Premium goods surge on cross-border apps

With expansion of domestic demand, China optimizes list of imported retail goods for international e-commerce trade

Of late, Fang Wenyu has been frequently trawling mobile apps to fill her shopping carts with a range of imported items, from camping equipment and hand-drip coffee products to kitchen utensils and red wine.

Millions of Chinese consumers are increasingly purchasing premium or niche consumer goods, with their expenditure on imported and foreign-brand products turning into a key driver of consumption upgrading, experts said.

"I find cross-border online shopping very convenient and discounts are often available. I also like to buy all sorts of fitness and healthcare products for my family members," Fang, a 33-year-old fashion magazine editor based in Beijing, said.

The main goal, Fang said, is to maintain her quality of life.

Fang is not alone in such a pursuit. Sales of imported products surged 64 percent in 2022 compared with the same period in 2020, with the number of users buying imported products nearly tripling, data from JD Worldwide, the cross-border e-commerce platform of Chinese e-commerce giant JD, showed.

The top five imported products by transaction volume on JD Worldwide last year were healthcare, baby and maternal, cosmetics and skin care, consumer electronics, and pharmaceutical products, a report by JD's consumption and industry development research institute showed.

The fastest-growing imported categories included consumer electronics, personal care, home appliances, alcohol and cosmetics. Female users, who focus on family needs and personal well-being, continued to be the primary shoppers of cross-border products, according to the report.

Further, consumers aged between 26 and 35 accounted for nearly 50 percent of all shoppers purchasing cross-border imported products in 2022. Consumers in this demographic often seek distinctive goods to express their individuality and tastes.

While people living in first-tier cities remain the primary purchasers of imported products, there is a growing interest in lower-tier markets, driven by China's advanced e-commerce logistics and improved supply chain efficiency, according to the report.

Scalp care products, skincare commodities and cosmetics with natural, eco-friendly ingredients and premium low-lactose infant formula are also gaining traction among consumers, the report added.

China's cross-border e-commerce sector has been growing exponentially over the last few years as the country's middle- and high-income shoppers demand increasingly diversified and personalized products and services, experts said.