RCEP Boosts Cross-Border E-Commerce
Since the Regional Comprehensive Economic Partnership (RCEP) came into effect, cooperation between RCEP regions has continued to deepen. On July 27, 2022, at the 2022 Consumption Innovation Forum of China International Consumer Products Expo, the RCEP Cross-Border E-commerce Purchase (B2C) Index report was released.
The new RCEP B2C Index (RCEP Cross-Border E-commerce Purchase B2C Index), focuses on overseas small and medium-sized enterprises, presenting the development trend of digital trade in the RCEP regions.
The trend of the new index shows that the that cross-border e-commerce in the RCEP region is booming. The average annual growth rate from 2019 to 2021 reached 33.2%, which was 1.69 times the growth rate of the China-ASEAN Trade Index in the same period, reflecting the strong vitality of RCEP regional digital trade.
Besides, the Trade Volume index of RCEP countries has the fastest growth rate, reaching 43.8%. The growth rate of digital trade far exceeds that of full-scale trade. From the perspective of Market Demand, the seasonal fluctuations are obvious with Q2 and Q4 having the highest demand. In view of the average number of orders and average basket size, brand loyalty is increasing. As for the Consumer Experience, although the overall is continuously optimized, cross-border logistics issues are severely hindered by the epidemic.
Overall, RCEP cross-border e-commerce retail is basically consistent with the national economic trend, superimposed on the seasonal characteristics of e-commerce, rising gradually and developing faster than general trade. Besides, the epidemic has little impact on the Chinese market demand for commodities from regional countries. Even though coronavirus influences consumer experience, regional brand awareness and brand loyalty have increased.
Cross-border e-commerce drives RCEP regional digital trade
The RCEP reduces the cost of tariffs on cross-border trade between members, thereof traditional high-tax industries being most affected, such as food, agriculture, consumer goods, and automotive. With the gradual decrease in tariffs, consumers are able to purchase products at a lower price, such as Japanese cars, Australian infant formula, and New Zealand honey.
Taking Tmall Global as an example, an average of 400+ new overseas brands enter every month over the past year. Up to now, 29,000+ overseas brands from 87 countries and regions have entered Tmall Global, covering 5,800+ categories, of which more than 80% of brands have entered China for the first time.
Since the implementation of RCEP regulation, enterprises and consumers in the regions have benefited from preferential tariffs, simplified customs clearance, and facilitating investment. Meanwhile, the RCEP has further deepened regional economic connectivity and trade cooperation, providing new drivers for regional economic recovery and development.