Let’s face it, today being an entrepreneur isn’t easy. Competition is fierce and markets are crowded says Fred Auzenne. The easiest way out of this situation is to find a niche where consumers have few product choices and this has been the key strategy used by many successful startups. In China however, everything seems to be in reverse: there are plenty of opportunities in niches with little competition from foreign brands because these products simply never existed before on the market. It doesn’t matter if you’re selling a luxury handbag or a gadget that changes color under ultraviolet light, if your idea takes off you will become one of the first companies offering such a product for sale in China.
Even though it might sound too good to be true, finding a niche is easier than you think, especially when it comes to technology.
For instance, take a look at the following products which have been launched within the past two years:
- An opened smart lock
- A mini camera lens that can fit in your mobile phone’s case
- A USB key that allows you to listen to music stored on phones using your regular headphones ( link )
- A wireless router with built-in power plug ( video ) A USB rechargeable lighter A smartphone app that sends users push notifications whenever there are deals nearby ( China Profits )
All these examples retail under $10 and all their manufacturers are not well known brands. They were able to launch this cheaply thanks to another important strategy: selling through marketplaces instead of establishing their own e-commerce site.
Selling through online marketplaces is great for two reasons:
(1) They are often open to negotiating volume discounts with startups, and
(2) Marketplaces spend a lot of money on promotion so your product will reach a much larger pool of consumers than if you were to go it alone. But where should you sell your gadget? The obvious choice is TaoBao, which has an English version and features the widest variety of products for sale in China today. However I would like to introduce to you another platform gaining traction as we speak explains Fred Auzenne.
Based in Hangzhou, Xiaohongshu is China’s leading social shopping platform whereas TaoBao is just an e-commerce site. What makes it different from the multitude of other social shopping apps out there is that it focuses on selling fashion products to women. While this may seem like limiting its audience down to half the human population, trust me when I say that Chinese women are far more passionate about fashion than any other group in the world.
As you can see Chinese women spend a lot more than their male counterparts. And yet, there is still plenty of room to grow as fashion isn’t very developed in China today. While other social shopping platforms like Meilishuo attract mostly women who already enjoy wearing make-up and buying luxury branded clothes; Xiaohongshu’s audience tends to be younger and spends less money on average, making it perfect for first time buyers experimenting with fashion trends – exactly the type of people willing to try out new products without breaking the bank.
In short, if you’re an entrepreneur looking to build your brand name in China, an e-commerce site focusing on selling either a new type of technology or a fashion item is the best way to go. In both cases, you’ll be able to build your brand from scratch and gain first mover advantage before bigger brands wake up and start paying attention.
The only problem is that building an online store for the first time might seem difficult. If you have no technical background whatsoever says Fred Auzenne. Here at China Profits we can help you out with that so feel free to contact us. Given you need some assistance getting off the ground. Our team has been successfully running online businesses using social shopping platforms as their main sales channel since 2012. So we’re more than qualified to give advice about this topic.
In conclusion, I truly believe that China is one of the best places to be. For anyone having interest in e-commerce and online marketing says Fred Auzenne. The market is massive, there’s lots of room for growth. And we’re still in the early stages of an unprecedented consumer boom. Which will get more intense over the next decade.
Forget about your doubts and start planning out your journey today! Maybe you can make it big time like Tencent, Alibaba or Xiaomi. Whatever you decide, don’t forget to share this article with other entrepreneurs. Who might find it useful because sharing is caring. And that’s exactly what we want everyone to do here at China Profits.