"Leveraging the innovation capabilities accumulated in the domestic market, Chinese e-commerce firms have already established a unique competitive advantage worldwide," Han said. The Chinese e-commerce market has transitioned from traditional models to a new format driven by social media, with an instant delivery system established.

Faced with intense competition from the domestic market, Chinese e-commerce companies have a number of core capabilities, including rapid product iteration, creativity-driven demand generation, accelerated fulfillment and delivery, and widespread application of AI, laying a solid foundation for their overseas expansion.

The report also said Chinese e-commerce platforms are facing challenges in their global expansion due to tightened regulations overseas, formidable local competition and differences in consumer habits across different markets.

In response to these challenges, these platforms are advancing localization strategies. Through mergers and acquisitions or partnerships with local firms, they are accelerating steps to enter local markets.

"The internationalization of Chinese retail is entering a new phase," Han said. "As Chinese players adapt to local customers, culture and rules abroad, we can expect more M&As."

Han added that Chinese e-commerce companies should continue to leverage their disruptive innovation capabilities, while using their leading experience in the domestic market to accelerate global expansion and strive to be successful.

fanfeifei@chinadaily.com.cn