Black Friday used to be an American shopping extravaganza, but in recent years China has joined the global markets in promoting retail sales based on the U.S. concept.
According to China's Ministry of Culture and Tourism, about 150 million Chinese would travel overseas per year, spending on average $2,000. Much of that purchasing power would go through cross-border e-commerce this year, due to the pandemic travel restrictions. And it has benefited cross-border e-commerce platforms.
Despite the pandemic, Chinese demand for high-quality global products remains strong, according to Frank Yu, general manager of Marketing and Operations at JD Worldwide, the cross-border e-commerce platform of JD.com. Yu added that the strong demand will bring JD Worldwide's revenues this year to 300 billion yuan ($45.72 billion), or almost 7 percent of its parent company JD.com's total annual revenues.
"On November 27, Black Friday alone, our sales grew by 200 percent than that of last year. And JD Worldwide's sales growth so far this year is 60 percent. This growth rate is double the growth rate of last year," Yu shared with CGTN.
He said the most popular overseas products are infant formula, makeup and healthcare products.
Yangmatou, a customer-to-customer platform that relies on 80,000 overseas freelance retail consultants to purchase foreign products, revealed that its top selling items are luxury handbags, beauty and makeup products and luxury apparel.
Both JD Worldwide and Yangmatou use livestreaming to attract customers and demonstrate the authenticity of their products.
According to Yangmatou, its freelance retail consultants hosted over 1,700 livestreams in four days around Black Friday, selling products from 28 countries. Their customers spent about $260 on average during the livestreams. The most expensive items sold in Yangmatou were a 1.2 million yuan Hermes handbag and a 1.5 million yuan Richard Miller diamond watch.
Now in China, over 20,000 cross-border e-commerce platforms are competing for this promising market with only a few leaders enjoying good business, based on Qichacha, an application delivering data and analytics on China-based private and public companies to consumers and enterprises.
"I think the keys to success in cross-border e-commerce are 'plenty, fast, good and pleasant.' It means 'plenty' in product categories so that customers can find what they want, 'fast' in delivery so that customers don't need to wait for long, 'good' in quality so that customers can trust you, and 'pleasant' in shopping as we offer convenience, livestreaming entertainment and transparency," Yu said.
He added, JD Worldwide viewed its cross-border business as a strategic segment and continued to expand hiring, making its office very crowded.