Yes, foreign companies looking to tap into the lucrative Chinese market via platforms like TikTok (known as Douyin in China) need to be aware of certain restrictions and requirements:
- Business License: Foreign companies must have a Chinese business license and a local legal entity to sell directly on e-commerce platforms, including Douyin. This often requires partnering with a local distributor or setting up a local entity.
- Regulations on Advertising: Advertising content needs to comply with China’s stringent advertising laws, which prohibit certain types of claims and require specific disclaimers.
- Content Guidelines: Douyin has its content guidelines that need to be adhered to. Anything deemed sensitive, controversial, or not in line with Chinese societal values can be flagged and removed.
- Product Regulations and Standards: Products sold in China must meet specific Chinese standards and regulations. For instance, beauty and skincare products might need to undergo animal testing before being sold in the Chinese market.
- Data and Privacy Concerns: As with all Chinese digital platforms, companies need to adhere to China’s Cybersecurity Law. This involves hosting Chinese users’ data within China and ensuring stringent data protection measures.
- Payment Systems: To facilitate transactions, foreign companies should integrate with popular Chinese payment systems like Alipay and WeChat Pay. This often requires collaboration with local financial institutions.
- Intellectual Property (IP) Rights: IP infringements are a concern in the Chinese market. Foreign companies should register their trademarks and patents in China to ensure protection, as China operates on a “first-to-file” rather than a “first-to-use” system.
- Logistics and Returns: Companies need a reliable logistics and after-sales service to handle deliveries and returns efficiently. This might involve working with local partners to ensure smooth operations.
- Cultural and Linguistic Considerations: Content should be culturally relevant and resonate with the local audience. Proper localization, beyond just translation, is vital.
- Monetization and Revenue Models: Douyin uses a different monetization model compared to TikTok. While both have in-app purchases and advertising, Douyin heavily focuses on e-commerce integration, and understanding this is crucial for sales.
To navigate these challenges, foreign companies often collaborate with local partners, agencies, or consultants familiar with the Chinese market’s intricacies.
PLTFRM is an international brand consulting agency that collaborates with renowned platforms such as Tiktok, Red, Tmall, and Baidu. We’ve partnered with Chile Cherries for numerous years, deeply engaging Chinese consumers across various platforms. We’ve observed that Chile Cherries’ exports to China constitute 97% of their total exports in Asia. Contact us, and we’ll guide you in identifying the most suitable e-commerce platform in China for your needs. Search pltfrm for a free consultation!
