know your potential chinese customers 2016

Dvtupnfst!Dpnf!Gjstu

3127Lopx!zpvs!Qpufoujbm!Dijoftf!Dvtupnfst

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

3/!Hspxui!Qpufoujbm!pg!!Dijob(t!PPT!Dpotvnfst

4/!Sfbtpot!gps!PPT

5/!Mphjtujdt!Qsfgfsfodf!boe!Efmjwfsz!Qfsjpe!pg!PPT

6/!Diboofmt!pg!PPT

PPT;!Pwfstfbt!Pomjof!TipqqjohTpvsdf;!jSftfbsdi-!Bobmztft!曀㓅杶姈

2/Diboofmt!up!Mfbso!Bcpvu!PPT

3/!Upq!Qspevdu!Dbufhpsjft!boe!Dpvousjft!gps!PPT

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

1

2


Demographics and Growth Potential

Behavior

Conclusion

1.

2.

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.

3



2011 2012 2013 2014 2015

(CNY billion)

248 336 477 643 86:

4



Behavior

Conclusion

1.

2.

3.

4.

5


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

6


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&

7


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

8



Behavior

Conclusion

1.

2.

3.

4.

9

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&

Upq!21!PPT!Dbufhpsjft

Upq!9!Dpvousjft!gps!PPT

37/2& 37/1&

35/5& 34/2&

64/:&

56/8&46/4&

39/6& 39/1&31/5& 31/5& 2:/7&

10

11

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&

12

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&

13

14



Behavior

Conclusion

1.

2.

3.

4.

14

15

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.

16

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

http://www.azoyagroup.com/solutions/

know your potential chinese customers 2016

Retail