In China’s fast-evolving e-commerce market, brands face a constant balancing act: how to allocate resources between acquiring new customers and driving repeat purchases from existing ones . For cross-border businesses, this decision is even more critical, as customer acquisition costs are rising while consumer loyalty is increasingly difficult to secure. A sustainable growth strategy requires an integrated approach that blends both priorities.
Why New Customer Acquisition Matters
For cross-border brands entering China, market entry is impossible without new traffic. Platforms like Tmall Global, JD Worldwide, and Douyin (TikTok China) rely heavily on visibility-driven campaigns to introduce overseas products to local audiences. Paid advertising tools such as (Zhitongche, pay-per-click ads) and (Yinli Mofang, AI-driven ad targeting) can help drive awareness quickly.
At this stage, building trust is critical. Chinese consumers are cautious about imported products, particularly in sensitive categories like health supplements, baby formula, and skincare. Social proof—such as KOL collaborations, authentic reviews, and live-streaming demonstrations—helps lower barriers for first-time purchases.
Why Repeat Purchases Are Essential
While acquiring customers is vital, profitability comes from retention. Repeat buyers cost less to convert, tend to spend more over time, and help reduce dependence on paid traffic.
For example:
• A first-time imported skincare buyer might only purchase a trial-size serum.
• A satisfied repeat buyer will return for full-size bottles, bundle deals, or complementary products.
Repeat purchases are particularly important in subscription-friendly sectors like nutritional supplements or daily-use cosmetics, where customer lifetime value (CLV) can multiply with effective loyalty programs.
Finding the Right Balance
The optimal mix depends on a brand’s stage of growth, category, and budget allocation. The following table illustrates how strategies can shift over time:
Practical Tips for Cross-Border Brands
Leverage CRM and Retargeting: Platforms like Tmall and JD offer in-platform CRM tools to segment customers and launch precision marketing.
Design for Retention Early: Even during acquisition campaigns, include incentives (e.g., coupons for second purchases, bundle deals).
Integrate Content Marketing: Educational content on platforms like Xiaohongshu (RED) can both attract new users and nurture loyal fans.
Track CLV vs CAC: Continuously monitor the ratio of customer lifetime value to acquisition cost. This ensures long-term profitability.
Conclusion
For cross-border e-commerce in China, focusing solely on acquisition is unsustainable, while relying only on repeat purchases risks stagnation. The real growth engine lies in acquiring new users while nurturing them into long-term loyal customers. By strategically combining paid acquisition, CRM-driven retention, and content-based community building, overseas brands can thrive in China’s competitive digital marketplace.