DEEP DIVE: International Retailers Guide To Cross-Border Ecommerce In China

Executive Summary

• Regardless of whether or not international retailers have a physical presence in China, cross-border ecommerce (CBEC) platforms are the most efficient means for them to reach Chinese shoppers.
• Rising disposable incomes and perceptions that overseas products are of higher quality have caused Chinese shoppers to seek imported goods.
• Even after factoring in a cross-border sales tax announced in April 2016, the after-tax prices of many products purchased through CBEC channels are still lower than the prices of those purchased through traditional channels.
• In order to succeed in the Chinese CBEC market, international retailers need to keep pace with changing consumer tastes, product categories and platforms.
• In this report, we examine the types and more popular CBEC platforms such as Tmall Global, JD Worldwide etc., and how they would best complement an international retailer’s China strategy.