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The Decline of the Overseas Buyers Market
Article

The Decline of the Overseas Buyers Market

The Jig Is Up

Huxiu, 2019

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Editorial Rating

7

Qualities

  • Eye Opening
  • Concrete Examples
  • Engaging

Recommendation

With the rise of China’s affluent middle class, a lucrative cross-border e-commerce market worth hundreds of billions of yuan has popped up to satisfy the growing demand for foreign luxury items. Independent traveling shopping agents who sell goods on social media platforms such as WeChat have found a niche. But in August 2018, China passed new laws to regulate e-commerce – with significant effects on the cross-border market. Op-ed writer Lu Nan’s piece on Huxiu.com traces the developments and dissects the role this informal economy has served in Chinese society.

Take-Aways

  • China’s 2008 infant formula scandal played a crucial role in the rise of unofficial cross-border shopping.
  • Outsized middle-class consumer demand for high-quality goods made cross-border shopping a lucrative business.
  • Government crackdowns on unofficial cross-border commerce is making life hard for overseas shopping agents.

About the Author

Lu Nan is an op-ed columnist on Huxiu.com, covering the latest on e-commerce, pop-culture and social commentary.


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