CBME China 2024

17-19 July 2024 | National Exhibition and Convention Center (NECC), Shanghai, China

| EN

How Overseas Children Baby and Maternity Brands Enter China Market by Cross-border E-commerce

1.Overview of 2024 China’s Cross-Border Imports:

On January 12, 2024, the State Council Information Office held a press conference where the General Administration of Customs presented expectations for the import situation this year. Here are some key information and data from the conference:

  • The import value experienced a slight decrease, with import prices specifically dropping by 3.1%, primarily influenced by the decline in commodity prices.
  • Import quantity increased by 2.9%, reflecting the resurgence of Chinese production and strong consumer demand.

Import of Consumer Goods:

  • In 2023, China’s total imports of specialty foods, maternity and baby products, digital electronics, and other consumer goods amounted to ¥1.95 trillion, showing a growth of 1.2%.
  • The total value of cross-border e-commerce imports in China last year was ¥5.483 trillion, marking a growth of 3.9%.

Global Sharing Opportunities:

In 2023, China successfully hosted events such as the China International Import Expo, the Consumer Goods Fair, and the Canton Fair.

These exhibitions provided international maternity and baby brands, manufacturers, and service providers with opportunities for face-to-face communication and collaboration with Chinese enterprises. Participants could share industry trends, market dynamics, and best practices. This contributes to a better understanding of the demands of the Chinese market and enhances the competitiveness of international maternity and baby businesses.

Future Trends:

China is focusing on expanding domestic demand, stimulating untapped consumption, and increasing beneficial investments, creating favorable conditions for further expanding imports.

In recent years, with the continued empowerment of Chinese women, the recognition and demand for maternity and baby services have grown. The trend towards high-end and branded maternity and baby products is evident, coupled with changing parenting perspectives. Maternity and baby consumption have been increasingly emphasized, and high-end and imported brand products are becoming more popular. Data shows that in 2022, the market size of China’s maternity and baby products was 26.563 trillion CNY, an increase of around 8.5% from 2021. It is estimated to surpass 4 trillion CNY in 2023, highlighting the enormous potential of the Chinese maternity and baby market.

Main Methods of Cross-Border E-commerce Import in China

2.1 Bonded Warehouse Mode:

  • Merchants pre-stock goods in domestic bonded warehouses from overseas in large quantities.
  • After customers place orders, various e-commerce companies handle customs clearance procedures for the corresponding products based on customer orders. The products are then packaged and delivered to consumers using domestic logistics after clearance from the bonded warehouse.
  • Establishment of Cross-border E-commerce Pilot Zones supported by policies, allowing for bonded import model, requiring customs verification of three documents.
  • Bonded areas include Guangzhou/Shenzhen/Chongqing/Chengdu/Shanghai/Hangzhou/Ningbo/Tianjin/Zhengzhou/Harbin/Guiyang/Wuhan and other bonded zones.
  • Domestic shipping with 2-3 days delivery time, similar to regular domestic e-commerce express.
  • Applicable to standard products, mass-market products, and products with high repurchase rates (such as milk powder, diapers, alcoholic beverages, etc.).
  • Fast logistics, excellent consumer experience; centralized procurement, low transportation costs; customs supervision with standardized processes.
  • Large inventory, occupying funds; limited category expansion; high risk of selling expired goods.

2.2 B2C Direct Shipping Mode:

  • Personal items directly mailed, no declaration, subject to random inspection and may incur postal taxes: BC: Customs declaration and clearance at the port of entry, requiring customs verification of three documents.
  • Overseas regions and countries include China Hong Kong/United States/Canada/United Kingdom/New Zealand/Australia/Japan/Korea/Southeast Asia, etc.
  • International logistics, average delivery time of 4-7 days, or even longer.
  • Applicable to non-standard products (such as fresh produce) and niche products with low demand.
  • Wide range of categories; low inventory occupation; fewer links; flexible model.
  • High logistics costs; slower delivery time; higher costs for overseas self-operation.

2.3 C2C Direct Shipping Mode:

  • Merchants overseas pack the purchased goods of consumers, attach shipping labels, and send them by air freight to specified customs clearance ports. After landing, customs clearance is handled by a clearance company, and once cleared, domestic courier services are entrusted to deliver the goods to consumers.
  • Applicable to: individual buyers, online shopping sellers, purchasing agents, and forwarding companies.
  • Example: eBay

3.Cross-Border Import E-commerce Major Platforms Overview

3.1 Advantages and Disadvantages

PlatformAdvantagesDisadvantages
Tmall GlobalStrong logistics services Diverse range of products Rich marketing toolsHigh store deposit
JD WorldwideRelatively short logistics cycleHigher product prices Lack of extensive marketing tools
Table 1: Advantages and Disadvantages of Chinese Cross-Border Import E-commerce Platforms

3.2 Tmall Global

Introduction:

Tmall Global is a large cross-border e-commerce platform under the Alibaba Group, specifically designed to offer high-quality products from over 30 countries and regions worldwide to Chinese consumers. The product categories include clothing, beauty products, maternity and baby care, food, and more.

Popular Categories:

  • Baby Diaper Cream
  • Diapers
  • Baby Shampoo and Bath Gel

Best seller 1: Bepanthen Baby Diaper Cream

Best seller 2: MerriesDiaper

Best seller 3: Seba baby hair & body wash

3.3 JD Global Shopping

Introduction:

JD Global Shopping is a global shopping service launched by JD.com, primarily targeting Chinese consumers. Its goal is to bring international brands and high-quality products to Chinese consumers. All products offered by JD Global Shopping are sourced or sold overseas. The platform establishes direct contracts with global merchants through the JD Hong Kong channel, reducing the logistics cycle compared to international standards.

Popular Categories:

  • Formula Milk
  • Baby Face Cream

Best seller1: Nestle INFINIPRO Children’s Formula

Best seller 2: Cetaphil Children’s Moisturizing Lotion

4.Platform Onboarding Rules and Procedures

StepTmall Global Onboarding ProcessJD Global Shopping Onboarding Process
1Preparing for Onboarding: Understand Tmall Global platform policies and requirementsPreparing for Onboarding: Understand JD Global Shopping information, prepare necessary documents; register JD Wallet
2Register Alibaba accountRegister JD Global Shopping account
3Choose Onboarding Method: Such as brand direct operation, brand agency, etc./
4Submit Application: Fill out the relevant forms, provide required documentsFill out and submit information: Fill out company and store information, submit onboarding application
5Qualification Review and Interview/
6Sign Agreement: After qualification review, sign the onboarding agreementSign Contract: Sign relevant contracts online
7Store Setup: Set up the store according to Tmall Global requirementsQualification Review: Review the submitted information, including brand and qualifications
8/Open Store and Pay Fees: After approval, officially open the store, pay the deposit, and service fees
9Build Store: Design store pages, upload product information; prepare product images, descriptions, etc.Build and Maintain Store: Merchants use JD Seller Center to list products, sell, and maintain the store, including product quality and after-sales service
10Training and Preparation: May provide training resources/
Table 2: Comparison of platform onboarding rules and procedures between Tmall & JD