Chinese e-commerce companies take advantage of Paris Olympics to expand into French market
2024-08-18
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
Our reporters Ding Yazhi and Zhao Jueyun; our special correspondent in France Yu ChaofanThe Paris sports event that attracted worldwide attention has slowly come to an end, but the afterglow of the "Olympic economy" is still there. With the help of sports events, Chinese e-commerce has steadily "attracted money". According to data from Alibaba International Station, the online export volume of merchants in industries related to the "Olympic economy" on Alibaba International Station has exceeded 7 billion yuan since the beginning of this year. In fact, not only during the Olympics, but in recent years, due to the continuous growth of the French e-commerce market, its appeal to Chinese practitioners and cross-border e-commerce platforms is gradually increasing. So, what is the current e-commerce landscape in France? What shopping habits do its consumers have? What issues should be paid attention to in deepening the market?The rapidly growing e-commerce marketIn recent years, the French e-commerce market has grown rapidly. According to a report released in July by Fevad, the French e-commerce sales federation, the French e-commerce market will become the second largest in Europe after the UK in 2024, with nearly 40 million e-commerce shoppers. According to data from market research firm Mordor Intelligence, the French e-commerce market is expected to reach $121 billion by 2029. The French E-commerce Sales Federation said that the consumption of French online buyers is becoming increasingly diversified, and more and more people are placing orders in the fields of home, hygiene, beauty, etc. In terms of categories, the popular categories in the French e-commerce market are mainly fashion and clothing, cultural products, shoes, beauty and hygiene products, home decoration products, DIY (do-it-yourself) gardening products and jewelry. It is worth mentioning that clothing sales have always played an important role in the growth of the French e-commerce market. According to Fevad data, the growth of clothing sales in the French e-commerce industry in 2023 is as high as 20%. According to Statista data, the fashion category has always ranked first in sales in the French e-commerce market. In the overall data forecast from 2021 to 2029, the fashion category will continue to maintain its leading position, with a stable market share of around 30%. From the current e-commerce landscape, according to data from SimilarWeb, a network traffic analysis platform, Amazon is still the most important e-commerce platform in most Western countries, and France is no exception. Amazon offers a comprehensive and rich product range, and its membership fast delivery service is very popular. In France, 174 million people visit Amazon's French website and mobile client every month. Secondly, Cdiscount, the largest online retailer in France, is regarded as Amazon's biggest competitor in France. It mainly sells electronic products, household goods and fashion products, and attracts many consumers with relatively low prices and promotions. In addition to the above two platforms, in recent years, Chinese e-commerce platforms such as Temu, AliExpress and Xiyin have gradually become "stars" with rapid growth in the French market. According to the data released by the French E-commerce Sales Federation in the first quarter of 2024, Temu has become the fifth most visited e-commerce website in France in just one year since it entered France in 2023. In the field of mobile e-commerce, the advantages of the above-mentioned Chinese companies are even more obvious. According to the download data of the Google App Store, AliExpress, Temu and Xiyin ranked fourth, fifth and seventh in the download volume of French e-commerce applications. With the help of this year's Paris sports event, Temu, Xiyin and AliExpress have further increased their popularity in Europe. On these platforms, local consumers can buy everything from cheap accessories to high-end sports equipment. Bian Jie, who has worked in France for many years, told the Global Times that the clothing on Temu and Xiyin platforms is particularly attractive to French female consumers because of their high cost-effectiveness. In addition, many physical retailers in France have also undergone digital transformation and achieved certain success. For example, FnacDarty, a well-known French retailer of electronics and cultural products, has physical stores all over France. In 2000, the group laid out its online retail business and gradually developed into one of the leading online retailers in Europe. Similar to FnacDarty, Leroy Merlin Group, one of the well-known French home furnishing and building materials retailers, operates more than 140 physical stores in France. As of January 2024, its e-commerce website has received 29 million visits per month.How is the "style" of the fashion country different? When talking about France, fashion is an inevitable word. As the book "Paris: The Invention of the Modern City" says: "The whole world is chasing fashion, only Paris produces style." France is not only a global brand highland, but also the key for Chinese companies to expand into Europe. Compared with other parts of Europe, French consumers pay more attention to individuality and are more casual. Their fashion taste and shopping preferences are also more distinct. "The fashion landscape on the streets of France reveals an effortless casualness and simplicity. In summer, light vests and elegant French skirts become the mainstream; while in autumn and winter, leather jackets, windbreakers and coats become a must-have in people's wardrobes. Although models' exquisite outfits can be seen occasionally, most French people prefer simple styles, especially wearing various accessories to embellish. For men, fashion is not the focus of daily life. They prefer minimalism. A coat may be worn from high school to entering the workplace. When shopping, the French pay more attention to quality and practicality, and tend to look for high-quality products in second-hand stores or charity sales. Although fast fashion brands also have a certain market, on the whole, French consumers prefer to invest in travel and vacation experiences rather than frequently updating their wardrobes." Bian Jie told the Global Times reporter. As one of the top three e-commerce markets in Europe, France has an Internet penetration rate of 92% and an e-commerce penetration rate of 74%. When asked how the French prefer to shop, Bian Jie said: "The French are unlikely to buy large and expensive items online because local couriers are not very reliable. It is more reassuring to go to physical stores." Li Xintong, who has lived in France for five years, also told the Global Times: "As the main express delivery platform, La Poste only provides delivery services from Monday to Saturday, and does not deliver on Sundays. If I am not at home, the courier will usually send a text message or call me to notify me, and then put the goods in the express box. If it can't fit, I need to go to the outlet to pick it up myself. But there are still relatively few express delivery outlets, and sometimes you may need to walk 1-2 kilometers. In addition, French outlets and post offices are closed on Sunday afternoons, and the working hours from Monday to Saturday are also 9 am to 5 pm, which is highly overlapped with working hours. It is very inconvenient to pick up express delivery." Li Xintong said that if it is a valuable item, he prefers to buy it offline, because online shopping has certain risks, and once it is lost, it will face greater losses. It can be seen that local consumers still prefer offline shopping, but the convenience of online shopping is gradually changing their consumption habits. More and more French people are starting to place orders through mobile apps of supermarkets such as Carrefour, Auchan, Leclerc, and Lide. A survey report released by AliExpress in May this year showed that France is the European country where consumers are most willing to pay through e-commerce channels, with an average consumption amount of 627 euros (1 euro is approximately 7.88 yuan) from February to April, followed by Spain (452 euros) and Germany (388 euros).Facing challenges such as compliance and data security It is reported that during the Olympic Games, many sports equipment and Olympic-related products were packed in Cainiao and AliExpress's European warehouse in Dongguan, and then flown to Paris, France on cargo flights. In order to deliver express delivery to consumers instantly and accurately, Cainiao focuses on the layout of local express delivery networks, with logistics infrastructure such as self-pickup points, overseas warehouses and distribution centers. The express delivery network covers most cities and regions in France. So far, Cainiao's European warehouses have covered seven countries including Spain, France, and Germany, integrating functions such as consolidation, distribution, order consolidation, and warehousing. Thanks to the traffic brought by the European Cup and the Paris sports event, the number of shipment orders from Cainiao's European warehouses in July increased by more than 200% compared with May. On the AliExpress platform, Eiffel Tower keychains, desktop ornaments, ball products, sports protective products, and small electric fans became hot-selling products in July, among which small fans increased nearly five times month-on-month. In addition, Chinese-made lazy sofas also saw significant growth during the European Cup and the Olympic Games. After the major events, with the opening of Cainiao's special line for major items, AliExpress will continue to make efforts in the field of home furnishings. According to data from Alibaba International Station, since the beginning of this year, in addition to Olympic-related products, renewable energy, consumer electronics, furniture, packaging and printing, and beauty have become the top five industries exported to the French market, with their online transaction volume increasing by 50% or more. Several interviewees told reporters that they can feel the increasing popularity of online shopping in France, but there are many vertical e-commerce channels in France, not concentrated on a few super platforms. If Chinese companies want to deepen their presence in the French e-commerce market, they must choose e-commerce channels that match their product characteristics and styles. While enjoying the market dividends, Chinese companies must also face the compliance requirements of the French e-commerce market. The French market has increasingly stringent requirements for the qualifications of imported goods. Many Amazon sellers in the French market have been closed by the platform due to tax issues or store qualification issues. In addition, environmental compliance has also become an important part that companies cannot ignore. With the implementation of the "Packaging and Packaging Waste Regulation" approved by the European Parliament, the reduction of packaging waste and the increase in the proportion of recycled materials have become new regulatory requirements. This requires companies to work hard on product packaging design to adapt to the high environmental standards of the French market. According to statistics from China Customs, preliminary estimates show that China's cross-border e-commerce imports and exports in the first half of this year amounted to 1.22 trillion yuan, a year-on-year increase of 10.5%. According to Qichacha data, there are 21,000 cross-border e-commerce related companies in China, and the number of related company registrations has continued to grow in the past decade. So far, 4,715 cross-border e-commerce related companies have been registered this year, accounting for 81% of the total number of registrations last year. Among them, 4,461 new companies were registered in the first seven months, a year-on-year increase of 35.39% over the same period last year. Liang Haiming, dean of the Belt and Road Institute of Hainan University and dean of the Silk Road Intelligence Valley Institute, also emphasized in an interview with the Global Times that China's cross-border e-commerce is still facing many shortcomings. First of all, intellectual property protection is one of them, which requires companies to strengthen cooperation and law enforcement in intellectual property protection and maintain a good market order and a fair competition environment. Secondly, cross-border e-commerce involves a large amount of data transmission and storage, and data security and privacy protection are also important issues. Thirdly, cross-border e-commerce involves laws, regulations and standards of different countries and regions, and there are differences and uncertainties. We must strengthen international cooperation and consultation, promote the unification and coordination of laws and standards for cross-border e-commerce, and provide a more stable and predictable environment. ▲
