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Online trade – China's customers are ticking the wrong way – even with Swiss products News

Wednesday, September 13th, 2017 | Economy

Last year, China's online trade stood for a turnover of $ 1.6 trillion. In other words, 40 percent of global e-commerce came from China. On "Single's Day" on 11 November, where the general hubbub is generally greeted, last year alone was ordered for 14.3 billion dollars. By way of comparison, in Switzerland, the volume of internet negotiation trading in 2016 totaled some CHF 8 billion.
China is, that can be said without doubt, shopping, especially on the Internet. In China, the middle layer with disposable income comprises 300 million people, soon to be half a billion. Within 30 years, the consumption situation in the communist country changed from a situation where there was little choice to a country with almost maximum selection.
And the point is: Customers want this, not just the dealers. The Internet is an example of this. From the point of view of the Chinese market, online trading is not the aggressor of existing, traditional trade, as is the case in Europe and North America. Shopping online is the first market for many consumers right from the start. They do not even know a comparable structure in the form of traditional shops.

In the cash video interview Terry von Bibra comments on the plans that Alibaba has with Swiss customers. He explains how Switzerland and the Swiss companies in China are perceived and with which recipes Switzerland can be successful in the Chinese market.
The Alibaba online trading group, which generated sales of 235 billion dollars last year, dominates the market. The Group has probably established itself in the business from companies to companies, customers to customers and companies to customers. The company, which is founded by the entrepreneur and former English teacher Jack Ma, works with Nestlé and the local corporate brand Nespresso for luxury goods, and Tagheuer or Tissot for luxury goods.
"Brands that embody quality have potential", says Terry von Bibra, who heads a small team responsible for Europe for Alibaba in Munich. Switzerland stands for high quality, which is also recognized in China. However, China's online shoppers are different than the Swiss who order certain products on the Internet.
"The Chinese customer is perhaps the most demanding customer in the world," says Bibra. Customers not only expected a very large selection, but were also well informed, or wanted to be well informed. China's online customers are not looking for products in a traditional search engine, the most popular of which is Baidu, where users do not find links to the brands. Products, for which the customers are interested, are found on trading platforms such as Tmall, which belongs to Alibaba.

With its platforms, Alibaba does not only want to sell Swiss products in China, but is also a provider in Switzerland, which is gaining more and more importance. However, the figures speak for themselves and show that companies such as Alibaba are jointly responsible for the suicide bailout in Switzerland. Compared with 2015, the number of parcels delivered from Asia could double from 6 to 12 million.
Here customers mainly order small goods from China. Alibaba, for example, contains articles, such as electronic goods, which are otherwise difficult to find, and are also supplied without competition and free of charge. Customers accept that the consignment is delayed due to customs formalities, or that the ordered goods do not meet the highest quality requirements.
Because the Swiss post office is China as the emerging country, the tariffs for shipping are cheaper, in addition, goods under 62 francs are duty-free and are not yet under the value-added tax. It appears, however, that the information on customs is also falsified.
Another point where Alibaba appears in Switzerland is Alipay. In China, this is the most important online payment system. In Switzerland, businesses offer Alipay for Chinese tourists. The SIX Group (mfo) is involved in the settlement.

Again, unlike Western customers, platforms such as Tmall offer numerous additional information, such as the history of a company, its founder, and, in general, what is associated with the brand for a life-feeling. Customers are interested in where, how and by whom a product is manufactured and who else it is using. From the point of view of Alibaba, Switzerland is a particularly important market in this regard because the Swiss corporations often stand for strong and valuable brands and a long history, but also a tradition of craftsmanship and precision.
At the same time, Rolex, Omega & Co stand out. The Swiss watchmaking industry is likely to continue to sell a large proportion of the goods in conventional shops, which are teeming with the major sales points such as Hong Kong. From the point of view of Alibaba they also have to lose the fear of the Internet still something – according to the opinion of the online retailer something pretends to sell a luxury product over the Internet. However, Alibaba is not only focusing on food manufacturers and watchmakers, but also on all kinds of SMEs who want to sell products in China.


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