Millions of Chinese consumers are increasingly using mobile cross-border apps to buy imported products. Sales of such products surged 64% in 2022 compared with the same period in 2020, with the number of users buying imported products nearly tripling, data from JD Worldwide, the cross-border e-commerce platform of Chinese e-commerce giant JD, showed. The top five imported products by transaction volume on JD Worldwide last year were healthcare, baby and maternal, cosmetics and skin care, consumer electronics, and pharmaceutical products, a report by JD’s Consumption and Industry Development Research Institute showed. The fastest-growing imported categories included consumer electronics, personal care, home appliances, alcohol and cosmetics. Female users, who focus on family needs and personal well-being, continued to be the primary shoppers of cross-border products, according to the report.
Consumers aged between 26 and 35 accounted for nearly 50% of all shoppers purchasing cross-border imported products in 2022. Consumers in this demographic often seek distinctive goods to express their individuality and tastes. While people living in first-tier cities remain the primary purchasers of imported products, there is a growing interest in lower-tier markets, driven by China’s advanced e-commerce logistics and improved supply chain efficiency, according to the report. Scalp care products, skincare commodities and cosmetics with natural, eco-friendly ingredients, and premium low-lactose infant formula are also gaining traction among consumers. China’s cross-border e-commerce sector has been growing exponentially over the last few years as the country’s middle- and high-income shoppers demand increasingly diversified and personalized products and services, experts said.
Millions of Chinese consumers are increasingly purchasing premium or niche consumer goods, with their expenditure on imported and foreign-brand products turning into a key driver of consumption upgrading, experts said. “I find cross-border online shopping very convenient and discounts are often available. I also like to buy all sorts of fitness and healthcare products for my family members,” Fang, a 33-year-old fashion magazine editor based in Beijing, said. The main goal, Fang said, is to maintain quality of life. Fang is not alone in such a pursuit.
The country’s cross-border e-commerce hit CNY2.11 trillion in 2022, a year-on-year increase of 9.8%, according to China's General Administration of Customs (GAC). China has been optimizing the list of imported retail goods for cross-border e-commerce. Last year, 29 product categories with strong demand from consumers, including ski equipment, dishwashers and tomato juice, were added to the list, according to a statement jointly issued by the Ministry of Finance and seven other central government departments. Sales of imported wine sets jumped 193% year-on-year in 2022, according to Tmall Global, the cross-border e-commerce site of Alibaba Group. It said that residents living in third and fourth-tier cities contributed the fastest growth in purchasing imported, high-end and niche household products. Chinese consumers are favoring an increasing number of overseas brands that represent new lifestyles. Tmall Global said it introduced more than 6,400 new overseas brands last year, with the turnover of imported wine sets, urban cycling products and motorcycle helmets doubling from a year earlier.
“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 goods allowed to be imported,” said Zhang Tianbing, head of Deloitte Asia-Pacific consumer products and retail industry. The boom in celebrity live-streaming has spurred cross-border e-commerce purchases by domestic consumers, Zhang said. “Overseas brands are moving to cross-border platforms as they expand their distribution channels in light of Covid-19 disruptions to offline retail,” he added. “The penetration rate of cross-border e-commerce in lower-tier cities and townships has been increasing in the past few years. Chinese consumers are demonstrating rising demand for diversified, personalized and niche products from abroad,” said Chen Tao, Analyst with internet consultancy Analysys in Beijing. Market consultancy iiMedia Research said that with China’s further opening-up, gradual improvement in logistics and deliveries, and rising incomes, demand for imported goods will continue to increase and provide a big boost to upgraded consumption.
Li Yanchuan, Director 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. He noted that the sales of fishing, skiing, camping and other outdoor sports products have witnessed rapid growth, while virtual reality equipment, hand-drip coffee products, and tableware and kitchen utensils with unique designs have been favored by Chinese shoppers in recent years, the China Daily reports.
