iiMedia Research has just released a very detailed report on China’s cross-border e-commerce in 2017.
Here are the highlights:
• Cross-border e-commerce business continued to grow and is expected to reach 7.5 trillion renminbi in 2017
• It is estimated that 58 million users will participate in cross-border transactions in 2017 in China
• Cross-border e-commerce markets are highly fragmented relative to the local e-commerce market
• Cross-border shoppers often buy 300 to 1,000 yuan
It is estimated that by 2017, the cross-border e-commerce market will reach 7.5 trillion yuan (including B2C and B2B cross-border e-commerce).
However, the increase is as high as 17% (still a fairly healthy growth rate).
Meanwhile, the number of end-users in China is also cross-border transactions.
B2C subscribers are growing at a faster rate than the overall cross-border market, but the growth is slightly lower as the number of cross-border buyers catches up with the total number of e-business users.
A decentralized market
According to iiMedia, the cross-border e-commerce market is surprisingly fragmented.
The traditional e-commerce market is dominated by Alibaba (about 60-70% of market share) while cross-border e-commerce is relatively fragmented. No enterprise has a market share of more than 25%.
Surprisingly, while Lynx and Jingdong are important players, they definitely do not dominate cross-border games.
Why Chinese cross-border consumers buy?
Better product quality is the main motivation for customers to purchase cross-border.
Therefore, Japan, Germany, South Korea, France and the United States are the preferred destinations for cross-border sourcing, and Japan is a clear leader.
How Chinese cross-border buy?
Among cross-border buyers, the frequency of purchases is surprisingly high: 65% of users purchase a cross-border phone at least once per month. 11.6% Do it more than once a week.
66.2% of orders between 300 to 1,000 yuan. However, it is important to note that these orders are usually made on large platforms that focus on promoting cheaper products.
Our personal experience with hundreds of cross-border e-shops is that customers are very willing to spend more than 1,000 yuan on cross-border purchases, especially to make transport costs worthwhile. We found orders between $ 1,000 and $ 5,000 through cross-border WeChat stores are very common.
China’s cross-border electricity supplier market continued to maintain its flourishing growth. Unlike the local e-commerce market, users are accustomed to shopping on platforms other than Tmal, sometimes purchased directly from overseas merchants This trend opens up a unique opportunity for the brand to finally get out of Lynx and JD.com and start building direct relationships with its customers.
According to a decision of the executive meeting of the State Council chaired by Premier Li Keqiang on September 20, China will establish more pilot areas for cross-border e-commerce trade facilitation to enhance China’s international competitiveness.
The meeting decided to extend the success of the cross-border pilot area for e-commerce to various cities in the country with good infrastructure and great potential for trade and e-commerce development. Originally planned to be launched in Hangzhou State Council in 2015, it has been expanded to 12 cities in Shanghai, Tianjin and Chongqing since early 2016.
Some good practices are moving all over the country, such as an online integrated service platform for customs clearance, logistics, tax rebates, payment, fund-raising and risk control services, as well as offline industrial parks that provide full-industry chain services.
“We need to promote the healthy development of cross-border electricity suppliers, speed up the development of new engines and make the foreign trade industry more adaptable to the new situation and better grasp the new frontier.”
“The prospects for cross-border electricity suppliers are very bright “
According to statistics from the Ministry of Commerce, as of 2016, 220 countries and regions covered China’s cross-border e-commerce network with a turnover of 5.85 trillion yuan (US $ 889.7 billion), an increase of 28.2% over the same period of last year.
In 2016, the total foreign trade volume of cross-border e-commerce in the 13 pilot areas was 163.7 billion yuan, an increase of 100% over the same period of last year. More than 400 third-party platforms and more than 20,000 cross-border e-commerce trading companies have been established in the pilot areas.
The government will further streamline management reform, strengthen compliance supervision, improve services, improve the cross-border e-commerce policy matrix, improve efficiency and reduce operating costs.
Developing the entire value chain of e-commerce will be a supportive undertaking, including the establishment of overseas warehousing facilities covering major countries and markets as well as logistics networks.
“Expand and overcome the accumulated good experiences and practices and make rules in a timely manner. The new growth impetus to promote employment, expand the industrial chain and to support growth should not be underestimated.”
The conference also decided to support the exploration and innovation work in the pilot area where different online platforms will be integrated to better provide a one-stop shop for sharing information, certifying certificates and enforcement resources.
” Parallel efforts will bring the online platform to a strong offline Industrial cluster development and comprehensive services to match. Enhance the construction of cross-border e-commerce credit system, improve the e-commerce evaluation mechanism to ensure the transaction, to better protect consumers, protect intellectual property, manage risk. “
Government supervision should be both advantageous and careful. Producers and platform companies should take responsibility, and the government’s focus is to strengthen compliance oversight. According to the data from China’s National Bureau of Statistics, online retail sales in China reached 5.16 trillion yuan ($ 752 billion) in 2016, an increase of 26.2% over 2015. This is an overall increase in retail sales Twice as many. Tracking economic data. Want to take a slice of it? Of course, you … That’s the case.
TMall Most U.S. and Western European merchants have been through TMall in China. Unlike most markets TMall offers the so-called storefront, Businesses can have a fully branded flagship store in their market.
But, to do this, you must successfully prove that you own a domestic agent or Business.