NielsenIQ and JD Worldwide Release 2024 White Paper on China Cross-Border Import Consumption Trends
NielsenIQ (NIQ) and JD Worldwide, JD.com’s one-stop e-commerce channel for imported goods, have recently unveiled the 2024 White Paper on China Cross-Border Import Consumption Trends. The White Paper highlights the advanced phase of upgrade and growth in the industry. As cross-border e-commerce platforms rapidly consolidate and brands engage directly via e-commerce channels, a robust ecosystem has emerged in China, supported by increasing consumer trust. Over 80% of consumers express an interest in purchasing overseas products.
In response to diverse consumer demands, JD Worldwide and other leading cross-border e-commerce platforms now offer a wide range of products, including digital, home & appliance, beauty and skincare, fashion and luxury items, personal care and household essentials, mom & baby, pets, alcohol, and food & beverage. This comprehensive coverage ensures consumers have access to diverse, personalized, and high-quality products for all aspects of daily life. The White Paper highlights consumer preferences for authenticity, quality assurance, and efficient logistics when purchasing imported products.
According to the White Paper, China’s cross-border import e-commerce market grew from 444.1 billion yuan to 548.3 billion yuan from 2018 to 2023. From 2017 to 2023, the number of users of China’s cross-border import e-commerce platforms increased by nearly 20% annually, tripling in seven years and reaching 188 million in 2023.
As consumer trust in cross-border e-commerce platforms continues to grow, so does the consumption frequency and expenditure across more diverse product categories. Over the past year, 36% of consumers have increased their spending on imported goods, and 35% have bought a wider variety of imported products. Notably, there has been a marked increase in purchases of beauty and personal care products, driven by rising self-care awareness.
The robust demand is supported by a diverse supply of goods. Unlike the initial phase of cross-border consumption, when access to overseas products was limited, today’s platforms supply a full range of products. Consumers now have opportunities to purchase more diverse and targeted overseas products. Quality remains a priority, with 56% of consumers citing it as the reason for selecting international brands and products from overseas.
The White Paper explores key trends across 10 major product categories shaping China’s import consumption. Significant purchases over the past year have been in the beauty and skincare, personal care, nutrition and healthcare, mom & baby, and food and beverage categories. There is a growing focus on product efficacy, raw material quality, and place of origin. Consumers show heightened interest in authentic, safe, and organic beauty and personal care products, with a growing demand from male consumers. In nutrition, younger consumers prefer snack-type supplements, while older demographics prioritize bone and joint health products. The elderly increasingly integrate supplements into their daily routines. In the mom & baby sector, detailed product understanding is crucial, with a shift toward high-end infant formula. In food and beverage, new product introductions drive growth, with premium, healthy, and convenient options proving popular.
In rapidly growing categories such as 3C electronics, home appliances, fashion, household essentials, alcohol, and pet care, consumer decisions are driven by advanced technology and value for money. In 3C electronics and home appliances, consumers seek fun, innovative, and convenient products at competitive prices. The fashion category sees interest in outdoor sportswear and casual wear with professional potential. In household essentials, efficient and easy household chores drive sales of imported cleaning products, particularly in lower-tier markets. The alcohol sector grows with more affordable options, while pet care expands due to increased awareness of pet health and scientific care concepts, especially smart pet products.
The White Paper emphasizes that the segmentation of consumer demands in China presents both opportunities and challenges for cross-border imports. Understanding consumer needs and trends, and realizing product differentiation is key to sustainable growth.
The evolution of China’s cross-border import industry spans several phases: from the exploratory era of the 1990s with a C2C model, to the B2B model during the expansion phase, and the rapid growth of the B2C e-commerce model in the upgrade phase. Favorable policies, improved infrastructure, diverse supply, and rising demand drive further consolidation, defining a new era of upgrade and growth.
This phase presents significant opportunities for foreign brands. The White Paper outlines a three-step strategy encompassing low-cost trials, brand awareness building, and brand scale expansion to effectively establish a presence in the Chinese market.
NIQ and JD Worldwide collaborate to assist brands in integrating consumer, product, and market insights, optimizing operations across the value chain. This includes understanding consumer needs, refining product development, finding precise market positioning, and enhancing competitiveness and sales performance in the Chinese market.
From the consumer perspective, efforts focus on segmenting consumer groups, identifying characteristics across regions and city tiers, and gaining insights from social media and consumer feedback.
From the product perspective, assistance includes product portfolio testing, optimizing sales concepts, developing product mixes to meet diverse needs, and analyzing pricing strategies for market competitiveness.
From the market and sales channel perspective, analysis of consumption scenarios identifies key touchpoints for consumer purchases, developing tailored strategies for touchpoint optimization and lead generation, and exploring market entry strategies and potential platform partners for effective brand introduction and adaptation.
