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Chinese Electric Cars Encounter Difficulties in Getting Sales in European Markets

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Global Logistics, Global Trade Daily, News, Ocean Ports

Chinese Electric Cars Encounter Difficulties in Getting Sales in European Markets

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The rise of China’s automotive industry has been meteoric, marked by a transformation from producing basic clones to manufacturing vehicles that rival the world’s best. However, despite the country’s prowess as a manufacturing powerhouse, Chinese cars, particularly electric vehicles, are encountering obstacles in finding buyers in European markets. Imported Chinese electric cars are accumulating at European ports, languishing for extended periods, as manufacturers grapple with the challenge of penetrating European driveways.

Despite garnering positive reviews for their performance, range, quality, and technology, Chinese electric vehicles face an uphill battle in entering an established market dominated by renowned European brands. The complexity of challenging established players in the automotive sector is multifaceted, encompassing factors such as buyer skepticism, lack of brand recognition, trade barriers, and rapid technological advancements.

Read also: US-China Auto Business Growing

Historically, Japan’s automotive industry underwent a similar trajectory of initial skepticism before establishing itself as a global powerhouse. Japanese cars, initially perceived as inferior to their Western counterparts in terms of design and durability, gradually overcame these perceptions through a relentless focus on reliability, affordability, and aesthetic improvements. Drawing parallels, Chinese automakers are rapidly advancing to rival and surpass existing alternatives, leveraging strategic acquisitions of renowned brands like Volvo, Lotus, and MG to bolster their credibility and engineering expertise.

However, despite acquiring Western brands, Chinese automakers struggle to secure loyalty from existing customers of established brands like BMW, Porsche, and Ford. Brand loyalty, reinforced by a legacy of reliability and motor sport success, poses a formidable barrier for Chinese manufacturers to overcome, necessitating a concerted effort to build trust and credibility over time.

Moreover, Chinese electric vehicles face challenges in navigating trade barriers, including high import tariffs imposed by regions such as the EU and the US. Despite cost advantages stemming from economies of scale and efficient manufacturing processes, import tariffs hinder the competitiveness of Chinese cars in international markets, exacerbating the struggle to gain traction among European consumers.

Additionally, the rapid pace of technological evolution in the automotive sector, exemplified by Tesla’s continuous product updates, poses a dilemma for Chinese automakers. The accelerated release of new models risks rendering previous purchases obsolete, potentially eroding consumer confidence in the longevity and value of their investment.

To navigate these challenges and succeed in European markets, Chinese automakers must pivot towards targeting fleet and rental markets, which prioritize cost considerations over brand loyalty. By focusing on mass sales to fleet operators, Chinese manufacturers can accelerate market penetration and gather crucial data on reliability, laying the groundwork for long-term success.

Despite the formidable obstacles, China remains steadfast in its global expansion efforts. However, the road to success in European markets will undoubtedly be fraught with challenges, underscoring the imperative for Chinese automakers to adapt and innovate in order to secure a foothold in this competitive landscape.

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Archives, Education, Global Trade Daily

Europe Digital Transaction Management Market to Generate Revenue of US$ 27,066.1 Million by 2030

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Europe digital transaction management (DTM) market valuation was estimated at US$ 3,063.2 million in 2021 and is projected to reach US$ 27,066.1 million by 2030 at a CAGR of 29.1 % during the forecast period 2022–2030.

The demand for digital transaction management market is on the rise as businesses look to cut costs and improve efficiency. A recent study by Astute Analytica found that nearly 80% of businesses are planning to increase their use of digital channels by 2025.

Europe is home to some of the world’s most advanced digital economies. These economies are characterized by high levels of access to technology and an interactive digital ecosystem that supports fast, secure, and easy electronic transactions. As a result, there is growing demand for payment systems in the digital transaction management market that can handle large volumes of digital transactions reliably and quickly. The European Payments Council (EPC) recently released a report estimating that the global payments industry grew from $2 trillion in 2016 to $3.5 trillion in 2020. This growth is attributable, in part, to innovations in mobile banking and cloud-based services that make it easier for people to conduct financial transactions anytime and anywhere.

To meet this demand, incumbent players such as Visa and Mastercard have developed transaction management solutions that help merchants manage their payment processing from one central location. These solutions provide merchants with features such as real-time updates on account status, fraud alerts, remote over-the-phone customer service support, and more.

Since these solutions rely on traditional IT infrastructure (server software, back-office applications), they can be costly to implement and maintain. In addition, channel partners (third party providers who work with banks and other merchants) often have limited or no experience with these types of technologies in the Europe digital transaction management market. As a result, they are not always able to bring the best value proposition to the table when it comes to offering merchant services.

Here are some ways that businesses in Europe Digital Transaction Management Market Using Digital Transaction to improve their efficiency:

1. Increasing Use of Mobile Technology. The use of mobile technology has grown rapidly in recent years, and is now used by a majority of businesses. This is because mobile devices allow customers to conduct transactions quickly and easily from where they are.

2. Implementing Digital Payment Platforms. Businesses can reduce costs by partnering with a payment platform provider, such as PayPal or Square, which offers merchant account and payment processing services. These platforms take care of the financial processing so that merchants can focus on selling products or services.

3. Utilizing Cloud-Based Solutions for Transactions. Many companies in the Europe digital transaction management market are turning to cloud-based solutions for their digital transaction needs, as these platforms offer flexibility and cost savings when it comes to implementation (as well as scalability). Some notable providers of cloud-based transaction management solutions include Intuit (the maker of TurboTax) and Salesforce (a provider of customer relationship management software).

As the demand for digital transaction management grows, so too does the number of providers in the Europe digital transaction management offer these solutions. With so many options available, it’s important for businesses to find the right solution for them.

What does Astute Analytica Analysis Suggest About Digital Transaction Management Market?

The primary drivers of this growth are the increasing number of agile and innovative companies, fueled by the accelerating migration of enterprise applications to the cloud; improved security, compliance, and privacy capabilities; and increased consumer demand for seamless experiences across devices.

This rapid growth of the digital transaction management market will be balanced by challenges such as rising data volumes and the growing importance of mobile DTM. Despite these challenges, we expect that most organizations will deploy some form of DTM in the next few years.

Organizations need to adopt innovative architectures that can scale as their businesses grow. Innovations such as artificial intelligence (AI), cognitive computing, Internet of Things (IoT), blockchain, and digital twins are helping organizations rethink how they delivery business value.

The increase in digitization and growth of e-commerce are leading factors for the growth of the Europe digital transaction management market. Cross-channel transactions include payments, banking services, insurance claims, and other interactions between such enterprises as consumers and businesses.

One of the challenges faced by financial institutions is managing multiple channels simultaneously—this is particularly true when customers are making payments through different channels, like online and mobile banking. To deal with this challenge in the Europe digital transaction management, financial institutions can use a single platform that supports multiple channels or they can use individual platforms to support different channels. In addition, banks must also consider how their customers are using marketing automation capabilities such as chatbots or voice recognition products.

Top 4 Generates over 64% revenue of Europe Digital Transaction Management Market

There is no doubt that the Europe digital transaction management (DTM) market is booming, as both incumbents and newcomers alike eye the opportunity to capture a share of this growing market.

According to a study by Astute Analytica, four companies collectively generate over 64% revenue of the DTM industry in Europe. These are Adobe, DocuSign Inc, Wolters Kluwer N.V, Entrust Corp. All four companies are leaders in their respective markets and have built strong customer bases that support their continued dominance. This growth can be attributed to a number of factors, including the increasing popularity of electronic transactions and the continued adoption of electronic signatures.

Adobe and DocuSign in the Europe digital transaction management market both offer robust solutions for managing digital transactions. Adobe’s products include document production and signing tools, while DocuSign provides a platform for issuing and tracking electronic signatures. Together, these companies provide an ample suite of features for businesses of all levels of complexity.

Wolters Kluwer N.V.’s strength lies in its wide range of offerings across multiple industries. This includes digital transaction management solutions that help businesses encode, sign, email, print, archive, track access privileges, link PDFs securely to content trees within SharePoint environments etc., as well as offering collaboration software such as Lync Server 2010/2013/2016 (on-premises) / Skype for Business (Online) etc. Entrust Corp., meanwhile offers a hosted solution that helps organizations manage their user identities and authentication needs across multiple channels including on-premises systems.

Electronic Signature Generates over 32% Revenue of Europe Digital Transaction Management Market

According to a study by research firm Astute Analytica, electronic signatures generate over 32% revenue of digital transaction management solutions. E-signatures are still the gold standard for authenticating documents, mainly because they are tamper-proof and can be used to confirm the authenticity of an electronic document without human interaction. Electronic signatures can be used to sign contracts, certify documents, authorize payments, and more in the digital transaction management market. They’re especially useful for businesses that need to send large numbers of documents online or transmit confidential information between different parts of an organization. Moreover, e-signature technology is being adopted more and more by businesses as a way to reduce paper usage and lower costs. What’s more, e-signatures help protect businesses against fraud; users cannot forge or alter an electronic signature.

In digital transaction management market, electronic signatures play a vital role in online transactions. Electronic signatures are created by signing a document using digital signature technology. This technology creates an electronic signature that can be verified and is also immune to forgery. According to our study, over 32% of all revenue generated from digital transaction management comes from electronic signatures. This Shows the importance of this form of authentication in the modern world. Transactions that use electronic signatures are more secure and therefore save both parties time and money. Thanks to the growing popularity of online transactions, electronic signatures will continue to play a major role in the future of commerce.

Top Players in the Europe Digital Transaction Management Market

  • Adobe
  • Ascertia
  • DocuFirst
  • DocuSign Inc.
  • eDOC Innovations
  • Entrust Corp.
  • Kofax Inc
  • Nintex UK Ltd
  • OneSpan
  • Wolters Kluwer N.V.
  • Conga
  • HelloSign
  • Namirial
  • Other Prominent Players

About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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Archives, Global Trade Daily, International Trade

What Every Business Should Know About Selling in China

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Not only is China the most populous country on earth (1.3 billion people), it also has the second-biggest economy in the world by Nominal GDP (14.242 trillion dollars).

As the country has pursued ever more progressive policies to trade (and despite the current trade war between China and the United States) more and more opportunities to sell in the country have arisen to businesses across sectors. If you see China as a potential growth market, here are some of the most important considerations when selling in China.

Seek advice

When looking to enter a foreign market, it is always advisable to seek sage advice, and even look to local businesses who you can partner with. Although you may not wish to go down the partnership route, it is definitely advisable to seek the counsel of businesses who are already operating within the sphere, or groups such as the Global Innovation Forum who often provide free advice regarding penetrating new markets. 

This is a smart strategy because selling in China will be totally unlike selling domestically, or in European markets, for example. Any insights that you can garner will be potentially critical to the success of your sales strategy and approach in China, because as is abundantly clear, you will be operating within a totally different market, both literally and culturally.

“The cultural considerations when accessing new markets should never be overlooked. From the way that you brand and market your products to the way that you negotiate with local businesses and retailers, everything you do will be influenced by different rules: rules to which you are unfamiliar. Get the help you need to pass through this difficult phase,” advises Grant Tarrant, a business writer at Writinity.com and Lastminutewriting.com.

Understand Chinese governmental practices and rules

Although the Chinese Government has grown increasingly receptive to foreign businesses working and partnering in China, rules will still be a little conservative in comparison to the Western approach. Make sure you totally familiarize yourself with what you are expected to adhere too, especially when visiting the country and seeking to operate a sales operation from within China.

For example, you will need to understand the levels of bureaucracy that exist to set up a business entity that operates within China. For example, you may need to set up as a Wholly Foreign-Owned Enterprise (WFOE) to operate, and this can be a costly and timely exercise that may delay you implementing your sales strategy. Forming a business plan which pays close attention to all the requirements (and timeframes) of the Chinese state is essential.

Understand your customer

This piece of advice holds for whoever you are selling too, but obviously your Chinese customer base will be different from your US customer base and will have different expectations. For example, haggling is a standard cultural procedure, and Chinese customers demand to know a product impeccably before they buy, so ensure that your eCommerce operation includes high numbers of images and product reviews: this will be expected.

“If you study Chinese eCommerce sites such as Taobao you will see that it facilitates the Chinese custom of haggling down prices. In the West we are totally unfamiliar with this practice as we are satisfied that the price is the price, Be prepared to change your approach accordingly,” says Rachel Walliston, a marketer at Draftbeyond.com and Researchpapersuk.com. 

Provide impeccable customer support

Chinese customers have come to expect an extremely high level of customer support from their retailers and will demand this from any new business operating within their sphere. Knowing this, make sure you ramp up support efforts, and that, of course, raises questions regarding how you will do this in a new language and culture. Seeking advice from established entities is again the recommended route, and establishing support centers in the country is also best practice. 

Understand the marketing and communication channels

If you go in with a Facebook-based marketing strategy, be prepared to be disappointed. In China the social media platforms are different, for example, WeChat is one of China’s most popular platforms, but barely exists outside of the country. It has been dubbed a ‘super-app’ because it can be used for a multitude of actions, so utilizing such platforms is an absolute must if you wish to successfully penetrate the Chinese market. 

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Ashley Halsey is a writer, editor and international business expert who can be found at both Luckyassignments.com and Gumessays.com. She has been involved in many projects in Asia, and enjoys traveling, reading and cultural exchanges.