Westwin, a leading tech-driven cross-border marketing company, was invited to join the opening ceremony forum at the Shanghai International Advertising Festival recently.
Leslie Chu, Westwin’s CRO, shared insights and new findings in the Company’s upcoming research report on cross-border consumption of Chinese consumers. Westwin was also awarded the best agency to enable Chinese companies to go global at the Festival.
The new cross-border consumption report examines consumption behaviors in cross-border eCommerce, tourism, education, and real estate scenarios over the past two years with analyses on Chinese consumers from different tier cities, who often shop overseas. The upcoming report is a continuation of Westwin’s signature “Cross-border Consumption of Chinese Consumers” report released in 2018.
Chu said, citing the report:
Westwin’s 2020 report, which is set to be released this month, finds that the cross-border eCommerce sector continued to see an uptick trend over the last two years with peaks at the fourth quarters of 2018 and 2019 given a large number of year-end promotions and shopping festivals.
The report indicates that due to the pandemic, Chinese consumers purchased more health care products to improve the immune system. Cosmetics, skincare and luxury products present very extreme situations, half consumers buy more to seize the day while the others intend to save money for the uncertainties. For cross-border tourism, the market penetrated to lower cities, with tier 3 and 4 cities consumers contribute 160% increase.
To better understand consumers, the 2020 report teases out four groups of consumers who are easily drawn to overseas shopping. Young mothers in third- and fourth-tier cities, for example, often don’t have a relatively high income, however, due to lower living cost and economic support from parents, they have more spare money and time at disposal.
They are usually heavy social media users and love to share what they buy overseas on WeChat. They tend to shop without thinking it through and cannot resist lures of discounts, especially for luxuries.
Meanwhile, single working women in their 30s in first- and second-tier cities shop differently from those tier 3-4 cities young moms, the report suggests. They are financially independent, and they do not prefer outfit clash as they see outfits as part of their identities, so they favor oversea niche brands to avoid that. They shop rationally for luxuries but would just buy inexpensive knickknacks they like.
As for high-income households, women are usually the main shoppers in the family and spend over CNY$100,000 annually for cross-border consuming, including skincare, apparel and accessories, handbag and home appliances, according to the report. They are often well educated and have overseas studying experience. They put lots of efforts on children and like to send them to overseas summer camps or study tour. Meanwhile, men in households, who earn over CNY$1 million annually, often don’t have much desire for shopping but like to spend money on investment and buying properties.
In general, the report shows that women remain the driving forces of cross-border consumption in China and online influencers are still a strong factor for boosting cross-border consumption. Moreover, penetration to lower-tier cities and “cute culture” are new trends in Chinese consuming market.
Recognizing Westwin’s performance and efforts in the cross-border marketing sector, the Company was awarded as the best agency to consult Chinese companies to go global at the Shanghai International Advertising Festival.
Westwin, formerly known as Microsoft Online (MSN China), is a leading technology-driven digital marketing company that focuses on cross-border business. It provides branding strategies and digital marketing solutions to help customers achieve success in China and around the world. Westwin is a certified marketing & advertising partner of Baidu, Tencent WeChat, Sina Weibo, and many other major digital platforms in China. With years of experience in cross-border business and partnership growth, Westwin is equipped with the knowledge and expertise to take businesses to the next level in overseas markets.