Why Cross-Border E-Commerce Appeals to British Businesses

For British businesses, cross-border e-commerce into China is a compelling opportunity to tap into the world’s largest online retail market without the complexities of establishing a physical presence. In 2025, China’s cross-border e-commerce market is projected to reach £268 billion, with annual growth exceeding 10%, driven by rising consumer demand for premium international goods. Cross-border e-commerce allows UK brands to sell directly to Chinese consumers through dedicated platforms, bypassing traditional import regulations and reducing upfront costs. Transactions below RMB 5,000 are exempt from import tariffs, and annual e-commerce purchases under RMB 26,000 enjoy a 30% reduction in value-added tax, making it cost-effective for businesses to test the market. Additionally, cross-border e-commerce offers British firms access to sophisticated digital marketing tools, such as livestreaming and social commerce, to build brand awareness among China’s 989 million internet users. For SMEs, this low-risk entry model is ideal for exploring consumer preferences before committing to larger investments.

The 2025 CBEC Landscape in China

China’s cross-border e-commerce landscape in 2025 is a dynamic ecosystem, underpinned by government support and technological innovation. The country has expanded its network of 105 cross-border e-commerce pilot zones, which streamline logistics through bonded warehouses, reducing delivery times and customs complexities. Platforms like Tmall Global, JD Worldwide, Douyin, Little Red Book, and WeChat Stores dominate, each catering to distinct consumer segments and product categories. In 2023, cross-border e-commerce import and export volumes surged to RMB 2.38 trillion (£244 billion), a 15.6% year-on-year increase, with beauty, fashion, and health products leading demand. Chinese consumers, particularly affluent urbanites and Gen Z, are drawn to cross-border e-commerce for its access to high-quality foreign brands unavailable locally. However, challenges such as regulatory compliance, logistics costs, and intense competition persist, requiring British brands to choose platforms strategically.

Tmall Global

Tmall Global, Alibaba’s dedicated cross-border e-commerce platform, holds a 50.8% share of China’s e-commerce market, making it the go-to choice for established brands. It hosts over 70,000 global brands and attracts affluent consumers seeking premium products.

Pros: Tmall Global offers robust infrastructure, including seamless payment integration with Alipay and access to Alibaba’s logistics network, Cainiao. Its flagship store model allows brands to customise their online presence, enhancing brand visibility. The platform’s data analytics tools provide deep insights into consumer behaviour, enabling targeted marketing. Tmall’s livestreaming feature, used by 40% of its merchants, boosts engagement through real-time product demonstrations.

Cons: High setup and commission fees, often 2-5% per transaction plus annual service charges, can deter smaller brands. Intense competition requires significant marketing investment to stand out. Compliance with Tmall’s stringent onboarding process, including brand authentication, can be time-consuming.

Suitable Brands: Premium British brands in fashion, cosmetics, and health supplements, such as Burberry or The Body Shop, thrive on Tmall Global. Established companies with strong brand recognition and marketing budgets are best positioned to leverage its scale.

Consumer Profile: Affluent urban professionals, aged 25-45, with disposable incomes above RMB 140,000 annually, shop on Tmall Global for luxury and high-quality imports. These consumers prioritise brand prestige and product authenticity.

Expert opinion: “China’s leading e-commerce platform, brand flagships are seen by consumers as being official and authentic, often setting pricing expectations for the whole market. Offers the most sophisticated loyalty and membership programmes and performance marketing options. Essential across many categories – but especially luxury, home/lifestyle, health, and fashion,” says Tong Digital’s Jack Porteous.

JD Worldwide

JD Worldwide, operated by JD.com, commands a 15.9% market share and is renowned for its focus on electronics, household goods, and health products. Its direct-to-consumer model appeals to brands seeking control over pricing and branding.

Pros: JD’s self-operated logistics network, with over 200 warehouses, ensures fast and reliable delivery, critical for consumer satisfaction. The platform’s partnership with Tencent enables payments via WeChat Pay, enhancing transaction ease. JD’s emphasis on quality control and anti-counterfeiting measures builds consumer trust.

Cons: High operational costs, including logistics fees, can erode margins for low-value products. JD’s focus on specific categories limits its appeal for niche or luxury brands. The platform’s rigorous vetting process may delay market entry.

Suitable Brands: British brands in consumer electronics, health supplements, or baby products, such as Dyson or Holland & Barrett, are well-suited for JD Worldwide. Companies with reliable supply chains and mid-to-high price points perform well.

Consumer Profile: Middle-class families and tech-savvy consumers, aged 30-50, shop on JD Worldwide for trusted, functional products. They value quality, safety, and competitive pricing over luxury branding.

Expert Opinion: “Longtime competitor to Tmall, JD’s audience skews more male than Tmall, making it a good platform for consumer electronics, technology, and alcohol brands,” says Porteous.

Little Red Book (Xiaohongshu)

Little Red Book combines social media and e-commerce, targeting young, urban female consumers with a focus on lifestyle and beauty products. Its storytelling approach has made it a cultural phenomenon, with 200 million monthly active users in 2025.

Pros: The platform’s social commerce model allows brands to engage consumers through user-generated content and influencer partnerships. Its low entry barriers make it accessible for smaller brands. Livestreaming and KOL (Key Opinion Leader) collaborations drive high engagement, with 30% of users making purchases via social media.

Cons: Limited organic traffic means brands must invest heavily in influencer marketing to gain visibility. The platform’s niche focus on beauty and lifestyle restricts its suitability for other categories. Data analytics are less robust compared to Tmall or JD.

Suitable Brands: Trendy British beauty, skincare, and fashion brands, such as Charlotte Tilbury or ASOS, excel on Little Red Book. Emerging or niche brands with strong visual storytelling capabilities can build a loyal following.

Consumer Profile: Gen Z and millennial women, aged 18-35, with a passion for fashion and beauty, dominate Little Red Book. These affluent urbanites seek trendy, aspirational products and value peer recommendations.

Expert Opinion: “Affluent, mostly female consumers in T1 and T2 cities use RED as a lifestyle guide and is an essential marketing platform for any premium brand. For eCommerce, premium homewares, food and drink, beauty, and health products thrive,” says Porteous.

Dewu

Dewu, formerly Poizon, is a niche platform for streetwear, sneakers, and luxury goods, with 100 million monthly active users and a focus on authenticity

Pros: Dewu’s authentication process builds trust for high-value items, ideal for luxury and collectables. Its young, affluent user base drives premium sales. Integration with WeChat Pay simplifies transactions.

Cons: Niche focus on streetwear and luxury limits broader category appeal. High commission fees (5-8%) and competition from resellers can squeeze margins. Smaller brands may struggle with visibility.

Suitable Brands: British streetwear and luxury brands, like Superdry or Mulberry, fit Dewu’s niche. Brands with collectible or high-end products and strong youth appeal succeed.

Consumer Profile: Affluent Gen Z and young millennials, aged 18-30, from Tier 1-2 cities, shop for exclusive sneakers, streetwear, and luxury goods, valuing authenticity and status.

Expert Opinion: “Originally a platform for streetwear fans and sneaker heads, Dewu has expanded its offer into more categories, including beauty and lifestyle. Best for brands focused on a young adult audience,” says Porteous.

Kuaishou

Kuaishou, a short-video and livestreaming platform, has emerged as a CBEC contender with 700 million monthly active users, focusing on affordable, trendy products.

Pros: Kuaishou’s livestreaming model drives impulse purchases, with 35% of users buying via live sessions. Low entry costs and a user-friendly interface make it accessible for SMEs. Its focus on lower-tier cities expands market reach.

Cons: Limited brand control due to reliance on influencers can dilute messaging. Less robust logistics compared to Tmall or JD may lead to delivery issues. The platform’s budget focus restricts premium brand appeal.

Suitable Brands: Affordable British fashion and lifestyle brands, like Primark or Muji-style homeware, excel on Kuaishou. SMEs with mass-market appeal and influencer marketing budgets thrive.

Consumer Profile: Young consumers, aged 18-30, from Tier 2-4 cities with incomes below RMB 100,000, shop for trendy, budget-friendly fashion and accessories, drawn to livestreaming deals.

Expert Opinion: Challenger short-video and livestreaming platform with big tech in China’s hundreds of lower tier cities, where imported goods are less prevalent. A good opportunity for established brands to gain a foothold in new consumer groups,” says Porteous.

WeChat Stores

WeChat Stores, integrated into China’s “super-app” WeChat, offer a versatile platform for cross-border e-commerce within its 1.3 billion-user ecosystem. Brands leverage WeChat’s social and payment features to create personalised shopping experiences.

Pros: WeChat’s Mini Programs allow brands to customise stores and integrate with WeChat Pay for seamless transactions. Its social nature enables direct consumer engagement via groups and official accounts, enhancing CRM. Low setup costs make it attractive for SMEs.

Cons: High competition and lack of organic traffic require substantial marketing spend to drive visibility. Technical expertise is needed to develop and maintain Mini Programs. The platform’s fragmented ecosystem can complicate scaling operations.

Suitable Brands: British lifestyle, food, and beverage brands, such as Fortnum & Mason or Twinings, thrive on WeChat Stores. SMEs with strong social media strategies and niche offerings can build loyal communities.

Consumer Profile: Diverse consumers, including urban professionals and older generations (35-60), use WeChat Stores for convenience and trusted brands. They value personalised service and social recommendations.

Douyin

Douyin, China’s version of TikTok, boasts over 750 million monthly active users and is a leader in social commerce, blending short videos and livestreaming with e-commerce. Its cross-border e-commerce platform drives sales through engaging content and influencer-driven campaigns.

Pros: Douyin’s algorithm ensures high visibility for engaging content, with 43% of users finding ads enjoyable. Livestreaming and KOL partnerships drive impulse purchases, with luxury goods GMV rising 254% in 2023. In-app stores and Douyin Pay enable seamless transactions, while branded hashtag challenges boost viral reach.

Cons: Heavy reliance on influencer marketing requires significant investment. Limited control over ad distribution, based on user demographics, can lead to inconsistent reach. Foreign brands need a local partner for verification, adding complexity. The platform’s focus on trendy, affordable items may limit appeal for ultra-premium brands.

Suitable Brands: British brands in cosmetics, fashion, and lifestyle, like Lush, Superdry, or Boohoo, excel on Douyin. Trendy, mid-to-high-end brands with creative marketing campaigns can leverage its viral potential.

Consumer Profile: Young, affluent consumers, aged 18-35, from Tier 1-2 cities, shop on Douyin for trendy cosmetics, accessories, and fast fashion. Gen Z and millennials, especially women, are drawn to engaging, influencer-driven content.

Expert Opinion: “Fast-growing livestreaming platform Douyin is vital for capturing younger generations in trendy categories such as beauty and fashion,” says Porteous.

Strategic Considerations for British Brands

Choosing the right cross-border e-commerce platform depends on a brand’s product category, target audience, and resources. Premium brands should prioritise Tmall Global for its scale and affluent consumer base, while electronics and health brands align with JD Worldwide’s quality-focused shoppers. Douyin’s viral, influencer-driven model suits trendy, mid-to-high-end brands targeting Gen Z. Little Red Book is ideal for cool, youth-oriented brands, and WeChat Stores suit SMEs with niche offerings. British businesses must invest in localisation, including Chinese language content and local payment methods like WeChat Pay and Alipay, to build trust. Partnering with local influencers and leveraging livestreaming can amplify reach, particularly on Little Red Book and Tmall. However, brands should be mindful of logistics challenges, such as customs delays, and consider using bonded warehouses in cross-border e-commerce pilot zones to streamline delivery.

Regulatory compliance remains critical, with China’s data security and consumer protection laws tightening in 2025. The CBBC advises UK firms to work with experienced local partners to navigate these complexities. Despite challenges, the rewards are significant: China’s CBEC market offers British brands access to a consumer base with growing disposable incomes and a penchant for quality imports. Cross-border e-commerce is a low-risk, high-reward entry point for UK SMEs to engage with China’s dynamic market.

The post What is Chinese Cross-Border E-Commerce? appeared first on Focus - China Britain Business Council.

Although Alibaba recorded gross merchandise volume of RMB 540.3 billion (£64.9 billion) during 2021, this year looks set to be one of the most challenging yet since the launch of the festival in 2009. China has experienced a drop in consumer confidence in 2022 due to ongoing zero Covid-related disruption in multiple cities, alongside other challenges including high youth unemployment, difficulties in the real estate sector and a potential global recession decreasing demand for Chinese goods.

“China remains one of the world’s most dynamic and technologically advanced markets, despite political headwinds. Understanding China’s political, economic, and social developments will only become more important for businesses and investors as the world enters the post-pandemic era.” – Torsten Weller, China Policy Analyst, CBBC

Nevertheless, China is still the world’s biggest e-commerce market, and we can still expect to see some mind-bogglingly large sales figures, along with some new e-commerce trends. This is CBBC’s prediction of what to look out for ahead of Singles’ Day 2022.

Are Taobao and JD being knocked off the top spots?

Social commerce platforms like Douyin (China’s TikTok), Xiaohongshu, Kuaishou and even WeChat Mini-Programs are entering the shopping festival fray, putting pressure on Taobao and JD. Douyin is reported to be targeting an annual Gross Merchandise Value (GMV) of RMB 1.7 trillion this year. This presents challenges and opportunities for consumer brands, with the possibility of accessing new consumer markets through different channels needing to be balanced with the resources required to launch e-commerce strategies across several platforms. Nevertheless, as a recent report by Samarkand Global argued, a decentralised approach to e-commerce avoids the risk of being overly reliant on one channel or influencer to drive revenue.

More and better services

With consumer attention increasingly divided, the traditional players are having to look to new strategies to attract and retain customers throughout the e-commerce journey, including faster or more tailored logistics solutions. For example, CBBC’s Celine Tang points out that Taobao has added a new function that allows multiple delivery addresses for one order, making it easier for consumers to purchase for their families and friends while using discount coupons which usually have a minimum spend requirement.

Top consumer trends to look out for

As is often the case with Singles’ Day, millennials and gen z (particularly those born between 1990 and1999) will be the key customer group for many brands. According to e-commerce accelerator Pattern, this year, some of the key product categories this group is likely to be investing in include new and trendy instant coffee products, accessories for hobbies such as glamping and winter sports, home entertainment (including games consoles and e-sports equipment), and essential oils and home scents.

Aiming for loyalty rather than sales

Savvy brands are looking at customer loyalty as a more important metric than GMV ahead of this year’s Singles’ Day. Tmall has been promoting its membership programmes for brands, which allow brands to engage directly with their highest-spending customers and push out updates to increase engagement. According to Tmall, during the Singles’ Day 2022 presales, brands gained more than 66 million new members, with members contributing more than 50% of GMV for thousands of major brands.

“An increasing number of consumers are planning to purchase products on at least three different platforms (or even more than five). This is due to different discounts being offered and consumers being more loyal to brands rather than to platforms.” – Celine Tang, China Business Adviser (Consumer Retail & E-Commerce), CBBC

Live streaming is still the most popular promotional method

Despite going off the air for several months in 2022 due to a political snafu, China’s most famous live streamer Li Jiaji (aka the ‘Lipstick King’) is back with a bang for Singles’ Day, already attracting 460 million views for a lengthy live stream that marketed 291 different products, according to Dao Insights. Taobao Live looks to be having a good year all round ahead of Singles’ Day 2022, with several top live streamers formerly associated with Douyin making surprise moves to the platform.

Sustainability concerns

Critics have long pointed to the vast environmental impact of online shopping festivals like Singles’ Day, from the swathes of excess product packaging generated, to the emissions produced by delivery vans. Young Chinese consumers are increasingly well-educated on sustainability concerns and want to make conscious purchasing decisions. In response, Alibaba has launched initiatives such as labels to alert buyers to low carbon products, as well as vouchers for energy-efficient products. However, consumers facing a cost-of-living crisis are likely to be on the lookout for bargains rather than environmentally-friendly choices at present.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services can provide you with the information you need to succeed in China.

The post What trends can we expect to see on Singles’ Day 2022? appeared first on Focus - China Britain Business Council.

Rachel Jones launched her online product monitoring company SnapDragon after discovering that products she was making with another company in China were being faked and sold online.

Totseat – the company she founded back in 2004 – had grown to the point where it was manufacturing in China but she was shocked to discover that fake versions of the product were available online. Rachel then started a company that monitors online platforms to find fake products and report them so that the fake products can be taken down. She explains that what started off as a slow manual process is now done with AI and automation and with the support of the platforms themselves, which are eager to see fake products removed from their sites. SnapDragon now has 35 employees that help protect brands, revenues and customers, and has won numerous awards for the excellent work it does.

Watch below to learn more about Rachel’s journey and what winning the 2020 China-Scotland Entrepreneur of the Year award meant to her.

ENTRIES TO THE CHINA-SCOTLAND BUSINESS AWARDS ARE NOW OPEN. HOW CAN YOU APPLY?

• The online application form can be saved, so you can return to it at any time and edit it right up until the deadline at midnight (BST) on 5th November 2020.
• Please be aware that you are required to submit a three-minute video in support of your application. The video should be submitted via a YouTube link added to the online application form. More details on how to upload to YouTube can be found here. The video will provide the judges with extra information from which to select the winners of each category. See more details on content below.
• The organisers reserve the right, at their discretion, to reject any applications that are deemed to be inappropriate and the decision of the judges is final.

FAQS

Can my organisation make more than one application?
Yes, your organisation may apply more than once. For example, various departments from a university may make separate applications within the same category or across multiple other award categories. Only one application can be submitted per category, it is not permitted to send the same application for two different award categories.

Can I attach documents to support my application?
Yes, you may attach up to three separate documents through the online application form. Please note, each attachment should be no more than one page in PDF or one picture in .jpeg format – the maximum size of each attachment cannot exceed 20Mb. Attachments that are more than one page will not be reviewed by the judges.

How are the applications assessed?
One judge, specialised in his or her award category, will score each award category individually. Each question in your application is scored out of 10. Once the scores are counted the judge picks a number of shortlisted candidates, based on the overall scoring and overall quality of applications in the group – the China-Britain Business Council has final discretion on the number of shortlisted candidates.

Once all categories have been shortlisted, the full judging panel will come together to view each shortlisted candidate’s video. The judging panel will then vote for each category winner based on their application score and their video.

How do I submit the required three-minute video pitch?
The video should be to the standard of that taken on a handheld mobile recording device or better – it is not necessary to produce a professional video solely for these awards unless you really wish to do so. It is the content which matters. We would encourage applicants to show their product or service in the three-minute video as this often helps bring your application to life for the judging panel during the assessment process.

YouTube is the preferred option for uploading video content and we would encourage applicants to amend their video to the unlisted option when uploading a video to YouTube. Click here to learn how to change videos to be Unlisted. The time limit for videos is three minutes maximum. Any video content beyond three minutes will not be viewed during final awarding assessments.

Where do I submit the three-minute video?
Once the video content has been uploaded to YouTube then you must provide the full URL link in your online application where requested.

What should be covered in the three-minute video?
The video offers the opportunity for you to showcase your business, team or product/service to the full panel of judges. The three-minute video does not need to be the business leader speaking for three minutes, it can include a demonstration of your product or service, have customer testimonials or show some of the team hard at work.

When can I reserve a table for the awards?
Due to the ongoing Covid-19 pandemic, it is currently unclear whether or not an in-person dinner will be possible on 4th February, although the event is being held at the Waldorf Astoria, Edinburgh should an ease of restrictions allow.

If a physical event remains impossible, the awards ceremony will be hosted virtually on 4th February, more details of which will be shared closer to the time.

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