In the latest episode of the EGN podcast, Björn Ognibeni, a pioneering voice in digital transformation and co-founder of ChinaBriefs.io and XRLab@MCM, shared invaluable insights into the current state of e-commerce. Hosted by Efe von Thenen, the discussion highlighted a crucial reality: while Western e-commerce appears stagnant, China is light-years ahead, innovating at an unprecedented pace. The dialogue provides important lessons for Western brands aiming to remain relevant in a digital-first world.
Ognibeni opened the conversation by pointing out a critical discrepancy in e-commerce evolution. Since its inception in the late 1990s, Western e-commerce has largely adhered to a search-driven model, where consumers know exactly what they want, seek it out, and purchase it. While this model serves its purpose, it has resisted innovation, offering little transformation over the past two decades. In stark contrast, Chinese platforms have pioneered a “discovery-driven commerce” approach, radically changing how consumers interact with brands.
Platforms like Shein and TikTok exemplify this shift. Instead of merely fulfilling pre-existing desires, these platforms engage consumers with curated content and products they may not have initially sought. As Ognibeni noted, this approach transforms shopping into an engaging, interactive experience, moving beyond functionality to enjoyment. The significance of this shift cannot be understated; Western e-commerce risks alienating consumers who crave freshness and creativity in their shopping journeys.
Understanding “China Speed”
Another compelling point raised in the discussion is the concept of “China speed,” which refers to the rapid pace of innovation and agility among Chinese firms. Take Shein, for instance. Their “consumer to manufacturer” (C2M) model is built on real-time consumer data, allowing the company to produce goods aligned with current demand. This stands in sharp contrast to traditional Western brands that often rely on months of trend predictions and large-scale productions.
Western brands must take note of how Shein and similar companies operate. By using consumer insights to inform their production, they cut down on waste and inefficiency. This dynamic approach not only meets consumer needs more effectively but also keeps inventory levels responsive and sustainable.
Cultural Differences: A Key Factor
The conversation also touched on the cultural discrepancies impacting e-commerce strategies between China and the West. Ognibeni highlighted the phenomenon of live shopping in China, where real-time product promotion via social platforms has seen explosive growth. Western brands, however, have struggled to replicate this success, often attempting to force-fit the Chinese model into traditional e-commerce platforms without adjustment for local preferences.
Live shopping in China thrives due to its seamless integration with social media, where influencers engage with consumers in real time. In the West, attempts have often been met with tepid responses, suggesting that mere imitation is insufficient. To succeed, Western brands must learn from Chinese strategies and adapt them to their unique market landscapes.
The Path Forward for Western Brands
As the discussion concluded, Ognibeni urged Western companies to set aside any misconceptions of superiority regarding their operation models. Instead, he advocated for a closer examination of the adaptive strategies employed by Chinese competitors. The integration of AI and data-driven methodologies into every facet of supply chains has provided Chinese businesses with a significant advantage.
To recapture momentum, Western e-commerce brands must explore new avenues for creating product excitement and seamlessly integrating social experiences into the shopping process. This transition requires a willingness to iterate and learn from real-time market feedback, rather than sticking to inflexible structures that have characterized the Western e-commerce landscape.
By stepping outside their comfort zones and adopting strategies that emphasize consumer engagement and innovative practices, Western brands can remain competitive in a fast-evolving digital environment. The key takeaway from Ognibeni’s insights is clear: the future of e-commerce lies not in nostalgia for past successes, but in an openness to exploring the limitless possibilities that innovation presents.
For those keen to explore this topic further, the full podcast is available for listening on Spotify and Apple Podcast, offering additional perspectives and deeper insights.