NielsenIQ and JD Worldwide Jointly Release the 2024 White Paper on China Cross-Border Import Consumption Trends

• Around 36% of consumers have increased their spending on imported goods, and 56% are willing to pay a premium for superior quality imports

• Understand emerging trends in China’s cross-border consumption landscape, where category segmentation and market insights are key to driving growth

NielsenIQ (NIQ) and JD Worldwide, JD.com’s one-stop ecommerce channel for imported goods, the 2024 White Paper on China Cross-Border Import Consumption Trends (“White Paper”) highlights that the industry has entered an advanced phase of upgrade and growth. As cross-border e-commerce platforms consolidate rapidly and brands engage directly in cross-border trade via e-commerce channels, a robust ecosystem has taken shape in China. Such a booming picture is partly underpinned by increasing consumer trust in these platforms, with over 80% of consumers expressing an interest in purchasing overseas products.

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In response to diversified consumer demands, JD Worldwide and other leading cross-border e-commerce platforms now offer a comprehensive range of products, including digital, home & appliance, beauty and skincare, fashion and luxury items, personal care and household essential, mom & baby, pets, alcohol, and food & beverage. This comprehensive coverage ensures that 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 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. In stark contrast to the initial phase of cross-border consumption, when consumers had limited access to overseas products such as infant formula and beauty products via private shopping representatives, cross-border e-commerce platforms have been able to supply full categories of products. Thanks to this progress, consumers are given chances to purchase more diverse and targeted overseas products. Despite different preferences for different products used in different scenarios, they give priority to quality when purchasing imported goods. As highlighted in the White Paper, 56% of consumers cite quality as the reason for selecting international brands and products from overseas.

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The White Paper delves into 10 major product categories to identify key trends shaping China’s import consumption and unveil the recipes for better development.

From a category trends perspective, the most significant purchases over the past year have been in the beauty and skincare, personal care, nutrition and healthcare, mom & baby, and food and beverage product categories. There is a growing focus on product efficacy and an increased emphasis on raw material quality and place of origin. Notably, consumers are demonstrating a heightened interest in authentic, safe, and organic beauty and personal care products, with a particular focus on ingredient efficacy and a growing demand from male consumers. The nutritional supplements sector exhibits an age-related divide, with younger consumers preferring snack-type supplements and older demographics prioritizing bone and joint health products. There is a growing trend of supplement use among the elderly, with these products now becoming an integral part of their daily routines. In the mom & baby products sector, consumers have been accustomed to getting a detailed understanding of products in advance, to opt for the most suitable ones for their children. The demand for infant formula is shifting towards high-end products, with premium quality and hypoallergenic options gaining traction, even in lower-tier markets. In the food and beverage sector, the introduction of new products is the primary driver of growth, with premium, healthy, and convenient options proving particularly popular.

In rapidly growing product 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 the 3C electronics and home appliance sectors, consumers are drawn to products that offer a combination of fun, innovation, and convenience, and are more willing to get new products with competitive prices. The fashion category is buoyed by interest in outdoor sportswear, with casual wear gaining prominence and significant potential in professional settings. In the household essential sector, consumers are seeking more efficient and easier ways to do household chores, particularly in lower-tier markets, which are driving sales of imported cleaning products. The alcohol sector is experiencing growth fueled by consumers seeking a wider range of products with more affordable prices. The pet category is also expanding rapidly, driven by increasing awareness of pet health and the adoption of scientific pet care concepts, particularly smart pet products.

The White Paper concludes by emphasizing that the segmentation of consumer demands in China presents both opportunities and challenges for cross-border imports. Against this backdrop, understanding consumer needs and trends, and realizing product differentiation is key to achieving sustainable growth.

Furthermore, the white paper explains the evolution of China’s cross-border import industry spans several phases: from the exploratory era of the 1990s dominated by a C2C model, to the emergence of the B2B model during the expansion phase, and subsequently to the rapid growth of the B2C e-commerce model in the upgrade phase. Driven by favorable policies, improved infrastructure, diverse supply, and rising demand, cross-border e-commerce platforms are further consolidating, defining a new era of upgrade and growth for China’s cross-border e-commerce industry.

This phase presents significant opportunities for foreign brands. The White Paper points out that China’s cross-border e-commerce platforms can offer foreign brands a diversified range of service models. By implementing a three-step strategy encompassing low-cost trial, brand awareness building, and brand scale expansion, foreign brands can effectively establish a presence in the Chinese market.

NIQ and JD Worldwide collaborate to assist brands in integrating insights into consumers, products, and markets, and optimizing operations across the value chain. This encompasses a comprehensive range of services, from understanding consumer needs to refining product development and finding precise market positioning, with the goal of enhancing competitiveness and sales performance in the Chinese market.

• From the consumer perspective, our efforts focus on segmenting consumer groups and identifying consumer characteristics across different regions and city tiers. We listen to opinions on social media and get feedback from consumers to gain deeper insights into what makes them decide to purchase a product.
• From the product perspective, we assist brands in conducting product portfolio testing, optimizing sales concepts, and developing product mixes that resonate with diverse consumer needs. We also analyze pricing strategies across various channels to ensure competitiveness in the market.
• From the market and sales channel perspective, we analyze consumption scenarios to identify key touchpoints for consumer purchases and develop tailored strategies for touchpoint optimization and lead generation. We also explore market entry strategies and potential platform partners to facilitate effective brand introduction and adaptation.