Regarding French people, the pandemic was an opportunity to look back on their consumer behavior, but for Chinese sellers it is an opportunity to expand their businesses into the French e-commerce market.
Here is a small introduction for cross-border traders who wish to develop their e-commerce activity into the e-commerce French market.
Careful spending and price sensitive
The first evolution that could be witnessed after the pandemic was a change in consumers’ behavior. A more careful way of spending and a more acute sensitivity to prices. According to a study conducted by the institute C-Ways, 53% of French people say they are willing to continue on spending less, 35% want the sense of reduced consumption, which appeared during the pandemic, to continue and 19% say they now realize how some of their previous purchases were unneeded. The age factor plays an important part a consumer’s behavior. 40% of the 18-24 years old class are willing to spend less. On the contrary 72% of people older than 65 years old declare not wanting to change their consumer behavior.
Changing habits means controlling spendings, before making a purchase customers will need to reflect their needs and use their budget for the right things. Households having less resources at their disposition represents an opportunity for Chinese e-commerce sellers. As a matter of fact, Chinese products are often less expensive, which provides them with a substantial advantage. E-commerce companies need to take into account new purchasing habits and optimize their online user’s experience. They also need to label clearly their products with product information, availability and distribution channels. This way they may better meet their customer’s needs and stand out from their competitors.
Preference for second-hand purchases
Another consequence of the pandemic is that French people had to reconsider their household budget, thus allowing second-hand products to gain popularity. One third are willing to give up on new clothing products and encourage second-hand deals. Regarding the market of Electronical and Electrical Equipment (EEE), French people are also gaining interest in second-hand products. According to a study led by Rakuten France in 2020, 66% of French people were willing to let go of the latest technologies by encouraging second-hand products.
Regarding this sector, DMD would like to recommend Back Market, a famous e-commerce platform of refurbished EEE. Since its creation Back Market has been using the popularity of second-hand products in Europe to make a profit. The e-commerce platform is also an avant-garde platform in selling refurbished EEE. Moreover, Back Market ensure that its customers receive a guaranteed and quality service when shopping on their website.
The global market of used and refurbished EEE should exceed 44 million USD before 2027. If your business has anything to do with selling used EEE or is you are a professional manufacturer in refurbished EEE, DMD would advise you to consider becoming a part of Back Market. If you have any question regarding this e-commerce platform, contact us, and we will gladly answer you.
Online shopping
Thanks to the pandemic, the French e-commerce market has seen an unprecedented growth. According to Nielsen’s research, an American marketing company, French consumers seem to prefer click & collect shopping. It means customers purchase products online and come by a physical store to pick their order up. Before the pandemic, only 5% of household purchases came from click & collect. Since the pandemic that number has now doubled. The substantial growth e-commerce was subjected to was mainly due to a large number of new customers, e-commerce customers went from 5 million to 7.4 million in the first month of lockdown. It represents a 50% augmentation which keep on increasing.
Multiple French e-commerce platforms such as Fnac, Darty or Leroy Merlin use a two-way distribution channel, online and offline. It allows them to take advantage of their brand image in France, secure a customer base and increase their sales.
Buy greener products
Since the pandemic, French people have become increasingly interested environmental issues. They are now more sensitive about the environmental impact of their products, their origin and how they are delivered. According to a study, 70% of consumers are ready to extend delivery time if it allows their product’s carbon footprint to diminish. More than two-thirds are willing to promote the purchase of greener products. Especially second-hand products which contribute to a circular economy. May the product be either new, used, bought with rental or subscription, Chinese sellers will be able to add more eco-friendly concepts to their brand image. Labeling products with manufacturing ingredients and the way they are shipped, using more environmentally friendly packaging, might be able to appeal to customers.
The change in French people’s consumption behavior after the pandemic allowed Chinese sellers to enter the French e-commerce market. If you are interested in doing the same or/and if you don’t know how to register on French e-commerce platforms such as Cdiscount, la Fnac, Darty etc. DMD’s bilingual team will be able to help you in a professional manner. For further information do not hesitate to contact us, we look forward to working with you!