Jul 15, 2020|
iResearch: JD Is the First Choice of Fresh and Medical Products for Chinese Customers
by Yuchuan Wang
On July 14th, iResearch, China’s leading consulting company, released the 2020 China Post-Epidemic Insight Report on Retail Consumption. The report analyzed the long-term impacts of COVID-19 on the consumption market: consumers will have higher trust of retail model platforms; there is a transformation from smaller basket size but high frequency to bigger basket size but medium frequency for online consumption; and consumer behavior is influencing the online retail landscape.
The report shows that over 23% users changed their preference of channels buying daily goods, medical care and fresh products. Overall, users tend to favor JD and PDD more. The preference for Tmall has remained the same while Taobao has declined. JD has become Chinese consumers’ first choice for fresh and medical care products.
iResearch also finds that users have significantly raised their frequency in using e-commerce platforms after the epidemic outbreak. Among all platforms, the growth rate of high-frequency users on JD is the fastest. The number of users who use JD three or more times a week on average increased 3.0%, with a growth rate of 16.7%. The number of people who use JD twice and once a week increased 2.3% and 1.7% respectively.
According to iResearch, from the epidemic outbreak to the 618 promotion, the growth rate of the number of unique devices and users’ effective spending of time on e-commerce has gone from slow to fast, reflecting 618’s role in driving post-epidemic consumption. Among major platforms, the growth rates of JD in both areas are higher than the industry average.
In addition, 38% of users indicated they would choose JD as the priority platform for the 618 promotion. Consumers care most about discounts and delivery service for big promotions like 618.
The report also shows that daily goods, consumer electronics and home appliances, home products are most important to consumers during 618. In these categories, more consumers choose JD as their shopping platform than other platforms.