2018-中国跨境电商的机遇（英文版）-2mb

Summary of the Cross-border E-commerce (Haitao) Opportunity in China

Core Content

This research report explores the growing opportunity for international retailers in China's cross-border e-commerce (Haitao) market, highlighting the evolving landscape of online shopping in the country and the strategies required to succeed.

Main Trends and Insights

• China's E-commerce Growth:
  China is the world's largest online shopping market, with over 16% of total retail sales occurring online in 2018. It is second only to the UK in online shopping penetration.

  • Online shopping expenditure is expected to continue robust growth, with Chinese consumers spending over $1 trillion online in 2018.
  • The market is highly competitive, with a significant number of domestic and international brands vying for consumer attention.

• Consumer Preferences:

  • Chinese consumers increasingly prefer purchasing directly from international retailers through cross-border e-commerce (Haitao), rather than through marketplaces.
  • In 2017, an estimated 125 million Chinese consumers made cross-border purchases.
  • Haitao buyers are more confident in Japanese and US brands, with females showing a stronger preference for Korean brands.

• Shopping Behavior:

  • Consumers in Tier 1 cities tend to spend more and shop on marketplaces, while those in Tier 2 and 3 cities are more likely to use standalone D2C sites.
  • There is a strong reliance on word of mouth and social media influencers for purchase decisions.
  • Online bloggers and social media personalities play a crucial role in influencing buying behavior, with varying levels of impact depending on the type of influencer.

• Cross-border E-commerce Models:

  • Cross-border e-commerce allows retailers to fulfill orders from outside China or via free-trade zones, offering faster and more efficient service.
  • There are three primary models:
    1. Domestic retail outlets: Treated as personal shopper transactions, with no product registration required but limited to 6 SKUs and a RMB1,000 order value limit.
    2. Cross-border e-commerce: Involves bulk imports through bonded warehouses or direct shipping. Taxation varies, with bonded clearance being more favorable.
    3. Traditional import: Requires product registration and is subject to import tariffs and VAT.

• Consumer Survey Insights:

  • 49% of respondents are male, 51% are female.
  • 36% are aged 19–29, and 64% are aged 30–40.
  • Monthly online spending ranges from <RMB 1,000 (40%) to >RMB 2,000 (6%).
  • 43% of consumers reside in Tier 1 cities, 57% in Tier 2 and 3 cities.

• Retailer Survey Insights:

  • 81% of international retailers view China as an attractive market.
  • 90% plan to enhance their online sales capability in China.
  • However, satisfaction with online operations is often low, with only 30% of online-only retailers satisfied with Chinese marketplaces.
  • The majority of retailers (about 50%) have existing physical retail operations, while 48% are online-only.
  • Retailers are moving towards standalone D2C models, which allow for more direct engagement with consumers.

• Key Challenges:

  • Confusing regulations: A major obstacle for international retailers.
  • High investment required: Especially for entry into the market.
  • Intense competition: With many domestic and international brands competing.
  • Low profitability: Due to high costs and competition.
  • Marketplace limitations: Retailers are dissatisfied with the commission rates and lack of brand control.

Strategic Recommendations

• International retailers should consider standalone D2C models for better brand engagement and customer experience.
• Digital marketing and social media strategies are essential for brand awareness and customer retention.
• Payment mechanisms must be adapted to local preferences, such as Alipay, WeChat, and Union Pay.
• Logistics and supply chain capabilities need to be robust to handle the complexities of cross-border operations, including high-traffic events like Singles' Day and Black Friday.
• Understanding consumer behavior and preferences is crucial for tailoring products, pricing, and marketing strategies.

Conclusion

The report emphasizes that while the Chinese online market presents significant opportunities for international brands and retailers, success requires a nuanced and strategic approach. Marketplaces are not the only viable option, and retailers must consider the unique needs of the market, including regulatory compliance, brand positioning, and customer engagement. The key to thriving in China's e-commerce environment lies in adapting to local consumer behavior, leveraging data-driven strategies, and building a strong digital presence.