As incomes have risen in China, its consumers have stepped up their purchases of imported goods. But now, impatient for the latest products and better prices, they can buy directly from foreign retailers and suppliers at the click of a mouse or the swipe of a screen.
Cross-border consumer e-commerce amounted to an estimated 259 billion renminbi ($40 billion) in 2015, more than 6 percent of China’s total consumer e-commerce, and it’s growing at upward of 50 percent annually.
The country’s major e-commerce site, Alibaba’s Tmall, has moved into the market with a cross-border site (Tmall Global), as have smaller consumer rivals and start-ups, while US e-commerce leader Amazon is increasingly active in China.A number of factors are fueling the cross-border trend (exhibit). Chinese middle- and upper-middle-class consumers are looking to trade up to foreign clothing and gadgets not yet available in China, and they like the niche offerings that traditional “bricks or clicks” merchants rarely sell.
Overseas imports purchased through such channels, moreover, are often expensive: for example, baby formula from overseas, popular with affluent Chinese parents, often costs up to twice as much as the same product in the United States or Europe. Shoppers on cross-border e-commerce sites also feel some degree of protection from fake or counterfeit goods that often pass for offshore brands, particularly in second-tier cities and rural areas.
China’s new three-child policy highlights risks of aging across emerging Asia
Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.
Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.(more…)
Clear skies over Asia’s new foreign investment landscape?
Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.(more…)
Subscribe via Email
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...
Thailand’s Vaccine Strategy: What went wrong?
Questions are being asked, and not answered, over the decision to rely almost entirely on Siam Bioscience, a local, palace-owned...
Exclusive interview with Richi Kukreja, HR Lead Director for Zoetis South East Asia
Zoetis is a global animal health industry leader, dedicated to supporting customers and their businesses in ever better ways. Building...