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Asia Pacific: ANZ sees sales from Chinese consumers, report

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New research from global market intelligence agency Mintel reveals that 36% Chinese consumers who have bought imported products in the past six months have bought food products online from ANZ, including 24% of those who have bought food products online from Australia and New Zealand (23%).

Currently, however, when it comes to baby food and products, Chinese consumers are most likely to turn toward ANZ.

The research was conducted on 2,397 internet users aged 20-49, who have bought imported products between June 2016 and November 2016.

New Zealand is seemingly a favourite for Chinese shoppers to purchase baby food and products from, with 22% of those who have bought imported products doing so online, followed by Australia (20%).

Overall, 33% of those who have purchased imported goods have bought baby food and products online from ANZ.

While Chinese shoppers are most likely to turn to Australia and New Zealand for their food and baby products, Mintel research indicates that alcoholic drinks are also popular purchase items.

Around 18% Chinese consumers who have bought imported products have bought alcoholic drinks (including wine) online from Australia, followed by:

– 11% who have bought clothing and footwear,

– 11% have purchased beauty and personal care products,

– 8% personal electronics and,

– 7% have purchased household electronic appliances.

When considering top online purchases from New Zealand,

– 16% of Chinese consumers have bought alcoholic drinks,

– 10% have purchased clothing and footwear,

– 9% beauty and personal care products,

– 8% personal electronics, and

– 6% household electronic appliances.

“Along with rapid urbanisation and higher disposable income, Chinese consumers are now among some of the world’s biggest spenders,” said Laurel Gu, research director.

“Chinese consumers are becoming increasingly sophisticated while remaining influenced by the reputations of source countries.”

“We see a lot of growth opportunity for brands in Australia and New Zealand to target Chinese consumers.”

“With Australia and New Zealand both having reputations for their strong focus on natural ingredients, food and drink companies could see great success by tapping into Chinese consumers’ healthy lifestyle, particularly within snacking occasions.”

Consumers in China are most likely to turn to the internet to purchase imported products.

In a survey on 3,000 internet users aged 20-49, polled in November 2016, about 73% of Chinese consumers have bought imported products online from domestic shopping websites in the past six months.

Some 56% have purchased these items in-store within Mainland China.

Furthermore, Mintel research reveals that the total combined online cross-border e-commerce market in China, including Business-to-Business and Business-to-Consumer e-commerce, grew by a factor of 10 from RMB 53 billion (US$7.71 billion) in 2011 to an estimated RMB 626 billion in 2016, representing a compound annual growth rate (CAGR) of 64%.

From 2016 to 2021, growth is expected to slow to a still-strong CAGR of 15%, to reach a total value of RMB 1.3 trillion (RMB 1281 billion).

Regional shopping

China’s neighbouring countries, including South Korea and Japan, are also popular online shopping destinations among Chinese consumers who have bought imported products in the past six months.

South Korea leads for shopping in beauty and personal care (45%), and clothing and footwear (28%) categories.

Due to its reputation for technical innovation and engineering excellence, Japan is the most popular country among Chinese consumers to make online purchases for personal electronics (28%) and household electronic appliances (27%).

Going outside the Asia Pacific region, France is popular for alcoholic drinks, including wine (36%).

“While still strong, China’s Haitao market has nearly reached its peak because many foreign brands are now already established within the China market, selling either through domestic physical stores, or domestic online shopping websites.

“On top of product quality – something that is already associated with Australia and New Zealand – the key to grabbing Chinese consumers’ interest is convenience and customer service.”

“Brands in Australia and New Zealand could consider selling their products via China’s leading domestic shopping websites, providing Chinese-language customer service, offering fast delivery services, as well as implementing the usage of third-party payment systems,” Gu adds.

Finally, Mintel research indicates that it’s not just Australia and New Zealand’s products that Chinese consumers are excited about.

Some 24% of consumers in China have visited Australia or New Zealand, with 30% planning to visit the region till August 2017.