'618' festival rings up strong sales at home and abroad

Global expansion

Consumers from countries and regions including Singapore, Malaysia, South Korea, Australia, Japan, Thailand, Cambodia, Kazakhstan and Mongolia were able to enjoy free delivery services during the festival when their purchases reached a certain amount, Taobao said.

It was the first time that Kazakhstan and Mongolia were included in Taobao's free-shipping zone.

Customers in these countries and regions could enjoy steep discounts and direct price cuts similar to domestic shoppers. They could also access convenient return services, which allowed shoppers to return unwanted items at nearby collection points. Taobao said it would accelerate steps to expand its presence in overseas markets this year, and support merchants wanting to explore international markets and achieve business growth.

JD recently announced that users across 17 markets — including Japan, South Korea, Singapore, Thailand, Malaysia, Vietnam, Cambodia, Australia and New Zealand — can enjoy free-shipping promotions.

The platform has optimized its direct-mail logistics network, which now covers 37 countries and regions, while reducing shipping costs in Southeast Asia by 30 to 50 percent. These improvements ensure faster, more affordable delivery for global consumers, it said.

Overseas consumers can buy products from categories such as beauty goods, home appliances, furniture, and consumer electronics and receive the same value, quality, and service as domestic shoppers, JD said.

"The expansion of the global free-shipping zone will let overseas consumers enjoy high-quality and cost-effective China-made commodities, bolster the development of international trade and improve the competitiveness of Chinese online retailers in the global e-commerce landscape," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation.

The expansion will not only help e-commerce players rapidly expand their footprint in overseas markets and shorten the cross-border delivery times, but also allow international shoppers to engage in cross-border shopping more effectively, Hong said.

However, Chinese e-commerce enterprises are facing some challenges in overseas expansion, he said, including an increasingly complex international trade environment and cultural differences. Hong suggested they develop a deep understanding of local consumer habits, and relevant laws and regulations in targeted markets, and build highly efficient and reliable cross-border logistics networks.

Cheng, from EY Greater China, said the expansion of free cross-border shipping will reinforce the awareness and influence of Chinese brands in the international market and promote the development of China's cross-border e-commerce sector.

He called for the platforms to boost logistics capabilities, improve after-sales services, step up technical R&D and innovation, and optimize supply chain management to enhance their competitiveness on the global stage.

Jiang Han, a senior analyst at market consultancy Pangoal, said the expanded free delivery measures will greatly appeal to price-sensitive consumers.

"It is noteworthy that the expansion plan includes Kazakhstan and Mongolia, which indicates that the e-commerce platform is exploring more opportunities in emerging markets, and will enable merchants to reach potential overseas customers, thus propelling the robust growth of cross-border trade," Jiang said.

To make inroads into overseas e-commerce markets, Chinese online retailers should adjust product strategies and service models in accordance with the demands of various countries and regions, and strengthen the establishment of compliance systems in overseas markets, he added.