire economy.
Let's take a look at how e-commerce platforms work in China and what sets them apart from global solutions.
China's largest e-commerce platforms: a market panorama
China's e-commerce market is dominated by several major players, each with its own unique nature and target audience. The top five platforms are:
Taobao and Tmall (Alibaba Group).
Taobao, founded in 2003, is the largest consumer-to-consumer (C2C) platform in China with more than 900 million monthly active users. It is particularly popular due to its huge variety of products and the ability to deal directly with sellers.
Tmall, also owned by Alibaba Group, focuses on the premium segment and selling official brands. It is a B2C (business-to-consumer) platform where international and domestic brands can operate their authorized stores. It is the preferred channel for luxury brands and well-known manufacturers.
JD.com
JD.com (Jingdong) is China's second-largest online store with more than 500 million active users. Unlike Alibaba, JD operates like a traditional retailer, with its own product inventory and comprehensive logistics network. It is particularly known for its electronics and home goods, as well as its fast delivery and high-quality customer service.
Pinduoduo
Founded in 2015, Pinduoduo has quickly become the third largest e-commerce platform in China with more than 670 million active users. Its unique group-buying model allows customers to get significant discounts when they invite friends to buy products together. The platform is particularly popular in smaller cities and rural areas, offering products at affordable prices.
Douyin (TikTok) and Kuaishou
Initially platforms for sharing short videos, Douyin (over 740 million users) and Kuaishou (over 690 million users) have evolved into powerful e-commerce channels. They use a content-driven shopping model, where users can buy products featured in videos directly through the app.
WeChat Mini Programs
WeChat, with a user reach of more than one billion, offers the functionality of "Mini Programs" - small applications running within the WeChat ecosystem. Many brands use these mini programs to sell products, creating a seamless shopping experience inside China's most popular social networking app.
What makes Chinese e-commerce different?
Chinese e-commerce differs from its Western counterparts in a number of ways, among which are:
Social integration and content
In China, the line between social media, entertainment content and shopping is extremely fluid. The concept of "social commerce" has developed faster and deeper there than anywhere else. Platforms such as Douyin or Xiaohongshu (RedNote) combine community, inspirational content and direct purchase opportunities in a single experience.
Live streaming e-commerce
Buyable live broadcasts are a huge trend in China, generating transactions worth more than 5.3 trillion yuan (about $722 billion) in 2024. Influencers present products in real time, demonstrate their use and answer questions from viewers, who can make a one-click purchase without leaving the broadcast.
KOL and KOC system
Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) play a huge role in the e-commerce ecosystem. KOLs are influencers with large reach, while KOCs are ordinary consumers whose opinions are valued by the community. This model significantly influences purchasing decisions. The value of sales driven by KOC increased by 61% in 2024 compared to the previous year.
Mobile payments in China
China has leapfrogged the credit card era by moving directly to mobile payments. Systems like Alipay (Alibaba) and WeChat Pay (Tencent) are widely used, making the purchasing process extremely smooth and seamless.
Omnichannel and OMO (Online-Merge-Offline).
Chinese companies are pioneers in integrating online and offline experiences. The OMO (Online-Merge-Offline) concept is to seamlessly integrate all sales channels, creating a unified experience for the customer whether they are shopping online, in an app or in a physical store.
What technologies do stores use in the OMO model?
- Facial recognition, which allows stores to count customers and analyze their routes.
- Display information on an interactive screen.
- Recommend products based on consumer profile.
- Analysis of the most visited areas in the store.
- Self-service checkouts and simplifying payments.
What is worth knowing about China's digital transformation? Read: Lessons for European business.
What do brands entering the Chinese e-commerce market need to know?
For foreign companies looking to establish a presence in China's e-commerce market, a few key strategies can increase the chances of success, and these are:
The right platform
Different platforms attract different consumer segments. For example, Tmall Global is ideal for premium international brands, while Pinduoduo may be a better choice for affordable products targeting customers in smaller cities.
Location and market alignment
Chinese consumers have unique preferences and expectations. Adapting products, content and marketing communications, as well as pricing strategies to local conditions is very important. This can include redesigning packaging, adapting product features or even introducing special editions for the Chinese market.
Check out how Chinese consumers are buying.
Use of live streaming and KOL
Partnering with influential KOLs and investing in commerce livestreaming can significantly increase brand visibility and credibility. According to data from 2024, during events such as "Double 11" (Singles' Day), as many as 119 livestreaming rooms on the Taobao Live platform generated sales exceeding 100 million yuan each.
Community building and "private traffic"
"Private traffic" refers to building direct relationships with customers through private groups on WeChat, mini-programs or dedicated apps. Unlike "public traffic" on e-commerce platforms, where access to customers involves fees, "private traffic" allows brands to communicate directly and free of charge with customers.
Challenges and directions for the future
China's e-commerce market is constantly evolving, presenting brands with new challenges and opportunities. What is worth paying attention to?
Growing competition
Chinese e-commerce is extremely competitive. Local brands are quick to adapt and introduce new ideas. This makes it necessary for foreign brands to develop and improve all the time in order not to be left behind.
Changes in regulations
The Chinese government is actively regulating the online sector with regulations on data protection, competition and advertising. Brands need to stay abreast of these changes to avoid potential legal problems.
New technologies
Artificial intelligence, augmented reality (AR/VR), the metaverse and other innovations are rapidly finding their way into Chinese e-commerce. For example, AR-based virtual fitting rooms or AI shopping assistants are becoming more common.
Rational and sustainable consumption
Chinese consumers, especially younger generations, are showing growing environmental awareness and interest in sustainable products. Brands that promote environmental values and social responsibility can gain a competitive advantage.
Consumers in China choose organic products because:
- are sustainable, environmentally friendly and have little impact on climate, nature or animals (41%),
- beneficial to health, safer (37%),
- Worth the price and save money (29%).
Summary
China's e-commerce is not only a huge market, but also a laboratory of innovation that is often several years ahead of global trends. Sales platforms in China go far beyond a simple buy-sell transaction, creating complex ecosystems that combine commerce, entertainment, social media and services.
For companies around the world, understanding the peculiarities of Chinese e-commerce can not only be the key to success in this lucrative market, but also a source of inspiration for global strategies. As the boundaries between different sales channels, social platforms and entertainment blur around the world, the experiences and business models developed in Chinese e-commerce can point the way to the future of retail in the global digital economy.
Is your company ready to sell in China? Or are you already considering which Chinese solutions can be adapted to your business strategy?
This article uses data from: China Mega Report 2025.
