- Around 36% of consumers have increased their spending on
imported goods, and 56% are willing to pay a premium for superior
quality imports
- Understand emerging trends in China's cross-border consumption
landscape, where category segmentation and market insights are key
to driving growth
Recently unveiled by NielsenIQ (NIQ) and JD Worldwide, JD.com's
one-stop ecommerce channel for imported goods, the 2024 White Paper
on China Cross-Border Import Consumption Trends ("White Paper")
highlights that the industry has entered an advanced phase of
upgrade and growth. As cross-border e-commerce platforms
consolidate rapidly and brands engage directly in cross-border
trade via e-commerce channels, a robust ecosystem has taken shape
in China. Such a booming picture is partly underpinned by
increasing consumer trust in these platforms, with over 80% of
consumers expressing an interest in purchasing overseas
products.
In response to diversified consumer demands, JD Worldwide and
other leading cross-border e-commerce platforms now offer a
comprehensive range of products, including digital, home &
appliance, beauty and skincare, fashion and luxury items, personal
care and household essential, mom & baby, pets, alcohol, and
food & beverage. This comprehensive coverage ensures that
consumers have access to diverse, personalized, and high-quality
products for all aspects of daily life. The White Paper
highlights consumer preferences for authenticity, quality
assurance, and efficient logistics when purchasing imported
products.
According to the White Paper, China's cross-border import
e-commerce market grew from 444.1 billion yuan to 548.3 billion
yuan from 2018 to 2023. From 2017 to 2023, the number of users of
China's cross-border import e-commerce platforms increased by
nearly 20% annually, tripling in seven years and reaching 188
million in 2023.
As consumer trust in cross-border e-commerce platforms continues
to grow, so does consumption frequency and expenditure across more
diverse product categories. Over the past year, 36% of consumers
have increased their spending on imported goods, and 35% have
bought a wider variety of imported products. Notably, there has
been a marked increase in purchases of beauty and personal care
products, driven by rising self-care awareness.
The robust demand is supported by a diverse supply of goods. In
stark contrast to the initial phase of cross-border consumption,
when consumers had limited access to overseas products such as
infant formula and beauty products via private shopping
representatives, today's cross-border e-commerce platforms have
been able to supply full categories of products. Thanks to this
progress, consumers are given chances to purchase more diverse
and targeted overseas products. Despite different preferences for
different products used in different scenarios, they give priority
to quality when purchasing imported goods. As highlighted in the
White Paper, 56% of consumers cite quality as the reason for
selecting international brands and products from overseas.
The White Paper delves into 10 major product categories to
identify key trends shaping China's import consumption and unveil
the recipes for better development.
From a category trends perspective, the most significant
purchases over the past year have been in the beauty and skincare,
personal care, nutrition and healthcare, mom & baby, and food
and beverage product categories. There is a growing focus on
product efficacy and an increased emphasis on raw material quality
and place of origin. Notably, consumers are demonstrating a
heightened interest in authentic, safe, and organic beauty and
personal care products, with a particular focus on ingredient
efficacy and a growing demand from male consumers. The nutritional
supplements sector exhibits an age-related divide, with younger
consumers preferring snack-type supplements and older demographics
prioritizing bone and joint health products. There is a growing
trend of supplement use among the elderly, with these products now
becoming an integral part of their daily routines. In the mom &
baby products sector, consumers have been accustomed to getting a
detailed understanding of products in advance, to opt for the most
suitable ones for their children. The demand for infant formula is
shifting towards high-end products, with premium quality and
hypoallergenic options gaining traction, even in lower-tier
markets. In the food and beverage sector, the introduction of new
products is the primary driver of growth, with premium, healthy,
and convenient options proving particularly popular.
In rapidly growing product categories such as 3C electronics,
home appliances, fashion, household essentials, alcohol, and pet
care, consumer decisions are driven by advanced technology and
value for money. In the 3C electronics and home appliance sectors,
consumers are drawn to products that offer a combination of fun,
innovation, and convenience, and are more willing to get new
products with competitive prices. The fashion category is buoyed by
interest in outdoor sportswear, with casual wear gaining prominence
and significant potential in professional settings. In the
household essential sector, consumers are seeking more efficient
and easier ways to do household chores, particularly in lower-tier
markets, which are driving sales of imported cleaning products. The
alcohol sector is experiencing growth fueled by consumers seeking a
wider range of products with more affordable prices. The pet
category is also expanding rapidly, driven by increasing awareness
of pet health and the adoption of scientific pet care concepts,
particularly smart pet products.
The White Paper concludes by emphasizing that the segmentation
of consumer demands in China presents both opportunities and
challenges for cross-border imports. Against this backdrop,
understanding consumer needs and trends, and realizing product
differentiation is key to achieving sustainable growth.
Furthermore, the white paper explains the evolution of China's
cross-border import industry spans several phases: from the
exploratory era of the 1990s dominated by a C2C model, to the
emergence of the B2B model during the expansion phase, and
subsequently to the rapid growth of the B2C e-commerce model in the
upgrade phase. Driven by favorable policies, improved
infrastructure, diverse supply, and rising demand, cross-border
e-commerce platforms are further consolidating, defining a new era
of upgrade and growth for China's cross-border e-commerce
industry.
This phase presents significant opportunities for foreign
brands. The White Paper points out that China's cross-border
e-commerce platforms can offer foreign brands a diversified range
of service models. By implementing a three-step strategy
encompassing low-cost trial, brand awareness building, and brand
scale expansion, foreign brands can effectively establish a
presence in the Chinese market.
NIQ and JD Worldwide collaborate to assist brands in integrating
insights into consumers, products, and markets, and optimizing
operations across the value chain. This encompasses a comprehensive
range of services, from understanding consumer needs to refining
product development and finding precise market positioning, with
the goal of enhancing competitiveness and sales performance in the
Chinese market.
- From the consumer perspective, our efforts focus on
segmenting consumer groups and identifying consumer characteristics
across different regions and city tiers. We listen to opinions on
social media and get feedback from consumers to gain deeper
insights into what makes them decide to purchase a product.
- From the product perspective, we assist brands in
conducting product portfolio testing, optimizing sales concepts,
and developing product mixes that resonate with diverse consumer
needs. We also analyze pricing strategies across various channels
to ensure competitiveness in the market.
- From the market and sales channel perspective, we
analyze consumption scenarios to identify key touchpoints for
consumer purchases and develop tailored strategies for touchpoint
optimization and lead generation. We also explore market entry
strategies and potential platform partners to facilitate effective
brand introduction and adaptation.
About NIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence
company, delivering the most complete understanding of consumer
buying behavior and revealing new pathways to growth. NIQ combined
with GfK in 2023, bringing together the two industry leaders with
unparalleled global reach. Today NIQ has operations in more than 95
countries covering 97% of GDP. With a holistic retail read and the
most comprehensive consumer insights—delivered with advanced
analytics through state-of-the-art platforms—NIQ delivers the Full
ViewTM. For more information, visit https://nielseniq.com
About JD Worldwide
JD Worldwide is a prominent cross-border e-retailer in China,
facilitating transactions and interactions, and disseminating
product information for international brands and merchants. As a
business unit of JD.com, JD Worldwide not only upholds the brand’s
reputation for authenticity and quality but also leverages JD’s
advanced global fulfillment networks, extensive e-retail
operational expertise, and comprehensive customer service systems.
JD Worldwide offers both the “Retail Model (1P)” and the
“Marketplace Model (3P)” to accommodate the diverse needs of its
partners, regardless of whether they have a local team in
China.
For further information, please contact worldwide@jd.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240731273414/en/
Media Contact: Hana Hu hana.hu@nielseniq.com