Alibaba, JD.com use foreign brands to attract more Chinese consumers, as borders remain closed amid Covid-19 pandemic

  • Imports of consumer goods rose more than 8 per cent to US$242.1 billion in 2020 as domestic goods contracted
  • While still a small portion of e-commerce in China, overseas goods remain attractive to young consumers with unique needs

Jane Zhangin Hong KongandYujie Xuein Shenzhen
Workers in a Tmall warehouse gather orders from customers in Jiangmen, Guangdong province, on November 28, 2018. Alibaba’s Tmall and JD.com have been boosting their platforms for overseas brands as consumer goods imports surge in China during the coronavirus pandemic. Photo: EPA-EFE

Chinese e-commerce giants Alibaba Group Holding and JD.com are using dedicated channels for overseas brands to reach more domestic consumers, as closed borders during the coronavirus pandemic led to a surge in imports of consumer goods last year.

New figures released by China’s Ministry of Commerce (MOFCOM) on Tuesday showed strong consumer demand for imported consumer goods, especially cosmetics and luxury products such as handbags and watches. Consumer goods imports surged 8.2 per cent last year compared with 2019, reaching 1.57 trillion yuan (US$242.1 billion), according to MOFCOM. In contrast, sales of domestic consumer goods contracted 3.9 per cent, according to numbers from the National Bureau of Statistics released on Tuesday.

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