A growing middle class in China with a high propensity to shop for foreign brands is helping to drive up spending on goods bought outside of China, according to eMarketer’s cross-border ecommerce spending forecast.
Total cross-border ecommerce sales in China are expected to reach US$100.17 billion by the end of 2017, with the average spend per cross-border digital buyer at $882. Average spend per buyer has increased since eMarketer’s previous forecast due to the growing awareness of overseas brands in China, as well as better logistics and the perception that foreign goods are of better quality. Also contributing to the growth is the popularity of Tmall Global, JD Worldwide and Kaola, sites that have made it easier for shoppers to access a wide variety of overseas products on a platform they are familiar with.
More than a fifth (23 per cent) of digital buyers in China will make at least one cross-border purchase via the internet, and growth in such purchases will start to slow over the forecast period as more residents choose local brands for some categories such as fashion. Realising the demand for better-quality goods, local brands are starting to adapt to this change.
“The factors fueling the trend toward greater cross-border shopping are nothing new, as the average Chinese consumer is now more tech savvy, more exposed to foreign brands through overseas travel and the internet and, crucially, more willing to spend,” said Shelleen Shum, senior forecasting analyst. “With shopping sites such as TMall Global, JD Worldwide and Kaola adding more brands to their offerings and improving cross-border logistics and processing times, there is an opportunity for foreign brands to tap into the demand for high-quality products, especially in categories like baby, maternity, health and beauty.”
More like this
The customer is king and as such can be hard on any brand that doesn't fulfill his or her expectations to the fullest. According to a new report by SAP Hybris, customers worldwide have several reasons to turn their backs on brands.20th Nov 2017 Insight News
In this very special episode of Media Voices, the team discusses the conflux of news about BuzzFeed, Vice, Mashable and many more and ask whether the dream of a digital future for publishers is over before it began.20th Nov 2017 Insight News
The Native Advertising Institute just held their third annual Native Advertising Days Conference in Berlin, where the world’s best thinkers and practitioners of native advertising came together to share their insights. Here are 10 of the top tips.17th Nov 2017 Insight News
Recently, there has been a period of time where there was somewhat of a slow-down in international brand activity as companies focused on shoring up their bases. However, this year we have seen an increasing number of reports surfacing about media companies adopting a more global outlook again – at least in certain segments. Does this mean a renewed focus on brand licensing, and in what form? And what is the outlook as we head into 2018?13th Nov 2017 Features
CDS Global and Zeddit announced a strategic technology partnership in the UK and Australia to provide advanced subscriber conversion capabilities for print magazine publishers. The partnership will focus on improving the conversion of visitors to magazine websites into subscribers for CDS Global clients.13th Nov 2017 Industry News
One of the biggest drives for publishers in the past decade or two have been transitioning their print content to digital. For some it is all about maintaining the magazine's brand essence online, yet others have enjoyed success in amalgamating print publications to create new web first brands.13th Nov 2017 Features
Publishers’ growing urge to be platform agnostic needs to be balanced by focussed efforts to ensure content remains platform specific.13th Nov 2017 Features
Deborah Joseph is appointed chief content officer of Glamour, a new position created to lead the vision for the beauty-first, digital-first media brand, it was announced today.16th Nov 2017 Industry News
Visit our Youtube channelFIND OUT MORE
FIPP newsletters allow you to keep up with industry trends, research, training and events across the worldFIND OUT MORE
Get global coverage of your launches, company news and innovationsFIND OUT MORE
What’s happening now, what’s coming next