Negosentro | JD Big Data Indicate an Increase in Earnings as More Chinese Consume Domestic Brands | May 10th of every year marks the “Chinese Brands Day,” an online shopping event in China. During the 2020 celebration, JD Big Data released a report that focused on local brands’ consumption during the year. According to the statistics, January to April transaction volume for 572 known brands operating on JD’s platform was more than RMB 100 million. The good news is that 490 of the 572 were domestic brands. JD’s figures also indicated there were one hundred and fifty-one brands, whose transaction volume was more than RMB 500 million, and 125 of the brands were domestic.
Experts analyzed the JD Big Data report and summarized the following key takeaways:
- Consumers are gradually choosing local brands because the quality is improving significantly.
- The proportion of domestic brands consumption in China increases every year in developed cities as well-paid, and educated consumers purchase more.
- Female consumers below twenty-five years pay more attention to quality and spend more on domestic brands.
- Consumers around the country prefer domestic mobile phone brands because they are more aware of them.
In 2019, a report that focused on brands, products, and orders indicated that domestic products’ growth rate increased by 20% more than international brands. Although quarter one of 2020 was greatly affected by the COVID-19 pandemic, domestic brands’ growth rate increased by 30%.
The JD Big Data report further indicated that the demand for fresh domestic food on JD’s platform during the first quarter of 2020 increased by 156% compared to the same period in 2019. Some of the most demand products included meat, vegetables, and poultry. The demand for these products increased by more than 100% compared to 2019.
Local bakery supplies were also in demand, which saw their transaction volume increase ten times compared to 2019. This exciting trend can be attributed to the coronavirus lockdowns, which saw more people opt to cook at home because many eateries were closed. The report also indicated that the transaction volume for domestic office products and computers also increased by 109% during the quarter.
Consumers looking for healthcare products also opted for domestic options. The report indicated that the demand for glucometers, masks, and family care products was ten times more than in the first quarter of 2019.
Additionally, a new trend in China called the social group e-commerce is one of the new ways to shop in the country. The craze sees people recommend products and services to family and friends who are in close proximity. This new way of shopping saw domestic brands’ demand increase by 20% during the first quarter of 2020 compared to international brands.
The demand for certain domestic products including, female care, sports, maternal, and facial cleaning products increased by 150% compared to 2019. However, international demand for specific items such as cleaning products, paper products, musical instruments, and toys grew significantly during the period.
In 2019, several e-commerce channels assisted local brands to reach consumers in lower-tier markets. In the first quarter of 2020, 5th and 6th tier cities consumed more domestic brands, indicating that the e-commerce channels’ efforts were paying off. It is also worth noting that the situation in first-tier cities is also changing rapidly. For instance, in the Shanghai area, more people have embraced the concept of local brands and are consuming them more than in previous years.
In terms of consumer groups and occupation, more financial and medical professionals are purchasing domestic products. This means that high-income consumers are also drawn to domestic products due to improved quality and availability.
The report also included a section on gender and age perspective, which indicated that female consumers born in the mid-1990s were purchasing more domestic products.