Over the past two decades, China has transformed from a country imitating Western e-commerce solutions to a global innovator that sets trends for the rest of the world.
China's e-commerce landscape is characterized by unprecedented scale, speed of development and level of integration into consumers' daily lives. In this article, we'll discuss how China's major sales platforms operate, what strategies they employ, and what entrepreneurs in Poland and Europe can learn from them.
China's e-commerce giants: who rules the market?
Alibaba: more than a shopping platform
Alibaba Group, founded by Jack Ma in 1999, remains one of the largest players in China's e-commerce market, despite growing competition. Alibaba's ecosystem consists of several key platforms:
- Taobao - a giant C2C (consumer to consumer) marketplace where smaller sellers can reach hundreds of millions of customers. The platform is famous for its huge variety of products and competitive prices.
- Tmall - a B2C (business-to-consumer) platform targeting reputable brands, especially foreign brands. Tmall Global enables foreign companies to sell in China without having a physical presence in the country.
- Luxury Pavilion - an exclusive section of Tmall dedicated to luxury brands that offers a personalized shopping experience for affluent customers.
In 2024, Alibaba underwent a restructuring, splitting into 6 independent business groups to make them more flexible and competitive.
As of the end of 2024, Alibaba had revenues of RMB 941.168 billion ($128.9 billion).
JD.com: logistics specialist
JD.com is the second largest player in China's e-commerce market.
It is distinguished by its own logistics network, which allows same or next day delivery in most Chinese cities. Unlike Alibaba, JD.com uses a business model more akin to Amazon - a significant portion of products are sold directly by JD.com, giving the company greater control over the quality and authenticity of goods.
In recent years, JD.com has significantly developed its services in the field:
- Fresh Food (JD Fresh),
- Health Services (JD Health),
- Financial Services (JD Digits),
- Industrial Solutions (JD Industrial).
JD.com's net income:
- From product sales - RMB 204.6 billion (~$28 billion),
- From services - RMB 55.8 billion (~$7.64 billion).
JD has 588.3 million annual active customers.
If you want to know what strategies help you reach your core customer groups, read on:
Chinese consumers: The key to success in the Middle Kingdom market
Pinduoduo: the phenomenon of social shopping
Pinduoduo, the youngest of the "big three" of Chinese e-commerce, has revolutionized the market with its group buying model. The platform encourages users to invite friends to shop together in exchange for significant discounts. This model, often referred to as "social e-commerce," has been key to Pinduoduo's rapid growth, especially in lower-tier cities and rural areas.
In 2024, Pinduoduo continued its strategy of offering extremely low prices, which attracted consumers looking for bargains during the economic downturn. The company also expanded its international presence through its Temu platform, which gained popularity in the US and Europe.
Pinduoduo generated revenue of RMB 99.354 billion (about $13.36 billion) in Q4 2024, up 44% year-on-year.
Douyin and Kuaishou: content-based platforms
The transformation of social media platforms into powerful sales channels has been one of the most important trends in Chinese e-commerce in recent years.
Douyin (the Chinese equivalent of TikTok) and Kuaishou have fundamentally changed the way Chinese people discover and buy products. These platforms combine entertainment, user-generated content and shopping in a seamless way, using live streaming as the main sales tool.
As of October 2024, Douyin reported a 91% year-on-year increase in sales during the "Double 11" shopping festival (China's equivalent of Black Friday). Kuaishou similarly reported record numbers on the first day of the festival, with total transactions up 94% year-on-year, confirming the growing importance of these platforms in China's e-commerce landscape.
Innovative business models of Chinese e-commerce
Live streaming: e-commerce as entertainment
Live streaming e-commerce is perhaps the most distinctive feature of Chinese shopping platforms. In this model, influencers, celebrities or brand representatives present products live, demonstrating how they work and answering viewers' questions in real time.
By 2024, the value of this market in China was expected to reach about 5.3 trillion yuan (about $722 billion). More than 590 million users regularly buy through live broadcasts.
The live streaming results in China are helped by connectivity:
- entertainment and shopping,
- real-time interaction,
- exclusive promotions,
- product demonstrations in realistic scenarios.
OMO (Online-Merge-Offline) model.
China's e-commerce market is distinguished by advanced integration of online and offline channels. The OMO model goes beyond the traditional understanding of omnichannel, creating a seamless experience in which the boundary between online and offline shopping virtually disappears.
Examples of OMO implementations in China:
- Alibaba's smart retail stores and JD.com, using facial recognition, interactive screens and virtual fitting rooms.
- Cloud shelves allowing you to order products not available in the stationary store.
- Self-service checkouts supporting biometric payments.
Community group buying (neighborhood shopping)
The community-based group purchasing model has gained enormous popularity, especially during pandemics. In this model, community leaders ("group leaders") collect orders from neighbors and organize joint purchases, often of groceries and necessities.
This model allows:
- Significant reduction in "last mile" logistics costs.
- Building loyalty through trust in local leaders.
- Reaching consumers in smaller cities and rural areas.
What technologies are transforming Chinese e-commerce?
Artificial intelligence and personalization
E-commerce platforms in China are using advanced AI algorithms to personalize the shopping experience on an unprecedented scale. Unlike Western platforms, which often rely on purchase and browsing history, Chinese systems analyze a much broader range of data, including:
- social interactions,
- behavior in partner apps (thanks to super-app ecosystems),
- location data,
- payment patterns.
As a result, Chinese platforms can anticipate consumer needs and suggest products with remarkable precision.
Mobile payments and fintech
China has surpassed the rest of the world in mobile payment adoption, virtually leapfrogging the credit card era. Systems such as Alipay and WeChat Pay are widely used even by small street merchants.
New features have been introduced in 2024, such as "Alipay Tap!" which allows payments by simply bringing the phone close to the terminal, without having to open the app. This technology speeds up the shopping process and increases consumer convenience.
XR (Extended Reality) and virtual shopping experiences
XR technologies (including AR - Augmented Reality and VR - Virtual Reality) are increasingly being used in Chinese e-commerce to create immersive shopping experiences.
Application examples:
- Virtual fitting rooms that allow you to visualize clothes on your own body.
- Virtual furnishing before buying furniture.
- AR-HUD (Heads-Up Display) in navigation and advertising.
The power of China's shopping calendar, or shopping festivals
China's shopping festivals are events of a scale unmatched in the Western world. The most important of these are:
Double 11 (Singles' Day) - November 11
The world's largest shopping event, generating total sales of about $196.65 billion in 2024. That's more than twice as much as Black Friday and Cyber Monday in the US combined.
Characteristics of Double 11:
- Extended promotion period (in 2024 starting as early as October 14).
- Complicated promotional mechanics, including pre-sale deposits.
- Huge investment in marketing and engaging live broadcast events.
618 Shopping Festival - June 18
China's second largest shopping event, initially created by JD.com as a counterweight to Alibaba's Double 11. In 2024, the total value of sales at the 618 was about US$100 billion.
Other major shopping festivals in China
- Chinese New Year - a traditional period of increased spending, especially on food products and gifts.
- Women's Day (March 8) - focused on beauty, fashion and wellness products.
- Golden Week (October 1-7) - combining shopping with travel and tourism.
Lessons for Polish and European companies
1 Key lessons from China's e-commerce model
- Integrating entertainment and commerce - The success of platforms like Douyin shows that the future of e-commerce lies in seamlessly combining entertainment content with shopping opportunities.
- Community dimension of shopping - The Chinese treat shopping as a social experience, as reflected in the Pinduoduo and community group buying business models.
- Omni-channel 2.0 - Instead of treating online and offline channels as separate paths, Chinese companies are creating fully integrated experiences where the boundaries between the physical and digital worlds are blurred.
- Personalization on steroids - The use of AI and big data to create ultra-personalized shopping experiences is becoming a standard rather than a luxury.
- Mobile first - designing with mobile devices in mind is an absolute priority, given that more than 90% of China's online shopping is done via smartphones.
Read more: What is worth knowing about China's economy in 2025?
2. strategies for entering the Chinese market
For European companies considering expansion into the Chinese market, there are several possible paths:
- Tmall Global - a dedicated channel for foreign brands without a physical presence in China. Requires less initial investment, but comes with higher commissions.
- JD Worldwide - a similar platform offered by JD.com, often favored by brands in the electronics and premium product categories.
- Working with influencers - Establishing relationships with key opinion leaders (KOLs) in a given category can significantly accelerate brand awareness.
- Cross-border e-commerce - sales using special free trade zones and simplified customs procedures.
3 Challenges and pitfalls
Companies entering the Chinese e-commerce market need to be aware of numerous challenges such as:
- Intense competition - the market is extremely crowded, and local brands are quick to adopt innovations.
- Cultural differences - Chinese consumer preferences can differ significantly from European consumers, requiring product and communication adjustments.
- Complex regulations - regulations on e-commerce, data protection and advertising are strict in China and subject to frequent changes.
- Marketing costs - gaining consumer attention on Chinese e-commerce platforms is becoming increasingly expensive, especially during shopping festivals.
Summary
China's e-commerce is not only the largest online market in the world. It's also a laboratory for the most advanced innovations in retail. From live streaming to social shopping models to AI and XR integration, Chinese platforms consistently set trends that are then adapted around the world.
For Polish and European companies, China's e-commerce market offers both inspiration for their own innovations and a potential path for expansion. But success in this market requires a deep understanding of local specifics, patience and a willingness to constantly adapt in the face of a rapidly changing digital landscape.
As the boundaries between different models of commerce, entertainment and financial services continue to blur, we can expect to see more disruptive innovations from China that will shape the future of global e-commerce.
