Mark Tanner
Mark Tanner
6 April 2016 0 Comments

Here are this week’s news and highlights for China:

Consumers,  Chinese Consumers

Making Sense of China’s New Cross Border Commerce Tax and Daigou Tax: The What, Why, When and relevant tax rates and future possible rates for China’s new cross border and Daigou taxes. Someone in Beijing really doesn’t like golf.

Wal-Mart Sells Imported Goods in China via a Mobile App: Sales of imported products in Walmart’s China stores doubled in 2015. To build on this trend, it has launched new Global E-Buy, a cross-border e-commerce app allowing consumers to buy direct.

Complaints Over ‘Haitao’, or Online Shopping for Overseas Products, Soar Significantly Last Year: Complaints for cross border products grew 369% last year, to a grand total of 1,059 according to the Shanghai Consumer Rights Protection Commission. Cosmetics and skin care products drew 38% of the complaints, while infant products and bags and luggage had 22% and 21% respectively.

Small Cities Fuel China Consumption: The 63.5% of China’s consumers who reside in smaller cities have lower incomes, but also a lower cost of living. According to Alizila research, they are still willing to pay for quality products, and have widespread ownership of real estate, cars and home appliances. For example, almost 40% of small-city residents own cars – about the same as tier 1-3 cities.

Upheavals in Taste and Shopping Habits Sweep China: More consumers are trading up to premium products, with cosmetics, spirits, dairy, oral care and hair care among the fastest growing categories. Numbers of consumers eating unhealthy food is dropping, and loyalty is growing, with more than 80% only purchasing a brand within their consideration set for food and beverage and personal care categories according to McKinsey.

Online: Internet, Mobiles, Social Media & Ecommerce

Chinese Mobile Consumers Prefer Shopping Apps to Mobile Websites: A typical Chinese mobile user spends about 30 minutes on mobile shopping every day. 81% of shoppers say they prefer to use an app when placing an order; however, 40% of consumers still like to visit mobile sites to check product information and compare prices according to Google China research.

Mountains to Climb: China’s Booming Ecommerce Market Creating Waste-Management Headache, Environment at Risk: Parcels shipped by courier services grew 48% last year to 20 billion parcels, requiring the use of 7.5 billion plastic bags, 10 billion cardboard boxes, and 17 billion metres of wrapping tape – enough to circle the globe more than 400 times. Couriers and online platforms are reluctant to engage in recycling due to low profitability.

Premium Food & Beverage

Growth Opportunities for the Chinese Dairy Market: China FMCG grew 3.5% in 2015 according to Kantar, with liquid milk and yoghurt being the standout performer, growing 7.5%. Growth opportunities remain through education, with the average Chinese urban household consuming less than one-fifth of the EU countries. The average purchase rose from 6 dairy categories in 2013 to 6.2 in 2015, and 6.6 for young and teenage families. Penetration of imported milk increased from 10.4% in 2013 to 16.6% last year, with 30% of imported milk sales happening online versus 1% of domestic.

Overseas Chinese Tourists

Visa Working to Boost Chinese Tourism: Visa has signed a Cooperation Plan with the China National Tourism Administration and the US Department of Commerce and will soon launch a year-long series of events that will increase tourism, trade cooperation and cultural understanding between China and the United States.

Overall Health

Chinese Market Offers New Life to Many Drugs: Only 21% of drugs launched globally between 2008 and 2012 were available in China as of 2013, compared with 68% in the US.  However, drugs that aren’t making it into foreign markets are increasingly being launched in China due to different approval criteria. ¥1.07 trillion ($165 billion) worth of domestic drugs and ¥309.3 billion ($47.8 billion) of imported drugs were sold in China in 2015.

Schooling and Education

About Three-Quarters of Students Going Abroad Return to China: 523,700 Chinese students went overseas to study in 2015, 14% more than 2014. Some 409,100 students returned home last year. Since China opened up in 1978, more than 4 million students having studied abroad, with Britain, the United States, Australia, South Korea, Japan, France and Germany the top destinations according to the Ministry of Education. Nearly 30% of survey respondents worked for foreign companies in China, 20% state-owned enterprises and 17% worked for private firms.

Chinese sport Sports

Chinese Football: More Than a Game: Chinese football clubs spent more than $280m during the winter transfer window – more than in any other league. The record included the $55 million signing of 26-year-old Brazilian midfielder Alex Teixeira to Jiangsu Suning. The number of Chinese schools offering specialised football training is planned to grow from 5,000 to 50,000.

Autos and Cars

Gone in 18 Seconds: Online Store Sells Out Million-Yuan Maseratis: Maserati Tmall flagship store launched with advance sales of its ¥999,800 ($154,670) SUV Levantes. Due to be officially launched in July, the 100 SUVs sold out in 18 seconds.

That’s the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.


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