The 2020’s first-quarter sales report by JD.com’s Big Data Research Institute indicates a rise in local brands’ consumption. The release of the information was during the Chinese Brands Day held annually on 10th May. The report, released during the Cyber Holiday, covered sales from January to April. Out of 572 brands sold at more than RMB 100 million by JD.com, 490 brands were from domestic companies. According to JD Big Data, domestic brands have become a top priority among Chinese consumers due to their ever-improving quality. Local brand sales have increased in the past few years, especially in the upper-tier cities. The 2019 reports also indicated that the domestic products had risen by over 20% compared with the international brands.
Well-educated consumers have been able to buy more domestic products due to their higher earnings. The report also indicates that females below 25 years are paying more attention to domestic products. Mobile phone brands have won the hearts of many JD.com consumers. The domestic fresh food sales of the 2020 first quarter had a 156% increase compared to the first quarter of 2019. The transaction volume of eggs, poultry, vegetables, and mutton, beef, and pork meat increased by 166%, 183%, and 655%, respectively. The consumption of frozen food had over 20% increase according to the report. Meat products topped in the fresh food category outshining seafood and fruit sales. Bakery supplies became noticeable after its sales increased by over ten times. The increase is because most people decided to cook from their homes during the quarantine period.
The sale of office equipment and computers had a 109% increase. The protective gear products outshined the rest in the health care category. According to JD Big Data, face masks transaction volume increased by over 10%. Family care products and glucometers also had an increased sale.
Social Group E-commerce has had its contribution to the rise of sales in domestic products. The tool allows loyal customers to recommend products to their friends and colleagues in China. Through the recommendations, domestic product sales increased by 20% more than international products. Small and Medium Enterprises benefited a lot from the social e-commerce group.
When comparing domestic and international brands in 2019, there was a rapid increase in maternal and baby sales, personal care, and sports products from local companies. Female care and facial cleaning products had a 150% increase. The sale of imported products only shined in the toys, musical instruments, paper, and cleaning products in 2019. The domestic brands found favor among the lower tier consumers due to the role played by e-commerce channels in 2019. The main driving force of domestic products is the fifth and sixth tier regions. Though Shanghai topped second in the sale of international products in 2019, the tier had tremendous domestic product growth.
From 2019 JD Big Data, domestic brand customers were sensitive to commodities’ reviews when buying. There was a general upsurge in demand for high-quality products, and consumers had to refer to the product’s review before the purchase.
Richard Liu is the CEO and establisher of the e-commerce giant, JD.com. JD started as a physical retail shop but later shifted into an online venture after the 2003 SARS outbreak. The pandemic made Liu creative, and he embarked on advertising online. The strategy attracted many consumers, and in 2004, he shifted entirely into e-commerce. At first, JD.com focused on the sale of electronic products before diversifying into other categories. Since the outbreak of COVID-19, the grocery category has increased sales, hence outsmarting electronic products. Due to the Renmin University’s graduate, Richard Liu, JD.com has become China’s leading e-commerce retail platform due to the leadership prowess.