A recent report by Frost & Sullivan in partnership with Azoya Consulting*, revealed cross-border trade to reach yet another peak with the average Chinese shopper, spending more than 850$ per year and the entire market expected to exceed 125$ billion in 2018.
Chinese consumers value international retail brands and the demand for premium goods, designed to improve a sense of well-being is expected to accelerate.
Cross-border online shopping is growing - 63% of Chinese shoppers plan to spend more online in 2018 compared to 2017
Top favorite category for cross-border shopping is fashion (22%)
Japan is perceived to be the most trusted country for cross-border online shopping among Chinese shoppers (72%), followed by South Korea (60%), the US (55%), Australia (37%), France and Germany (both 26%) and the UK (23%)
Read more about the cross-border payments in our detailed article.
3 key considerations for implementing a successful online cross-border strategy
International retailers need to keep pace with changing consumer tastes, product categories and channels in play.
1. Identifying the right channels
A variety of channels can be deployed to ensure increased coverage. The three most popular options/tactics are:
Setting up stand-alone websites
Working with one of the established CBEC online marketplaces
Selling to self-operated platforms which purchase inventory from retailers and distribute themselves
Hint: the two largest B2C China’s online marketplaces are Tmall Global and JD Worldwide.
2. Products that work locally and globally
Online retailers should consider a marketing strategy that ensures their products receive adequate recognition in China as well as in their own country. They should also consider having a local version of their website and product offering, accommodated to the local preferences.
3. Making payments simple
China's online market is highly competitive. To win customers’ trust and loyalty, retailers need to facilitate payments through multiple touchpoints and devices. Local payment method preferences vary and retailers should consider offering the types that customers know and trust. The top preferred payment types are: Alipay and Tenpay with 62 million and 1.7 million monthly active users respectively.
Changing regulations are paving the way to better experiences
Chinese regulatory bodies have implemented rules to reduce both the friction of cross-border online purchases and combat fraud. Consequently, consumers feel more protected from counterfeit products than they did before.
Want to find out more about how to implement a successful online payment strategy? Drop our payment experts a line.
* The study, The Cross-border eCommerce (Haitao) Opportunity in China, includes research amongst over 1,000 online shoppers in China, together with findings from interviews with over 100 international retailers and brand owners. Read our latest blog on entering new emerging markets.