Haitao Shopping - China - February 2016

OVERVIEW
What you need to know
Products/ themes covered in this report
EXECUTIVE SUMMARY
The market
Figure 1: China – Total historical and forecast cross-border online retail sales, 2010-20
Companies and brands
Figure 2: China – Leading self-operated B2C retail websites estimated market share, 2015
The consumer
Key consumer groups
Figure 3: Target groups of Consumer attitudes to shopping for foreign products online, November 2015
Purchasing of foreign products
Figure 4: Consumer purchasing of foreign products by location of retail channel type, November 2015
Type of products by country
Figure 5: Type of imported products bought online by country of origin, November 2015
Factors affecting channel choice
Figure 6: Factors influencing consumers when choosing which website to buy imported products from, November 2015
Overseas versus domestic websites
Figure 7: Channel choice factors compared between overseas and domestic shopping websites, November 2015
Influences on Haitao behaviour
Figure 8: Influences on consumer thinking when shopping for foreign products online, November 2015
Attitudes to Haitao shopping
Figure 9: Consumer attitudes to shopping for foreign products online, November 2015
What we think
ISSUES AND INSIGHTS
Is Haitao just a flash-in-the-pan?
The facts
The implications
Chinese tourists are potential domestic customers
The facts
The implications
Going mobile to stick with Chinese shoppers
The facts
The implications
The ‘Three Fs’ and the ‘Three Rs’
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Haitao catching up with B2C online retail
Market driven by online retail and overseas travel growth
MARKET SIZE AND FORECAST
Introduction
Figure 10: China – Total historical and forecast retail sales, 2010-20
Figure 11: China – Total historical and forecast online retail sales, 2010-20
Figure 12: China – Total historical and forecast cross-border online retail sales, 2010-20
MARKET DRIVERS
Online growth fuels cross-border expansion
Figure 13: China – Total online retail compared to US total online retail, 2011-15
Cross-border sales plateau within total online
Figure 14: China – Total retail sales, total online retail sales and total cross-border online retail sales compared, 2011-15
Overseas travel boom
Figure 15: Consumer purchasing of foreign products by location of retail channel type, November 2015
National online product ‘marquees’ work!
China’s Government promotes Internet+
Sectors of the online retail market
Figure 16: China – Total online retail sales by sector, 2011-15
Relative significance of online retail sectors
Figure 17: China – Percentage breakdown of total online retail sales by sector, 2013-15
Rising significance of m-commerce
Figure 18: China – Mobile online retail as a proportion of total B2C online retail, 2011-15
Haitao sectors differ from total market
Figure 19: Type of imported products bought online by country of origin, November 2015
Online payment uptake key to online retail growth
Figure 20: China – Electronic payment volume and value via banking institutions, by type of channel, 2013/14
KEY PLAYERS – WHAT YOU NEED TO KNOW
The big portal shares have plateaued
Specialist online retailers gaining consumer interest
Quickly shifting, staged strategies
MARKET SHARE
Overall B2C websites dominated by Tmall
Figure 21: China – Leading B2C retail websites estimated market share, 2015
Figure 22: China – Leading B2C retail websites estimated market share change, 2014/15
Self-operated B2C websites dominated by JD.com
Figure 23: China – Leading self-operated B2C retail websites estimated market share, 2015
Figure 24: China – Leading self-operated B2C retail websites estimated market share change, 2014/15
Rise of the specialists
COMPETITIVE STRATEGIES
Do country ‘pavilions’ still have relevance?
Combining physical stores with overseas online (O-O2O)
Can more new platforms lure shoppers away from Tmall?
Online as a test laboratory for China market entry
Cross-border online potential for established physical chains
THE CONSUMER – WHAT YOU NEED TO KNOW
Key consumer groups
Purchasing of foreign products
Type of products by country
Factors affecting channel choice
Overseas versus domestic websites
Influences on Haitao behaviour
Attitudes to Haitao shopping
MINTROPOLITAN SHOPPERS
Mintropolitans make the best shoppers!
Figure 25: Percentage of survey respondents, by consumer classification, November 2015
Figure 26: Reasons for shopping at supermarkets/hypermarkets in the past 6 months, by consumer classification, July 2015
KEY CONSUMER GROUPS
Many consumers still need more convincing about Haitao
Figure 27: Target groups of Consumer attitudes to shopping for foreign products online, November 2015
The Home Market Conservative consumers
Who they are
What they like
How to market to them
The Trend Avoider consumers
Who they are
What they like
How to market to them
The Seeing is Believing Shopper consumers
Who they are
What they like
How to market to them
The Haitao Enthusiast consumers
Who they are
What they like
How to market to them
PURCHASING OF FOREIGN PRODUCTS
Overseas still lags domestic online shopping
Figure 28: Consumer purchasing of foreign products by location of retail channel type, November 2015
Overseas still lags domestic online shopping
Figure 29: Consumer purchasing of foreign products by location of retail channel type, by age group and gender, November 2015
Figure 30: Consumer purchasing of foreign products by location of retail channel type, by monthly personal income group, November 2015
TYPE OF PRODUCTS BY COUNTRY
Country significance varies greatly by sector
Figure 31: Type of imported products bought online by country of origin, November 2015
Food and drinks
Figure 32: Food and drinks products bought online by country of origin, November 2015
Figure 33: Consumers who had bought food and drinks products online by country of origin, November 2015
Clothing and footwear
Figure 34: Clothing and footwear products bought online by country of origin, November 2015
Figure 35: Consumers who had bought clothing and footwear products online by country of origin, November 2015
Beauty and personal care products
Figure 36: Beauty and personal care products bought online by country of origin, November 2015
Figure 37: Consumers who had bought beauty and personal care products online by country of origin, November 2015
Personal electronics
Figure 38: Personal electronics products bought online by country of origin, November 2015
Figure 39: Consumers who had bought personal electronics products online by country of origin, November 2015
Household electronic appliances
Figure 40: Household electronic appliances bought online by country of origin, November 2015
Figure 41: Consumers who had bought household electronic appliances online by country of origin, November 2015
Baby food and products
Figure 42: Baby food and products bought online by country of origin, November 2015
Figure 43: Consumers who had bought baby food and products online by country of origin, November 2015
FACTORS AFFECTING CHANNEL CHOICE
Quality and price dominate channel choice
Figure 44: Factors influencing consumers when choosing which website to buy imported products from, November 2015
Demographic differences in channel choice factors
Figure 45: Factors influencing consumers when choosing which website to buy imported products from, by gender and age group, November 2015
What this section should include
Figure 46: Factors influencing consumers when choosing which website to buy imported products from, by monthly personal income group, November 2015
OVERSEAS VERSUS DOMESTIC WEBSITES
Narrowing differences of perception between foreign/domestic websites
Figure 47: Channel choice factors compared between overseas and domestic shopping websites, November 2015
Demographic differences in foreign/domestic websites
Figure 48: Channel choice factors compared between overseas and domestic shopping websites, by age group, November 2015
Figure 49: Channel choice factors compared between overseas and domestic shopping websites, by monthly personal income group, November 2015
INFLUENCES ON HAITAO BEHAVIOUR
Trust through familiarity helps lure consumers
Figure 50: Influences on consumer thinking when shopping for foreign products online, November 2015
Familiarity
The excitement of the exotic
The foreign experience factor
Overseas travel a key influencing factor
Figure 51: Influences on consumer thinking when shopping for foreign products online, by gender and age group, November 2015
Figure 52: Influences on consumer thinking when shopping for foreign products online, by monthly personal income group, November 2015
ATTITUDES TO HAITAO SHOPPING
The importance of the ‘3 Rs’: reputation, reviews and recommendation
Figure 53: Consumer attitudes to shopping for foreign products online, November 2015
Reputation
Reviews
Recommendation
The excitement of the foreign
Income shapes consumer attitudes
Figure 54: Consumer attitudes to shopping for foreign products online, by monthly personal income group, November 2015
APPENDIX – MARKET SIZE AND FORECAST
Figure 55: China – Total historical and forecast cross-border online retail sales, 2010-20
APPENDIX – METHODOLOGY AND DEFINITIONS
Methodology
Fan chart forecast
Mintropolitans
Abbreviations