JD Worldwide, JD.com’s cross-border e-commerce platform, is the first port of call for international brands to connect with the company. As China’s largest online and overall retailer, JD.com (known as Jingdong in Europe) is well-placed to form these connections.
From 2020-22, the e-commerce platform experienced a 64% increase in cross-border product transaction volume and the number of JD Worldwide users grew by 30%.
A 2023 report from JD Worldwide highlights the supply and demand behind this growth. The report also identifies five consumer trends that are driving growth in China’s cross-border e-commerce market.
Five Consumer Trends
On April 12, JD’s Consumption and Industry Development Research Institute released the “2023 Cross-Border Imported Products Consumption Report.” The report details five significant trends for cross-border imported products in China.
These trends offer key insights for international brands hoping to establish a presence in the Chinese market. In particular, this industry information will be useful to brands offering premium and niche products.
The trends demonstrate increased consumer interest in:
- Hair care products.
- Natural, eco-friendly skin care products.
- Sustainable makeup products.
- Quality, low-lactose infant formula.
- Alcoholic beverages.
1. Hair Care Products
A 2019 survey by China’s National Health Commission revealed that around 250 million Chinese people suffer from hair loss. 84% of those people experience the problem before the age of 30.
A growing number of Chinese consumers are looking to improve their hair care routines. This trend highlights the market potential for innovative products in hair care and related categories.
2. Natural, Eco-Friendly Skin Care Products
Demand for skin care products is increasing among middle-to-high-end JD users aged 20-45. These users are willing to invest more in products that align with their values. Their preferences prioritize skin care items made with natural, eco-friendly ingredients.
3. Sustainable Makeup Products
During the 2022 618 Grand Promotion event, the sales of environmentally sustainable cosmetics on JD Worldwide surpassed the entire category’s sales by three times. This threefold increase reflects the growing demand for safer, eco-friendly skin care products.
4. Quality, Low-Lactose Infant Formula
Premium, low-lactose infant formula has experienced remarkable growth in China. In 2022, this category outperformed regular formula products in transaction volume by 4.5 times.
This points to the growing trend of Chinese parents who are becoming increasingly concerned about their children’s nutrition. Consumers have shown a preference for brands like Aptamil, Nestle, and Friso.
5. Alcoholic Beverages
According to JD’s consumer survey, more Chinese consumers are buying alcoholic beverages. With a selection of imported alcohol choices available online, preferences vary across age groups.
Gen Z individuals tend to favor brandy and cognac. Meanwhile, more mature JD users are opting for imported beers. Older consumers have a preference for wines.
Further Trends From the Report
According to the report, in 2022, the top five product categories in terms of transaction volume on JD Worldwide were:
- Health care.
- Cosmetics and skin care.
- Baby and maternal.
- Pharmaceutical products.
- Consumer electronics.
The fastest-growing categories for imported goods in 2022 included:
- Personal care.
- Consumer electronics.
- Home appliances.
Female Users
Female JD users (55%) are still the leading consumers of cross-border products. These users focus on shopping for personal well-being and family needs. Popular categories on JD Worldwide among female users include:
- Skin care.
- Hair care.
- Baby care.
Younger Consumers and Lower-Tier Markets
The 26-35 age group constitutes nearly half of all imported product consumers. Shoppers in this demographic tend to seek unique items to express their preferences and individuality.
Consumers in first-tier markets are still the main buyers of imported products. However, there is an increasing interest in lower-tier markets. China’s advanced e-commerce logistics and improved supply chain efficiency continue to drive this market trend.
About Richard Liu, Founder of JD.com (a.k.a. Jingdong)
JD.com (Jingdong in Europe) was founded by Richard Liu and is China’s largest retailer with more than 550 million active customers and 550,000 employees. Today JD.com is a technology and services enterprise with supply chain at its core. The platform meets consumer needs by offering users access to a range of authentic and high-quality Chinese and international products. All products are sourced from the original suppliers and guaranteed for authenticity.
JD.com continues to drive innovation in China’s e-commerce and global supply chain sectors. JD Logistics has co-launched the first supply chain emission management platform for the world’s logistics industry.
Learn more about Richard Liu.
