The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
According to Chinese customs statistics, China’s cross-border e-commerce imports and exports reached 419.5 billion yuan ($65.57 billion) in the first quarter of this year, up 46.5 percent year-on-year.
Last year, China’s cross-border e-commerce imports and exports reached 1.69 trillion yuan ($264.17 billion), up 31.1 percent over 2019.
Some Chinese cross-border e-commerce companies are attracting the attention of investors. This week, Wook, a company specialising in selling to Southeast Asia, completed a Series C round of 100 million yuan ($15.63 million) in fresh financing.
At the same time, some enterprises that have ridden the boom in cross-border from China to the rest of the world are encountering some challenges to go along with their higher profile.
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Shein, a Chinese e-commerce giant with $10 billion in sales last year, has recently faced complaints from fashion brands, including Dr Martens, alleging intellectual property rights violations.
Incoming cross-border e-commerce in China has similarly boomed with consumers wishing to access more international brands from home as international travel, and its accompanying shopping sprees, have come to a halt. According to estimates from iiMedia Research, 211 million people in China used cross-border platforms in 2020.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.