9 Oct

October 09, 2024

CIW News is a free email newsletter on China tech trends.

In the ever-evolving landscape of global e-commerce, Chinese sellers are increasingly turning their attention to niche platforms across Europe, reaping substantial rewards. A standout example is Zhiou Technology, which has surged on the German e-commerce platform OTTO, amassing a staggering 570 million yuan (over US$80 million) in just two and a half years.

In a mere six months, the company achieved a Gross Merchandise Volume (GMV) of 180 million yuan on OTTO, a figure that left many in the industry astonished. Over the past two and a half years, Zhiou Technology has generated a total GMV of 573 million yuan on OTTO, solidifying its position as a key player on the platform.

OTTO’s traffic is predominantly driven by direct access and organic search, comprising 87% of total visits, with minimal reliance on paid search…

With the upcoming Double 11 shopping festival just around the corner, China's leading e-commerce giants, JD.com and Alibaba, are pouring substantial investments into the Hong Kong market. Both companies are ramping up efforts to capture market share with aggressive campaigns that go beyond simply offering free shipping.

On September 30, JD.com announced its latest move in Hong Kong, committing an initial investment of RMB 1.5 billion (approx. USD 205 million) with no upper limit set for future funding. The investment will focus on price subsidies, logistics subsidies, and service enhancements.

According to JD.com, Hong Kong users can now enjoy free shipping for self-operated products with purchases over RMB 299, covering categories such as electronics, home appliances, fashion, and beauty products, with delivery as fast as the next day. This marks a significant expansion of JD’s services in the Hong Kong region.

Read this full article for free here. 

Over the past two years, China has witnessed a rapid surge in AI development, particularly in the realm of large language models. As of now, more than 190 AI models have been officially registered and deployed, amassing over 600 million registered users.

According to a recent survey by Accenture, 59% of Chinese enterprises plan to increase their investment in digital transformation over the next year, up by 6 percentage points from the previous year. This trend underscores a robust demand for AI services across various industries and highlights the substantial commercial potential of large models.

Cloud service giants like Alibaba Cloud, Tencent Cloud, and Baidu Intelligent Cloud view these developments as catalysts for technological innovation and new growth opportunities…

Read the article here.

In the first half of 2024, e-commerce platforms in China actively supported trade-in policies by offering substantial subsidies, streamlining processes, and enhancing logistics capabilities.

These efforts have effectively facilitated consumer conversion and consumption upgrades. 68.8% of internet users who participated in trade-in activities chose to do so online.

Among these, the most traded items included smartphones, digital devices, and large household appliances such as washing machines.

Specifically, 28.8% of users traded in smartphones and digital devices, while 23.7% opted for large household appliances. This shift underscores a growing preference for online transactions in the trade-in market, reflecting consumers’ increasing comfort with digital platforms for such activities.

Read the full article with a subscription.