US Goods Selling Great in China

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china shopping

China is quickly becoming the location for Western companies to branch into, as the Chinese people have a high demand for Western products.  Though this is a trend which has been seen for a while, what is most surprising about this is just what kinds of Western products are taking off in China. Most people expect to see the luxurious brands like Gucci or Prada being purchased by Chinese consumers, but they are not expecting Costco brands to be taking off like they are.

An EMarketers Inc analyst, Krista Garcia, stated “There’s a pent-up demand for the real deal…Not just luxury but more middle-class, mainstream American brands.”

China is looking to the US for authentic brands for their basic ordinary goods

Due to Chinese consumers having such a high interested in consumers goods from the United States, many stores have taken to Alibaba websites and JD.com as a way to get their goods into the country.  On November 11th of last year, on Singles Day in China, Costco had sales that totaled $3.5 million USD for that day along, which is more than what an average of 7 Costco stores in the United States do on the average day.

One of the biggest selling points for US consumer goods online in China is the US quality. Chief marketing officer of Voyage One, Patrick Hoss said Chinese consumers know that the standards are higher “than for the same products that are made to be sold directly in China”. In addition, there are several Chinese consumers who like the prices of US goods, stating they are much cheaper than Chinese brands.

For US brands, this does mean they should be branching into China, as the demand for US products will continue to grow. Those brands that enter into the market, especially when they couple with the leading online retailers in China, will find they will open their business to a new consumer market with great ease.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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