Online platforms reaping high-end rewards
Major online platforms have seen fruitful results in their import businesses thanks to domestic consumers’ embracing a higher-quality and wider variety of merchandise from overseas brands. The businesses also pledged to double down on their efforts this year to ride this trend.
After purchasing 100 billion yuan (US$14.3 billion) worth of imported products since last November, JD said the total purchase value of overseas brands in the next three years would reach 400 billion yuan and will penetrate deeper into the vast consumer market.
JD said the number of brands on its cross-border import section increased more than 1.5 times since last November, while less well-known brands such as health supplements and personal care brands, Vitamin World, Cenovis, Vidivici and Bubs, saw sales jump more than six times.
The countries of origin where JD reaped the highest sales growth in the first three quarters included Mexico, Portugal, Ireland, Russia and Israel.
JD said its logistics network now covers 224 countries and regions. Furthermore, in first- and second-tier cities customers will receive their orders within 48 hours.
Jessie Qian, head of consumer markets for KPMG in China, said the CIIE is a witness to how life standards have improved with plenty of shopping choices from all over the world.
She expects the expo to further boost domestic consumption in the future as the country relaxes its import and consumer goods rules.
Technology advancements in data and cloud computing have put China in a leading position in the application and adoption of smart retail.
Research director Zhao Ping, at the international trade sector of the Academy of China Council for the Promotion of International Trade, noted that despite exponential growth in recent years, Chinese players still have less power over the drawing up of online cross-border trade rules, and a stable mechanism for online players in different regions would be a benefit in long-term development.
During last year’s CIIE, Suning signed collaborative deals with companies from 23 countries and regions, and continues to focus on high-end products and daily necessities, and fast-moving consumer goods, even fresh fruit.
In the first seven months, its major focus has been on importing fresh food, beauty, nutritional supplements, and the total import volume jumped more than three times than the same period last year.
It has expanded retail channels to cover online stores and community shops and shopping plazas, with a total of 13,000 physical outlets to help overseas brands reach the largest customer base.
This year, it is leveraging Carrefour and Laox’s platform to introduce import products at the CIIE, which are both Suning affiliates.
China also approved the establishment of an additional 22 comprehensive pilot zones for cross-border e-commerce, and the total number of pilot zones increased from 13 to 35 in 2018.
The idea is to allow cities with fairly strong economic clout and good business support to leverage their well-developed supply chains to serve the surrounding areas.