Current Situation and Development Trend of Global Online Cross-border Retail Industry in 2020
In recent years, with the change of consumers’ shopping habits, the number of online shopping consumers is increasing, and the online retail market is increasingly important to the total retail market. Online retail sales as a percentage of total retail sales increased steadily in all regions of the world.
As for online consumers, clothing is one of the main products in the online retail market. In recent years, the global online retail market has experienced significant growth due to improved spending power, ever-changing fashion trends and increasing penetration of online shopping.
Along with clothing, cosmetics are also an important product category in the online retail market. Due to the improvement of consumption level and the increase of product choices, online beauty products retail market continues to expand.
Cross-border Shopping has Become One of the Main Shopping Channels for Consumers
Following the trend of online beauty product retail sales, the online cross-border beauty product retail market in major regions of the world has also witnessed rapid growth from 2014 to 2019. However, since online cross-border retailers can offer alternative products compared with domestic online retailers, domestic consumers tend to use online channels to buy products from overseas markets.
1.Growth of KOL Marketing
The growth of KOL marketing is on the rise and has become one of the most influential market forces and trends in online retail. Opinion leaders quickly build relationships, trust, and credibility with fans, followers, and friends who respect and value their content and recommendations. They also greatly increase brand awareness by presenting their opinions to an active audience. At the same time, valuable content increases its social media exposure, ensuring value for both parties. Connecting and interacting with opinion leaders can build powerful relationships and help innovative online retailers reach their target audiences and further expand their business.
2. Constant Improvement of Supply Chain
Top online retailers continue to improve their supply chains. The AI-enabled operating systems first scan the Internet and generate the latest consumer trends and feature analysis. At the same time, KOL understand the needs of their followers through multiple interactive channels and send information back to the supply chain. After that, the supply chain begins to design the product and submit it to KOL to test the market response. The supply chain can use pre-sales to reduce the burden of inventory overhang. Compared with the traditional online retail supply chain, the flexible supply chain can respond to the market demand more quickly and launch more fashionable goods, thus driving the sustainable development of the online retail industry.
3. Live Streaming is Becoming More and More Popular
Live streaming has become an increasingly important marketing medium and an increasingly important position in the global online retail market. Live streaming provides KOL with live video of products being demonstrated or tested. Consumers purchase the products while watching the video on the online platform. Reputable KOL who interact and chat with consumers during live streaming provide advice to help consumers focus on a single product and make shopping decisions more easily. Because of the popularity of live streaming, innovative online retailers can attract large numbers of customers and further boost the industry.