Apr 15, 2021|
China’s Wellness Industry is Thriving: McKinsey Report
by Kelly Dawson
Consumers worldwide overwhelmingly indicate a growing preference for natural and clean products, particularly in China, according to a report released on April 9 from global consultancy and market research firm McKinsey. The report, which surveyed 7,500 respondents in six countries including China, also found that consumers in China reported the highest share of wellness spending online, followed by those in Japan.
The rise in the global wellness economy has been accelerated by the pandemic, with McKinsey estimating the value of the global wellness market at more than $1.5 trillion, with annual growth of 5 to 10 percent.
Consumers everywhere are increasingly viewing wellness through a broader lens that encompasses not only products but also services, including telemedicine appointments like those offered by JD’s healthcare arm, JD Health. In 2020 the company’s annual active user accounts reached 89.9 million, an increase of 33.7 million YOY; and average daily consultations exceeded 100,000, which is more than 5 times that of 2019, according to the company’s recent release of financial results in 2020.
More than 50 percent of Chinese respondents to McKinsey’s survey indicated that they would spend more on service categories in the coming year, twice that of respondents in Western countries. “We’ll definitely see accelerated growth in the demand for wellness services,” said McKinsey analyst Eric He, in comments accompanying the report.
China is leading the market in terms of pioneering new technologies related to the wellness industry, according to the McKinsey report, helped in great part due to an advanced e-commerce infrastructure and high technology adoption rates among new consumers.
China is a “testing ground for new products, new consumer-engagement models, and even new business models,” said He. “Building a digital-led business is more likely here in China than anywhere else globally. We have the highest e-commerce adoption ratio and a very sophisticated digital ecosystem that covers almost every aspect of Chinese daily life.”
Also reflecting the growth of the wellness industry is a spike in sales for products in the health, wellness and self-care categories. For example: During JD Worldwide’s Black Friday shopping festival in 2020, sales of self-care products increased YOY by over 180%.
While consumers are increasingly focused on health and wellness, their assessment of their own improvements in wellness levels have simultaneously fallen behind their hopes and expectations in every country except China and Brazil, according to the report, perhaps indicating that Chinese consumers are more satisfied with market offerings.
The wellness industry is “here to stay,” the report concludes. “If the pandemic has taught us one thing, it’s that physical and mental health will remain a priority for millions of people across the globe for a long time to come.”
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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