May 10th every year is Chinese Brands day. 2020’s event coincided with the cyber holiday event. JD Big Data was at the forefront of releasing marketable brands that most companies were shopping for. Based on the data released by JD Big Data, the brands that had transacted on their platform exceeded the one million mark in the earlier months of the year. Close to half of the participants involved were local brands. One hundred fifty-one of the brands did well, operating over the half a million mark, with 121 being domestic brands. Such statistics go without saying that local brands are fast catching up with international brands, making them more attractive than before. To better understand the JD Big Data report, below are useful points worth pondering over.
- Most Chinese consumers are slowly moving towards local brands. Many people in China are opting for local or domestic brands, which makes it more exciting for participants in the domestic market. What’s more, it encourages them to invest in better quality.
- As the years go by, domestic brands’ consumption continues to rise as first-tier consumers increase. The more educated and exposed Chinese tend to buy from local brands. This could be because they understand the need to promote their own, especially if the quality is great. It could also be because this group of individuals earn more money and have a better chance of deciding which quality they desire and not necessarily settling for the cheapest option.
- JD Big Data also showed that female consumers age 25 years and below tend to pay more money for domestic brands, which they also pay more attention to.
- This data also shows that consumers are sure about local phone brands than any other brands.
Prior results also showed that domestic brands grew at a faster growth rate compared to international brands. They increased by 20% more than the international brands in 2019. By 2020, this growth rate rose to 30%, another increase from the year before. It seems as though the Chinese are embracing local brands more than they did before. While this does not mean that international brands are being ignored, they are not growing faster than local brands are. The shift to local brands is glaring and impossible to ignore.
First Quarter Results
In the first quarter of 2020, JD’s domestic fresh food business request increased by 156 percent compared to the same period a year before. Most of the transactions in this category were majorly pork, meat, and mutton. There are also eggs, vegetables, and poultry. Generally, the demand for local food increased tremendously, with vegetable demand growing by 655 percent. The demand for poultry rose by 183 percent, and that of eggs increased by 166 percent. While these three foods increased in demand, there was also a significant decline in the demand for instant deli, meat, and frozen foods. More people opt for fresh meat to the extent that the demand has surpassed that of seafood and fruits.
Apart from food, local protective gear has also been on the rise, thanks to the local supply chain. Items such as masks and family care products had increased demand. Social e-commerce is also benefitting SMEs, which is something that has put China on the map. According to JD Big Data, China appears like one of the favorable business destinations, thanks to the attractive trends that seem to accommodate local businesses and brands’ growth.
JD has been a major industry player in China. It is the platform that connects businesses in a meaningful way which explains its success.