Apr 29, 2022|
Gen Z’s Shopping Trends in China: Happiness First, Smart Products and More
by Doris Liu
Ahead of China’s Youth Day on May 4, JD has released a new report examining shopping preferences and trends related to Gen Z consumers, who now account for 19 percent of the country’s total population at 260 million , according to the National Statistics Bureau.
Often referred to as 95s (born after 1995), they are the latest to join the workforce, and will gain more purchasing power in the next decade.
Key findings from the report, released by JD Research Institute for Consumption and Industrial Development, show that this generation holds its own rational consumption ideas, looking to their peers for fashion trends while also holding clear personal preferences.
Top priority
As digital natives, Gen Z grew up with the rise of the Internet, instant messaging, smart devices and other technologies. On average they are well-educated and have more freedom to develop their personality, hobbies and make their own choices.
Gen Z has also witnessed China’s rapid economic development, leading to a boost of national confidence. At the same time, China’s further integration into globalization enabled Gen Z to have a global perspective, and are not only more diverse but are also willing to embrace diversity.
In such a context, Gen Z has developed unique values. Based on a survey released by Snapchat, 72 percent of Gen Z respondents, when answering the question “How do you achieve your identity and realize your value?”, chose “by seeking fun”; about 60 percent chose “by achieving a goal” and “by keeping fit”; and 56 percent “by making money”.
Consumption preferences
Good Looks Pay
The consumption upgrade of Gen Z in recent years has escalated from product quality to spiritual satisfaction, meaning that the external look of a product is a crucial part in terms of its market competitiveness.
Since 2022, sales of visually appealing products purchased by Gen Z have increased by 166 percent year-on-year (YOY). In the categories of kitchen and bathroom appliances, home renovation and soft furnishings, baby bedding, outdoor equipment and apparel, sales of products with eye-catching appearance have all increased by more than 10 times.
Smarter is Better
Gen Z shows the highest preference for smart products, with 70 percent higher in preference coefficient compared to the other age groups, which not only promotes industrial upgrading, but also adds momentum to technological innovation.
Smart products of electric vehicles, cameras, shower systems, mobile air conditioners and lighting equipment have preference coefficients close to or higher than 100 percent.
Low-sugar matters
According to the “Generation Z Beverage Consumption Survey Report” released by the Shanghai Consumer Council earlier this year, 41 percent of Gen Z in Shanghai chose beverages with “0 sugar” and 38 percent chose “70 percent off sugar”. Less than 20 percent of Gen Z chose “full sugar” or “30 percent off sugar”.
Besides beverages, the low-sugar trend has expanded to various categories. JD’s data showed that low-sugar products of tea drinks, beer, condiments, vitamin and mineral supplements went up 20 times YOY and low-sugar pharmaceuticals saw an uptake of 14 times YOY.
The Wellness Generation
Gen Z is dedicated to their health and wellness, leading to a rise in consumption in the industries of health care, beauty and anti-aging products among young people.
Wellness consumption has developed into a lifestyle for Gen Z. Sales on JD.com in 2022 showed that health management products have increased nearly 20 times YOY, and health drinks, Chinese medicine services and psychological counseling services have rose more than three times YOY. At the same time, nutritional products such as astaxanthin, seal oil and collagen chondroitin went up by more than 10 times YOY.
Trends for “Guochao”
Guochao, Mandarin for homegrown fashion, gained popularity. The number of “Chinese Style” (国风) enthusiasts exceeded 177 million in 2021, in which the group aged 18-30 accounted for about 70 percent, said a report by Chinese online video site Bilibili Inc.
Red is an auspicious color in Chinese culture. JD’s data showed that Gen Z’s purchase of products with the phrase “Chinese red” included in the product names surged 326 percent in 2022, with personal care and health, and baijiiu, China’s liquor, being the highest-selling categories.
The Lazy Economy
Gen Z is busier with increasing personal disposable income, thus becoming the main demographic of the convenience-based “lazy economy”. They frequently use delivery services and door-to-door services, according to QuestMobile.
Sales of ready meals and vacuum mop combos purchased by Gen Z on JD.com this year have increased by 200 percent and 142 percent respectively, with underwear washing machines up almost 20 times.
The shopping preferences of Gen Z, which used to be considered special and different a few years ago, have become the mainstream of the market today. These digital natives are considered the voice of the internet, and as a result, brands are adjusting product designs, functions, services and marketing methods especially for them. In other words, Gen Z is creating trends, but also guiding the whole consumer market, energizing the process of consumption and upgrading.
Jan 16, 2024|
Harbin’s Rising Popularity as a Winter Destination in China Sparks Surge in Travel and Retail Sales
This winter, the “ice city” Harbin, capital of northeast China’s Heilongjiang province, has emerged as a magnet for tourists from all corners of the country. Harbin’s hospitality has warmed the hearts of these visitors. Their shared online experiences have further fueled the city’s tourism and consumption growth.
According to data from JD.com, searches for Harbin travel have skyrocketed, with a year-on-year growth exceeding 100 times in the past week alone. Harbin’s specialties have also been favored by tourists. JD.com’s data also reveals a substantial rise in the volume of Harbin specialty shipments since December. The Harbin Red Sausage, a beloved local delicacy, has emerged as the top souvenir choice for out-of-towners, seeing an average daily shipment volume in early January that is nearly fourfold higher than in December.
To support this influx of tourists, JD Logistics has strategically established service points at key locations, including Harbin Airport. These hubs ensure comprehensive delivery services, enhancing the overall visitor experience.
This Harbin tourism boom has also spurred a surge in sales of winter apparel. JD.com’s data indicates a rapid growth in the sales of warm clothing items such as down jackets, snow boots, and thermal underwear between January 1st and 7th. The sales growth is especially pronounced in southern provinces and cities such as Jiangsu, Zhejiang, Guangdong, Sichuan, and Shanghai. Notably, tall snow boots registered a 206% year-on-year increase in transactions, while padded cotton caps and thickened long down jackets soared by 158% and 134%, respectively. Beyond clothing, travel gear has also seen a considerable uptick, with a 98% year-on-year growth in transactions for large suitcases and travel backpacks in these southern regions.
To further cater to the needs of consumers gearing up for their Harbin adventures, JD.com launched a “Northbound Warmth Guide” on January 10th, offering a curated selection of warm clothing, shoes, children’s wear, and accessories, and enabling more consumers to purchase thermal equipment in a one-stop shop.
Jun 1, 2023|
JD.com’s 618 Grand Promotion Kicks Off, Record Number of Brands Reach 100 Million Yuan in Sales within the First Ten Minutes
by Yuchuan Wang and Vivian Yang
On the evening of May 31, 2023, JD.com officially launched the 618 Grand Promotion, the largest mid-year shopping festival in China. In a phenomenal display of consumer enthusiasm, over 23% more brands achieved the RMB 100-million-yuan sales milestone within the first ten minutes compared to the previous year. Additionally, an impressive 60% of newly onboarded merchants soared past their daily average sales volume for May, and 50% of small and medium-sized enterprises (SMEs) reported their sales skyrocketing by more than 200%.
This year’s JD 618 Grand Promotion marks the 20th birthday for JD.com and offers more than ten times the number of items as those featured during the 10-billion-yuan discount program, which launched in March. The vast selection comprises over 200 of the most in-demand items and nearly ten thousand best-selling products spanning a diverse range of categories.
Upon the event’s opening, consumers in over 300 cities across the country received their pre-ordered parcels within a matter of minutes. JD.com’s dedication to excellent service, through its proprietary logistics network built since 2007, ensures the delivery of the same or next-day orders nationwide, affirming its “place an order in the morning and receive it in the afternoon” commitment. Today, the unmatched service covers 10 million products and to consumers nationwide.
JD’s on-demand retail service also showcased its advantages immediately. Within the first ten minutes of the promotion’s launch, customers in over 700 counties and cities throughout the country received their orders. The first on-demand delivery through JD Shop Now arrived at a customer’s doorstep in Changsha city within just nine minutes.
Data highlights from the shopping festival collected between 8:00 PM and 8:10 PM on May 31, 2023 include the following:
- A 23% year-on-year increase of brands surpassing a transaction volume of over RMB 100 million within the first ten minutes of the 618 promotion
- Apple’s transaction volume surpassed RMB 100 million in just one second
- Nearly 50% of small and medium-sized merchants have seen their transaction volume increase by over 200% year-on-year
- Transaction volume for home appliances and home furnishings exceeded RMB 5 billion
- Transaction volume for durian increased by more than three times year-on-year
- Transaction volume for men’s and women’s apparel increased by over 120% year-on-year
- Transaction volume for road bikes and cycling apparel increased by over 100% year-on-year
- Transaction volume for new energy vehicle tires increased by nine times year-on-year
- Within five minutes, transaction volume of JD’s cross-border platform JD Worldwide exceeded the total sales of the first two hours from last year
- A near 400% year-on-year increase in merchant usage of JD Cloud’s Yanxi Digital Human livestreaming service compared with the same period from last year’s Single’s Day promotion
- A 100% year-on-year increase in transaction volumes for 150 skincare and beauty brands, including prestigious names like YSL, Helena Rubinstein, Shu Uemura, Proya, and Lancome
- Transaction volume of luxury brands including Bulgari, Tiffany & Co., Bottega Veneta, and Givenchy increased threefold year-on-year.
- Fifteen watch brands, including Longines, Tissot, and Mido, doubled their sales year-on-year
- Entrepreneur and internet celebrity Luo Yonghao joined JD Livestreaming and sold an apartment at 61.8% of the full price, saving over RMB 1.2 million for the consumer
- Electronic product services saw a transaction volume boost of 160% year-on-year
- Trade-in services for home appliances and home furnishing products experienced a transaction volume surge of over 120% year-on-year
JD’s Data: Highlights of Third-Party Merchants’ Growth on JD.com
