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Four of the Greatest Myths About Going DTC

As the DTC model continues to rise, many people are still not convinced that this business model can help them generate more profit. Maybe they’ve got personal reasons why, or maybe they’ve heard of reasons that made them decide not to enter the world of direct-to-consumer. Maybe you have heard of a few, and while some are true, some are just myths and are made to take away the confidence of people who wanted to try going DTC, and here are some to name a few.

Myth: DTC is too complicated

Fact: Starting a DTC business is now easier

Starting your own DTC business is easier than you might think. The hardest part of starting one is to know your brand. Plans on what to sell, where to sell them, and to whom these products should be sold were the hardest part. But after you get through that, you just need to choose and set different platforms so that you can have good communication with your potential customers.

Myth: DTC is time-consuming

Fact: Setting up a DTC business can be completed in as early as 4 weeks

The tallest buildings haven’t been constructed in just a few days, even the most fruitful crops didn’t grow in just the blink of an eye. Everything takes time, and so is establishing your own DTC business. But the process won’t take you longer than an eternity. Starting a DTC business won’t take you long, it’s careful planning and careful concept that needs time. After that, the next steps will just make you feel like time is just passing by.

Myth: DTC will not last

Fact: It is not just some kind of trend, because it is here to stay

People often think of the DTC business model as just some sort of trend that will fade away and be forgotten as time goes by. But it won’t. DTC brands have been predicted to continue rising this year, and probably in the succeeding years. Well, it’s of no surprise that this kind of business model will achieve success since it benefits both the retailer and the consumer.

Myth: DTC won’t be competitive in the market

Fact: Of course, it can

Sure small DTC businesses can’t compete with giants such as Amazon and Alibaba, but let’s not underestimate what a great product and an effective marketing strategy can do. It can’t move mountains, but it can move people. Because what a DTC should focus on is quality and not quantity. So making sure that you have a product that would capture the people’s interest and fulfill their needs at the same time, then success is as good as found.

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Challenges Every Business Might Face When Selling in China

The Chinese market is one of the most attractive markets for businesses looking for opportunities to grow. But aside from that fact, entering the Chinese market is not easy at all. And as the country’s economy continues to grow, more and more international businesses are looking forward to bringing their products into this huge, opportunity-filled, ever-demanding market of China. 

So if you’re someone trying to bring your business to China, then here are some of the challenges you’ll be encountering and need to overcome. 

Consumer Preference

Over the past years, Chinese consumer preferences have been changing, this, together with the changing of consumer habits and buying behavior will pose a significant challenge to businesses that are unable to adapt to this ever-changing market. Because just like everybody else, Chinese consumers are known to change more often and are far more diverse than it once was. 

Competition

A lot of Chinese companies have been doubling their efforts to improve the quality of the products they produce, this is done to make it more competitive in the international market. This has resulted in increased competition between local companies and international brands within China, as consumers won’t stick to just one company and product to patronize. 

Consumer Trust In New Brands

One of the major challenges new businesses might face in China is the Chinese consumers’ awareness of brands that are present in the market. They don’t trust brands that easily and they won’t risk venturing into new products over what they used to buy for years. 

Bureaucracy

This would probably top all those challenges as it is considered the international companies’ worst nightmare. Obtaining regulatory requirements in China probably is the hardest thing to do, well at least before entering the market (because there would be a lot more after that.) Foreign brands share the same struggle with laws and regulations in China with most of them saying that it is the required permits and licenses that are giving them a hard time.

It is indeed difficult to enter the Chinese market, but there are people that can help you get through all these challenges. Simplifying the process of bringing your products to the biggest e-commerce market in the world. And this is what we do at GLOSKU, we help businesses sell their products to China. Sell in China effortlessly, just be in charge of the clicks and we’ll do all the leg work. 

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eCommerce

The Difference Between E-Commerce and Brick-and-Mortar Stores

We may look at both e-commerce and brick-and-mortar stores as channels that don’t have much of a difference. As shoppers, we see these two have more similarities than differences. But that is not the case, because, in reality, there are a lot of differences between these two than selling online or offline. 

And here they are, starting with…

Location

E-commerce stores and brick-and-mortar stores are often conflated. But the difference lies in how the products are sold. E-commerce stores sell products online, putting items on storefronts, letting customers add them to their cart, and having those products delivered to their customers in a specific period of time. 

Brick-and-mortar stores, on the other hand, sell their products in physical stores, may it be a single outlet or a chain of stores where customers can purchase products personally and have them on the same day. 

Payment Method

With the advancement of technology, stores have adapted to various transaction methods. Cash, credit cards, and even e-wallets paying whichever way you want is possible. For e-commerce stores, paying using credit cards and e-wallets are the main methods of payment used. 

Brick-and-mortar stores accept cash, which e-commerce stores can’t do. This made it more convenient for customers who don’t have credit cards or even e-wallets to make cashless transactions possible. 

Business Strategy

A lot of the biggest names in the business industry have already adopted an omnichannel strategy. This is one great advantage of having an e-commerce store as this strategy can be efficiently used. It allows a business to do its advertising online, engage with customers through phone or chat, and accept a wide range of payment methods. 

While brick-and-mortar stores can use this strategy, they will still have a hard time effectively deploying this approach as they are limited by a lot of factors. 

These are just some of the differences between e-commerce and brick-and-mortar stores which may or may not be true, especially these days since there are already a lot of brick-and-mortar businesses adopting what e-commerce stores do. Merging different strategies to provide a seamless shopping experience for their customers on and offline.

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DTC

Five Great Tips For Scaling Up Your DTC Business

One of the things an entrepreneur sets as his/her goal is to achieve growth. And by growth, we mean to have increased production, increased sales, and even to expand to places your business has never seen before. Now you might be wondering, “how do I scale my DTC business?” or “what could be some ways that will help my business grow?” 

Wonder not, because we’re here to help you. Below are some great tips you can use to help your direct-to-consumer business grow. 

1. Put all resources in all the right places

Resources such as human and capital resources are vital to any business, especially for entrepreneurs looking to take their first steps to success. Spending on things such as marketing strategies, making promotions, establishing cybersecurity and other expenses need to be well-thought-out before execution. This will help lessen unnecessary expenses and save you a lot of money. 

2. Make a memorable customer experience

Do we even have to talk about this? Customer experience has been important for any business for as long as we can remember. Why? It’s because one single positive customer experience can influence other people to give your business a chance. This can help your business establish loyalty, customer retention, and brand awareness.

3. Be socially aware

A lot of DTC brands have achieved success by being aware of and involved with what’s happening. Being involved in various humanitarian causes or even taking part in protecting the planet can help you generate great profit. This is because a lot of people are into eco-friendly and sustainable products that will not just satisfy their wants but will also contribute positively to a certain cause, making it a win-win situation. 

4. Gather the necessary information

Well, this might not be new to you since you might have seen data forms that collect customer information on different websites. Collecting customer data can help you understand your market better, giving you a better understanding of what your customers want and need. These data can also help you improve on areas that your business lacks, allowing your business to be better and serve better. 

5. Consistency is key

Who doesn’t love consistency? None right? This is also an important thing to remember as consistency can help strengthen your brand identity and makes your business recognizable at a glance. Being consistent on things such as product quality, style, design, customer service, and even your goals can get your customers’ trust and loyalty to your brand.

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Market Updates

What Sells in China? (Part 2) 

Of course, Chinese consumers as we all know them, aren’t settling for just five product categories, and so are we. And we are now at the second part of our previous blog. Apart from the first five, there are more product categories that have been capturing the interest of the Chinese market, and here they are.

1. Food supplements and vitamins 
Apart from eating and living healthy, Chinese consumers are also fond of taking food supplements, vitamins, and other minerals. Some might say that these products won’t have as much demand in the market because usage of traditional medicine is very popular in the county, food supplements still have increasing demand especially from the younger generation.

2. Wine
What would a list without alcohol look like though? Lame isn’t it? Before, Chinese consumers would look for strong local alcohol to drink. But as time went by, locals also started purchasing other alcohol, specifically those from international brands which they get from buying on various cross-border e-commerce websites.

3. Baby Food
Although they may look busy buying their personal needs and wants, Chinese consumers surely won’t forget about their little ones. Baby products are also one of the most popular product categories in the Chinese market. Demand for high-quality baby products is very high as parents want the best possible products for their children.

4. Sporting Goods
Do we have to mention it again? Now that Chinese consumers are becoming more conscious and are leaning towards living healthy nowadays demand for sporting goods such as clothes and equipment rises along with the health products that we’ve mentioned earlier. 

5. Consumer Electronics and Gadgets
This category is too obvious to be included in the list. Because who wouldn’t want to take a hold of the latest gadgets nowadays? Technology has been a big topic in China, and several local companies have been doing well in this industry, so entering the market might be tough. But you shouldn’t worry, because if you’ll be offering something new and unique, then you will definitely capture the locals’ attention and have your own place in the market. 

These are just some of the products that have an astounding demand in China’s huge market. But if your products aren’t included in the list, then this shouldn’t stop you from bringing your product out in the market. Nothing is permanent after all, and who knows if there are millions of people looking forward to seeing your product in the market? Now is the perfect time to sell in China, so give your best shot! 

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What Sells In China? 

When selling in China or anywhere else in the world, knowing what to sell and identifying products that have a market you can sell to is of high importance. And if you’re planning to enter this huge market behind the great wall, you have to at least take note of what they purchase so you can have an idea of what you should be selling.

Here are five products that can easily sell in China:

1. Clothing 
Years ago, Chinese consumers bought their clothes in local shops or some fake markets just around the corner. But today, big clothing brands have established a local presence inside the country. Names like H&M, Zara, Gucci, and more have been popular among local consumers as they are leaning toward the quality these big brands can offer. 

2. Shoes
Well, for some similar reasons, international shoe brands have also become popular in the country. And although wearing high heels and leather shoes are still popular among Chinese consumers, the younger generation has been pushing the trend of wearing sneakers and sports shoes. We all know how the younger generation can drive sales of a certain product, right? 

3. Jewelry
We all know Chinese consumers’ obsession with jewelry, especially women. This demand for jewelry has made China one of the fastest-growing sectors when it comes to luxury goods. Gold, diamonds, and other unique jewelry made from aluminum, wood, and plastic are some that gain the interest of young consumers.

4. Beauty and Cosmetics
This category has always been the most popular among Chinese shoppers, and the demand has made the country the second-largest cosmetics market in the world. But why was it so big in China? It is because both women and men are equally interested in cosmetics and skin care as they are fond of taking care of their looks and their skin.

5. Healthy Products
People in China are becoming more aware of how important it is to have a healthy diet and a good lifestyle. And because of that, they started eating healthy foods like vegetables and fruits while some have switched to plant-based meat which is supported by the government as the country is facing obesity problems, especially among the younger generation. 

These are just some of the many products that sell in China, and if you’re planning to penetrate the market, you should take these products into consideration especially if your business is in the stage of formulating what product to sell. 

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Four Keys To Understand The Chinese Consumer Buying Behavior

For the past years, Chinese consumers’ shopping habits have changed A LOT. Probably because of two things, one is that their incomes change over time and two, it is maybe because of new products and concepts that have entered the market. And despite the drastic changes that happened, these consumers will continue to have to change buying habits for the next few years. So if you are planning on entering the Chinese market, then read these tips to help you better understand your potential customers.

First and foremost, know the demographics

One thing and also the first thing to know in doing business is knowing who your customers are. And in China, the largest consumer segment is the millennials. With over 350 million in the count, any business that will know this group of consumers’ habits and preferences will surely have a higher chance to be successful.

Learn about their preferences when buying products 

For the past years, Chinese consumers put pricing and function over anything else. They prefer buying products that they can maximize their use without having to spend a lot of money. But these days Chinese consumers lean more towards quality products, as they are willing to spend on products that are really high-quality and are considered the best.

They patronize both local and international brands

Consumers really did become picky and smart when it comes to buying products. Years ago, people would buy things based on their popularity, like some foreign brands that have established big names internationally. But today, they are more critical of what they buy and prefer products that really give value to their money. 

They value word of mouth

Well, this doesn’t just apply to Chinese consumers, right? Things such as opinions and reviews of other consumers greatly influence their purchasing decisions. They see social recommendations as a better factor in buying products as it reveals both the good and bad sides of purchasing something, which traditional advertisements don’t. This is a sign for brands to pay attention to their reputation to maintain positive word of mouth.

Knowing your consumers is an essential part of doing business, as this will help you design marketing strategies that will fit your target consumer’s needs and preferences and have higher chances to achieve entrepreneurial success.

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eCommerce

Five Mind-Blowing Facts About Singles’ Day in China

The biggest shopping festival in China, or should we say the world, is fast approaching. And there’s nothing stopping it from happening. This shopping festival has been breaking sales figure records every year since it started and is often compared to the United States Black Friday. But aside from the crazy revenue, it generates year-by-year, here are some mind-blowing facts about the event you may want to know.

Fact #1: As  mentioned above, it is the world’s biggest shopping festival

For those who don’t know about singles’ day, you might think that the biggest shopping event takes place in the United States. But no. It takes place in China. It’s no surprise that they host such events since they are the world’s largest e-commerce country, and online shopping has been a hobby among Chinese consumers.

Fact #2: Singles’ Day began as an Anti-Valentine’s Day event

This event was celebrated by unmarried people in China, and the idea originated from the students of Nanjing University as a sort of Anti-Valentine’s Day. Because who won’t celebrate their singleness when there actually is a day for couples, right? 

Fact #3: Singles’ Day sales exceeded $139 billion in 2021

Ever wondered how big is $139 billion? That’s like buying 534 thousand Diamond Birkins, 1.3 Million Tesla Model S, or 92.7 Million iPhone 14 Pro Max — ITS. THAT. HUGE. 

Fact #4: Singles’ Day has grown 1,080,000% in just 12 years

Alibaba, China’s biggest e-commerce company has recorded a gross merchandise volume (GMV) of $7.8 million. That’s a lot of money for a single-day event right? But it gets better, as the same event held in 2021 gave Alibaba an all-time high gross merchandise volume of $84.54. That’s more than a million times higher than what it recorded in 2009. How much do you think will Alibaba make this year?

Fact #5: Bras sold on Singles’ Day stack up to three times the height of Mt. Everest 

Have you ever imagined how high Mt. Everest is? Now imagine three of these beautiful mountains stacking up, that’s how many bras are sold in just the first hour of Singles’ Day in 2015. That’s a lot of bras right there, right?

Well, these are just some of the craziest facts about this most awaited shopping festival of the year. And if you’re a business regardless of the size and you want to participate in the world’s biggest e-commerce shopping festival, let it be your first step to tapping the massive Chinese market.

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Five Greatest Growth Drivers of the Chinese E-Commerce Market

Who doesn’t know about China being the biggest e-commerce market not just in Asia, but in the whole world? Yes, you read it right. THE WHOLE WORLD. But what made China the e-commerce giant it is today? 

1. The COVID-19 Pandemic

Although putting this on the list doesn’t seem right and doesn’t seem like it will do any good to anything or anyone, the pandemic really served a huge role in the boom of e-commerce in China. Because of the COVID scare, consumers looked for ways to still look and buy products from different online shopping and e-commerce sites available within the country.

2. The Availability of Various Payment Methods

This may sound unimportant, but it is indeed important as it plays an essential role in the current state of e-commerce in China. Payment methods and solutions within the country such as Alipay and WeChat Pay made big contributions to the overall e-commerce sales of China. Why is it important though? These are important as it provides customers with their preferred way of purchasing goods and services, making the possibility of them buying a product higher. 

3. The Variety of E-Commerce Platforms to Choose From 

Tmall, Taobao, Pinduoduo, JD.com, and Xiaohogshu are just some of the biggest names in the e-commerce industry. With hundreds of e-commerce platforms to choose from, Chinese consumers have become more interested in purchasing various products on different platforms. Having different platforms to choose from allows the consumers to have freedom of choice, it will also allow them to find the platform that best suits their tastes, interests, and preferences.

4. The Number of Migrant Workers 

Migrant workers have been the most important fuel of China’s engine for growth. Having millions of migrant workers enables big companies such as JD.com and Tmall to offer same-day and low-cost delivery services within the country. This has become a very attractive offer for consumers because you know, who wouldn’t want a fast yet cheap delivery of the things you bought online, right? 

5. The Rise of M-Commerce 

A lot of people have been expecting M-Commerce in China to become huge at the end of 2022. This is solely due to the huge number of shoppers accessing e-commerce sites using their phones instead of desktop computers and laptops, it has been found that around 96% of Chinese consumers prefer to buy online using their smartphones. This is because it is much easier and more convenient for most of them. 

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Four Reasons Why You Should Be Using WeChat To Win The Chinese Consumers

A lot of us have heard of this amazing platform, but not all of us have realized how great of an application it is as many only see WeChat as just another messaging app used to send messages, photos, and even videos. So how can this help a business grow especially in the world’s largest e-commerce country, or should I say in China? 

Below are some reasons why:

It allows a business to tap into billions of potential customers

Launched in 2011, WeChat has since then witnessed steady growth in its users. Earlier this year, the application recorded 1.29 billion monthly active users with the majority of them being Chinese people. This is good news for brands planning to use the app as a means of entering the Chinese market as more users means more potential customers. 

It allows you to communicate directly with your customers

Unlike any other typical channels, WeChat allows you to directly communicate with your customers because the application allows brands and followers to have direct conversations with each other. Things such as showing new products in WeChat also make it possible for brands to see first impressions, suggestions and receive honest reactions immediately. 

It allows you to convert offline to online leads easier

WeChat gives e-commerce companies the chance to set up a digital ‘Micro Store’ so that users can browse products within the app and easily make purchases in just a few clicks using their WeChat wallet. It also helps businesses have their QR codes get scanned and bring those people to your online store. Fast and easy. 

The users aren’t just limited to China

Even if entering the Chinese market is still not part of the plan, you can still put WeChat into consideration as it isn’t only focused on the Chinese market. With over a hundred million users around the world, the company is actively focusing on gaining more users in some other major markets in the world such as India, Southeast Asia, and Latin America. Giving your brand the chance to reach its full marketing potential around the world. 

We at GLOSKU, bring you closer to WeChat, one of our partners in helping your business sell in the world’s largest e-commerce market, which is China. We will help your brand sell in China with lower costs and more efficiency.