The online shopping world is alive and thriving in China, and it is the goal of many companies to bring even more online shopping options to China. The latest company to dip the business into China is PayPal, a US company that plans on connecting more United States retailers with Chinese shoppers. This is a possible goal for PayPal to succeed with, as they are the only company in the world who has the ability to connect around 10 million merchants to consumers on various markets.
PayPal Research into China
PayPal took the time and did their research when looking at the Chinese consumer market, as any responsible business would do. In the past year, PayPal commissioned two research projects in partner with Ipsos MORI and Nielsen’s Harris Poll. The study was meant to focus on the buying habits of consumers throughout the world, but to pay particular attention to those consumers in China.
So what did PayPal discover? Not surprisingly, they find that Chinese consumers are looking for products that are authentic, brands that have a trustworthy reputation and in particular, Chinese consumers are looking for goods that are from the United States. This comes as no surprise, as Chinese consumers have been known for their desire to have products that are luxurious and what many consider to be good craftsmanship. In addition, Chinese consumers want products for a good value.
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The appeal of US products is something that PayPal is paying close attention to. Chinese consumers like that products from the US often reflect their culture. In addition, Chinese consumers seem to think that US products are of a higher quality than products that are purchased within China.
What Chinese Consumers Purchase from the US
Along with looking at what Chinese consumers are wanting from the US, PayPal took the time to look at what products are being purchased by these consumers from the United States. According to their research:
53% purchased clothing, apparel, footwear and accessories
These shopping categories are followed by 46% purchased electronics like computers and mobile devices. While 41% of consumers are purchasing their beauty products and other cosmetics from those in the United States.
How Consumers Decide on Purchases
A part of learning how PayPal could connect more retailers with Chinese consumers, required learning how Chinese consumers recommend products or how they decide on what to purchase in the first place. According to their research, Chinese consumers utilize search engines for the majority of the time, at around 60% of the times in which they may deciding on what type of product to purchase. Personal recommendations are also a way for Chinese consumers to share their opinions and suggestions, and this is around 40% of the time. Rounding up the method for purchasing products is social media.
PayPal will be Using Social Media
Social media is going to play a key part for PayPal reaching Chinese consumers and connecting them with more US retailers. In fact, PayPal not only uses social media for Chinese consumers, but they often use this as a way to stay connected to the businesses they work with. PayPal is active on several social media platforms throughout the world including Facebook, Weibo, LinkedIn, YouKu, YouTube, WeChat, Instagram, Twitter, Pinterest, Snapchat, Tumblr, Periscope and Vine.
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PayPal plans to use Chinese holidays and social media as a great way to connect Chinese consumers to US businesses. The company has found in the past that these holidays are often the times in which Chinese consumers purchase more products from the US. The hope is that PayPal can get smaller US retailers who are offering high quality products connected with Chinese consumers, who are very appreciative of such a product.