The Chinese Mainland boasts a mature e‑commerce ecosystem compared with other overseas markets. There are innumerable e‑commerce service businesses, including multi‑channel network companies, operation agencies and data service providers, which can provide Hong Kong companies with e‑commerce operational services. Meanwhile, e‑commerce logistics providers that offer services such as local express delivery, cross‑border delivery, logistics and warehousing can provide companies with individualised services in various e‑commerce operational aspects.

Against the backdrop of a rapidly evolving Mainland e‑commerce market, Hong Kong companies can actively consider using different types of e‑commerce services. This can help them grasp the characteristics and advantages of different e‑commerce platforms, formulate marketing strategies appropriate to different platforms and align with their overall logistics and warehousing arrangements. This will allow them to quickly adapt to the unique and ever‑changing e‑commerce landscape on the Mainland.

Multi-channel network agencies help raise marketing effectiveness

Mainland consumers’ shopping habits and behaviour are evolving, for instance, by increasingly relying on social media platforms when making purchases. Multi‑channel network (MCN) agencies can be likened to management companies for influencers and self‑media online channels. They scale up the operations of influencers who were previously running their businesses independently, and match up and negotiate with companies that hire them. According to their business features and requirements of the companies, as well as the characteristics of influencers, MCN agencies also provide them with services such as content planning and production, development and execution of commercial promotion plans and fan management.

In addition, as a third party, MCN agencies provide clients with comprehensive digital marketing solutions, which they implement on platforms such as Douyin, Kuaishou and Xiaohongshu, and provide them with services such as content management for online marketing. By going through MCN agencies, e‑commerce companies can select appropriate promotion solutions for marketing purposes on different social media platforms.

Hong Kong businesses can capitalise on these services provided by MCN agencies to ensure that influencers will be able to disseminate quality promotion content to help them build influence on different platforms. Top‑flight influencers can make use of the data analysis services of MCN agencies to learn about the consumption statistics and characteristics of fans in different areas, as well as the degree of fans' activities and interactions in the markets for specific products. These will allow them to better grasp customer preferences, improve online sales content and implement precise marketing strategies. Compared with selecting influencers by themselves, companies with the help of MCN agencies can consider multiple factors to more professionally and stringently select content creators to work with.

Nevertheless, the Mainland has set strict legal regulations for MCN agencies, so Hong Kong companies should choose those with the necessary permits and qualifications to ensure their influencer sales activities are operating legally. They must also carefully select influencers for collaboration and avoid over‑reliance on a single one. They should not judge an influencer’s impact solely on the online follower count because this may be inaccurate, leading to mismatched input and output for companies.

Therefore, ensuring that the business objectives and market strategies of both sides are aligned, carefully assessing the market reputation of potential partners, past collaboration backgrounds and business transparencies are key factors that cannot be overlooked when a company makes related decisions.

For more details, please refer to Hong Kong Businesses Navigating Chinese Mainland E-commerce Retail Market: Multi-channel Network Agencies Become New Engine for Influencer Economy.

Commission operation agencies to expand market

In addition to marketing, many Mainland companies or brands are also looking for agents as partners to help them run online shops and sell their products on major e‑commerce platforms. These agents may be asked to choose appropriate e‑commerce platforms, develop online marketing strategies and analyse data to help expedite entry into the e‑commerce market. These partners are commonly called “operation agencies” on the Mainland.

Hong Kong companies intending to collaborate with operation agencies should note that before doing so, they should gain a detailed understanding of the background and business experience of the potential partner. They should also ensure that an operation agency fully understands their brand value and market objectives. It should possess good cultural adaptability and innovation capabilities, including the ability to keep up with local trends, boost brand awareness online and launch relevant products that better match local needs based on consumer feedback.

Companies should also prepare for a period of adjustment in the early stage of partnership in order to successfully establish an effective working relationship and avoid disagreements that may lead to eventual failure. To prevent potential risks, it is particularly important to pay attention to the financial transparency of an operation agency and consider having more direct control over financial matters by the company or brand. In planning to collaborate with an operation agency, a company should consider choosing one with experience in the industry to ensure both parties can give full play to their respective strengths in the collaboration.

For more details, please refer to Hong Kong Businesses Navigating Chinese Mainland E-commerce Retail Market: Foreign Brand Taps China Market Using Omnichannel Strategy.

Data services providers help improve operational strategies

Large quantities of market data are kept on major Mainland e‑commerce platforms, including data about consumer online shopping behaviour, product sales and supply chains. These data are of great significance and indispensable resources when companies formulate marketing strategies and raise the efficiency of e‑commerce operations using applications such as big data and AI.

Currently, there are e‑commerce data services providers that specialise in processing and analysing data to help companies gain a comprehensive understanding of the latest trends in the local e‑commerce market. They also offer recommendations. On obtaining reports and analyses of data on consumer behaviour from e‑commerce data services providers, businesses can gain deeper insights into consumers’ purchasing history, browsing records and review feedback. This way, they can develop more popular products and implement more effective promotional activities. Based on this useful information, companies can make timely adjustments in operational strategies, including optimising future marketing activities, improving products and shortening delivery time. By transforming data into practical business value, sustained growth in the local market can be realised.

Furthermore, when running e‑commerce businesses on the Mainland, companies store a large amount of user data and personal information. They can therefore consider collaborating with e‑commerce data services providers to use advanced data encryption technology to adhere strictly to local compliance processes and develop internal data management policies to mitigate data breach risks. This can reduce the cost of constructing a security system by themselves while protecting user privacy more effectively. Also, through measures such as obtaining user consent, limiting the scopes of data collection and anonymising data processing, user data security can be enhanced.

Logistics services help improve warehousing and logistics management

There are numerous e‑commerce logistics service providers on the Mainland, ranging from domestic logistics express delivery companies, overseas logistics firms specialised in handling cross‑border delivery services, as well as logistics and warehousing outfits. They can provide companies with tailored logistics services from order processing, warehouse management, transportation and delivery to after‑sales services and reverse logistics. They can even respond to the requirements of companies to customise diversified logistics and delivery solutions to meet the needs of consumers. The following are services offered by logistics services providers:

• Parcel selection and packing: Select product packing and labelling according to the requirements of the online orders of consumers to ensure the safe delivery of goods. Some local logistics services providers have also set up automatic product sorting systems and applied automatic labelling technologies to enable faster processing of personalised orders of consumers while reducing errors and delays in delivery.

• Express delivery: Multiple delivery options, including same-day, next-day and standard delivery to meet the needs of different customers.

• Warehousing management: Warehousing services help merchants store and manage inventories and monitor inventories to raise operational efficiency.

• Logistics tracking: Real-time tracking functions allow customers to learn about the transportation status at any time, thereby increasing transparency.

• Return processing: Quick and convenient return services can help companies effectively process consumer return applications and ease the minds of consumers while shopping. Logistics service providers will also be responsible for sending returned goods back to warehouses for processing, such as inspection, repacking or writing off.

• Cross-border logistics: Companies specialised in cross-border e-commerce provide cross-border transportation services, including customs declaration and clearance of goods, to facilitate firms’ expansion into overseas markets.

For more details, please refer to Hong Kong Businesses Navigating Chinese Mainland E-commerce Retail Market – Case Studies.

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