Business Opportunities from Consumption Upgrade in China

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Over the past few years, there has been a growing tendency of Chinese people buying overseas consumer goods directly through cross-border online shopping rather than from the domestic physical stores or shopping sites, since they can buy the same products at lower price and even certain products that cannot be produced at home.

23 - Business Opportunities from Consumption Upgrade in China

A major reason behind this kind of tendency is the relatively high customs duties China has imposed on a large series of consumer goods imported from other countries, which often results in higher prices of many foreign products sold in China.

Realizing the negative effect of high tariff rates on boosting domestic consumption, the government has been taking measures to encourage people to buy imported products at home instead of buying them overseas. According to an announcement released on Nov 24 by the Ministry of Finance, China will cut tariffs on some imported consumer goods starting from December 1. The ministry said that the average tariff rate will be decreased from 17.3 percent to 7.7 percent on 187 kinds of daily consumption goods, ranging from food, home appliances, medicine and clothing to make-ups. Besides, the tariff on some infant formula and milk powder products will be even lowered to zero.

The cutting of the tariff rates will help to expand China’s imports as well as facilitate the fast growth of the domestic consumer market, while providing more choices for Chinese consumers on diversified and personalized goods with reasonable prices.

From another point of view, lowering tariff rates also indicates the Chinese government’s determination to further open the domestic market, which means great opportunities for foreign enterprises who are eager to enter or expand the gigantic Chinese consumer market that is estimated to reach a size of $6.1 trillion by 2021 according to a report by the Boston Consulting Group.

While the tariff barriers have been lowered for foreign enterprises, it is also important to find a suitable channel to get easy access to the Chinese market. In this regard, B2B cross-border e-commerce is undoubtedly one of the most convenient and attractive ways as it has been widely recognized as having great potential to promote global trade and has developed very fast in recent years with strong support from the Chinese government.

Thus, for those foreign enterprises who want to sell consumption products to China, a B2B cross-border e-commerce platform specialized in the cross-border trade of consumer goods and having abundant resources of premium and qualified Chinese enterprises will do great help.

JumoreGlobal has a sub-platform called JumoreCG which can help with your quick and efficient expansion into the Chinese consumer market through its comprehensive service system and expertise in cross-border e-commerce business.

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