Cater­ing to the mil­len­ni­als

China Daily (Canada) - - SHANGHAI - By SHI JING in Shang­hai

shi­jing@chi­nadaily.com.cn

While Chi­nese mil­len­ni­als are heavy users of cross­bor­der e-com­merce, they are also pro­lific ex­porters who are keen on ex­ploit­ing op­por­tu­ni­ties in the global mar­ket, ac­cord­ing to a re­cent survey by on­line pay­ment ser­vice provider PayPal and global mar­ket con­sul­tancy Ip­sos.

The survey re­sults showed that one third of Chi­nese mil­len­nial re­spon­dents have done cross-bor­der shopping in the last 12 months. The survey was based on re­sponses from 23,000 people, aged be­tween 18 and 34, in 29 mar­kets around the world.

Chi­nese mil­len­ni­als spend the most on cross-bor­der pur­chases of cloth­ing, ac­ces­sories, cos­met­ics, as well as food and bev­er­age. They are also in­creas­ingly look­ing beyond tan­gi­ble goods and at authen­tic ex­pe­ri­ences that re­flect their pas­sions and in­ter­ests, as in­di­cated by their spend­ing on travel, sports, hob­bies and dig­i­tal en­ter­tain­ment.

Sim­i­lar to the gen­eral pop­u­lace, prod­uct au­then­tic­ity is the top pri­or­ity for 65 per­cent of the mil­len­ni­als. The survey also noted that young people th­ese days pay more at­ten­tion to prod­uct qual­ity, va­ri­ety and style when com­pared to other de­mo­graphic seg­ments.

China is cur­rently the sec­ond most pop­u­lar cross-bor­der e-com­merce des­ti­na­tion in the world among mil­len­ni­als who usu­ally buy prod­ucts such as cloth­ing, dig­i­tal en­ter­tain­ment, ed­u­ca­tion and con­sumer elec­tron­ics from the coun­try’s mer­chants.

Yang Chao­gang, a mil­len­nial mer­chant who opened Kun­shan Lifeng Gifts Com­pany, said that this de­mand for goods in China has in turn en­cour­aged many Chi­nese mil­len­ni­als to start their own e-com­merce busi­nesses to tap into the op­por­tu­ni­ties. His com­pany’s monthly sales rev­enues have in­creased from 2,000 yuan ($303) in 2010 to the cur­rent 200,000 yuan.

Chi­nese mil­len­ni­als have also been quick to ad­just their busi­ness mod­els and prod­ucts to ap­peal to fel­low peers from abroad. Wang Jingzhou, for ex­am­ple, lever­ages the se­cu­rity af­forded by PayPal to at­tract mil­len­ni­als who de­mand good se­cu­rity for their trans­ac­tions.

Wang, who has been run­ning his own com­puter ac­ces­sories ex­port busi­ness since 2012, said that PayPal also helps to pro­tect the mer­chants as it checks buy­ers’ in­for­ma­tion be­fore the trans­ac­tion is com­pleted, min­i­miz­ing scam in­ci­dents and fraud­u­lent claims for com­pen­sa­tion or re­funds.

To help fa­cil­i­tate the ever-ex­pand­ing cross-bor­der trade, PayPal rolled out a “New Money” Cam­paign in 2016. In ad­di­tion to US dol­lars, Chi­nese mer­chants will now be able to con­vert Eu­ros, Aus­tralian dol­lars and Bri­tish pounds di­rectly into ren­minbi by the fourth quar­ter of this year.

At the same time, PayPal will also ex­pand its pres­ence across China to pro­vide Chi­nese mer­chants more lo­cal­ized mer­chant ser­vice sup­port. Mer­chant ser­vice teams, along with chan­nel part­ners and re­sources, will be set up in 10 cross-bor­der e-com­merce pi­lot cities.

“Our aim is to con­nect con­sumers and mer­chants around the world with a seam­less and more se­cure way to pay. We are con­stantly look­ing for new in­no­va­tive so­lu­tions and part­ner­ships in China to en­hance the cross-bor­der trade ecosys­tem and help our Chi­nese cus­tomers un­cover new op­por­tu­ni­ties to par­tic­i­pate in the global mar­ket­place,” said Pa­trick Foo, vice pres­i­dent and gen­eral man­ager for PayPal’s cross-bor­der busi­ness in China and Korea.

We are con­stantly look­ing for new in­no­va­tive so­lu­tions and part­ner­ships in China to en­hance the cross-bor­der trade ecosys­tem...”

vice pres­i­dent and gen­eral man­ager for PayPal’s cross-bor­der busi­ness in China and Korea

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