This white paper is based on 2022 Deloitte China's consumer surveys in 20 key e-commerce markets around the world and in-depth interviews with many Chinese cross-border e-commerce companies. It shows new trends and new challenges in the global e-commerce market and provides cross-border e-commerce companies with clearer market insights. In response to the demands of e-commerce companies to build brand power, an innovative CREATE business model is proposed to help e-commerce companies achieve innovative operations and long-term growth.
Deloitte China Vice Chairman and Leading Partner of Deloitte China Technology, Media and Telecom Industry, Lin Guoen, believes: "China's cross-border e-commerce is facing a new global market environment, new consumption habits and new industry ecology. These changes have put forward comprehensive capabilities for the global operation of e-commerce companies. Therefore, Deloitte China and TikTok for Business jointly launched the research project of this overseas marketing white paper to help Chinese cross-border e-commerce companies deeply understand the changes in the global market and how e-commerce companies seize opportunities and respond to challenges under these changes. "
Opportunities and challenges coexist, building brand strength has become a key to breaking the deadlock
White paper conducted research and analysis on the global e-commerce consumer market under the new normal. Data shows that it is expected that the global e-commerce market will maintain an annual growth rate of 12% in the next five years, and the penetration rate of steadily rises, and the long-term trend is improving. By region, the e-commerce retail scale in mature markets such as Europe, North America, Japan, South Korea and Australia accounts for 59% of the world's overall total. Diversified e-commerce channels bring new growth opportunities. Emerging markets such as Southeast Asia, , Middle East , and Latin America also have high potential that cannot be underestimated. In terms of categories, fashion, 3C and home appliances have now become the two largest categories in the world's e-commerce category, with a scale of over US$300 billion; furniture, home and beauty products have also increased significantly. In terms of the consumption behavior of e-commerce users, it is showing the characteristics of fragmentation, socialization and entertainment, and gradually forming a new model of "interest content guiding purchase". At the same time, consumers are also paying more attention to brand power. 92% of respondents believe that brand factors have a driving effect on purchasing decisions.
research found that driven by new market situations and consumer behavior, China's cross-border e-commerce has gradually shown the "three new" characteristics of new overseas participants, new marketing models, and new sales models. E-commerce operations are also facing three major challenges: fierce homogeneous competition, rising traffic costs, and difficulty in attracting attention in a single-dimensional product marketing. Building brand power and establishing a long-term and healthy business operation model have become the key to breaking the situation across the border e-commerce.
TikTok is becoming an important business base for overseas e-commerce companies to build brand power
TikTok, as the world's leading short video entertainment platform, has more than 1 billion monthly active users, covering 150 countries and regions. E-commerce brands can reach a huge target customer base on this platform. In addition, TikTok has created an infinite loop purchasing journey for users, which can meet the shopping needs of TikTok users at different consumption decision-making stages, and is an excellent choice for cross-border e-commerce companies to integrate into user entertainment and life. TikTok has rich exposure touchpoints, a real and positive content ecosystem, reliable e-commerce services, vivid brand interaction, active user groups, and close emotional connections, allowing brands to establish closer connections with consumers and help brands form a loyal community.
TikTok can help brands enhance consumers' sense of identity and trust, accelerate consumers' purchasing decisions, and help cross-border e-commerce companies to accumulate brand influence.According to the white paper survey results, e-commerce users with TikTok used habits have regarded TikTok as an important channel for discovering good things and purchasing them, and their recognition of brand value is 1.4 times that of e-commerce users who do not use TikTok. More and more e-commerce consumers regard TikTok as an interest field to understand brands: 64% of users use TikTok as a tool to discover good things, 56% of users are willing to purchase products recommended by the topic #TikTok MadeMeBuyIt, and will participate in discussions on the platform before purchasing, share the product usage experience with relatives and friends after purchasing, and give full play to TikTok's social attributes; in terms of brand stickiness, 53% of users have higher trust in the brand opening of corporate accounts on TikTok, and 56% of e-commerce users usually consider continuing to purchase products of the brand after following the corporate account on TikTok.
In response to the four major demands of brand management, CREATE innovative business model "prescribe the right medicine"
Through in-depth interviews with 11 Chinese cross-border e-commerce companies in different brand maturity and overseas stages around the world, it concluded that cross-border e-commerce companies generally face four major demands of user insight, brand identity, brand communication and value precipitation. In response to these four major demands, TikTok for Business and Deloitte China brings an innovative business model based on the full-link value played by TikTok in the "infinite loop" shopping journey. The CREATE innovative business model includes six major factors, including: creating creative content (Content), improving brand awareness (Recognition), stimulating user interaction (Engagement), promoting brand growth (Amplification), insight into user trends (Trend), and building a brand ecosystem (Ecosystem). Help cross-border e-commerce brands maximize the marketing value of TikTok, build exclusive brand power, drive positive brand cycles, and long-term growth.
Take the user insights and appeals of cross-border e-commerce companies as an example. With the help of the Engagement+Trend combination under the CREATE model, it can improve insights into local users and reach potential users within the maximum scope. Brands can further understand their preferences by interacting with core users on TikTok and continue to accumulate core users’ understanding of the brand. Explore more target population characteristics and expand brand coverage through differentiated interest labels. At the same time, cleverly use popular elements and local trends on TikTok to gain wide exposure and reach more people. In response to the brand communication demands of cross-border e-commerce companies, we can break through the method of blindly buying volume conversion through the Engagement + Amplification + Ecosystem combination under the CREATE model, and dig deep into the value of TikTok's content entertainment platform. In-depth exploration of the life cycle of communities, enterprise accounts and users, and through the three major value resonances, broaden the scope of discussion, stimulate and amplify the value of social media to achieve long-term operation of the brand.
In addition, the white paper also conducts in-depth analysis from the characteristics of the four major categories of fashion, beauty, 3C home appliances, furniture and home furnishings, and provides detailed business practice suggestions based on CREATE's innovative business model.
Conclusion
"CREATE innovative business model, stimulate global growth: The release of the 2022 TikTok for Business Overseas Marketing White Paper" not only opens a window for cross-border e-commerce companies to see global industry trends, but also brings solutions to long-term brand management. The release of CREATE's innovative business model will also help cross-border e-commerce companies further promote the construction of brand power, achieve positive brand circulation and long-term growth.
