BEIJING: Overseas firms will be able to target online Chinese shoppers directly, following the announcement by a leading digital marketing company that it intends to build a new retail platform to challenge Tmall and Taobao.
IZP Technologies, which collates purchase behaviour data via its partnerships with 20 telecom operators around the world, indicated that its new shopping model will use the company's target-marketing system as a way of meeting Chinese demand for high quality overseas products.
Foreign companies will be helped to establish e-commerce websites that appeal directly to consumers, saving on operational costs, and IZP expects the initiative to rival traditional e-commerce websites like Taobao.com and Tmall.com.
Luo Feng, IZP's founder and CEO, said: "As an increasing number of Chinese buyers look overseas for higher end products it is high time to create a new business model and introduce more choices to China."
He said IZP was uniquely placed in the e-commerce industry because of its data collection agreements with global telecom operators, which include SFR, the second largest telecom operator in France.
IZP has been helping SFR to promote French products and Luo described the arrangement as an "exclusive online promotional platform in China" for French companies. "We will provide services such as advertising, logistics and storage to those companies," he explained.
The company is also in talks with potential partners from the UK, Italy and Spain and Luo expressed confidence that IZP's new model will encourage more overseas companies to enter China's rapidly expanding online retail market.
He also hopes his "factory-to-consumer solution" will help Chinese brands to expand in global markets. "We are ready to introduce good quality made-in-China products to global buyers because most of the Chinese brands deserve a better global image," he added.
iResearch Consulting Group has forecast that the market's annual turnover will grow about 40% to reach 1.85 trillion yuan ($302bn) this year.
Data sourced from China Daily; additional content by Warc staff