Every year in China, online shoppers celebrate “Chinese Brands Day” on May’s tenth day. The shopping event coincided with the cyber holiday this year. JD Big Data Research Institute gave a compiled trend report focusing on Chinese brands’ consumption in 2020. JD platform reported that transaction volume for 952 brands, 694, were locally produced in the first four months of 2020.
Analysis from the report indicated that more consumers bought local brands because of the improved quality. Also, more educated and well-paid Chinese bought more local brands in the big cities like Shanghai. The majority of female consumers under 25 years paid more for local brands. JD Big Data analysis also showed that the Chinese consumers still preferred mobile phone brands from companies. In 2019, graphical data comparing local and international brands showed a 20% increase in Chinese brands. A year later, the growth gap was widened by 30% due to the effects of COVID-19, with more people preferring local brands.
The transaction volume of fresh food produced locally grew by 156% compared to 2019. The transaction volume of all types of meat (beef, pork, mutton) increased by 183%, 655%, and 166%, respectively. Likewise, the consumption of instant deli, frozen food, and meat increased more than other brands. This increase is associated with the closure of restaurants and other public eateries by the government.
During quarantine, more people chose to cook fresh foods at home. Therefore, bakery product sales increased ten-fold annually. Quarantine and lockdown had more people working from home and learners conducting their studies virtually. This led to an increase in transaction volume of office products and computers by 109%.
China was among the first countries to feel the effects of COVID-19. Therefore, the local companies produced more protective products like masks instead of relying on Imports. Local protective brands’ transaction volume increased by more than 10% to cater to the increasing demand for masks and PPEs. Under the family healthcare products, glucometers and masks were purchased the most. Medical reports indicated that diabetic patients were more at risk of succumbing to coronavirus than non-diabetics.
SMEs have greatly benefited from social media e-commerce. More companies and businesses have marketed through social media, which has become a vital online tool for consumers. Consumers stuck at home are increasingly purchasing products recommended by friends. Between January and April, domestic brands’ orders increased by 20% compared to international brands.
E-commerce channels accelerated the growth of local brands reaching the lower-tier markets. Big cities remain the significant consumers of domestic brands. High-income earners like financial and medical professionals have increased the consumption of local goods. Young female consumers continue to show attention to Chinese brands, which means the more youthful generation was willing to take more responsibility. However, more consumers looked at the product quality rather than the prices, with more consumers going for high-quality brands. JD.com also revealed over 90% of consumers must read the product review before making a purchase.
About 32% of the top twenty keywords searched were related to local and international brands. JD Big Data report showed that more people searched for local brands compared to global brands. By November 11th, search word data revealed that most Chinese citizens valued domestically produced smartphones.
The International Trade Research Department Zhao Ping states that lower-tier markets have the highest consumption potential. She also notes that most people at the lower tier purchase goods based on familiarity. Chinese brands can invest in bulk production of goods favoring lower tier market.
Chinese JD Company focuses on e-commerce and has its headquarters in Beijing. It is the largest online retailer in China. The company has managed to stay on top because it deals with the highest quality and authentic products from food items, clothes, electronics, and anything else you might want all under one roof. The company has the most reliable and quickest delivery system globally. It has invested in high-tech and artificial intelligence delivery systems through robots and drones.=