中国跨境电商机遇报告.pptx

1、Preview VersionThe Cross-borderE-commerce (Haitao)Opportunity in ChinaUnderstanding the Chinese consumer andstrategies for international retailers to succeed inChinas booming online shopping market.A RESEARCH REPORT BYABOUT THIS RESEARCH REPORTChina is now the worlds largest online shopping market.

2、Driven by risinglevels of personal wealth and high Internet connectivity, Chineseconsumers are on track to spend over US$1 trillion online in 2018.In this SFTFBSDISFQPSU, we review how online shopping in China isevolving, and the attitudes of brands and retailers selling online intoChina. We analyse

3、 the alternative cross-border sales models available tobrands and retailers, and indicate how the use of a marketplace may notalways be the best solution for international companies in engagingwith Chinese online buyers.A notable trend is the strong preference of many Chinese online shoppersto buy f

4、rom overseas brands and retailers through cross-border onlineshopping - known as haitao or CBEC (cross-border E-commerce). Simply, itinvolves a Chinese consumer placing an order online with an overseas-based online retailer, who ships the product from outside the Chinese.We undertook research with a

5、 sample of 1,000 individuals in China whoregularly shop online cross-border (the Consumer Survey), as well asinterviewing 100 international brand owners and retailers withrevenueover50millionUSDperyear,in Australia, New Zealand, the US,Canada, and the European Union (the Retailer Survey) to understa

6、ndtheir strategies, expectations and experiences of online sales into China.Typically, overseas brands and retailers have sold cross-border into Chinathrough online marketplaces offered by Chinas E-commerce giants, suchas Alibaba and JD.com. While this is the best-known model, there is no “onesize f

7、its all” approach for brands and retailers.Respondents were drawn from a range of categories, including mumand baby, beauty, cosmetics and personal care, health and wellness,food and grocery, and fashion. The Appendix provides further details ofthe study samples.Increasingly, Chinese cross-border sh

8、oppers are looking beyondmarketplaces, and are shopping on retailer or brand owner standalonedirect-to-consumer (D2C) online stores, which offer them a greater level ofpersonal engagement and a more authentic online shopping experience.The complexities and challenges involved in selling into China m

9、ean the“one size fits all” approach is no longer appropriate to meet marketdemands. As a result, individual retailers and brand owners need tocarefully determine which model is likely to work best for them.You are now reading the preview versionDownload the Full Version$199 Full Frost & Sullivan 20

10、page research report, detailed market insight, fullstrategy interpretation Complete access to over 50 charts to analyze 1,000 cross-bordershoppers about how they make purchase decision, top influencers,requirement for international retailers Full gap analysis of 100 international retailers on their

11、capacity, strategyand plans Support from Azoya Consulting on data analysis, policy & regulation, &strategyTa ke me thereSHOP.AZOYAGROUP.COMxCHINA HAS THE WORLDS LARGEST E-COMMERCE ECOSYSTEMChinahasmoreonlineshoppersthantheUS,UnitedKingdom,andAustraliacombined,andwithonlinesalesnowatover16%oftotalret

12、ailsales,ChinaissecondonlytotheUKinonlineshoppingpenetration.Chinas Internet Users and Online ShoppersCompared to selected CountriesOnline sales as percentage inChina, US, UK & Australia0100200300400500600700800733CNUSUKAU16.6%8.9%500245217ChinaUS624318.0%7.5%2112UKAustralia(MILLION)INTERNET USERSON

13、LINE SHOPPERSSource: ITU; Ericsson; Invesp; Wearesocial; Frost & SullivanxEXPENDITURE ON ONLINE SHOPPING IN CHINA CONTINUES ROBUST GROWTHChina is not just the worlds largest online shopping market, it is also one of the fastest growing, and accounts for almosthalf of total global online shopping sal

14、es.Online Shopping Expenditure in China, 2011-2018Consumer Expectations on Online ShoppingExpenditure Over the Next 12 MonthsUS$ BILLIONS12001000800600400200070%60%50%40%30%20%10%112563%93075057033%4202851801202%2%NotSure0%20112012201320142015201620172018SameMoreLessN=1,000Source: Frost & Sullivan R

15、esearch & Consumer SurveyxCROSS-BORDER A NEW GROWTH DRIVER FOR ONLINE SHOPPINGThe maturing of international payment and logistics encourages many Chinese consumers to shop directly frominternational retailers. For retailers, they now have a new business model to expand to the Chinese market.Retailer

16、s/Brand OwnerWholesaler/ImporterDomestic Retail OutletsOnline StoresCross-borderE-commerce PlatformsTraditional Import(China Retail/Online Stores)StandaloneE-commerceChineseMarketplacesDaigou/TouristsChinese ConsumersSource: Frost & SullivanxCROSS-BORDER E-COMMERCE EASES ENTRY TO THE CHINA MARKETCom

17、pared to the other two models, cross-border e-commerce allow retailers to service Chinese consumers much fasterand easier. Retailers can fulfill from outside Mainland China or via free-trade zones.ModelRegulationTaxationTreated as a personal shopper transaction when sentto China by daigou.No product

18、 registration required;ID authentication required; no more than 6 SKUs; valuelimit RMB1,000/order.Domestic retail outletsOnline stores15% postal taxbornbyendcustomer, no ChinaVAT.Goods bulk imported through bonded warehouses inFTZs or dispatched from outside China on receipt oforders.Via direct post

19、alclearance15%-60%ofpostaltaxbornbycustomerCross-border E-commerceBonded import will be impacted by Positive List.Product registration not required until 2019.Via bondedclearance 11.% ConsolidatedTax(2.% for cosmetics)Import tariff (standard15%,theratevariesaccordingtoHSCodeandtradetreaties) and VAT

20、levied: 1% standard rate.Traditional importPhysical stores in ChinaClassified as General Trade.Only registered products can be imported and sold.Source:Frost&SullivaO$#&$POTPMJEBUFE5BYBEKVTUFEBGUFS.BZ75SFEVDUJPOxSTRONG DEMANDS FOR IMPORTED PRODUCTS DRIVES DAIGOU BUSINESSDaigou, or shopping proxy, ar

21、e individuals (either tourists or residents overseas) who buy products in physical stores toorder and then send them to consumers in China. There are estimated 100,000 to 200,000 daigous in Australia alone.Retail outlets outside China can be aRetailerWholesalerBrandssurprisingly viable option for re

22、achingChinese consumers. This is not just aresult of the enormous and rapidlygrowing number of Chinese outboundtourists (127 million in 2017) for whomshopping is a crucial facet of an overseastrip.Physical StoreLocal E-commerceDaigouTaobaoThe unique daigou model in Chinashould not be underestimated.

23、 Theysatisfy Chinese consumers demand forproducts that are not accessible, orcheaper than those sold in China.Other C2CPlatformsWeChat StoreChinese ConsumersSource: Frost & Sullivan, NelsonxCONSUMERS FAVOR ONLINE SHOPPING DIRECTLY FROM GLOBAL RETAILERSDriven by the perception of higher quality and a

24、uthenticity, Chinese consumers favor Haitao to purchase directly fromglobal retailers. We estimate 125 million Chinese consumers purchased through this channel in 2017.Main Reasons for Buying Through HaitaoPercentage of Online Shoppers Buying Productsthrough Haitao at Least Once per Month, by Catego

25、ry80%70%60%50%40%30%20%10%0%67%10%11%Electronics&CommunicationsHomewares&FurnitureFashion45%22%35%18%19%Sports&LeisureGrocery27%26%13%Healthcare&NutritionBeauty&CosmeticsMum&Baby20%15%Higherquality,morereliableCheaperLowriskof Notavailable Curioustotryfakeslocallythisnewchannel0%5%10%15%20%25%N=1,00

26、0Source: Frost & Sullivan Consumer SurveyxGEOGRAPHIC LOCATIONS OF THE CONSUMER AFFECT SHOPPING BEHAVIORCategories Bought at least Monthly by City Tier80%70%58%60%40%20%0%50% 50%50%49%49%48%41%39%38%38%34%33%31%31%29%29%26%26%25%25%23%21%20%19%19%19%18%17%17%15%14%13%13%12%Mum & BabyBeauty &Cosmetics

27、Healthcare &Nutrition(Access in fullversion)(Access in fullversion)(Access in fullversion)(Access in fullversion)(Access in fullversion)(Access in fullversion)Total Tier 1 Tier 2 Tier 3Source: Frost & Sullivan Consumer SurveyxHAITAO BUYERS ARE MORE CONFIDENT ABOUT JAPANESE AND US RETAILERSMale buyer

28、s tend to have significantly more confidence in the US, while female buyers have a stronger preference forKorea. Despite stronger online sales capability, UK is ranked lower by Chinese online shoppers.Preferred Vendor Origin Countries for Haitao BuyersVendor Origin Countries that Haitao Buyers HaveM

29、ost confidence in (Number 1 and 2 Choice)80%70%60%50%40%30%20%10%0%72%60%55%25% 19% 16%37%26% 26%23%JapanUSKorea2%AustraliaUKUSFrance Germany JapanKoreaOtherN=1,000, multiple selections allowedSource: Frost & Sullivan Consumer SurveyxSELECTION OF E-COMMERCE PLATFORMS FOR CROSS-BORDER PURCHASEMost co

30、mmonly used e-commerce platforms by Chinese consumers are marketplaces such as Kaola, Tmall Global andJD.com, while global e-commerce such as Amazon and Rakuten are also common. Females (24%) are more likely to useD2C websites than males (18%).Use of E-commerce Platforms for Cross-borderPurchase, Pa

31、st 12 MonthsMost Important Criteria in the Choice of Platform forCross-border Transactions84%Domestice-commerceplatformGlobale-commercevendorMenWomen67%Range of payment optionsRange of payment optionsOverseassuppliersstandalonewebsite21%27%Fast delivery to MainlandChinaDaigouGood website performance

32、7%3rdpartyforwardingcompanyChinese language customersupportGood website performance0%50%100%N=1,000, multiple selections allowedSource: Frost & Sullivan Consumer SurveyxWORD OF MOUTH IS AN IMPORTANT INFLUENCING FACTORThe Chinese consumers are mostly likely to be influenced by word of mouth from frie

33、nds, followed by social mediamarketing. Online bloggers are also important influencers of purchase decisions, while different types of opinion leadershave different impact levels.Influencers when Buying through HaitaoImportance of Types of Opinion Leaders37%50%25%24%24%23%32%25%16%23%13%17%16%14%Wor

34、ldofmouthfrom marketingfriends (WeChat,Weibo)SocialmediaSearch (accessfull(accessfull(accessfull(accessfullEngine version) version) version) version)Blogger(beauty)Blogger(fashion) (celebrity)Blogger (accessdata(accessdata(accessdata(accessdataviafullviafullviafullviafullversion)version)version)vers

35、ion)Source: Frost & Sullivan Consumer SurveyxE-COMMERCE IN CHINA A PERSPECTIVE FROM INTERNATIONAL RETAILERSOnline sales are the primary approach retailers used to expand sales in China, with 41% retailers interviewed planning toincrease sales through online channels only, and 18% planning on expandi

36、ng physical stores.Primary Approach by Retailers to Increase Sales inChina, by County100%92%Retailers that were interviewed canbe divided into two broad groups those with existing physical retail andthose without (about 50% of sample). of retailers are currently sellingonline into China, including t

37、hroughChinese marketplaces, Global E-commerce vendors, and standaloneonline stores.80%60%40%20%0%67%55%52%45%40% 40%35%27%25%22%20%18%14%10%8%8%0%ANZUSUKFranceGermanyOther EUThrough opening physical stores onlyThrough opening physical stores and online salesN=100Through online sales onlySource: Fros

38、t & Sullivan Retailer SurveyxRETAILERS ARE ATTRACTED BY THE CHINA MARKET, BUT SATISFACTION DIFFERS81%ofretailersviewedChinaasanattractivemarketopportunity,andalmost90%are planningtoenhanceonlinesalescapabilityintoChina. However, the satisfaction with Chinese online operations is often low.Percentage

39、 of Retailers that See China asan Attractive Opportunity by CountryLevel of Satisfaction with Current Level of OnlineSales to China, by Country60%50%40%30%20%10%0%Other EUGermanyFranceUK70%56%92%42%36%33%34%67%33%31%32%30%26%26%25%25%24%85%17%US80%11%9%9%ANZ87%20% 40% 60% 80% 100%0%0%ANZUSASatisfied

40、 (3.0)UKEUTotal0%Very satisfied (4.0)Not Satisfied (2.0)Very unsatisfied (1.0)N=100Source: Frost & Sullivan Retailer SurveyN=81xTOP CHALLENGES FACED BY RETAILERS AND BRAND OWNERS IN CHINARetailers and brand owners point to a range ofchallenges they face in China, however, two main30% 30%factors stan

41、d out. The regulations governing onlinesales in China are seen as confusing and prone tounexpected changes; and the China market is viewedas highly competitive, with a myriad of domestic andoverseas retail brands competing for consumerattention.CONFUSINGREGULATIONINTENSECOMPETITIONIn this context, r

42、etailers and brand owners highlightissues with keeping up-to-date with regulationsgoverning online sales in China and creating brandawareness in such as crowded market.21% 18%Other retailers highlighted issues that high-investment for entry resulted not profitable onlinesales.INVESTMENT REQUIREDSALE

43、SNOT PROFITABLETOO HIGHSource: Frost & Sullivan Retailer SurveyxCHINESE ONLINE MARKETPLACES ARE NOT THE ONLY VENUEWhile Tmall Global and JD might be the most obvious choices for international retailers to launch their e-commercebusiness in China, the satisfaction with marketplace ranks below Standal

44、one Online Stores and Global E-com vendor. Thisindicates that retailers should rethink their online strategy in China and consider other possibilities.Percentage of Retailers Satisfied withOnline Sales in China, by Main PlatformMain Sales Channels of Retailers in ChinaStandalone Online StoreStandalo

45、ne OnlineStore15%31%Global E-commerce VendorMarketplace18%Global E-commerceVendor37%32%Marketplace21%Physical Stores35%0%20%40%0%20%40%Source: Frost & Sullivan Retailer SurveyxMAIN FOCUS AREAS TO DEVELOP ONLINE CAPABILITY IN CHINAOur research shows that many online retailers are looking to use stand

46、alone websites and fulfillment operations, to becomeless reliant on marketplaces. However, in many cases retailers recognize the need to enhance capability.Areas that retailers are focusing on improving34%Developmentofcontent(blog,WeChatPosts)TailoringproductselectionSocialmediastrategyforChinesecon

47、sumersChineselanguageonlinestore(AccessinFullversion)33%33%33%32%30%30%30%(AccessinFullversion)(AccessinFullversion)(AccessinFullversion)28%28%(AccessinFullversion)(AccessinFullversion)26%(AccessinFullversion)23%(AccessinFullversion)18%(AccessinFullversion)15%15%(AccessinFullversion)(AccessinFullver

48、sion)Source: Frost & Sullivan Retailer SurveyxTHE LAST WORDThe study confirms that for most international brands andretailers, Chinas online shopping market offers tremendousopportunity. For those using an online-only model to enterChina, local Chinese marketplace sites such as Tmall Globaland JD.co

49、m tend to be the first option. However manybrands and retailers report not being satisfied with thebusiness generated through these platforms, with only 30%of online-only retailers satisfied with Chinese marketplaceplatforms. Issues such as high sales commissions, the driveto discounting, and lack o

50、f direct customer engagement aresignificant issues.Consumer Survey SampleTypical Monthly OnlineSpendingSexAgeLocationRMB 2,000(6%)Retailer SampleLocationANZ 10%US 47%TypeCategoryTotal salesUS$50 million US$100million 16%Online only 48%Mum & baby 14%While China offers enormous potential for online sa