China has numerous events every year, and among them is Brands Day, which happens every 10th of May. The occasion features online shopping for various consumer products. In 2020, the event coincided with the cyber holiday for JD big data. The organization created a report to show consumption patterns for several domestic brands in the year. The report indicated that more than 500 brands rose above RMB 100 million. Among them, 490 featured domestic products.
Over 200 brands exceeded RMB 300 million, where more than 70 of them were domestic-based. Similarly, a portion of 125 brands among those which rose above RMB 500 were domestic products too. Here is a review of the report.
What the Report Revealed
- The quality of domestic goods improved, making them Chinese consumer’s top priority.
- Consumption of various products grows each year, with an increase in the number of educated consumers locally and internationally.
- Women below 25 are more attentive to consumer brands than any other age.
- Most individuals are not ignorant about mobile phone brands, as they have become popular internationally.
What JD Big Data Discovered
Domestic brands registered over 20% annual growth in 2019. Factors such as categories, product types, and orders made played a keynote role in formulating these results. The development gap increased to 30% in 2020, attributed to the effects of the COVID-19 pandemic.
An increase of 156% in the Transaction volume for fresh food products was among the highlights. The foodstuffs included vegetables, mutton, pork, beef, and poultry, to mention a few.
Among the food products whose consumption proportion increased significantly, they include meat and instant deli. Today, most individuals prefer meat to seafood and fruits, among the fresh-food classification.
Annual records indicated that bakery products went high, multiple times in transaction volume. That was because quarantine regulations forced people to cook and eat from their homes. Computers as well as office materials registered an upsurge in transaction volume resulting in a large percentage yearly.
Protective gear did not lag, as JD big data noted a large increase in transaction volume in facemasks within three months. Leading products in the Medicare category included glucometers.
Today, e-commerce has become a priority for most shoppers in China, which is beneficial to small businesses. Travel restrictions and lockdown are among the aspects that have led to this reality. Orders made from domestic products within three months exceeded the ones on international brands by 20%, thanks to the online shopping platform.
There was a rapid increase in consumption of domestic brands in 2019. Some categories, in this case, included sports, maternal, and self-care products. More than 150% increase featured in female care products, and facial materials, among other categories. Imported goods that included musical instruments, cleaning agents, and toys, also registered a significant upsurge.
In 2019, local brands became popular in the market, thanks to e-commerce in China. The chief propellers for domestic brand’s consumption are the fifth and sixth-tier cities. Today, the first-tier cities continue to change notably, with regions such as Shanghai approving domestic brands.
Judging by the growth rate of domestic brand consumption, Shanghai ranks among the leaders, even though it comes second when we switch attention to the international brands. In categories such as consumer and occupation, financial and medical experts bought domestic products in bulk, influencing their growth.
Assessing the market in terms of gender and age, women born after 1995 are the most interested in purchasing domestic brands. Supplies reviews conducted in 2019 influenced many consumers, where most emphasized the quality of products.
A considerable percentage of keywords revolved around specific brands, with a small portion relating to international brands. Most reviewers concentrated on consumer experience, quality of the products, and their prices.
For more on business from Legend Helsinki, click here!