The 3 key differences between U.S. and Chinese markets and what it means for ecommerce: Insights from Lesley Gao

Chinese-owned shopping platforms Shein and Temu have surged in popularity in recent years, quickly catching up to U.S. retail giants like Amazon, Walmart, and Target. Their focus on fast fashion and influencer marketing has pulled in millions of users, becoming the most downloaded apps of 2023.

But how exactly did these newcomers manage to hold their own against the likes of Amazon and Walmart? What did they do differently that helped them succeed not just in China but also in the U.S.? Lesley Gao, an expert in micro-mobility and ecommerce, points out three key differences between U.S. and China ecommerce that these platforms leveraged to gain an edge.

The Concept of “Super App” and “Private Community”

In China, there’s this idea of a “super app” that combines multiple services into one platform. For example, popular super apps like WeChat, Alipay, and Meituan allow you to chat, shop, pay your bills, book appointments and more — without ever needing to switch apps.

Super apps also double as customer relationship management (CRM) tools, where sellers can create dedicated group chats to engage with customers, promote their products and take orders. This direct, real-time communication with customers builds on the concept of a “private community,” where customers get prompt updates, ask questions and feel more connected to the brand. This creates numerous touchpoints for user interaction, increasing the likelihood of user retention and repeat business.

In contrast, the shopping journey with U.S. platforms is a bit more fragmented. For example, you might want to buy a product on Amazon, but you still have to re-check its prices on eBay and read reviews on Yelp. Then, you have to deal with multiple payment gateways (each with its own login credentials and verification steps) to pay for the product. But this disjointed and time-consuming experience directly leads to frustration, abandoned carts and lower customer satisfaction.

Influencer marketing and creator economy

In the U.S., influencers typically rely on user-generated content (UGC) and platform algorithms to make a living. Their income is largely driven by engagement metrics such as likes, shares and comments, which platforms like TikTok and Facebook use to determine how much an influencer can earn. Since their income depends on these volatile factors, it can be unstable and change frequently.

In China, it’s a whole different game. Influencers, or “key opinion leaders” (KOLs) as they are called, instead focus on direct sales to their communities. KOLs have their own stores within super apps like WeChat that allow them to earn directly from product sales without intermediaries. This setup gives them a steadier income and better earning potential without having to worry about likes and shares.

Accessibility of products

China’s position as a global production hub gives it a huge advantage in ecommerce. With supply chains right at their doorstep, Chinese-based platforms offer a wide variety of products at lower prices and with faster shipping times. They can quickly adapt to market demands and get products out to consumers in no time.

The U.S., however, relies heavily on imported goods. As a result, getting the same product out takes a longer delivery time and costs more due to shipping and import fees. This makes it tough for smaller creators and sellers to compete, as they don’t have the same quick access to products and low prices that China does. The logistics are consequently trickier and result in higher costs for consumers.

Lesley Gao’s tips to succeed in both markets

After navigating both the U.S. and Chinese markets for years, Lesley Gao Has identified several ways for influencers and business owners to expand their audiences and maximize their earning potential in both markets:

• Use centralized platforms: Use platforms that offer all-in-one tools for selling products — having everything in one place can streamline your processes, improve the shopping experience for your customers, and increase your earning potential.
• Build and maintain private communities: Private communities provide a space to directly communicate with customers, gather feedback, and offer exclusive deals or content that makes them feel valued. When customers feel like they belong to a community, they’re more likely to interact with your content, share the products with others, and stay loyal to it.
• Partner with reliable suppliers and logistics providers: Don’t underestimate the power of a good supplier and logistics partner. Choose partners that can manage shipping and returns efficiently to set you apart from competitors.

Introducing Pear

To further improve ecommerce in the United States, Lesley Gao brought the best of China’s ecommerce to life by co-founding Pear.

Pear is an all-in-one shopping platform that combines the convenience of online shopping with the fun of social media. Similar to WeChat, businesses and influencers can set up their shop, create group chats and build private communities where they can engage directly with customers. But it comes with an additional social feature: influencers can create UGC to drive sales. With Pear, customers can follow their favorite brands and influencers, browse products, read reviews, make purchases and share their experiences all in one place.

A new era of ecommerce

With China’s growing influence in global ecommerce, it’s more important than ever for U.S. brands and retailers to understand the success behind Chinese shopping platforms. Platforms like WeChat have established their presence not only by being super apps but also by continually investing in research and development to introduce new features and improve existing ones. To this end, Lesley Gao suggests that businesses keep evolving their marketing strategies and adapt to the wants and needs of consumers.

Want to stay ahead? Follow Lesley Gao for valuable insights into both Chinese and American markets.

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