Top 4 Categories to watch in 2020
The New Year Has Kicked Off, Cifnews has highlighted 4 Top Chinese Cross-border E-commerce Categories You Should Watch Out for in 2020
According to data, the penetration of ecommerce in China has reached 71.1% of the total Chinese population. With the population of China, this means there are over a billion people on China’s shopping apps. 2020 is already at the beginning and we highlighted the Top 4 categories to watch this year.
China is getting into shape and the athleisure trend is booming and the Chinese government uses its administrative power to push the sports economy. Younger millennials are more active than in the past, while fitness influencers, fitness apps and a wave of new gym openings in China have popularized the art of working out.
2. Beauty & Cosmetics
Consumers are seeking imported good as synonym of luxury and quality,but since China’s new e-commerce law cracked down cross-border e-commerce has emerged as a popular channel to buy foreign cosmetics brands. New subcategories such as perfume and male cosmetic are emerging. Perfume is more and more popular, with Gucci, Jo Malone, and Chanel being the top brands, while the entire male beauty sector it is expected to raise over $ 166 billion by 2022. Male makeup is already a new e-commerce trend.
3. Mom & Baby
Since children grow out of old clothes and constantly need new ones, there are always opportunities in this subsegment. Moreover, China’s TOP influencers are becoming moms and their lifestyle change mean that the content they post is different. Instead of posting about cosmetics and fashionable clothing, now they publish about special skin creams to erase stretch marks and new products for their children.
4. OTC Pharmaceutical Products
Up until recently, the sale of OTC products online had been heavily restricted. Tmall is also reportedly recruiting sellers of OTC pharmaceutical products. Currently, only a few merchants such as Chemist Warehouse are selling OTC products. But given the recent regulatory updates, it is rumored that Tmall is actively recruiting merchants who can supply inventory from this category. The only catch is that Tmall requires sellers to provide an upfront deposit of 300,000 RMB, the highest amongst any other category.