TRENDS & INSIGHTS
MARKET INTELLIGENCE
Spotlight on… social selling in China
[2023 update]
China is the largest social commerce market in the world – what are the opportunities for your business?
Share
Executive summary
Already the world’s largest e-commerce market, China is seeing more consumers shopping via social media, with social commerce set to make up 17% of the e-commerce market by 2025.
Penetration is already high; around 84% of Chinese consumers shopped on social platforms in 2022, making it one of the most advanced social commerce markets in the world.
Platforms such as Douyin (TikTok) allow users to shop products they see in videos, while community buying apps offer discounts when consumers shop in groups.
Influencers can make a big difference; as many as 80% of people who follow at least one influencer purchased a product endorsed by them.
China is the world’s largest e-commerce market, with 45.3% of retail transactions taking place online1 and more than half (50.6%) predicted to happen online in 2025.2 The country is also the leading market for mobile and social commerce.
84%
The proportion of Chinese consumers who shopped on social platforms in 2022.3
$508bn
The forecast retail sales value of social commerce in China in 2024.3
17%
The expected proportion of China’s e-commerce market attributed to social commerce in 2025 – up from 14% in 2021.4
7 hours
The average amount of time each day Chinese people spend on the mobile internet. Around 44% of that is on social apps.5
Understanding social commerce in China
China’s social commerce market is much more sophisticated than in Europe and the U.S., with numerous local platforms using different models of selling. The most commonly used include:
User-generated commerce platforms
Douyin (China’s version of TikTok) reached an estimated 700 million daily active users in 2021.6 The platform, on which users watch and share videos, has a sales function allowing businesses to sell products within the app. It is also a popular platform for influencers, who can direct users to a business’s e-commerce sites to buy products.
A similar video-sharing platform, Kuaishou, has some 308 million users in China at the end of 2021.7 It generated an estimated RMB680bn ($95.7bn) in 2021.8
Social discounters and community buying apps
A suite of Chinese social platforms encourage customers to spread the word about brands themselves. On social discounting (also known as group buying) platforms such as Pinduoduo, businesses sell products for a hefty discount, providing users can gather enough of their friends to buy together. Meanwhile, businesses selling via community buying platforms, such as Yunji and Xing Sheng, offer users discounts and benefits for referring friends.
WeChat is the largest social network in China, with around
1.26 bn
active users.
WeChat is the largest social network in China, with around 1.26 billion active users.9 There are plenty of opportunities for businesses to turn a presence on WeChat into sales, such as by running dedicated groups that interact with engaged consumers. The WeChat Mini Programs market lets businesses create their own Mini Program, a subapp for WeChat users, to sell products. In 2021, Mini Programs generated a total transaction value of $400bn – a 70% increase year on year.9
Chinese shoppers in 2023…
Are more price-conscious
Feeling the same inflation pressures as consumers in Europe, Chinese consumers are being more selective about their spending, with price point as important as non-price attributes when selecting products.10
Are willing to pay for quality
Despite tighter purse strings, Chinese consumers are far more willing to pay a premium for high-quality or sustainable products than the global average. For example, 47% of Chinese consumers say they’d pay more for a custom-made product, compared to a global average of 30%.10
Are more likely to be young
China’s Gen Z consumers – those born roughly between 1996 and 2010 – are prolific spenders compared to their older relatives or their counterparts in the West.11
"47% of Chinese consumers say they’d pay more for a custom-made product, compared to a global average of 30%"
Tips to make social commerce work for your business
Test and learn
With so many platforms available and such a vast base of potential customers, it can be hard to know where to direct your resources. Adopt an agile approach, testing your ideas and working in fast iterations to refine your strategy as you go.
Collaborate with influencers
Social media influencers command significant power over their followers’ spending habits, with figures showing over 80% of people who follow at least one influencer having purchased products endorsed by them.12
Pivot to video
The Covid-19 pandemic accelerated a trend for businesses in China to live-stream content, either selling to customers directly through social platforms or sending them to an e-commerce site such as Alibaba or JD.13
Look beyond the mega-cities
Many lower-tier cities still have a population of several million people. Do your research to see how popular various social platforms are in different cities and what the local buying trends are.
Access local expertise
From understanding local trading regulations to identifying the right influencers to market your product, it can pay to have a local perspective. Find partners that can make sure your e-commerce site and social content is properly translated and appropriate for the local market.
Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.
1. The global ecommerce share breakdown | Insider Intelligence, Aug 2022
2. China e-commerce forecast | Insider Intelligence, Jul 2022
3. Social commerce in China - statistics & facts | Statista, Oct 2022
4. Share of social commerce sales value in e-commerce retail sales value in China | Statista, Sept 2022
5. Understanding Chinese Consumers: Growth Engine of the World | McKinsey, 2020
6. TikTok Revenue and Usage Statistics (2022) | Business of Apps
7. Number of daily and monthly active users of Kuaishou from 2017 to 2021 | Statista, April 2022
8. Kuaishou's gross merchandise value (GMV) of live streaming commerce in China | Statista, Aug 2022
9. WeChat revenue and usage statistics 2022 | Business of Apps, Sept 2022
10. 2022 Global Consumer Insights Survey China report | PwC, Aug 2022
11. China’s Gen Z may not earn much, but they spend like they do | SCMP, Oct 2022
12. Impact of social media influencers on purchasing in China as of October 2020 | Statista, 2020
13. Recover, restart and regrow: how consumer trends ignite transformation in China’s New Retail | PwC, 2020
You might be interested in
INNOVATION & GROWTH
5 ways to grow your average basket value
From bundling products to free shipping thresholds, these strategies could encourage your customers to buy more.
VIEWS & VOICES
Finding the most sustainable packaging for your product
Packaging is a major source of waste for e-commerce businesses, but its environmental impact can be reduced.
GUIDES & TOOLS
Hybrid working: how to maintain your company culture
Check out these simple tips to help keep your company culture thriving.