DHGATE expects cross-border e-commerce players to overcome uncertainty with long-term strategies
BEIJING, Jan. 17, 2023 /PRNewswire/ -- DHgate, the leading cross-border e-commerce marketplace in China, has witnessed steady growth momentum in 2022 while achieving great breakthroughs due to trending products, emerging markets, and new users. GMV on DHgate increased by 38% year-on-year (YoY), much higher than the overall average growth rate of the industry (4%), during Black Friday and Cyber Monday sales season. In a breakdown, on Black Friday, DHgate GMV surged 50% YoY, while on Cyber Monday, sales increased 70% YoY. Behind the outperformance of DHgate in the recent promotion is new growth insight.
Steadily strengthening and improving, GMV in existing markets increased during festival season. In the US market, DHgate.com achieved a 40% YoY growth rate. GMV from emerging markets, including Switzerland, New Zealand, and Mexico, increased 122% YoY, 111% YoY, and 78% respectively.
Sales of production goods in many categories, including automobile and motorcycle parts, reached peak in the promotion, witnessing a 57.4% YoY increase, and personal protective equipment, laser processing equipment, as well as all-terrain vehicles. The number of new users who registered on DHgate increased 100% YoY. The number of new users who not only registered but also purchased something picked up 60.6%. *GMV from new users grew 75.5% YoY. Meanwhile, GMV from our existing V5-level business buyers increased 51% YoY.*
When reviewing the development in 2022, DHgate also shared market trends for merchants to observe and follow during an uncertain time.
*From opportunism to long-termism*
In the past three years, cross-border e-commerce has experienced a booming time and also a slowdown due to various factors, such as the COVID-19 pandemic and inflation.
While many opportunist merchants once believed advertisements inside a centralized marketplace would attract more visitors to their online shops and generate more sales in the short term, data showed that things are changing.
In 2022, 76% of shops spent more on advertising on Amazon, of which 13% even doubled their spending, but only 40% of all shops recorded sales growth, according to a survey recently done by cross-border e-commerce media outlet cifnews.com.
"Under the current market environment, it would not be wise to simply seek product exposure but change to a more long-term path to be close to their potential buyers," said Allen Wang, Vice President of the Global User Marketing Center at DHgate, adding that there are three trends to follow to gain sustainable growth in the cross-border e-commerce sector.
*Generation Z rises to the center stage and cares more about brands*
As Generation Z, referring to individuals born between 1995 and 2009, is entering society. They have become a huge buying power that cannot be ignored. Data shows that in November 2022, when there was the Black Friday and Cyber Monday shopping bonanza, the fastest-growing goods categories in the US market were strongly related to Gen Z.
Online sales of consumer electronics, toys, smart home products, audio products, and fitness devices increased 221%, 285%, 271%, 230%, and 218% YoY, respectively. Data from research firm eMarketer shows that 65% of Gen Z members are willing to pay a premium price for value-driven brands.
At DHgate, Insta360, a smart photography device producer, uses a panoramic stereo stitching algorithm to achieve creative effects such as an invisible selfie stick and time delay for moving objects. The company has accumulated over 1.2 million fans on Instagram, most of whom are young people. In the Black Friday and Cyber Monday promotion, the new flagship camera X3 of Insta360, without a discount, turned out to be the best-selling camera on its official overseas online sales website.
*AI-powered marketing increases efficiency*
DHGATE has pioneered to roll out AI-powered marketing solutions to help sellers match buyers, products and the channel where the transaction can take place.
With various AI tools, on Black Friday, the number of buyers on DHgate increased 85% YoY. AI Seller Coupon-driven sales soared 340% compared with one day earlier.
*Social media reshape the shopping experience*
The number of social media users increased to 4.65 billion in 2022, accounting for about 60% of the entire population in the world. On average, an individual spent 2.5 hours on social media each day.
While the number of social media users is still increasing, online shopping takes place more frequently on social media platforms too. On Black Friday, a DHgate merchant on TikTok Shop recorded more than 4,000 sales orders during livestreaming sessions and a 500% increase in GMV.
During the Black Friday and Cyber Monday promotion, DHgate.com invested about USD 128 million to set up a World Cup Special Session and invited more than 1,000 online celebrities to help merchants on the marketplace sell goods. Sales of fitness devices, hunting products, and scooters surged by 319% YoY, 75% YoY, and 36% YoY respectively.
"The rise of social commerce and emerging new consumer groups are game changers in 2023 and beyond, we are confident it is opening a new window for online retailers," said Diane Wang, the founder, chairperson, and CEO of DHgate.
*About DHgate*
Founded in 2004, DHgate has become the leading B2B cross-border e-commerce marketplace in China. Through our global operations and offices, including in the USA and UK, we reach millions of people with trusted products and services. As of December 31, 2021, DHgate served more than 46 million registered buyers from 223 countries and regions by connecting them to over 2.4 million sellers in China and other countries, with over 37 million live listings on the platform annually. For more information, please visit dhgate.com and follow @DHgate.com.