China cross-border online sales could exceed $125 billion USD in 2018, says Frost & Sullivan.
According to a new research report, China’s cross-border online sales could hit the $125 billion mark this year. China has the largest eCommerce market in the world, with over 500 million online shoppers.
The Cross-border eCommerce (Haitao) Opportunity in China, released today by leading consulting firm Frost & Sullivan, in partnership with China retail strategy expert Azoya Consulting revealed the strong interest for cross-border online shopping.
Mark Dougan, Consulting Director, Asia-Pacific, Frost & Sullivan said:
"The research revealed the strong interest and expenditure amongst Chinese consumers in buying online from overseas retailers, with the average online shopper in China spending almost US$850 per year on purchases from overseas retailers.
“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."
This year, 63% of Chinese online shoppers plan to increase their cross border online shopping, with fashion the favourite category in the sector.
Women spend more on cross-border online shoppers than men – US$976 on average per year, which is 20% more than men.
But selling to Chinese consumers can be difficult and competitive, says Don Zhao, Co-Founder of Azoya International, and international retailers need to carefully consider the right way to approach the market.
"To build a brand that Chinese consumers trust, which commands a healthy profit margin and repeat buyers, retailers need to approach customers through multiple touchpoints. The key channel should be within retailers' control, accompanied by supplementary platforms.
“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."
China is a lucrative market for global retailers, however achieving success is difficult without careful planning. Chinese online shoppers want brands they can trust, at a low price and with high levels of communication. They also want to pay with their favorite payment method and expect fast delivery times. Failing to provide all of these will result in a bad shopper experience, which must be avoided at all costs.