Market Data

Quality

China has the largest middle class in the world, comprised of 225 million people. Their growing affluence has created a rapid “consumption upgrade,” as consumers spend their increased disposable income on high-quality U.S. imports, creating a cross-border shopping boom.

Chinese shoppers desire foreign, high-quality products from trusted sources. Comparing Chinese domestic and overseas online shopping websites, Mintel found Chinese shoppers perceive foreign sites as offering superior product quality (57% foreign vs. 21% domestic).

Why? Counterfeiting, food poisoning and poor-quality products remain major issues in China, and Chinese shoppers perceive U.S. and foreign products as safer and more trustworthy than domestic goods, especially in categories like mom and baby products.

To succeed in China, U.S. retail companies must ensure quality in their products and customer experience. Chinese consumers have high standards for delivery time, packaging and customer service, which makes omnichannel supply chain optimization essential for quality assurance.

Brand Prestige

Chinese consumers are more likely than American consumers to admire products that are ‘Made in the USA’ for their prestige as rare, valuable status symbols. By providing a refreshing variety of merchandise in China, including big brand names and niche brands, U.S. retailers help shoppers stand out. Increasingly affluent Chinese consumers now actively search for products offering a premium experience.

Young Chinese adults, in particular, passionately seek niche brands that reflect their unique tastes and lifestyle. For instance, light-luxury is a popular new category of premium yet affordable products from retailers like Michael Kors. U.S. retailers can capitalize on demand for products ‘Made in the USA’ by educating shoppers through social media and showing how their products fit consumer lifestyles.

Price

Sophisticated and tech-savvy, Chinese shoppers know exactly what they want. Just like American shoppers, Chinese consumers turn to Amazon and other online e-commerce sites to research products’ online rankings and reviews and compare prices. They appreciate American products’ prices, which are often lower than in the domestic market. For a competitive offering, U.S. retailers must drive down their costs.

How intense is the market? Fierce price competition means U.S. retailers must deeply understand their category, pricing strategy, online traffic costs, shipping and duties. These factors impact the overall price shoppers pay, and consumers will abandon their online shopping cart if they think the total basket price is too high.

Fashion is one of the biggest product categories for Chinese consumers looking to buy imported products, according to Amee Chande, managing director of global strategy and operations for Alibaba Group. Chinese consumers, especially young people, like the styles they can get from U.S. brands, along with the quality of garments.

For similar reasons, shoes are also popular import products in China. Stadium Goods is one business that has realized success by selling shoes there. The company has found that some of its collectable sneakers that can’t be found in Chinese stores are especially popular.

Jewelry is another popular category due to the quality and style of import goods. Jewelry.com is a large U.S. brand that has been able to increase its profits dramatically by selling on Tmall in China.

According to Chande, beauty is another one of the most popular category for Chinese shoppers, especially those using Tmall. And makeup is a major product within that niche.

Skincare products like moisturizer and sunscreen are also popular with Chinese consumers. Especially if you offer products made with natural ingredients, you could have a good chance of appealing to health-conscious Chinese consumers.

Also, in the beauty niche, accessories like makeup brushes are popular in China. Real Techniques is one U.S. brand that has found a lot of success by selling its products on Tmall in China.

Chinese consumers are also becoming increasingly health conscious, according to Chande. So, health products like vitamins and supplements are getting more and more popular on platforms like Tmall.

If you have the resources to ship to China quickly, you can also appeal to Chinese customers by selling fresh produce like fruits and vegetables.

There’s also a growing demand for U.S. seafood in China, both because of the increasing health concerns over local Chinese seafood and because the U.S. has access to some types of seafood that can’t be found in China.

But you can also appeal to Chinese consumers with health foods that are a bit easier to ship. Think packaged food items that include healthy ingredients like dried fruit and whole grains.

Chinese consumers, especially young people, are also interested in food trends. (Think foods like kale chips and superfoods.) Sometimes Chinese consumers can’t get these trendy food items from local Chinese sellers.

Juice is also a popular product among health-conscious consumers in China. And some types of fruit juice, like cranberry juice, have just recently been introduced into the Chinese market. Ocean Spray is one brand that has ushered in that growing trend in China.

In addition, wineries and small wine brands can appeal to Chinese consumers as import brands. Especially for brands that operate in desirable regions like Napa Valley, selling in China can lead to plenty of growth opportunities.

“Mom and baby” is another one of the most popular product categories among Chinese shoppers, according to Chande. And baby food is a huge product within that niche. Gerber, for example, has found a lot of success by expanding its offerings into the Chinese market and introducing healthy food for the growing number of babies in China.

Moms also want to make sure they have the best possible products when it comes to taking care of their new babies. So, companies that provide breastfeeding accessories and similar products can appeal to new parents looking to get the very best products for their growing families.

In addition, other baby accessories like bottles, rattles and play sets can also appeal to those family-oriented consumers who are willing to pay a premium to get the best possible products for their kids.

Chinese consumers also regularly purchase everyday products like cleaning goods online. So, U.S. businesses could potentially sell cleaning products, especially those with natural ingredients to appeal to families and health conscious consumers.

Sporting goods and athletic gear are also popular. This category can range from outdoor gear to equipment for specific sports or workout activities.

And also, technology is a huge market in China. Consumers can obviously get tons of different gadgets from all kinds of sources. But if your company has a unique offering that isn’t everywhere in China already, it could certainly appeal to that customer base.