This post gives an overview of cross-border e-commerce in China. In today's #AshleyTalks you'll learn what motivates entrepreneurs and consumers to cross-border shop, the most popular CBEC product categories and get a cross-border consumer portrait.
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Cross-border e-commerce (CBEC) is buying overseas products directly from foreign retailers and suppliers via the internet, without the specific need for an intermediary business entity in China. Why do Chinese consumers buy products from abroad? The main reasons include the desire to get niche or new items, to get high-quality products and low prices.
The upper and middle classes want to be early adopters of new items that aren't available in China yet. Also, Chinese consumers often feel that products purchased via cross-border e-commerce platforms guarantee a higher level of quality and protection against counterfeit goods given that merchants on CBEC-platforms have to be established and authorized abroad. Additionally, due to the exemption of import taxes under certain conditions, the retail price of CBEC goods can be significantly lower compared to the same goods imported via traditional trade.
CBEC is very popular among Chinese consumers. In 2016, the value of these online cross-border purchases was estimated to be over 85 billion USD. By 2020, 292 million Chinese consumers will purchase goods from abroad online, with sales expected to surpass 157 billion USD.
The Most Popular CBEC Product Categories in China
Food & Healthcare (39%)
Maternity & Childcare (39%)
Clothing & Footwear (38%)
Consumer Electronics (31%)
The CBEC Consumer Portrait
65% are male
75% are 26-40 years old and they are highly educated.
Over one fourth have an income higher than 10,000 RMB per month and live in Guangdong and Shanghai.
75% of the consumers buy less than once per month.
56% of the purchases are between 100-500 RMB.
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Much of the content for this video was sourced from the recent China CBEC Guidebook by the Consulate-General of the Kingdom of the Netherlands in Shanghai. The full report can be found here http://bit.ly/2xxhGer.