know your potential chinese customers 2016
TRANSCRIPT
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Synopsis page 1
page 3
page 5
page 9
page 15
China’s OOS Market Overview
Behavior
Conclusion
Demographics and Growth Potential2/!Efnphsbqijdt!pg!Dijob(t!PPT!Dpotvnfst
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Synopsis:
China has a huge cross-border online shopping market, the transaction volume of overseas online shopping has reached 759 million RMB in 2015, increasing by 43% compared to the previous year.
The percentage of male cross-border online shoppers in China has increased from 51.4% to 64.8% in 2015. Meanwhile, age 26-40 is the main shoppers group and nearly half of them are with higher education. 45.7% of cross-border online shoppers have purchased cosmetic and personal care products, following by mom & baby products and nutritional supplements products.
The Top 3 reasons for Chinese consumers to engage in over-seas online shopping are sound product quality, cheaper prices (compared with domestic shopping sales and o�ine stores), and they could not get it directly in Chinese websites.
Synopsis
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China’s OOS Market Overview
Demographics and Growth Potential
Behavior
Conclusion
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3.
4.
The market volume of China’s OOS market has exceeded 759 billion RMB in 2015, driven by better shopping experience, better products sourcing capability, more standardized custom clearance process, and more supportive government policy.
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China’s OOS Market Overview
China’s OOS Market Overview
2011 2012 2013 2014 2015
(CNY billion)
248 336 477 643 86:
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China’s OOS Market Overview
Demographics and Growth Potential
Behavior
Conclusion
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3.
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Demographics and Growth Potential
Males Outnumber Females, 26-40 Years-old Are Major Consumers
Gender Distribution Age Distribution
10-19 20-29 30-39 40-49 50-59 Others
Female35.2%
Male64.8%
1. Demographics of China’s Overseas Online Shoppers
Consumers between 31 and 35 have more shopping demand in baby and mom product
3.26%
32.45%
53.52%
5.87%
1.62% 3.28%
Consumers above 55 are more demanding for Australia Products
Consumers above 60 are more demanding for Nutrition Supplement Products
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Demographics and Growth Potential
Married w/Kids
Marital Status
Average Monthly Online Spending
<US$160
US$160-US$320
US$321-US$801
>$US$802
Others
42%
19.7%
31.4%
6.9%
77/6& 44/6&
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Demographics and Growth Potential
Big as China’s OOS market is, it only accounts for 19.9% of total online shopping market, there’s still a huge market potential to tap into.
2. Growth Potential of China’s OOS Market
Cross-border online shopping 86:!njmmjpo!SNC
Domestic online shopping 4/9!cjmmjpo!SNC
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China’s OOS Market Overview
Demographics and Growth Potential
Behavior
Conclusion
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2.
3.
4.
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Behavior
Channels to Learn about Cross-border Online Shopping in 2015
36.1%
27.3%
59.8%
51.2%
47.3%
39.8%
1.Channels to Learn About OOS
Comprehensive information covering reviews of overseas online shopping sites, available products, delivery, payment, and more.
More direct and trustworthy.
Behavior
2. Top Product Categories and Countries for OOSThe Top 3 major categories bought by Chinese consumers through OOS are Cosmetic and Personal Care, Mom and Baby Products, and Nutrition Supplement Products, which have higher requirement in quality and product safety. Besides US, Australia and New Zealand have also become two of the Top Countries of OOS.
Cosmetic and Personal Care
Mom and Baby Products
US Japan Korea Germany Australia UK New Zealand France
Nutrition Supplement Products
Clothing and Shoes
3C Products Home Care Bags Outdoor products
Eletronics Toys
56/8& 4:/4& 49/7& 49/1& 41/7& 37/7&
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37/2& 37/1&
35/5& 34/2&
64/:&
56/8&46/4&
39/6& 39/1&31/5& 31/5& 2:/7&
10
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Behavior
Major Reasons for Cross-border Online Shopping in 2015
3. Reasons for OOS
Product qualityPrice
(compared with domestic shopping
sites and offline stores)
Scarcity of products
Assured product quality
Cheaper Brand preferenceScarcity of products: not available on domestic sites
Diversi�ed products Bought the product when traveling
overseas and willing to buy it again
71/8& 69/7& 63/1& 56/7& 53/9& 46/1&
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Behavior
Logistics Preference of China's OOS Consumers Delivery Period of Online Purchases Made on Overseas E-commerce Sites in 2015
4. Logistics Preference and Delivery Period of OOS
20.9% of overseas online shoppers expect to receive goods within one week, but only 15.6% of shoppers actually receive products as expected. 2-week delivery period was acceptable among overseas online shoppers.
However, considering the fact that 44.19% of domestic online shoppers receive their parcels within 2-3 days, accelerated cross-border delivery speed will give a competitive edge to overseas retailers.
Domestic express couriers
57.2%International
express couriers
54.8% 54.5%Postal parcels
57.2%
54.5%
International express couriers
Domestic express couriers
Postal parcels
Shipping Agents
1.8%
1.2%
4.0%
3.5%
13.9%
10.5%
26.4%
22.8%
38.5%
41.1%
15.6%
20.9%
More than 35 days
29~35 days
22~28 days
15~21 days
8~14 days
1~7 days
% Used
Actual time Expected time
54.8%
36.6%
Behavior
5. Channels of OOS
China’s overseas online consumers prefer to purchase from “overseas shopping channels of domestic e-commerce sites”(65.2%). This purchasing channel evolved from a nascent C2C market with the sellers mostly being purchasing agents. As many rivals coming in, foreign sellers in domestic sites have a low share in this channel.
Global online market places account for 54.1%, which is 6% lower than last year. Meanwhile, domestic o�cial cross-bor-der shopping sites has risen from 28.8% to 34.2% this year, as the ecosystem of cross-border ecommerce in China keeps improving, the OOS consumers’ choices over buying channels are more diversi�ed. Foreign e-commerce sites have been a growing channel since buying directly from overseas ensures absolute authenticity and reliability.
Overseas shopping channels of domestic
e-commerce sites
Foreign e-commerce
sites
Domestic recommen-dation engines for
cross-border online shopping
Domestic o�cial cross-border
shopping sites
Domestic independent cross-border
shopping sites
Purchasing agents on
social media
76/3& 65/2& 4:& 48/:& 45/3& 44/4& 41/5&
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China’s OOS Market Overview
Demographics and Growth Potential
Behavior
Conclusion
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Conclusion
The volume of China’s overseas online shopping market reached 759 million RMB in 2015, increasing by 43% compared to the previous year. As the ecosystem of cross-border ecommerce in China keeps improving, this amount is expected to increase.
However, it is important for overseas retailers and e-retailers to keep in mind that the customers in China are di�erent.
In a result, di�erent approaches to leverage this potentially huge shopper base should be adopted accordingly.
They lack information thus have some scruples before buying directly from overseas.They expect smooth shopping experience and need the problems regarding payment, language, product selection, customized product description and logistics to be solved.
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Conclusion
It’s highly recommended that foreign retailers engaged with a local expert who can manage all the procedures involved in cross-border ecommerce for them. Moreover, the local specialist will handle all the issues extending beyond simple purchase, including:
Azoya specializes in providing overseas retailers and e-retailers with managed cross-border ecommerce solutions. We have established partnerships with 28 overseas e-retailers from 10 countries. By trusting your online sales in China market to Azoya, you can avoid all the possible troubles and travails and get the best results that only local experts can deliver. To know more about Azoya’s managed solutions, check here
Localized operationCustomized marketingChinese payment methodsCross-border logisticsCustomer services in ChineseAdaptive product selection