Alibaba Announces Four Latest Trends and Business Opportunities in Cross-Border E-Commerce
On January 19, Alibaba announced the latest cross-border e-commerce trends and business opportunities for foreign brands to attract Chinese consumers, based on research data from the past two years and interviews with Alibaba executives. .
1. Increase in Chinese tourists
Alibaba anticipates an increase in business opportunities for overseas brands due to the increase in Chinese tourists accompanying the lifting of quarantine obligations in China from January 8. According to the 2022 Top 100 Cities Destinations Index released by market research firm Euromonitor International, most countries and regions in Asia, including Hong Kong, China, Japan, South Korea, Taiwan, Thailand, Vietnam, etc. tourists have become the top consumers. “Neighboring Asian countries will be most directly affected when travel from China resumes. Chinese tourists will travel to Japan and Europe to seek out local products,” he said. , said Liu Peng, head of Alibaba Group B2C retail business department.
Liu Peng, Head of Alibaba Group’s B2C Retail Division
In preparation for the increase in Chinese tourists, Alibaba is working with overseas brands to develop new customer journeys both online and offline. Alibaba recently announced an initiative to merge its digital and brick-and-mortar stores with Italian luxury fashion brand Brunello Cucinelli, which specializes in cashmere. As a result, consumers can choose whether to purchase products online after researching products, trends, and brands at the online store, or to try them on at physical stores and check the texture and comfort before proceeding with the purchase. became.
2. Growing demand for overseas brands
The demand for foreign brands in the Chinese market has continued to grow despite restrictions on international travel due to the corona crisis. Sales of imported consumer goods will increase by
approximately 19% to 1.73 trillion yuan (approximately 33 trillion yen) in 2021, and will increase by 11.1% year-on-year to 1 trillion yuan (approximately 19 trillion yen) in the first half of 2022. While sales of domestic consumer goods decreased slightly over the same period, sales of imported consumer goods increased. “Chinese consumers are becoming more daring in trying new things,” Liu Peng said. It is possible,” he explains.
3. Continuous growth of outdoor and pet care products
Liu says that this year will continue to see continued growth in certain categories, such as outdoor and pet care products. Affected by nearly three years of city shutdown, more Chinese consumers are enjoying outdoor activities such as camping, picnics, skiing and fishing. According to the “China Import Consumption Market Research Report 2022″ released by Deloitte and Tmall Global (Tmall Global), a major consulting company, the import value of ski equipment will increase by more than 700%, coupled with the increase in demand for luxury goods during the corona crisis. I am introduced to growing up. In addition, sales of imported pet wear increased by 653% and sales of pet toys increased by 457%.
4. The importance of using technology to tell your brand story Alibaba provides a one-stop service for foreign brands to reach Chinese consumers, but the most important challenge for foreign brands is to tell consumers their brand story. Chinese consumers research the brands and products they buy more thoroughly than consumers in any other market, according to the 2023 Chinese Consumer Report published by consulting giant McKinsey. has become clear. Chinese consumers are savvy with digital services, gathering the information they need through social media and other online channels. Alibaba helps brands with their content marketing through livestreaming and short videos, while leveraging extensive data on consumer demand to provide insights on how to appeal to Chinese consumers and how to build a sustainable business in China. We provide the information necessary for overseas brands to succeed in doing business in China.
In addition, Alibaba is using augmented reality (XR) to jointly develop an immersive shopping experience with cosmetics manufacturers that allows users to check the color and finish of cosmetics without applying makeup directly to the skin.
Alibaba will continue to support overseas brands in maintaining strong connections with Chinese consumers through innovative services. Through these efforts, Alibaba aims to contribute to the business growth of overseas brands and contribute to the revitalization of the global economy when tourism demand in China recovers.
Related research reports:
・”China import consumption market research report 2022” (Chinese)
https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/consumer-business/deloitte-cn-cb-import-consumer-market-report-2022-zh-221102.pdf ・”Report on Chinese Consumers (2023)” (English)
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