Apr 12, 2022|
JD.com Boosts Hormel Foods’ Luncheon Meat Localization as China’s Growing Eating-at-Home Trend is Here to Stay
The low temperature luncheon meat by Hormel Foods Corporation, a leading U.S. food processing company, has seen 85% month-over-month sales growth on JD.com since it hit the China market six months ago amid COVID surges that propelled China’s eating-at-home trend.
“As Chinese consumers re-prioritize safe in-home consumption and become more cognizant of what they are eating under the impact of COVID-19, the success of the new product launch provides us meaningful experience to navigate our business on the China market,” said Haijiang Gu, general manager of Hormel Foods China.
“Chinese people’s consumption upgrade continues to evolve in the COVID era,” said Wei Ye, general manager of JD Foods. “Consumers look for more fresh, healthy and high-quality food products, and we believe the low temperature luncheon meat that can tenderize the meat without losing much moisture bodes well for a great market opportunity.”
To develop this localized product line, Hormel Foods’ China team integrated Chinese customers’ dietary habits, tastes and shopping preferences drawn from latest market studies and first-hand customer insights.
The new luncheon meat product was introduced to the Chinese market first on JD.com during the Singles’ Day shopping festival in November last year. According to JD’s shopping data, it has become a welcomed companion with self-heating hotpots, snacks, beers, breakfast cookers, and other products.
JD Logistics’ cold chain van
JD’s focus on authentic and higher-quality goods makes it the prioritized channel as international brands expand China market. Its customer base that features the middle-income customers in upper-tier cities and the fast-growing group of people looking for better quality products arising from lower-tier markets who often do planned shopping for families is a natural match with Hormel Foods’ core consumers.
Furthermore, JD’s nationwide cold chain logistics network and product traceability technology ensure Hormel Foods’ refrigerated deli meat products are delivered to consumers’ door steps fresh and safe. Currently, JD Fresh’ cold chain delivery service powered by JD Logistics has covered more than 300 cities in China. Together with JD’s omni-channel capabilities which help to improve consumer experience for faster and fresher products, sales of Hormel Foods on JD.com increased by 163% YoY during the COVID-19 pandemic outbreak in early 2020.
The latest Nielson study showed that 86% of mainland Chinese consumers said they prefer eating at home more often than before the outbreak, and it could be a long-lasting trend. With the changing lifestyle and the readiness of cold chain logistics expertise, Hormel Foods’ new luncheon meat product is one of the precursors indicating huge room for growth in the country’s mid to high-end meat market.