In recent years, China has increasingly become a contending market for consumer goods globally. The cross-border e-commerce import model has also become the first choice for international brands to enter the Chinese market due to its flexibility and speed.
China has become the first incremental market for international brands
The Chinese market is enormous. In fact, for many brands, the scale of the Chinese market has far exceeded the scale of their local market. Recently, Netease's client released, "Healthcare's revenue in the first quarter exceeded 2.4 billion, Swisse immunity products almost doubled."
In addition, the first quarter 2020 performance report of Swisse parent company Jianhe showed that revenue increased by 13.0% over the same period last year to RMB 2.424 billion yuan, achieving double-digit growth.
Global sales of the Swisse immunity product series increased by 93.4% year on year, accounting for 38.2% of ANC's total revenue. Swisse's Chinese market revenue increased by 32.3% year on year. Swisse's Chinese market contributes 51.5% of ANC, and the Chinese market has become the most significant contributing market for ANC.
According to data from the independent data provider Early data, for the 12 months ended March 31, 2020, Swisse's share of China's e-commerce platform was 5.9%, continuing to rank first.
In the past few years of China's cross-border e-commerce time, a product structure with three major categories of maternal and infant, beauty and health products as the support has basically formed. As the representative brand of health products, Swisse can be described as developing cross-border e-commerce in China. In the process, it successfully entered the Chinese market and achieved great success as a representative of international brands. After self-cloud global exchange reached strategic cooperation with Swisse, relying on its own channel advantages, it will contribute to the brand's total market in China.
Cross-border e-commerce has become the first choice to enter China
Cross-border e-commerce is the fastest-growing trade method in the Internet era. It can break through time and space restrictions, reduce intermediate links, solve information asymmetry between supply and demand sides, and provide new development opportunities for more companies and more groups. This also reflects the Inclusive development of trade.
Judging from the current paths for foreign retailers or brands to enter China, two ways can be used to enter China, namely, the traditional general trade model and the emerging cross-border e-commerce model.
Compared with general trade, cross-border e-commerce, with the support of more open and active policies, has lower access requirements for imported goods, can help foreign goods reach consumers directly and conveniently, and has a comparative advantage in tax rates. Therefore, the most important thing is to significantly reduce the period for foreign brands to enter the Chinese market. At the same time, with the help of the resource advantages of the e-commerce platform and extensive data analysis, brand companies will have a deeper understanding of Chinese consumers and make timely adjustments in marketing, channels, and products, which will significantly improve the efficiency of business operations.
Embrace the ever-changing Chinese market
There are many cooperative brands of Xingyun. Currently, it has 2000+ suitable brands and more than 150,000 SKU cooperation. In the in-depth collaboration and communication with overseas brands, the brand has a lot of confusion about the Chinese market.
For example, Chinese culture and customs are too broad and profound, and e-commerce updates and iterations are too fast.
Targeted operations for the market face many problems, such as how to get closer to consumers and grasp the marketing rhythm.
China's e-commerce market is renewing and iterating very quickly, and the changes in channel traffic have overwhelmed brands.
Even the top brands are facing the pain of the total market. How to increase the market share of the category and the "harvest" of the head channel still needs the entire market of the mid-waist track.
Every new era of e-commerce requires brands to be able to keep up. How to keep up?
Then overseas brands need to choose high-quality service providers. Next, assessing the service provider's product, traffic capture, distribution, brand-building, multi-channel layout, and end-to-end service capabilities is necessary. Only companies with the six capabilities can help them better embrace the Chinese market.
With China's steady economic growth, consumer income has increased significantly. The total retail sales of consumer goods in China continue to grow. As a result, the proportion of the global new consumer market is constantly growing. According to World Bank statistics, in the past ten years, China's final consumption expenditure has continued to expand globally.
From 2009 to 2017, China's final consumption expenditure accounted for the global share of 5.5% in 2007 and increased to 10.9% in 2017. It has grown by 5.4% in eight years, almost overturning Japan and Germany to become the world's second-largest consumer spending country after the United States.
A Chinese consumer market is a contending place for global consumer goods. In the era of the development of the digital economy, China's consumption potential in the online retail market will be more forward-looking.