Chinese e-commerce platforms are becoming increasingly popular among global consumers, boosting cross-border trade

Chinese products are becoming an increasingly popular choice among more and more consumers around the world, which is due to the expansion of Chinese e-commerce platforms into international markets.

The latest data from South Korean authorities shows a significant increase in online purchases from China among Korean consumers. In the first quarter of this year alone, Korean spending on online purchases from China increased by 53.9 percent year-on-year, reaching a total of 938.4 billion Korean won (about 680 million U.S. dollars). This amount accounts for more than half of South Korea’s total spending on overseas online purchases.

To capitalize on this trend, a well-known Chinese cross-border e-commerce platform recently launched its first pop-up store in Seoul’s trendy Seongsu-dong district. The store offers a wide selection of more than 2,000 popular items, including T-shirts, dresses and jeans, with prices ranging from 4,000 to 50,000 Korean won (about $2.9 to $36.2).

“The cost-effectiveness of the clothes is particularly high. I didn’t expect to choose so many. I mostly chose clothes with simple designs, and the store also has many personalized outfits suitable for summer,” said a Seoul resident shopping at the store.

“Prices have skyrocketed recently. The average selling price of a T-shirt is around 20,000 Korean won (about 14.50 U.S. dollars), but most of them here are in the 10,000 Korean won (about 7.30 U.S. dollars) range,” said another young shopper.

Amid rising prices in South Korea, inexpensive Chinese goods, from clothing to everyday items and car parts, are gaining popularity among Korean consumers. The lure of competitive prices is obvious, and many shoppers report significant savings over local alternatives.

The surge in consumer demand also fuelled a significant increase in air freight volume between China and South Korea, which rose 37.2 per cent in the first quarter of this year to 166,000 tonnes.

To meet growing demand, Chinese e-commerce platforms are increasing investments in warehouses and logistics infrastructure across South Korea.

This expansion not only benefits Chinese exporters, but also catalyzes growth opportunities for Korean logistics companies. Several major Korean logistics companies are expanding their international logistics centers to increase the efficiency of handling parcels from Chinese e-commerce transactions.

Chinese e-commerce platforms are becoming increasingly popular among global consumers, boosting cross-border trade

The real estate market is showing signs of recovery in major Chinese cities following the implementation of a series of government policies aimed at stabilising the real estate sector.

Hangzhou, the capital of eastern China’s Zhejiang province, has eased restrictions on home purchases, allowing buyers who already own a property to now list their current home with local agencies and take advantage of favorable mortgage rates and lower down payments, benefits previously reserved for first-time homebuyers.

Many buyers are taking advantage of these new developments and deciding to move to new homes, which is revitalizing the real estate market in Hangzhou.

Second-hand home transactions peaked in June after 15 months of rising activity. Shangguan Jian, director of the Hangzhou Research Institute at KE Holdings, a company that provides online and offline platforms for housing transactions and services, said second-hand home sales exceeded 8,000 units for four consecutive months.

“As the real estate market gradually improves, homeowner confidence also increases,” Shang said.

On May 17, China announced further measures to stimulate home purchases, including lower minimum down payment rates and the removal of minimum mortgage rates for first and second homes. Chongqing Municipality in southwest China is among the cities that have introduced significant stimulus measures.

In Chongqing, the required down payment for a second home purchase has been reduced from 25 percent to 15 percent, significantly reducing the cost of home ownership.

“We have a small home. I heard about a policy where you can rent out your first home and buy a new one, so you qualify for policies usually reserved for first-time buyers. That’s why we came here,” said Liu Ziyu, a homebuyer from Chongqing, who visited the showroom.

Chongqing’s housing sales rose 9.1 percent year-on-year in June, with both May and June showing monthly sales growth. Similarly, Guangzhou in southern China’s Guangdong province also saw a noticeable recovery in its property market.

China’s real estate market shows signs of recovery as new policies are introduced