More than 15 per cent of the Chinese population is expected to make online purchases from foreign websites and third-parties this year.
These cross-border eCommerce purchases will be worth about US$85.76 billion, according to research company eMarketer. By 2020, about a quarter of the population is expected to be buying across borders, accounting for more than half of all digital buyers in the country.
Online shoppers in China are expected to spend an average $473.26 each this year on goods outside the domestic market, accounting for 4.2 per cent of total retail eCommerce purchases, says eMarketer.
Fuelled by a higher standard of living and greater exposure to foreign products, online shopping in China grew by more than 70 per cent last year, says eMarketer. This growth was further driven by the launch of Alibaba’s Tmall Global in 2014 as well as JD Worldwide last year.
“While the new cross-border eCommerce tax implemented in April negatively affects some categories, the demand for foreign goods via the channel is still expected to stay strong because of better prices compared to offline retailers, perceived quality and wider variety,” says eMarketer forecasting analyst Shelleen Shum.
“Furthermore, cross-border eCommerce goods sold via the business-to-consumer (B2C) channel are expected to take up a growing share of the market this year as consumers shift to platforms that are more professional and organised.”
A report from research and advisory firm Forrester says China’s eCommerce market is projected to climb to $1.1 trillion in 2020, leading the region’s growth to become nine times larger than Japan’s $122 billion market and 17 times larger than South Korea’s $65 billion.