One way for U.S retail companies to win in 2017 is to look beyond their domestic borders for growth. As retail executives implement this year’s business plans, they should consider embracing cross-border e-commerce in China to grow now, and in the future.
China is the world’s largest and fastest-growing e-commerce market. Cross-border e-commerce is experiencing explosive growth due to Chinese consumers’ desire for lower prices and higher-quality products.
According to McKinsey & Company’s report, “Partnering with China’s retailers: A guide for consumer-goods companies,” cross-border e-commerce will account for 9% of China’s total online retail market by 2018, because the process allows foreign brands to serve Chinese consumers without the additional risk and investment in local distribution capabilities.
Several categories of U.S. products face unprecedented demand in China through the convenience of overseas online shopping (OOS). Chinese consumers desire U.S. products and buy specific product categories more than others using cross-border e-commerce.
According to iResearch data, the following product categories are most in demand among Chinese shoppers — and represent growth opportunities for U.S. retailers through cross-border e-commerce:
1. Cosmetics and personal care (46%): Chinese shoppers enjoy the superior quality and prestigious status symbols of foreign cosmetics and personal care…