Decoding the e-commerce landscape in China and Japan

THE global rise of e-commerce has enabled many businesses, including small and medium-sized enterprises (SMEs), to recognise the opportunity to attract customers thousands of kilometres away from their hometowns. While many have become “born-global” retailers thanks to e-commerce, the challenges that foreign brands face when entering major markets such as China and Japan should not be underestimated.

China and Japan each have mature cross-border e-commerce ecosystems. These two are the most strategically important e-commerce markets in the Asia-Pacific region and are arguably among the most complex. Most global merchants are keen to tap into the opportunities these top markets represent. However, understanding local market nuances is crucial for success.

Many foreign brands may incorrectly presume that language is the biggest challenge to building a successful e-business in each market. This is a misconception. To build a sustainable business model, overseas merchants, especially SMEs, need to grasp the unique digital landscape and consumer preferences in each mega market.