China International Import Expo: Additional foreign brands entering China via e-commerce

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02:33

As Chinese consumers buy more and more products online, an increasing number of the shoppers want to try foreign brands. China plans to import over 40 trillion US dollars worth of goods and services in the next 15 years, and foreign brands are capitalizing on the opportunity. CGTN's Wu Lei takes a closer look.

Freedom Foods is one of Australia's most popular health food brands. It first made its way to China through off-line stores. But since 2016, they have started selling products on Chinese e-commerce platforms, like Tmall and JD.com. And they've watched their sales soar.

RORY MACLEOD, CEO & MANAGING DIRECTOR FREEDOM FOODS GROUP LIMITED "Well the last three years, we got from 0 sales to about 30 million USD very quickly. We expect that growth will fully accelerate twice or three times over the next few years."

Macleod says online sites give Freedom Foods more access to younger consumers, especially those who want to follow different product trends.

WU LEI SHANGHAI "This traditional Spanish cosmetic product is mainly used in anti-aging and skin care. Now the brand is also entering the Chinese market via e-commerce, reaching millions of consumers. But product makers face challenges of localization their products and marketing strategies for sustainable growth."

When it comes to clothes and cosmetics, different countries have different cultural needs.

DIEGO MARTINEZ, INTERNATIONAL MANAGER MARTI DERM LA FORMULA "For us, it is very important to be hearing the feedback of Chinese customers' needs. And we are also developing new products for China's customers."

With the rapid expansion of the internet, China is now the world's largest online market. Many e-commerce giants say it is key to building a whole ecosystem including delivery, payment and after-sales service to support more small and medium-sized foreign brands.

LIU PENG, GENERAL MANAGER TMALL GLOBAL, ALIBABA GROUPS "So for the connection between Chinese consumers and overseas brands, what we need to do more is how to let overseas brands expand their popularity in China, and let Chinese consumers understand the advantages of overseas products."

At the Global Import Leadership Summit, Chinese E-commerce Giant Alibaba announced it will import foreign goods worth 20 Billion US dollars in the next 5 years. Other Chinese online platforms are also expected to expand their cooperation with more foreign brands to fulfill the growing needs of Chinese consumers.

WL, CGTN. SH.