Deep Dive 12 minutes premiumChinese Demand for Cross-Border E-Commerce Booms but Looming Tax Reforms are a Cloud on the Horizon Author By Coresight Research June 20, 2018 Key PointsChinese shoppers’ appetite for imported products continues to grow apace. We review the current state of the cross-border e-commerce market, note the factors supporting demand and look at forthcoming tax changes that will impact cross-border sales. E-commerce imports into China more than doubled in 2017, according to the country’s customs authority, the General Administration of Customs. Consumer packaged goods (CPG) categories such as food, baby products and beauty products consistently top the rankings of what Chinese shoppers buy from international sellers online. The Chinese government has repeatedly delayed implementing tax changes that would make cross-border shopping less favorable to consumers. However, these changes, now slated for the end of 2018, could soften growth in cross-border e-commerce sales slightly in 2019. Despite this potential cloud on the horizon, we see sustained opportunities for Western retailers to cater to Chinese demand for trusted brands in certain CPG categories. We believe the underlying drivers of cross-border e-commerce remain solid. Chinese consumers will continue to seek out trusted brands and retailers as a guarantee of authenticity, particularly in CPG categories, and rising incomes mean that more and more Chinese consumers are being pulled into the catchment for cross-border e-commerce purchases each year. June 20, 2018 premium This report is for Premium subscribers only. Learn more about subscriptions here. Other research you may be interested in: