(Source:https://pltfrm.com.cn)
When considering selling on NetEase Kaola, foreign merchants should be aware of various aspects of the platform and the Chinese e-commerce market. Here are some key points:
- User Demographics and Market Focus: Kaola targets a market seeking high-quality “Western” products, with a focus on the rising middle class and affluent young families in China. The platform has shifted towards premium products to fulfill aspirations for a high-quality lifestyle.
- Registration and Trademark: Before entering the Chinese market, it’s highly recommended to register your trademark with the Chinese Trademark Office. This is a prerequisite for setting up a store on Kaola.
- Sales Models: Kaola offers two primary sales models:
- Direct Procurement from Kaola: Where Kaola purchases products directly from brands.
- Third-Party Store: Suitable for well-known brands, allowing them to operate their own store on Kaola.
- Application Process: The process includes submitting an application online with details about your company, brand, and products, followed by an evaluation by Kaola.
- Costs: To sell on Kaola, merchants typically need to consider costs like a deposit ($10,000 to $15,000), commission (2-10% based on product category), and an annual membership fee ($1,000).
- Popular Product Categories: Includes mother and baby products, food and snacks, health and wellness, beauty and cosmetics, home goods, clothing, electronics, and sports & outdoor products.
- Logistics and Warehousing: Kaola handles logistics and warehousing, significantly simplifying the process for foreign merchants. They use Alibaba’s global logistics service provider, Cainiao, for efficient distribution.
- Marketing and Brand Awareness: Building a strong e-reputation and brand awareness is crucial. Using Chinese social media platforms and collaborating with KOLs and influencers can be highly effective.
- Customer Service and Language: Providing customer service in Mandarin and understanding the local consumer behavior and preferences are important for success.
- Adaptation to Chinese Consumers’ Preferences: The layout and content of the online store should cater to the tastes of Chinese consumers, who prefer colorful websites with detailed product descriptions and numerous images.
- Dynamic Retargeting and Advertising: Kaola provides tools for dynamic retargeting, display ads, and product listing ads to enhance visibility and sales.
- E-commerce Trends: Staying updated with e-commerce trends in China, including the growing importance of live streaming and group buying, can help in aligning with consumer preferences.
- Cultural and Social Sensitivity: Being aware of cultural nuances and adapting marketing strategies accordingly is vital for engaging with Chinese consumers effectively.
For more detailed information and to start the process of selling on Kaola, it’s advisable to work with agencies that specialize in the Chinese market and can assist with the complexities of entering and succeeding in this dynamic marketplace.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
