Full size infographic available here
As we discussed in a previous
post, there is huge opportunity for merchants to start selling into China. But, as with any other customer base, in order to successfully market to them you need to know who they are – and what they’re looking to buy.
Next month’s Singles Day holiday is an excellent entry-point to reach China’s online shoppers (on 11/11, it’s China’s annual ecommerce holiday bonanza on that drove more than $9b in sales last year, more than Black Friday and Cyber Monday combined)
[1].
In February 2015, PayPal commissioned research on China’s cross-border spending data
[2] to see how “haitao” consumers (Chinese consumers who buy abroad online) actually shop.
Today, we’re excited to share key insights that will help illuminate the path to purchase for this consumer set:
Know Your Audience
At a macro level, haitao consumers fall into three demographics: married with children, single and married without children.
By far, the largest group of import buyers are people married with children, accounting for approximately 72 percent of the market. Their marital and parental status alone answers the question of what categories of products they seek: baby and children’s supplies account for close to 32 percent of haitao transactions, and groceries account for up to 30 percent.
It is important to understand the reasoning behind why they look abroad for these products. These shoppers have more faith in certain products that are made in the U.S. In the past, product safety and health issues surrounding domestic products such as
milk have caused concern about authenticity.
The remainder of the haitao market is comprised of singles (17 percent) – who are motivated largely by image and seek luxury goods and status, and married couples without children (10 percent) who are driven primarily by quality of life and personal style.
Where Money is Only a Small Object
As a whole, authenticity and product quality are of paramount importance for haitao consumers. Our
research with Nielsen shows that when buying from the U.S., more than half of Chinese online consumers have done so for “higher product quality” (55 percent), “authenticity” and “value” (both 53 percent).
[3]
And, while it may go too far to say money is no object, it’s certainly less of a concern: in a typical transaction, an estimated 53 percent of Chinese cross-border consumers have purchased clothing, apparel, footwear and accessories – spending on average $485; followed by electronics (46 percent) spending on average $1,229; and 41 percent purchase cosmetics/beauty products, spending $512 in a typical transaction.
[4]
Furthermore, Chinese online cross-border shoppers are less motivated by cost-savings (9 percent) than Chinese online shoppers as a whole (33 percent).
[5]
The Right Time to Enter the Market
In advance of
Single’s Day on November 11 – the world’s biggest e-commerce holiday during which Chinese consumers spent nearly $10 billion globally in a 24-hour period last year
[6] – and Black Friday, the US online shopping holiday growing in appeal with China’s haitao shoppers, make a step to grow your business globally and increase revenues.
To learn more about tapping into the global trade opportunity and growing your business beyond your own borders, visit
PayPal.com/PassPort a free website that helps merchants explore new international sales opportunities, learn about sales peaks and international holidays, understand gift giving traditions country by country, and tap into new or additional commerce cycles and sales trends.
--
Research methodology:
*Ipsos Survey
This survey was conducted online within China between February 10-17, 2015 among 1,500 adults (ages 18-50) by Ipsos on behalf of PayPal via an online survey
**Harris Poll
This survey was conducted online within China between June 17-22, 2015 among 1,313 adults (aged 18 and over) by Harris Poll on behalf of PayPal via its Quick Query Global omnibus product.
[2] Source: Ipsos Survey: PayPal China Import Consumers Profiling 2015 (February 10-17, 2015)*
[3] Source: Harris Poll (June 17-22, 2015)**
[4] Source: Harris Poll (June 17-22, 2015)
[5]Source: Harris Poll (June 17-22, 2015)
Melissa O’Malley, Director, Global Merchant & Cross-Border Trade Initiatives, PayPal