In this article, we will look at the biggest trends in the China eCommerce market this year. In the past, China was exporting high-quality fashion, sneakers, electronics, and more as the ‘World Factory’. However, over the last years, this trend has seen a reverse. Imports are becoming more and more relevant.
1. China Cross-Border eCommerce
The CBEC sector in China is booming. For example, Alibaba has acquisited Kaola in 2019. And there are many more investment and acquisition cases in this specific sector.
2. Omnichannel Retail
This is actually a cross-channel content strategy. It aims at two things. One, improving the user experience; Two, creating better relationships with the target audience across all points of contact. As a result, whether you are shopping online or in an actual store, your consumer journey should be seamless and easy. That is to say, online and offline are melting together (O2O).
3. Lower Tiers
This is the trend of selling to lower Tier cities and areas in China. Lower Tiers have more money available for shopping (due to lower living costs) and are happy to spend it on consumer goods.
4. Fintech
Financial technology and innovation which aims to compete with traditional methods to deliver financial services are on the rise. In particular, Chinese online banks like WeCash (unrelated to WeChat or Tencent) emerge as startups to bring easy and uncomplicated financial services to individuals and institutions.
For example, WeCash with 130 million users in 5 countries allows individuals to get their credit score straightforward and apply for loans. And institutions can build their income-yielding loan portfolio on this big-data-powered platform.
5. From KOL to KOC marketing
Key opinion consumers (KOCs) are ‘common’ buyers who create videos and posts about their own product reviews and recommendations. Because consumers are hungry for advice and recommendations from real consumers they trust. Moreover, KOCs also act as influencers but are more authentic. Relationship-based marketing is on the rise!
Brands that incorporate KOCs into their marketing strategy can benefit from a boost in the brand image and increased sales. So, make sure to identify suitable KOCs. Actually, they usually do not have many followers which makes them difficult to find. A Chinese marketing agency can take care of this for you.
6. Short Videos
Together with live-streaming, short videos and short video apps are conquering the Chinese market. Thus, the line between business and socializing continues to blur. It will not surprise you that more than 300 million Chinese are using short video apps.
Higher Tier areas with middle and higher-income households and individuals as well as a younger audience (under 35 years old) are more drawn to this medium.
7. Social eCommerce in China eCommerce Market
This hot new trend will reach more than 600 billion dollars globally by 2027. The increasing use of mobile devices and social media has created the social shopping also known as social eCommerce.
The ‘now’ consumer follows trends and has unplanned interactions with brand and retail experiences. Shoppers can do so at home, at work, or on the go. This behavior drives the need for new approaches to create a personal and ready-to-buy social commerce experience.
8. Cruelty-Free Products for China eCommerce Market
Until early 2021, animal testing was required by law for cosmetic products imported to and sold in the Middle Kingdom. Since 1 May 2021, this law is obsolete. Animal testing is no longer required for general cosmetics imported into China, as long as they meet certain other requirements like a safety and risk assessment.
This also opens up the market to vegan, cruelty-free and sustainable cosmetics and beauty brands. The UK-based skincare brand Bulldog was the first cruelty-free cosmetics brand to sell in mainland China, imported under the general trade (and not CBEC model).
Keep in mind that Chinese consumers love their mobile devices and use them for everything. Specifically, their super-app WeChat, which lets users pay, play, chat, shop, order everyday services and products, and more. Advertising in China has never been easier and more complex at the same time.