SMEs' next big shot:

    China's consumer market


  • Fastest growing market

    China has the largest population of 1.4 billion people in the world and the consumer market has become the second largest one only behind the US with $4.4 trillion in 2016. Furthermore, China would still add a cumulative $1.8 trillion in new consumption by2021, to reach $6.1 trillion which is equivalent to adding another consumer market the size of Germany’s.

    In 2015 Chinese cross-border e-commerce hit roughly 259 billion RMB (around $40 billion) – this accounted for over 6% of the total online purchases and the figure is set to grow by 50% annually which means there is a mass of opporunities in China's marketplace.

    Huge power of consumption

    Income levels in China are rising, so the population of up-middle-class and affluent families is rising as well. Nowadays, China has about 300 million people are of middle-class with more than $2000 household income which represents a huge power of consumption. Moreover, consumers in these households are not just buying more, they are trading up: buying higher-quality products which are more unique and healthy. According to AliResearch’s “New Consumption Index” report, published in China in April 2017, consumption of midlevel to high-end products on Alibaba’s retail site reached $174 billion in 2016. In addition, AliResearch’s quality index showed an increase of 7.2 percentage points over the past five years, even as quantities declined.

    Positive policies support

    There is a more and more permissive environment with positive policies for cross-board trading in China.The Chinese government has issued updated guidance on rules for cross-border e-commerce in the world’s second-largest economy, giving stakeholders much-needed clarity on potential changes in policy that have hung over the sector for the past year.


    Just like in a statement released March 17, China’s Ministry of Commerce said that overseas goods purchased online and distributed through bonded warehouses would continue to receive some preferential treatment, avoiding quarantine and quality checks that could have brought the import of many popular foreign products to a halt.


    Foreign goods always win customers' favor

    The China marketplace is increasingly filled with competing foreign brands, which are often perceived as higher quality and fashionable, and are winning consumer preference. E-commerce business models are making it easier to reach consumers, while lower logistics costs and reduced import tariffs are also playing an important role in the rise of foreign consumer brands. But while it is not surprising to hear that big brands are making their moves, the market is attracting more and more small-sized businesses and a very determined bunch of entrepreneurs looking for new expanding markets just like you!