We did mention before the strong demand for imported products amongst Chinese online shoppers, didn’t we?
Well, guess what? That demand has just intensified as Chinese consumers continue to seek products that aren’t available in their country.
Now is the perfect time for online sellers outside China to take advantage of the situation and double their profit margin.
A new research report from business consulting firm Frost & Sullivan and China retail strategist Azoya Consulting revealed that China’s online spending on purchases from international retailers is set to hit US$125 billion this year, with the average online shopper spending US$850.
According to a survey which both companies conducted on 1,000 online shoppers in China, as well as 100 international retailers and brand owners, fashion is the favourite category of China’s overseas online shoppers.
22% of them, mostly women, bought fashion items from overseas retailers in the past month.
Beauty and cosmetics came in a close second (20%) whilst mom and baby ranked third (15%).
The confidence of Chinese shoppers in imported brands stem from the quality and authenticity of such products. Mark Dougan, consulting director for Asia-Pacific at Frost & Sullivan, explained:
“Our research indicated that Chinese consumers are significantly motivated by the perceived higher quality and lower risk of buying fake goods that overseas retailers offer.”
Their retailer of choice
72% of Chinese consumers have a strong preference for Japanese online retailers, followed by South Korea (60%), the US (55%), Australia (37%), France and Germany (26%), and the UK (23%).
However, only 30% of online sellers in the aforementioned countries are satisfied with the level of sales they’ve made in the Chinese eCommerce market.
The rest of them, especially those selling through Chinese marketplaces, admit to facing stiff challenges such as competition with numerous brands, competitive pricing, steep commissions, and high upfront costs.
To overcome these hurdles, many online retailers have resorted to setting up their own eCommerce stores for the Chinese market, according to the report.
“More and more retailers are establishing standalone websites as the core of their strategies, as these sites directly connect retailers with Chinese consumers who desire foreign brands, while empowering retailers with flexibility and control over their business,” said Don Zhao, co-founder of Azoya International.
Is your online store ready to handle the surge of China’s cross-border eCommerce shoppers?
Let us know in the comments down below.
As always, to your continued success,
Dave & Matt