2019 China E-Commerce Trends Midyear Update

Executive Summary

At midyear, we look at how major trends have played out in China e-commerce. In this report, we review the first half of 2019 and identify two additional trends we think will be significant for e-commerce in China in the second half of the year. This report updates our 10 Trends for China E-Commerce 2019 report.

Our Top Five Trends as of Midyear 2019:

• Daigou continues to decline, with duty-free sales dropping precipitously.
• Short video apps add e-commerce functions to monetize traffic.
• WeChat mini programs add logistics API to fuel growth.
• Parcel delivery will be even faster: Brands need to adapt.
• New Retail will continue to prevail in online/offline integration.

Two Trends We Expect to Play Out in the Second Half:

• Live streaming will emerge as the winning tool to sell plus-size apparel online in China.
• Shoppers in lower-tier cities will drive group buying.