Are you ready for the new Chinese Ecommerce Market?

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E-commerce is rapidly becoming a big deal in China, and there are now two titans battling it out for predominance in that market: The Yahoo-backed Alibaba, and the youthful upstart Previously we have seen chinese ecommerce company rise to prominence. This venture was backed by Japan based Rakuten and seemed to be a slam dunk, but so far has failed to meet investor goals.  A new partnership with Tencent and Wanda may be the spark that this company needs for global success.

 The Chinese government has recently made several statements supporting the overhaul of rules and restrictions governing online business ventures. These includes offering tax incentives and state sponsored financial aid for chinese based companies. If Western companies did not have enough incentive to do business with China before, this is an effort by the Chinese Government to seal the deal.  Still doing business with China offers more challenges than other competive markets.

We should note that Asian retailers are already strongly motivated to make the leap into Western markets even without government incentives.  Chinese based Alibaba has already embarked on a radical new business strategy, rolling its 11 Main brand into US based OpenSky.  This is on top of their efforts to give Chinese small businesses more access to western markets.

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