JD.com, China’s largest retailer, will purchase nearly RMB 100 billion worth of products from overseas brands.
As disposable incomes in China rise, consumers increasingly demand high-quality products, especially imported products.
E-commerce has rapidly emerged as one of China’s most preferred channels for buying overseas brands.
Last year, the number of users purchasing products from overseas brands grew by 37.1% compared to 2016.
The volume of imported goods in 2018 to date has already skyrocketed 150% as compared with two years ago.
JD’ “Retail as a Service” strategy has proved enormously appealing to household
names from all over the world.
Indeed, the growing family of leading international brands partnering with JD to facilitate their e-commerce strategy now includes the likes of Saint Laurent, Alexander
McQueen, Dell, Nestle, Avène and many more.
As China’s e-commerce transformation continues to unfold, consumers have gravitated especially towards premium, smart, and green products.
According to JD’s data, the highest performing categories among its customers this year have been mobile phones, computer and office suppliers, home appliances, maternal and childcare, and digital products.
SEE ALSO : Google to invest US$550 million in JD.com
Advanced economies such as the U.S., Japan, South Korea, Germany, and the Netherlands remain the most popular sources of imported goods.
Chinese consumers buying online are mostly younger (26-45 years old), white-collar workers with middle-to-high incomes.
China’s most developed regions, particularly the coastal cities, account for the largest uptake of imported goods.
The growth rate for purchases of overseas brands, however, is now highest in fourth- and third-tier cities, where these brands are often not available in brick and mortar stores.