JD.com organized a media event on June 12, where the company’stop executives discussed future market trends and current outcomes post-COVID-19.
JD’s consumer knowledge reinforced the belief that shoppers now have different needs within their distinct consumption phases. For instance, a report by JD Big Data, shows that during the lock-down in January of this year, sales of fresh food increased by 215 percent, vegetables by 450 percent, and pork/beef/poultry/eggs by 400 percent year-over-year.
During February, consumers turned toward baking supplies,investing in baking tools (up 332 percent year-over-year), food containers (332 percent year-over-year), and chopping blocks (139 percent year-over-year). And during China’s work-from-home phase, sales of audio/video-related equipment increased nearly 20 times over the same period during 2019.
But the month of March brought new changes in consumption patterns because of the nationwide resumption of work (the demand for office supplies increased by 57 percent, month-on-month, for instance.)
With a national holiday and the cancellation of the country’s strictest travel-controls,May started on a positive note, offering ideal conditions for retail spending.These favorable conditions supported a domestic consumption boom, and online consumption increased by 45 percent year-over-year. Some sectors registered stellar records for this period. For example, sales of outdoor items grew by 210 percent, home devices by 140 percent, and appliances by 100 percent month-over-month.
Meanwhile, it is worth noting that the “consumption upgrade”trend that emerged a couple of years ago is still going strong. But the COVID-19 pandemic has forced shoppers to transition more quickly to online buying, and e-commerce has further improved its dominant position.
Now, China’s “return to work” phase has propelled this sustained consumption recovery. Western brands that want to extend their footprints in China need to pay attention to these trends and develop products and services that the market is demanding.
