JLJ, a Sovereign Group company - China Focus November 2013
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Acquired by the Sovereign Group in early 2013, JLJ is an integrated services provider that accelerates
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In China Focus, we share with you insights on the hottest business issues, latest China regulatory
updates and updated market trends to assist you in establishing long term business successes in China.
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E-commerce - Opportunities in China’s E-Commerce Market
Registration proposal - China Proposes to Streamline the Registration Process for New
Companies
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China Industry Reports
E-commerce
Opportunities in China’s E-Commerce Market
E-Commerce in China has experienced tremendous changes in
the last decade. Online sales reached RMB 1.3 trillion in 2012,
achieving a 90% CAGR since 2006. The number of online
shoppers continues to grow at a double-digit growth rate. By the
end of 2012, there were around 240 million Chinese shopping
online through the internet and their mobile phones. This growth
is supported by government regulatory support, diverse and
secure payment methods (e.g. number of Chinese with credit
cards), expanding 3G/4G coverage, and improving logistics.
Overall, e-Commerce in China is dominated by Alibaba, which is
a business-to-business site, T-mall, which is a business-toconsumer site, and Taobao, which is primarily a consumer-to-consumer site. The below charts illustrate
China’s growth in online sales and the number of online shoppers.
JLJ, a Sovereign Group company - China Focus November 2013
Roughly half the value of online sales is from coastal regions such as Shanghai, Guangdong, and Zhejiang
provinces. However, demand in inland provinces has been accelerating in recent years, especially where
physical retail networks for many brands are not in place. Price is still the key driver online purchases;
however, factors such as convenience and variety have also become increasingly important.
In addition to traditional brick-and-mortar stores, retail companies and companies targeting China’s
consumers should consider leveraging online channels to increase sales. For more information on China’s eCommerce industry, JLJ’s new e-Commerce competitive intelligence service, or how JLJ, a Sovereign
Company, can assist you with your China initiatives, please contact Mark Ray at [email protected]
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Registration Proposal
China Proposes to Streamline the Registration Process for New Companies
The State Council recently released a statement aiming to
streamline the process for companies to register. It is claimed by
the State Council that corporate registration simplification is part of
the recently proposed administrative reforms to ‘enhance fairness
and healthy competition in the Chinese market, encourage social
investment and boost employment’. According to the statement,
changes simplifying the registration process will benefit both
Chinese companies and foreign companies in the following ways:
• Minimum registered capital requirements for limited liability
companies, one-person limited liability companies and joint-stock
companies with limited liability will be removed.
• Onsite company registration for business operations will be relaxed. .
In addition, in order to improve company transparency and credibility, the current annual company
inspections will be replaced by an annual report system, which is open to public enquiries. Errant corporate
dealings and wrongdoings will also be made available to the public. Furthermore, foreign investors might be
able to save corporate setup costs by benefiting from a new subscribed capital system.
Currently, the local Administrations of Industry and Commerce (AICs) and various government departments,
are making the relevant amendments to the corporate laws and regulations. Recently, Beijing issued a
document, Opinions on Streamlining Company Registration Process Services, stating that companies will
JLJ, a Sovereign Group company - China Focus November 2013
benefit from the corporate registration streamlining process from 11 November,2013.
It appears that the Chinese government intends to open more industries, traditionally only available for local
investment, to encourage more foreign investors to enter the China market. However, foreign Investors are
still advised to wait to see how local governments across China will implement the proposed company
registration reforms
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JLJ, a Sovereign Group Company, provides a suite of services designed to lead investors through market entry process and stay with them
to develop long-term success in China.
For more information visit www.jljgroup.com or email us at [email protected].
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