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Accessing Chinese market through e-commerce

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E-commerce has been growing rapidly in China in recent years, becoming a massive and lucrative market which no business can afford to ignore. In the last episode of our special series INSIDE INDONESIA, we will look at how Indonesian businesses are using Chinese e-commerce platforms to access a wider market.

As the Indonesian Ambassador to China, Soegeng Rahardjo is no stranger to standing in front of cameras. But filming an online marketing campaign is a new experience for him.

"Until right now, we still have traditional approach. So we export directly to Guangzhou, to Shanghai, to Beijing. So we would like to have more market access not only to the big cities in China, but also to other parts of China," Rahardjo said.

The campaign aims to promote Indonesian products on Tmall, the e-commerce platform of Chinese Internet giant Alibaba, and a mecca for bargain hunters across China.

"I am usually shopping online, it is more convenient and cheaper than going to supermarkets," A online shopper said.

According to the Chinese Commerce Ministry, the e-commerce market in China grew 31.6 percent in 2015 to 3.2 trillion Yuan, or 490 billion US dollars.

"Now Chinese consumers are getting more sophisticated, and they are more mobile-friendly, Indonesia has a change to promote to consumers in China directly. And that's why we choose this online platform to create a way of Indonesian products entering China without going through intermediary," Liky Sutikno, chairman of Indonesian Chamber of Commerce in China, said.

China is currently transforming from an investment-based economy to a consumption-based one.

And Indonesia's digital move is in line with China's growing consumer demands.

"We believe e-commerce will be a major driver over the next 10 to 20 years. More and more trade and commerce will be moved to online. Big platforms such as Alibaba will be very very important. Over time, there will be different platforms," Indonesian Minister of Trade Tom Lembong said.

 

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