Digital commerce firm JGOO is urging more British retailers to prepare to target the Chinese market, as it believes China could enjoy strong economic growth following the news that it believes it has passed the peak of the coronavirus epidemic.
Richard Morecroft, Director and Co-Founder, JGOO said: “As the world battles the Coronavirus, it’s no secret that UK retailers have suffered a drop in sales as a result. Amid these growing concerns, what British retailers might have failed to realise is that all is not doom and gloom for the Chinese market. In fact, the virus could have created an opportunity for British brands in its booming e-commerce market, which stands today as the biggest in the world with a growing value of $1.9 trillion in 2019.”
JGOO says that when the outbreak of the virus occurred in China earlier this year, it inadvertently created a boom in the Chinese e-commerce market as consumers were forced to self-quarantine. Mobile usage increased by 20% within just one month and online sales spiked as Chinese consumers reverted to online shopping to cater for their needs.
Richard said: “Despite China's challenges and trade being tough in the UK, the coronavirus has presented an opportunity for UK retailers to tap into - albeit, perhaps one that they weren't expecting. In December, it was forecasted that retail e-commerce sales in China would be worth $2.328 trillion in 2020, however, this could be higher following the post Coronavirus boom in online shopping.
“UK Retailers looking to increase their sales might want to consider exploring this avenue given the demand for British goods is at an all-time high in China.”
Richard Hyman, retail analyst and founder of Richard Talks Retail, said: “If British retail businesses are to avoid seeing a fall in sales, the key is to explore other markets. Despite the coronavirus concerns, China shouldn't be excluded from this.
“Retailers should be thinking more globally in this time of slow growth, and the online Chinese market is one that they should be considering. There is an opportunity for western businesses to engage with this market, and their success will come down to how well they are able to drive their visibility on China's social platforms, which is the most powerful way of reaching China's digital generation.
“Local knowledge is critical to doing this successfully and partnering with companies like JGOO who are specialists at connecting businesses with China’s digital generation is the lowest risk route."
Launched in London in 2017, JGOO is a next generation leader in digital commerce with forward-thinking technology at its core. Through its official partnerships with China’s leading social media and payments platforms, JGOO connects Western brands to Chinese shoppers and tourists, both as tourists in the UK and buying remotely from China. London based JGOO has a team of Chinese nationals to assist clients in developing a bespoke marketing strategy to drive billions of Chinese consumers to their business. On top of this, JGOO provides businesses with a payments gateway for Chinese consumers to pay via their local methods when paying for British goods online or instore, as part of their mission to enable direct engagement with the Chinese market.
With JGOO, brands can enter China in as little as two weeks, with a high degree of control and a very low risk.
JGOO is part of UK FinTech group R8 Limited (R8), which aims to bring the full scope of banking and financial services to support the growing decentralised economy. Prominent entrepreneur Jonathan Rowland is the founder and chairman of R8, which has several renowned backers including Twitter co-founder Biz Stone, who sits on the board as a non-executive director.