E-commerce: Online food is a booming market

06/02/2018

Goodbye supermarkets, now in China shopping is done with smartphones. From organic tomatoes, lobsters from Boston and up to the delicious Chilean cherries, everything goes through apps that guarantee home delivery within a few hours.

To confirm the trend of the Chinese population towards e-commerce, there are the data published by the iResearch consulting company: + 59.7% for the fresh food industry sold via the web or the app, with a business turnover that exceeds 139 billion yuan (about $ 22.1 billion).

Among the most popular products in food e-commerce in China, fruit is the main attraction, followed by dairy products and vegetables.

The great success of food e-commerce in China began in the two-year period 2014-2015, when it developed rapidly. Online commerce giants like Alibaba and JD. com have invested heavily, attacking the market and increasing investments in procurement and logistics.

JD.com aims for even greater development. In fact, after it opened a fresh food store in Beijing at the beginning of 2018, it immediately found a large participation by customers: 10,000 customers every day for 7FRESH. The numbers pushed the company to expansionist ambitions, so much so that the president of the chain, Wang Xiaosong, said that in the next five years 1,000 points of sale could be opened throughout China.

In the field of food e-commerce, a key role is played by logistics. According to some surveys, 30.7% of customers hoped to receive their products within a few hours, while 28.8% expected that delivery times could be reduced from 30 minutes to an hour.

JD.com, in this sense, signed a cooperation agreement with Air China Cargo a few weeks ago to develop a new business model for the purchase and direct delivery of fresh food from their production areas.

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Latest news