The E-commerce Subscription Model in China

Subscription based e-commerce platforms are a growing phenomenon in China. As cities become increasingly polluted and congested more Chinese consumers generally turn to online shopping. When you consider the size and scale of China it is unsurprising that the convenient online, subscription model is proving to be a success. 50% of the Chinese now have access to the internet with over 600 million potential online customers to target.

One company making waves in China with this subscription model is the ‘French Cellar’. For a monthly subscription fee they deliver premium, bio-dynamic, French wines selected by “Nicolas Rebut”, a prestigious sommelier, directly to the customer’s door.

In a nation where fake products are rife, the Chinese consumer wants to guarantee authenticity and quality. Therein lies the key appeal of a subscription model, the consumer can trust the quality and over time becomes loyal to the brand. It is also convenient as the selection is made by an expert, (China is renowned for many things but high quality wine is not one of them), and affluent consumers now expect the best from outside of the orient.

The whole process becomes more exciting and a surprise for the customer with lesser known yet prestigious wines being showcased. The concept has also proved popular in other Asian markets such as Singapore. In China the consumer is especially concerned with ‘keeping face’, they wish to present themselves in a positive light with greater specialization, quality and variety reflecting positively on the customer themselves.

This subscription model approach for high quality, niche, European products (that are a rarity in China) is set to become increasingly popular. This is potentially a very lucrative market for selling western products in the middle kingdom. Online shopping is in vogue in here with variations such as the monthly subscription becoming attractive to the wealth of middle/upper class Chinese consumers whom are more interested than ever in western cultures, in this case the refined wines that nations such as France produce.

Benji has lived and worked in Shanghai, China for 5 years and specializes in E-commerce in China. For more information see his website here.