NetEase Kaola introduces French brands to Chinese consumers

By Natasha Spencer

- Last updated on GMT

NetEase Kaola introduces French brands to Chinese consumers

Related tags Chinese language

China’s leading cross-border e-commerce platform, NetEase Kaola, hopes to increase its presence of available French brands to 500 by early 2018.

With the aim of bringing French brands to Chinese consumers, NetEase Kaola has signed a partnership agreement with nine French brands to increase Chinese shoppers’ accessibility to high-quality French items.

This latest move signifies the NetEase-owned company’s dedication to increasing the awareness of European brands amongst Chinese buyers.

NetEase, a leading internet technology company in China, has a market cap of $36.8 bn (€31.3 bn) and has been voted number 191 on the 2017 Forbes List of Top Regarded Companies.

Bring French Quality to China Commerce

As it strives towards creating new partnerships with French retail chains and department stores, NetEase Kaola hopes to introduce Chinese consumers to trusted French cosmetics and health and food products.

With Singles Day serving as a “foundation”​ for NetEase Kaola’s growth, the company will continue its investment as it plans to purchase $3 bn (€2.6 bn) worth of products from US brands “over the near future”​.

The partnership agreement also comes after the company announced in April 2017 that it would buy €3 bn of European products over the next three years.

Lily Lei Zhang, CEO, NetEase Kaola, visited Paris prior to the Singles Day online shopping phenomenon on 11th November, to highlight its focus on French brands.

Currently, France is the sixth leading origin of products on the NetEase Kaola platform, it revealed in a recent press release, and is lagging somewhat behind Germany and the Netherlands.

"France and French brands are icons of fashion, quality and style, but a majority of these brands remain inaccessible to Chinese consumers due to challenges in cross-border trade,”​ expressed Lily Lei Zhang, CEO, NetEase Kaola.

Beauty, style and sales

“With our unique approach to cross-border e-commerce, we are dedicated to helping French brands increase their exposure in China, and connect them with fashion-forward, well-educated young women who are searching for high-quality products that complement their individual style,”​ added Zhang.

Commenting on its long-term strategy, Zhang enthused: “In addition, we are committed to becoming the leading partner for French brands in China, with one-stop services for suppliers and further developing our wholly-owned European Operations Centre."  

Cross-border commerce is an area that French companies are keen to focus on as “the rapid development of cross-border e-commerce in China will undoubtedly bring more opportunities for French brands,”​ Rémy Arthus, Director General of the Paris Chamber of Commerce, stated.

Cross-border e-commerce drive

“In particular, the advantages of cross-border e-commerce in terms of efficiency and cost will have practical implications for small and medium-sized French brands, as well as iconic French brands, as their business expands in China,”​ added Arthus.

With over 330 French brands available on NetEase Kaola including beauty and cosmetics, the e-commerce platform aims to make connections with popular French brands such as Kidiliz, Parashop and Biocyte.

Collaborating since 2016,  Gael Estublier, International Group Director of Kidiliz, emphasised how: “Today, NetEase Kaola has become one of the largest sales channels for Kidiliz brands in China.”

“We plan to expand the scale and depth of our collaboration with NetEase Kaola...the success of this expansion will focus on online distribution supported by offline physical stores across China, which will launch later this month,”​ Estublier added.

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