Boo: White Papers

As China’s economy has grown and its population has become more affluent, citizens of the Middle Kingdom have evolved into one of the world’s most powerful consumer populations. Reports suggest that thanks to government policies, there has been a significant increase in household discretionary income among Chinese consumers, which has led to weighty increases in the wallet-size of China’s buyers.

Economic growth in the world’s most populous nation has created significant con- sumer interest in a variety of different lifestyles, including what has traditionally been perceived as Western health trends, with a focus on sports equipment and athletic wear. What’s more, as the zeitgeist of conspicuous consumption becomes a global reality, Chinese shoppers are turning to iconic global sports as brands beacons of authenticity, functionality and style.

Home to over 900 million online shoppers, China boasts an e-commerce market hovering north of $1.3 trillion USD. Consumer trends indicate a growing demand for international brands, both large and small.

As international e-commerce becomes ever more prevalent, so too grows the threat of grey market practices and IP Infringement. Indeed, North American brands state that the majority of counterfeit and knock-off products originate from within the China market. When polled, one out of five corporations stated they had experienced IP infringement issues in China.

As China’s consumer market grows and further develops, global brands are naturally looking to the Middle Kingdom for possible expansion through e-commerce. However, before capital-intensive investments are made in the market, companies need to understand the risks that those plans inherently possess. There are no guarantees that a brand (or specific products) will resonate with consumers, that price points will translate on the other side of the Pacific, or that traditional marketing tactics will be effective in driving conversions.

With more than 1.4 billion residents and growing affluence among a large segment of the population, China’s market opportunity has never been more relevant for global businesses.

Although many sectors of the global economy have been positively impacted by China’s economic growth and development, perhaps no industry has received quite as much attention as high fashion and apparel.

China’s massive consumer market presents an enticing opportunity for global outdoor brands. Appreciation for foreign products and growing affluence among a large segment of the Chinese population combine to create a win-win for brands looking to target new customers, expand markets, grow worldwide revenue, and gain an edge on competitors.

With a population of over 1.4 billion and affluence growing rapidly amongst hundreds of millions of urban dwellers, China’s market opportunity has quickly become a hot topic amongst global businesses.

Whether located in Canada, the U.S., Europe, or elsewhere, brands recognize the massive online retail opportunity China represents. e-commerce platforms such as industry leader Tmall, owned by Alibaba, and its nearest competitor JD continue to drive significant revenue. 2018 saw a 23.90 per cent increase in online retail sales compared to the previous year1. In China, Tmall currently holds a 51.3 per cent share of the Chinese e-commerce market, with JD.com coming in second place with a 32.9 per cent share2. Both platforms offer domestic and global portals for brands with differing cost structures, import and export rules, and licensing requirements.