by Mengyang He

JD.com’s Consumption and Industry Development Research Institute released the “2022 Import Consumption Trend Report” on July 25 ahead of the second China International Consumer Products Expo.

 

Key takeaways:

1. Consumers are seeking more exquisite and high-end products.
2. Young people are the major consumers for international products.
3. Most sales of international products come from first- and second-tier cities.

China’s import business is now more diversified and toward high-end. According to the report, mobile phones, computers, mother and baby products, beauty and skincare products, and home appliances are the most favored by Chinese consumers among all international products. For instance, the sales of mobile phones from overseas brands accounted for over 30 percent of all imported products in 2022.

According to the data from JD’s 618 Grand Promotion ended last month, the presales volume of first-party imported healthcare products mounted by 140 percent YOY, and cross-border food and beverages grew by 100 percent. Many international big names, such as Apple, Dell, HP, Aptamil and Siemens are also well received by consumers.

The report also reveals that the top 5 countries for imported products are the US, Japan, France, Germany and Switzerland. Because of international travel restrictions due to Covid, many consumers are now purchasing more products from JD’s national pavilions to stay close to an international experience.

JD has opened 65 national pavilions as of now. The national pavilions of Finland, Singapore, and Cuba were the top 3 in sales during JD’s 618 Grand Promotion this year, during which the French, Hungarian, and Singaporean national pavilions recorded a YOY increase of 194 percent, 147 percent, and 141 percent, respectively.

Young people between 26 and 35 are the major consumers for imported products, accounting for nearly half among all age groups. In addition, consumers between 46 to 55 are seen to have great potential in purchasing power, as their spending on international products increased by 283 percent in 2021 compared with that in 2019.

As for Gen Z consumers, they are more willing to buy watches, glasses, jewelry, and digital products from international brands, whereas senior shoppers favor food, beverages, clothes, and alcoholic products.

In the first half of 2022, consumers from first- and second-tier cities contributed to 55 percent of the sales of international products. However, a rising interest is also seen in rural areas. According to JD’s sales data, the transaction volume of international products generated from rural areas grew by 174 percent in 2021 compared with that in 2019.

By region, the report shows that consumers from Guangdong province, Beijing, Jiangsu province, Shanghai, and Zhejiang province purchased the most international brands, and 20 percent of the sales come from Guangdong province alone.

 

(hemengyang5@jd.com)

by Mengyang He

JD Super, JD.com’s online supermarket business, released the “2022 Mineral Water Consumption Trend Report” on July 20, showing signs of mineral water’s rise in volume in the market.

With a market volume of RMB 200 billion yuan, China’s bottled water industry has been dominated by two key players, mineral water and spring water. According to the report, although spring water outperformed mineral water in transaction volume by 15 percent last year, mineral water recorded a higher growth rate by 8 percent compared with spring water, indicating a greater market potential.

Another trend is about the health aspect. As consumers have started to increasingly care about their health and well-being, mineral water that contains abundant microelements which supposed to be good to people’s health have become their first pick.

The report also reveals that the origin of mineral water has become a critical factor in consumers’ decision-making process, and therefore, more brands have started labelling the origin on the product.

Regarding the price, a mineral water product priced at above RMB 60 yuan per case (24 bottles) was the most popular one, whereas the hottest pick for spring water was in the range from RMB 31 to 40 yuan per case.

From the geographical aspect, consumers from Beijing, Guangdong province, and Shanghai contributed to the most sales of mineral water, accounting for 24 percent, 15 percent, and 14 percent, respectively.

The report also shows that consumers from different regions had their favorite brands. For example, consumers from Beijing preferred Nongfu Spring, those from Guangdong province favored Evergrande Spring, and Shanghai consumers were fond of the classic French brand Evian.

 

(hemengyang5@jd.com)

by Mengyang He

Thirteen students from Botswana, India, Mongolia, and Tanzania among others enrolled in China Agricultural University, Beijing Forestry University, Beijing International Studies University and more visited JD.com’s hydroponic plant factory in Beijing on July 18, as part of their summer field research under the theme “Exploration on the Path of Industrial Prosperity Promoting Rural Revitalization.”

As JD Plant Factory is China’s largest plant factory using Japanese technology that combines sunlight and artificial light, the students learned about how agricultural technology is applied in vegetable farming during the visit.

Zhongsheng Wu, general manager of JD Plant Factory, said, “Although all the vegetables at JD Plant Factory are cultivated with the hydroponic technology, the overall water consumption is remarkably low. Only 500ml of water is required during the entire lifecycle from seed to vegetable, and this method saves more than 90 percent of water compared with conventional cultivation.”

The environmental indicators such as temperature, humidity, light, and carbon dioxide concentration in the nursery room are all controlled by computer, which creates a high-quality growth environment for hydroponic vegetables. The water purification equipment can also prevent water pollution, and vegetables can thrive without pesticides.

With the help of cutting-edge technology, JD Plant Factory is able to produce and harvest vegetables all year round, with an annual output of 300 tons. Therefore, it can control costs from the supply side, and provide consumers with safe and healthy products.

“I am fascinated by the hydroponic technology applied in JD Plant Factory, and wish to bring it back to my home country,” noted Suleyman, a Tanzanian student from Beijing Forestry University.

 

(hemengyang5@jd.com)