China Market
Entry FAQ

The most common path for foreign brands is to sell through Tmall Global, China's leading cross-border e-commerce platform. This allows you to sell directly to Chinese consumers without establishing a local business entity. Products are shipped from your home country or from a bonded warehouse in China.

A typical launch process looks like this: market research and competitive analysis, trademark preparation, platform registration (usually through a Tmall Partner agency), store design and product listing localization, and a go-to-market campaign including social media, influencer seeding, and performance ads.

Start to launch typically takes 6 to 12 weeks, depending on your product category and how much existing content you have.

No. Tmall Global (tmall.hk) is specifically designed for foreign companies selling cross-border into China without a Chinese entity. Your Tmall Partner agency handles all in-market operations on your behalf — store management, customer service, marketing, and fulfillment.

If you later decide to sell domestically (via Tmall Classic at tmall.com), you would need a local entity or a WFOE (Wholly Foreign-Owned Enterprise). But for market entry, cross-border is how most foreign brands begin.

The full process from initial planning to a live Tmall Global store typically takes 6 to 12 weeks. This includes trademark verification, platform registration, store design and localization, product listing setup, and go-to-market preparation.

Categories with heavier regulatory requirements — like health supplements or cosmetics sold domestically — can take longer due to certification processes. Cross-border e-commerce significantly shortens these timelines because most Chinese product certifications are bypassed.

The strongest categories for imported products on Tmall Global include:

Chinese consumers particularly value imported products in categories where quality, safety, and brand heritage matter.

Yes — but the playbook has changed. The days of simply showing up with a European or American label and watching sales roll in are over. Chinese consumers are more sophisticated than ever, domestic competition has improved dramatically, and brands need a genuine value proposition beyond country of origin.

That said, China remains the world's largest e-commerce market by a wide margin. Cross-border e-commerce continues to grow as a channel, and Chinese consumers still actively seek out foreign brands in categories where they trust imported quality — health, beauty, baby, food, and lifestyle.

The brands that succeed are the ones that invest in proper localization, build a real social media presence, and commit to the market for more than a quarter. The opportunity is real, but it requires strategy, not just distribution.

Underestimating localization. You cannot reuse your European or American e-commerce images and copy. Chinese consumers expect locally relevant content — product pages, social posts, and customer service all need to be native-quality Chinese.

No marketing budget. Opening a Tmall store without investing in marketing is like opening a shop in a mall with 10 million stores and no signage. Nobody will find you. First-year marketing spend is typically the largest line item in a China launch budget.

Thinking too broadly. You are not selling to 1.4 billion people. A successful initial launch targets Shanghai, Beijing, and Guangdong province. Penetrating these cosmopolitan markets first is already a significant achievement. Expand from there.

Choosing the wrong partner. A Tmall Partner agency that promises everything and delivers PowerPoint decks is worse than going it alone. Look for operational depth, category experience, and transparent communication.

Tmall (tmall.com) is China's largest B2C e-commerce platform, owned by Alibaba Group. It hosts official brand flagship stores — similar to having a branded storefront inside the world's largest digital shopping mall. Unlike Amazon, Tmall is a marketplace: brands operate their own stores with their own visual identity, pricing, and customer relationships.

Tmall accounts for a significant share of all online B2C retail in China. For most foreign consumer brands, it is the primary sales channel for China market entry.

Tmall Classic (tmall.com) is for brands with a Chinese business entity selling domestically. Products clear full Chinese customs, require local certifications, and ship from domestic warehouses.

Tmall Global (tmall.hk) is the cross-border platform for international brands without a Chinese entity. Products ship from overseas or bonded warehouses, bypassing most domestic regulatory requirements. Consumers pay applicable cross-border taxes at checkout.

Most foreign brands entering China for the first time start with Tmall Global. It offers faster setup, lower regulatory barriers, and significantly reduced upfront investment. Some brands later add a domestic Tmall presence once they have established demand and completed domestic certifications.

A Tmall Partner (TP) is an agency officially authorized by Alibaba to help brands set up, manage, and grow their stores on Tmall and Tmall Global. TPs handle store registration, design, daily operations, marketing, customer service, and fulfillment logistics on behalf of the brand.

You technically do not need a TP — brands can operate their own stores. But in practice, nearly all foreign brands work with one. The platform is complex, operates entirely in Chinese, and requires daily management including customer service, live streaming, promotional campaigns, and platform-specific advertising. Running this from outside China without local expertise and language capability is extremely difficult.

JD.com is China's second-largest B2C platform, known for its self-operated logistics network and strong consumer trust. JD Worldwide is its cross-border equivalent. It is particularly strong in electronics, home appliances, and premium goods.

Douyin (China's TikTok) has rapidly grown into a major e-commerce channel through live-stream shopping and short video commerce. It is increasingly important for brand discovery and impulse purchases.

Pinduoduo focuses on value-conscious consumers and group buying. It is less common for premium foreign brands but dominant in mass-market categories.

For most foreign brands, Tmall Global remains the starting point. The platform choice depends on your product category, positioning, and target consumer. A good agency will advise on the right channel mix.

The registration process is handled through Tmall's merchant portal, typically facilitated by your Tmall Partner agency. You will need to provide: company registration documents from your home country, a trademark registration certificate, product documentation, and a brand authorization letter if you are not the brand owner.

The deposit is typically $8,000 to $25,000 depending on your product category. There is also an annual technical service fee of $0 to $10,000, part of which can be refunded based on annual sales performance. Once approved, store design and product listing setup take an additional 2 to 4 weeks.

Yes, and in fact most foreign brands entering through Tmall Global are unknown in China at launch. That is normal. The challenge is not getting onto the platform — it is getting noticed once you are there.

This is why first-year marketing investment is critical. A combination of social media presence on Little Red Book (Xiaohongshu) and WeChat, influencer seeding with KOLs and KOCs, and targeted performance ads on the platform is the standard approach to build initial awareness and trust.

Cross-border e-commerce (CBEC) is a government-supported trade model that allows foreign brands to sell products directly to Chinese consumers without formally importing them into China. Products are stored in special customs bonded warehouses — physically located in China but legally outside Chinese customs territory until a consumer places an order.

When a customer purchases, the product clears customs individually and is delivered within 1 to 3 days. This model bypasses most domestic product registration and certification requirements, significantly reducing the time and cost of market entry.

Bonded warehouses sit in designated free trade zones across China — major locations include Shanghai, Hangzhou, Shenzhen, Guangzhou, Ningbo, and Zhengzhou. Products are shipped in bulk from your home country and stored in these facilities.

When a consumer orders on Tmall Global, the product is picked, packed, cleared through customs individually, and delivered domestically — typically within 1 to 3 business days. This gives consumers a delivery experience comparable to domestic purchases while the brand retains the regulatory advantages of cross-border trade.

China maintains a CBEC Positive List of product categories authorized for cross-border e-commerce. The current list contains over 1,400 product categories classified by HS code, covering most consumer goods including cosmetics, health supplements, food and beverage, baby products, pet food, personal care, home goods, and apparel.

Some categories have specific conditions — for example, certain food products must be stored in bonded warehouses rather than shipped directly. Your Tmall Partner agency will verify whether your specific products qualify and which conditions apply.

CBEC transactions are subject to a combined cross-border e-commerce tax, which is generally lower than the standard import duties plus VAT applied to conventional imports. For most product categories, the effective cross-border tax rate is approximately 9.1% (calculated as 70% of the applicable VAT rate with zero customs duty for qualifying goods under the annual personal allowance).

Each Chinese consumer has an annual cross-border purchase limit of RMB 26,000, with a per-transaction limit of RMB 5,000. Purchases within these limits receive the preferential tax treatment. Beyond these limits, standard import duties apply.

This is the first strategic decision any foreign brand faces and it shapes everything that follows — regulatory path, cost structure, timeline, and growth ceiling.

Most brands start cross-border and expand to domestic once they have validated demand and completed the necessary certifications.

Fresh and perishable food is generally better suited for domestic channels (Tmall Classic or JD) rather than Tmall Global cross-border. The bonded warehouse model requires products to be shelf-stable for extended periods, and cold-chain cross-border logistics are complex and expensive.

Fresh food is a significant category in China's domestic e-commerce but a small one on Tmall Global. If you are a fresh food brand, the recommended approach is to work with a local import partner or establish a Chinese entity to sell through domestic platforms with local warehousing.

There are several cost components to consider:

A realistic first-year budget for a mid-sized brand launch is meaningful. Marketing alone in year one often represents the single largest line item, sometimes exceeding initial sales revenue — this is an investment in building a customer base that pays off in years two and three.

Marketing is the largest startup cost because no Chinese consumer knows your brand yet. In the first year, marketing spend often represents a 1:1 to 1.2:1 ratio to sales — meaning you may spend as much on marketing as you generate in revenue. This is normal for a zero-to-one launch.

The budget covers social media content creation, influencer partnerships (KOLs and KOCs) on Little Red Book (Xiaohongshu) and Douyin, platform advertising within Tmall (PPC, Brand Zone, banner ads), and seasonal campaign activations during major shopping festivals like Double 11 and 618.

Year-over-year, the marketing-to-sales ratio improves significantly as brand awareness grows and repeat customers accumulate. By year two or three, marketing typically drops to a sustainable percentage of sales.

Fee structures vary by agency but generally fall into two models:

Fixed + commission: A monthly or annual retainer fee plus a commission on sales, typically in the 5% to 8% range combined. This is the most common structure for brands with steady operations.

Pure commission: No fixed fee — the agency earns solely from a percentage of sales, typically 12% to 15%. Higher commission but lower upfront risk for the brand.

The right structure depends on your projected sales volume, product margins, and how much operational involvement you want from the agency. Be cautious of agencies that only offer pure commission at very low rates — it often means they will deprioritize your brand once onboarded.

Yes. The deposit (typically $8,000 to $25,000 depending on your product category) is fully refundable when you close your store, provided there are no outstanding disputes or liabilities. Think of it as a security deposit, similar to a rental deposit for physical retail space.

The annual technical service fee is also partially refundable. Tmall sets a sales threshold — if your store meets or exceeds it within the year, a portion of the technical service fee is returned.

For products on the CBEC Positive List purchased within the consumer's annual allowance (RMB 26,000), customs duty is zero. The consumer pays a combined cross-border tax at 70% of the applicable VAT and consumption tax rates.

For most consumer goods this works out to approximately 9.1% effective tax (70% of the standard 13% VAT). Products with consumption tax — such as high-end cosmetics — have a higher effective rate. These taxes are calculated and collected automatically at checkout. The brand does not handle customs duty directly.

For Tmall Global registration, the platform requires evidence of a trademark — a registration from your home country is sufficient to get started.

However, a home-country trademark provides zero intellectual property protection in China. China operates on a "first-to-file" system, meaning whoever registers your brand name first in China owns it there — regardless of who created the brand. Trademark squatting is a well-documented problem.

Registering your trademark in China should be an early priority, ideally before or in parallel with your Tmall launch. The process takes approximately 12 to 18 months through the China National Intellectual Property Administration (CNIPA). Your agency or a specialized IP firm can handle the filing.

The National Medical Products Administration (NMPA) is China's regulatory body overseeing cosmetics, medical devices, and pharmaceuticals — roughly equivalent to the FDA in the United States or the EMA in Europe.

If you are selling cosmetics domestically (via Tmall Classic), your products must be registered with NMPA. This process can take 6 to 12 months and requires animal testing or recognized alternative testing methods.

If you are selling cosmetics via cross-border e-commerce (Tmall Global), NMPA registration is not required. This is one of the primary advantages of the CBEC model for beauty and personal care brands.

The Blue Hat is China's mandatory registration certificate for health supplements sold domestically. The name comes from the blue hat-shaped logo that appears on approved product packaging. Obtaining Blue Hat registration is a lengthy and expensive process — it typically takes 2 to 5 years and requires extensive testing and documentation.

Cross-border e-commerce (CBEC) bypasses Blue Hat requirements entirely. Foreign health supplement brands can sell through Tmall Global without Blue Hat registration, making CBEC the dominant entry channel for this category. This is why health supplements are one of the strongest categories on Tmall Global for foreign brands.

Products sold through CBEC are generally exempt from Chinese labeling requirements that apply to standard imports. You do not need Chinese-language labels on the physical product packaging for cross-border sales.

However, your product listings on Tmall Global must be fully in Chinese — this includes product descriptions, ingredient lists, usage instructions, and any regulatory disclaimers. This localization is typically handled by your Tmall Partner agency as part of the store setup process.

If you later transition to domestic selling, full Chinese labeling on physical packaging becomes mandatory.

Register your trademark in China as early as possible — this is the single most important step. China's first-to-file system means prior use of your brand elsewhere in the world does not establish rights in China. File with the China National Intellectual Property Administration (CNIPA) in all relevant Nice Classification classes for your product categories.

Beyond trademarks, consider registering design patents for distinctive product packaging and copyright for original creative works. Monitor Chinese marketplaces for counterfeits and unauthorized sellers — Tmall and JD have brand protection programs that allow trademark holders to report and remove infringing listings.

The EU-funded China IPR SME Helpdesk provides free legal guidance to small and medium enterprises on intellectual property protection in China.

For cross-border sales via Tmall Global, most domestic product certifications are not required. This is one of the core advantages of the CBEC model — it allows brands to enter the market without navigating China's full regulatory approval process.

For domestic sales, certification requirements depend on your product category. Cosmetics require NMPA registration. Health supplements require Blue Hat certification. Food products need hygiene certificates and import permits. Electronics may need CCC (China Compulsory Certification).

Your products must still comply with the general safety and quality standards of your home country, and Tmall Global may request documentation to verify this during store registration.

China's internet operates behind the Great Firewall — your international website, Instagram, Facebook, and YouTube are all inaccessible to Chinese consumers. You need a presence on Chinese platforms.

The most important platforms for foreign brands are:

The right platform mix depends on your product category and target consumer. Not every brand needs every platform — a focused approach on two or three platforms usually outperforms spreading thin across all of them.

Little Red Book (Xiaohongshu) is a social commerce platform with over 300 million monthly active users. It combines user-generated content, product reviews, and e-commerce in a single app. Think of it as Instagram meets Google Reviews meets a shopping mall.

When Chinese consumers encounter a new brand or product, their first instinct is to search for it on Little Red Book (Xiaohongshu). If your brand does not appear in search results with reviews, posts, and user content, it effectively does not exist in the minds of most Chinese consumers — particularly in beauty, health, baby, and lifestyle categories.

Building a presence on Little Red Book (Xiaohongshu) through KOL/KOC partnerships and brand-produced content is one of the most critical early investments for any foreign brand entering China.

Influencer marketing in China operates through two tiers:

KOLs (Key Opinion Leaders) are high-profile influencers with large followings. They are used for brand awareness, product endorsements, and live-stream selling. KOL partnerships are more expensive but deliver broader reach.

KOCs (Key Opinion Consumers) are everyday consumers with smaller but highly engaged followings. They produce authentic product reviews and recommendations. KOC campaigns are more affordable and often drive stronger conversion rates because of the trusted, peer-to-peer nature of the content.

A typical launch strategy combines a small number of KOL partnerships for visibility with a larger wave of KOC seeding for grassroots credibility. The content these influencers produce on Little Red Book (Xiaohongshu) and Douyin then becomes searchable, building long-term organic visibility.

Live streaming is a major sales channel in China — not a gimmick. Brands use live streaming on Tmall, Douyin, and other platforms for both sales and product education. Sessions typically run several hours, combining real-time product demonstrations, Q&A, and limited-time offers.

Unlike Western live shopping, which has been slow to take off, Chinese live-stream commerce is a mature, high-volume channel. Major shopping events generate a significant percentage of their GMV through live streaming.

For foreign brands, live streaming is usually managed by the Tmall Partner agency or by contracted Chinese hosts. Brands provide guidance on product positioning and messaging, while the hosts handle the performance. Shanghai Jungle, for example, conducts 6 to 8 hours of live streaming daily across multiple brands.

Shopping festivals are not optional — they drive 40% to 50% of annual sales for most Tmall stores. The major ones:

The approach to festivals should focus on traffic acquisition and branding, not deep discounting. A 10% to 20% discount is standard and expected. Discounts of 50% or more damage brand perception and margins. The goal is to attract more targeted users during periods of peak platform traffic.

Not directly. Chinese consumers expect locally relevant content — imagery, copy, product descriptions, and social media posts all need to be adapted or recreated for the Chinese market. Simply translating your English materials will not work.

That said, your existing brand assets — photography, video, brand guidelines — are valuable starting points. Many brands synchronize their China content calendar with global campaigns, maintaining the brand's look and feel while localizing the messaging and platform formats. AI tools have also made content localization faster and more cost-effective.

The investment in proper localization pays off directly in conversion rates. A well-localized Tmall storefront significantly outperforms one with translated-but-not-adapted content.

The most common model is bonded warehouse fulfillment. You ship products in bulk from your home country to a bonded warehouse in one of China's free trade zones (Shanghai, Hangzhou, Shenzhen, Ningbo, Guangzhou, or Zhengzhou). When a consumer places an order, the product is picked, packed, cleared through customs individually, and delivered domestically.

An alternative is direct shipping — products are shipped from your overseas warehouse directly to the consumer after each order. This is slower (typically 7 to 14 days) and more expensive per unit, but useful for testing demand without committing to bonded warehouse inventory. Most established sellers use the bonded warehouse model for speed and cost efficiency.

From a bonded warehouse: 1 to 3 business days to most major Chinese cities. This is comparable to domestic delivery speeds and is the main reason bonded warehouses are preferred.

From direct overseas shipping: 7 to 14 days depending on origin country and shipping method. This is acceptable for initial testing but less competitive for ongoing sales, as Chinese consumers are accustomed to fast delivery.

Returns and refunds are managed through the Tmall platform. The process is largely automated — consumers can initiate a return through the app, and the platform manages the workflow. Your Tmall Partner agency handles the operational side: approving returns, arranging reverse logistics, and processing refunds.

For cross-border sales, returned products are typically kept in China and used for promotional purposes (influencer seeding, giveaway campaigns, or events) rather than shipped back overseas, as the return logistics cost would exceed the product value in most cases.

If a product arrives damaged during delivery, the logistics insurance typically covers the refund. The platform's terms and conditions define liability between the merchant, logistics provider, and platform for different scenarios.

Initial inventory quantities are typically based on your business plan's first-quarter sales projection plus a safety buffer for marketing campaigns and shopping festivals. For a first shipment, volumes are usually modest — a few pallets is common. For example, 14,000 units of a health supplement product might amount to just two pallets, easily manageable via air freight.

Your Tmall Partner agency should provide demand forecasting based on your product category, pricing, and marketing plan. Restocking cycles depend on your supply chain speed and sales velocity. It is better to start lean and restock frequently than to over-invest in inventory before demand is validated.

Yes. Tmall Global supports a direct shipping model where products are shipped from your overseas location to the consumer after each order is placed. This eliminates the need for bonded warehouse inventory and upfront bulk shipping costs.

The tradeoff is longer delivery times (7 to 14 days), higher per-unit shipping costs, and a less competitive consumer experience. Most brands use direct shipping as a starting point to test demand, then transition to the bonded warehouse model once sales volumes justify the inventory investment.

China's e-commerce ecosystem is fundamentally different from Western markets. The platforms, consumer behavior, social media landscape, regulatory environment, and logistics infrastructure all operate by different rules. A Tmall Partner agency provides the local operational capability to navigate this:

Platform expertise: Tmall's backend is complex, entirely in Chinese, and requires daily management — product listings, pricing, promotions, customer service, and advertising.
Marketing execution: Running campaigns across Little Red Book (Xiaohongshu), WeChat, Douyin, and in-platform advertising requires Chinese-language capability, local market knowledge, and relationships with influencers.
Regulatory navigation: Understanding which entry model fits your brand, what documentation is required, and how to handle customs, taxes, and product compliance.
Operational continuity: Live streaming, customer service, warehouse coordination, and festival campaigns need to run daily in China time.

Shanghai Jungle is an official Tmall Partner agency specializing in China market entry for foreign brands. Our services cover the full scope of what a brand needs to establish and grow in China:

Initial sales begin as soon as your store goes live — usually within the first month of launch. Meaningful traction, however, takes longer. Most brands see a clear upward trajectory in months 3 to 6 as social media content builds, influencer seeding takes effect, and the platform's algorithm begins favoring your listings based on engagement and conversion data.

Year one is an investment year. Brands that commit to consistent marketing, content production, and operational excellence typically see a significant improvement in the marketing-to-sales ratio by year two. Expecting profitability in the first 6 to 12 months is unrealistic for most categories — the brands that succeed are the ones that plan for a multi-year build.

Operational depth, not slide decks. Ask to see actual store dashboards, campaign results, and day-to-day operational examples — not just strategy presentations. The difference between agencies that deliver and agencies that don't is usually visible in the operational details.

Category experience. An agency that has launched health supplement brands will understand the regulatory nuances, competitive landscape, and consumer behavior differently than one that has only worked in fashion. Ask for category-specific case studies.

Transparent communication. China market entry involves setbacks, regulatory surprises, and campaigns that underperform. A good partner tells you what is not working and why, not just what is going well. Look for an agency that communicates proactively and honestly.

Senior involvement. Make sure the people you meet during the pitch are the people who will actually work on your account. Many agencies send their best team to win the business and then hand execution to junior staff.

Shanghai Jungle was founded in Shanghai in 2013 and has been operating on the ground in China for over a decade. We maintain offices in Shanghai, Copenhagen, and Stuttgart — allowing us to work across Asian and European time zones with brands from around the world.