Lately, a new trend of brands launching in China has emerged, with fresh brands from all over the world making their debut. These include the century-old German mother and baby brand freiol, the cutting-edge British tech fashion label nothing, and the renowned French luxury skincare brand Cible Skin.

These new brands come in diverse categories and are enthusiastic about tapping into China's vast consumer market and robust consumption potential. Today, let's explore the landscape of overseas brands in the Chinese market.

Overseas Brands Competing to Enter the Chinese Market

As the rise of cross-border e-commerce direct purchases in the Chinese market continues, this field is rapidly becoming a key growth engine in the future of cross-border e-commerce. According to relevant reports, China's cross-border e-commerce direct purchase market has grown from 80 billion RMB in 2017 to nearly 200 billion RMB in 2020, with an average annual growth rate of over 30%. Looking ahead, this market is expected to continue expanding as consumer demand for product quality and safety increases. This presents a wealth of opportunities and challenges for overseas brands.

As a result, overseas brands are rapidly entering the Chinese market, with over 2,000 foreign brands choosing to open stores on Tmall Global in the first half of the year as their entry point into the Chinese market.

These brands come from various countries, with the top five countries for their first stores being the United States, Japan, South Korea, France, and Australia. Additionally, there are new faces from countries such as Bulgaria, the United Arab Emirates, Liechtenstein, San Marino, Cyprus, and more. These overseas brands primarily focus on three major industry sectors: health, beauty, and personal care, accounting for 32%, 20%, and 10% respectively.

Moreover, emerging categories like elderly nutrition, clean beauty, and men's grooming are gradually gaining the attention of overseas brands.

Cross-Border E-commerce Imports Facilitate Rapid Market Entry for Overseas Brands

With the resurgence of import consumption in China, these first-time entrants into the Chinese market have performed exceptionally well. For example, Nutrafol, a professional hair health brand under Unilever, entered the Chinese market in May through Tmall Global and achieved monthly turnover exceeding one million RMB within just three months. European specialized eye care brand brieye, which has been operating on Tmall Global for over six months, experienced growth rates eight times higher than in its domestic market, with accumulated sales exceeding 30 million RMB.

In the past, overseas brands entering the Chinese market often faced uncertainty in terms of market growth, especially in China's highly developed and competitive e-commerce market. However, cross-border e-commerce direct imports have gained significant prominence in the cross-border e-commerce market. This model allows consumers to directly purchase foreign goods, facilitating the direct import of products and significantly enhancing the shopping experience and satisfaction. Additionally, cross-border e-commerce direct imports provide overseas brands with a more convenient avenue to enter the Chinese market, helping them better understand and engage with the Chinese market, ultimately boosting brand awareness and market share.

In summary, cross-border e-commerce direct imports have exhibited numerous advantages. They have received support from China's favorable policy environment and demonstrated promising market prospects. They have also provided an excellent gateway for many overseas brands to enter the Chinese market, making it one of the significant factors contributing to the acceleration of overseas brands' entry into China.

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