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Welcome to a new episode of ‘Markets and Marketplaces’, your one-stop-shop for the latest developments in cross-border eCommerce! Today, we’ll be looking at how ‘shoppertainment’ is altering the face of European eCommerce, Tik Tok’s expansion into the US market and a new eCommerce milestone reached in China.
Watch the full episode below!
‘Shoppertainment’ Makes Its Way to Europe
It looks like ‘shoppertainment’, the combination of livestreaming, social media and eCommerce that has dominated in Asia for years, has made its way to Europe. According to a recent survey, 70% of consumers throughout Europe have an interest in ‘shoppertainment’, with Poland, Spain and France leading the way.
So, what’s behind this latest European eCommerce trend? Survey respondents pointed to several potential benefits to ‘shoppertainment’, most notably the ability to witness products in action via livestreaming. One of the main pain points for European online shoppers is that it’s difficult for them to trust the product and seller. Being able to view a product demonstration before purchasing helps alleviate those fears.
Tik Tok Planning an Aggressive US eCommerce Expansion
Recent reports indicate that Chinese video-app, Tik Tok is looking to take on Facebook in the US social commerce sphere.
Tik-Tok recently briefed advertisers with their 2021 plans, which include a tool that lets popular users and influencers share product links and earn commissions. Additionally, they’ll be unveiling a mobile livestreaming service that includes links for viewers to make purchases.
Still, it might not be all smooth sailing for Tik-Tok. Former US President Donald Trump had taken a hard line against the platform due to its Chinese ownership. While the current US administration doesn’t appear to be following suit, it goes to show how quickly politics can muddy the waters when it comes to cross-border business expansion.
eCommerce in China Set to Eclipse Brick and Mortar Sales
Finally, let’s look at the state of eCommerce in the most populous country in the world. It appears that the accelerated shift to online shopping brought on by the COVID-19 pandemic has resulted in another historic first.
eCommerce sales in China are forecasted to come in at 52% of total retail sales in 2021. This is the first time anywhere that online sales are set to account for the majority of total sales in an entire country. To put things into perspective, the next largest country in terms of eCommerce sales is South Korea, where online transactions are expected to account for 29% of total sales, followed by the UK with 28%.
This points to the enormous potential for cross-border sellers looking to expand into China and indicates that the eCommerce train isn’t slowing down anytime soon.
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