The federal government is pushing to get Canadian corporations on major Chinese e-commerce platforms because the two countries deepen their ties.
International Trade Minister Maninder Sidhu told The Canadian Press in a recent interview that China’s e-commerce titans Alibaba and JD.com want more Canadian businesses on their platforms.
“I need to assist enable that,” he said. “There are some options that we’re considering there.”
Sidhu said the push is occurring now “because the connection is where it’s at.”
During a visit to Beijing earlier this 12 months — the primary such visit by a Canadian prime minister in eight years — Prime Minister Mark Carney said Canada is entering a “latest era of relations” with China. He said the stage is ready for talks on ways the 2 countries can develop into “strategic partners.”
Carney announced through the trip that China had agreed to lower agricultural tariffs in exchange for Canada granting some market access to Chinese electric vehicle makers, and that Beijing also agreed to eventually loosen its visa requirements for Canadian visitors.
“As the connection is warming, we’re in a position to have these positive conversations to get mutual advantages for each of our countries,” said Sidhu. “Ensuring that the small and medium-sized businesses in Canada profit from a market of 1.4 billion people could be very vital.”
Samantha Lafleur, a spokesperson for Global Affairs Canada, said in an email that Chinese e-commerce has develop into the predominant sales channel for consumer products and now serves greater than a billion consumers.
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She said the Trade Commissioner Service in China works with Canadian corporations to discover essentially the most effective channels to advertise their exports.
Lafleur said that since 2013, the federal government office has had dedicated e-commerce officers in China and has worked to assist Canadian brands join China’s e-commerce marketplace and construct up their brands.
In 2016, Prime Minister Justin Trudeau and Alibaba founder Jack Ma announced the launch of a Canadian “pavilion” on the corporate’s Tmall platform. Trudeau said on the time a digital hub would connect Canadian corporations to greater than 400 million Chinese consumers.
Lafleur said the Trade Commissioner Service has also launched a program offering some Canadian brands product feedback from Alibaba and industry stakeholders to enhance “market readiness and performance.”
She added that meetings with Alibaba and JD.com, including meetings involving the minister, are helping Canadian businesses prepare to “further leverage these platforms to export more high-quality Canadian goods to China.”
Lafleur said the Trade Commissioner Service in Beijing has also “worked closely with JD.com and its cross-border e-commerce arm, JD Worldwide, to offer latest opportunities for Canadian corporations in the buyer products and agri-food sectors.”
Retail analyst Bruce Winder said getting Canadian corporations on Chinese platforms is a “good thing” for the proper company with the proper product.
“Especially with a lot uncertainty with our friend south of the border, by way of what’s going to occur with duties and tariffs, I believe it’s natural that we attempt to sell our products across plenty of different commodities to China to tap into their market, particularly as we’re opening economic ties again,” said Winder.
“Diversification is the important thing thing. I believe it’s a sensible thing for Canada and for Canadian industry to diversify and be more of a worldwide provider of products and services versus just to at least one primary market.”
Winder said there’s some low-cost production in China and Canadian corporations should attempt to sell at a middle to higher end price point on branded products.
“Don’t attempt to compete with low price operators from China. You won’t win,” he said. “But there are unique items and unique categories that Canadian corporations offer, whether it’s Lululemon or Canada Goose, and so they’re already selling to China on lots of these platforms.
“Like you’d do with every other country, you have got to do the evaluation and make sure that that you simply understand what’s happening out there and if and where your products fit.”
Danny Xu, Export Development Canada’s marketing business partner for the Indo-Pacific, said in a blog post on the Crown corporation’s website earlier this 12 months that Chinese e-commerce platforms offer latest sales channels for Canadian agri-food exporters.
He said top e-commerce platforms for agri-food products include Tmall Global, which is owned by Alibaba, and JD.com’s JD Worldwide. Each concentrate on cross-border e-commerce, he said, allowing international producers and merchants to sell to Chinese consumers without having a physical presence in China.
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