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China Daily Global / 2024-09 / 16 / Page003

Consumers pull out all stops for high-quality, foreign brands

By FAN FEIFEI | China Daily Global | Updated: 2024-09-16 00:00

Chinese consumers are increasingly demanding high-quality, foreign brands, fueled by efficient logistics and preferential policies including lower tariffs and an expanded list of imported goods, experts said.

According to a report released by market research company NielsenIQ and JD's cross-border e-commerce platform JD Worldwide, China's cross-border import e-commerce market grew from 444.1 billion yuan ($62.4 billion) 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 percent annually, tripling in seven years and reaching 188 million in 2023.

As consumer trust in cross-border e-commerce platforms continues to grow, so do consumption frequencies and expenditures across diverse product categories.

Over the past year, 36 percent of consumers increased their spending on imported goods, while 35 percent bought a wider variety of imported products, the report said.

Notably, there has been a marked increase in purchases of beauty and personal care products, driven by rising awareness about self-care.

Consumers accord priority to quality while purchasing imported goods, as 56 percent cited quality as the reason for selecting international brands and overseas products.

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, today's cross-border e-commerce platforms have been able to supply diverse categories of products, it added.

Li Yanchuan, head of Amazon China Global Store and Prime, said young Chinese consumers, especially Generation Z, think and judge independently while choosing brands, and prefer to pursue niche lifestyles and personalized products.

Chinese shoppers are increasingly favoring fragrance and skincare products, Japanese kitchenware, outdoor sports brands, virtual reality equipment, healthcare and nutritional goods, said Li.

Price, selection of products and logistics experience are the most important factors that consumers consider while buying imported commodities, Li said, adding that he is bullish on the prospects of China's cross-border online shopping market.

Orders for imported products mainly come from first-tier cities, but residents living in second- and third-tier cities have also demonstrated fast-growing purchasing power. Amazon will further enrich cross-border shopping scenarios based on consumers who share similar interests and hobbies, Li added.

Amazon China Global Store announced in November the launch of its first inland bonded warehouse at the cross-border e-commerce comprehensive pilot area in Ningbo, Zhejiang province, to provide a more convenient delivery experience for Chinese consumers.

The warehouse is expected to save up to 10 days compared to direct international shipments, with the shortest delivery time being two days.

With the expansion of domestic demand and advances in emerging retail technologies, China has introduced preferential policies, such as lowering import taxes and expanding the range of permitted goods for import, said Zhang Tianbing, head of consumer products and retail industry at Deloitte Asia-Pacific.

The boom in celebrity livestreaming has helped spur cross-border e-commerce purchases by domestic consumers, while overseas brands are moving to cross-border e-commerce platforms to expand their distribution channels, Zhang added.

Data from JD's Consumption and Industry Development Research Institute showed that female users continue to be the primary shoppers for cross-border products, focusing on family needs and personal wellbeing. People aged between 26 and 35 account for about 50 percent of all cross-border imported product shoppers, the report said.

Chen Tao, an analyst with internet consultancy Analysys in Beijing, said the penetration rate of cross-border e-commerce in lower-tier cities and townships has risen in the past few years.

Chinese consumers are demonstrating rising demand for diversified, personalized and niche products from abroad, Chen said.

Tapping into the consumption potential and upgrading channels as well as services in lower-tier cities and rural areas are key to fueling a recovery of consumption in China, he said.

Online shopping via livestreaming videos — an easy way for domestic consumers to find detailed information on overseas products — is gaining popularity among the post-1980s and post-1990s generation of consumers, he added.

Zhang Zhouping, a senior analyst on business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy, said overseas brands should pay more attention to smaller cities, speed up digital transformation, as well as design and launch diverse products to better meet the varied demands of consumers.

 

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