Entering China’s Giant Market
through Zigen’s "e-Cross-border Portal"

Albert B. Wong,  Chairman,  Zigen Medical

2020-09-24

「短鏈接」 Short URL: https://zigen.hk/NQS2d

Why “e-Cross-border Portal, eCBP” ?

China’s recent economic successes transformed the country into a gigantic consumer market boasting a 300-million-strong middle-class with an insatiable demand for local and international products. To accommodate this new demand and to make good use of its huge foreign reserves, China relaxes its import policy considerably with the establishment of dozens of Pilot Free Trade Zones (pFTZ) across China, the founding of the annual China International Import Expo (CIIE) and the licensing of e-Cross-border Portals (eCBP) [also called “Cross Border e-Commerce” in other contexts].

Zigen has been invited by several Mainland eCBPs to serve as a recommender and an endorser for international legitimate and quality-assured product suppliers.

How eCBP Works ?

eCBP works like a consumer purchasing a product abroad and presented it to the Border Customs upon re-entering China. If the product was deemed legitimate and legal in China, the Customs might or might not impose a tariff and let the traveler bring the product home. A parallel procedure is used in eCBP transactions where an e-consumer orders an international product over an eCBP website and receives it within the normal delivery time if the product was deemed permissible by the Customs.

Try eCBP at Low Costs

An international supplier interested in eCBP should first contact Zigen to learn about the eCBP services and procedures. If these are acceptable, then the supplier should tender all the documents and samples required for the Chinese Customs’ prior approval. Once approved, the supplier delivers a quantity of the products to be stored in Zigen’s Hong Kong warehouse for delivery to the Mainland e-consumers. The inventory quantity depends on the supplier’s estimated product turn-over and the level of promotions, if any.

Market Testing for First-time New Entries

The eCBP provides an ideal money-saving channel to test-market a product entering China for the first time because:

  • The original packaging can be used without any change in appearance, design or language
  • The initial inventory size could be very small depending on the supplier’s estimate
  • E-consumer preferences and habits could be gauged by the flow of sales and its scope of distribution. This information collection can be enhanced by using Zigen’s proprietary integrated-circuit (IC) monitor adhered or embedded in the product
  • Once the market-testing is complete, the supplier can use the data collected above to develop a comprehensive strategy for marketing to the whole China market, both on-line and off-line

Distinguish Your Products

Zigen’s proprietary IC monitor also serves as a quality/legitimacy marker to help distinguish the product from its competitions. Upon scanning the product with a cellphone, a consumer could determine from the phone screen whether the product is intact or has been opened and hence subject to tempering. He/she could also read about the product information and to establish a dialog with Zigen or with the supplier directly using “IoT (internet of things)” and blockchain technologies with the cellphone as a transmitter.