As the novel coronavirus (COVID-19) continues to spread across the world, our analysts are constantly tracking the impact of this rapidly evolving situation on the markets and the consumer purchase behaviours. Packaged food is a major driver for the growth of China online grocery market. Xiaohongshu is a social e-commerce platform in China, and is only available through a mobile app. Our team of expert analysts are at your beck and call to deliver you optimum results that are customised to meet your precise needs within the specified timeframe and help you form a better understanding of the industry. In 2016, packaged food witnessed US$18.4 billion in online sales and experienced a compound annual growth rate of 61% from 2012 to 2016. Altogether they made up 67% of packaged food's online sales, with baby food worth US$4.8 billion (with 26% market share), dairy worth US$4.4 billion (with 24% market share), and rice, pasta and noodles worth US$3.1 billion (with 17% market share). With its ambition to drive online grocery sales growth, Tmall has also been promoting mobile shopping, especially into rural markets. Store-based retailers are establishing individual websites or opening flagship stores on online marketplaces (JD, Tmall, etc.) In basic terms, an e-commerce marketplace is a platform where products and services are provided by multiple brands, while the transaction is processed by the marketplace operator. Global Pest Control Market Report and Forecast 2021-2026, Global Governance, Risk, and Compliance Platform Market Report and Forecast 2021-2026, Global Motor Repair and Maintenance Market Report and Forecast 2021-2026, Global Mobile Payment Market Report and Forecast 2021-2026, India School Market Report and Forecast 2021-2026, We use cookies, just to track visits to our website, we store no personal details. This was supported by retailers launching exclusive discounts and promotions for mobile purchases, resulting in a surge of orders via smartphones. China's Pinduoduo Expects Online Grocery Sales to Double This Year By Sumathi Bala, CNBC • Published 40 mins ago • Updated 30 mins ago VCG | Getty Images This report covers market size by … According to the Canadian Trade Commissioner Services' e-commerce guide in China, independent website retailers tend to suffer approximately a −4% earnings before interest, tax, depreciation and amortization (EBITDA) loss while merchants operating on marketplaces experience a 9% EBITDA. Euromonitor, Grocery Retailers in China, 2016. BMI Research, China Food & Drink Report, 2017. To reach a wider consumer base, retailers are putting more efforts into launching their mobile apps to further expand their reach into rural China. All of these initiatives are motivated by efforts to maintain a competitive advantage in the e-commerce market in China. Buy Chinese Food & Groceries Online Find all your favorite Chinese food, drinks and snacks from our online Chinese grocery store. This is a business-to-consumer model in which a Canadian company can setup virtual “stores” on the online marketplace. In 2021, e-grocery sales are expected to reach US$47.1 billion and account for 7.5% of total e-commerce sales. In this model, Canadian companies can work with the platform or a third party service provider to develop promotional activities that generate traffic to their page. It provides the platform for online retailers to open virtual stores and sell their products directly to consumers. © Her Majesty the Queen in Right of Canada, McKinsey & Company, China's e-commerce soft spot: Logistics, 2016. This report focuses on the global Online Grocery Sales status, future forecast, growth opportunity, key market and key players. There are three types of stores available to companies using the online mall model: With this online mall model, Canadian companies have the option to sell their products directly on a domestic marketplace such as Tmall or JD's online mall. Xiaohongshu also owns bonded warehouses in cities such as Zhengzhou and Shenzhen, and aims to collaborate with European and Northern American retailers. Of the different marketplace options, Mintel estimates that the growth in retail sales of e-commerce purchases was mostly driven by 1,094% growth in the B2C online retail segment from 2011 to 2016. Even … Overall, 46% of 2019 sales occurred online. In 2016, China's central government issued a cross-border e-commerce tax. Chinese shopping is becoming more and more popular. -: No data available The study objectives are to present the Online Grocery Sales development in North America, Europe, China, Japan, Southeast Asia, India and Central & South America. It laid out a set of guidelines Tuesday, after meeting six internet giants In this broad, we will show you some fantastic China food and dishes, at the same time, you can take chance to feel and experience the Chinese culture. This research study is segmented on the basis of applications, technology, geography, and types. Email: sales@expertmarketresearch.com Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. *: Compound annual growth rate Chinese e-commerce giant Pinduoduo is on track this year to double last year's online grocery sales, a senior executive with the company told CNBC. Xiaohongshu, 2017. Product returns will futher exacerbate any challenges from shipping products overseas into China (Canadian Trade Commissioner Services, 2016). Issues of trust surrounding the safety of domestic products have pushed consumers to look abroad for brands with strong heritage and focus on safety. In recent years, China has seen a rising middle class with rising disposable incomes and spending. We are technically excellent, strategic, practical, experienced and efficient; our analysts are hand-picked based on having the right attributes to work successfully and execute projects based on your expectations. Internet retailers are opening physical stores or cooperating with store-based retailers to improve their logistics. China’s online retail sales totaled 5,150.1 billion yuan in H1 2020, up 7.3% year on year (down 0.8% in the first quarter). China's e-commerce market is extremely competitive. It partnered with the multichannel company Suning Commerce Group who holds 1,600 brick and mortar stores, and 5,500 after-sales centres in China to develop its distribution network. 1341 Baseline Road, Tower 5, 3rd floor “Other key online grocery retailers in China include Walmart via JD.com and Sun Art Retail, which sells via multiple platforms. Online grocery sales in China are soaring as shopper habits gravitate towards the channel, which is maturing at a much faster rate than we have seen in other markets. What's more, you can collect bonuses on most sites. Source: Euromonitor, 2017, E: Estimate Home delivery - This is the most preferred delivery option among Chinese consumers for online purchases. WeChat provides its mobile payment function, WeChat Pay, to allow consumers to link their credit cards to the app and purchase products through “click and pay” technology. -: No data available *: Compound annual growth rate The internet penetration and surge in ownership of smartphones and tablets helped to drive the growth of e-commerce sales in China. Grocery ecommerce saw sales triple between 2013 and 2018, according to the new report "Online Grocery Shopping in the U.S., 2nd Edition." This means that electronic receipts and certificates will have the same legal weight as their paper versions. “However, despite South Korea maintaining a higher online grocery market share in 2023, China will strengthen its position as Asia’s largest online grocery market, with sales set to reach US$205bn. Ecommerce in China … To obtain detailed information on the internet merchant recruitment on the JD.com Worldwide website. Alibaba, JD.com, Suning, and Vipshop are the top four e-grocery retailers in China, with combined total retail sales of US$254.8 billion in 2016. The platform has also set up 13 country pavilions including a Canadian pavilion. The UK accounts for 7.3% of the global e-commerce share, which … *: Compound annual growth rate *: Compound annual growth rate In comparison to leading players such as Tmall and JD.com, Xiaohongshu need's to improve especially on customer and delivery services in order to compete with larger platforms. Within online marketplaces, there are two formats, which a Canadian producer can participate, in when entering China's market: online hypermarket and online mall. Global Analysis Report. As of 2016, internet access was available to 53.8% of the Chinese population and it is anticipated to cover 89% of the total population by 2030 (Euromonitor, 2017). For more information, please check Apple Pay's website. The report on China Online Grocery Sales Market is the latest addition to the huge database of DecisionDatabases.com. China's Pinduoduo expects online grocery sales to double this year. Yes, there are many Chinese products in Indian online market. According to Mintel, the government's plan, in the next few years is to deepen the penetration of e-commerce in rural areas, by creating sixty national e-commerce demonstration bases, to help develop different business model applications, build infrastructure to support e-commerce regionally and allow greater diversification in the market. Ecommerce in China is aided by a rapidly growing middle class, high smartphone usage and strong internet connectivity. Consumers from the most economically developed cities in China (for example, Shanghai) with strong consumption capabilities are turning their eyes to high quality imported goods. This law is expected to promote the development of cross-border e-commerce that allow Chinese consumers to purchase products from online merchants located in other countires and the establishment of a supervision and management system for those activities. This is similar in many ways to selling to a distributor or to Amazon. Independent websites are another entry point for a Canadian company to enter China's e-commerce market. The online platform manages all aspects of sales and distribution. JD.com, … Grocery Market Share Kantar. In 2016, JD.com acquired the Yhd.com marketplace from retail giant Walmart to leverage its brand awareness in eastern and southern China, as well as to expand its online grocery sales. Chinese consumers buy products or services online expecting bonus gifts, great packaging, and fast delivery. Alipay, launched by Alibaba Group, is one of the leading third-party payment platforms in China, reaching 400 million users in April 2017. Note: E-grocery data only includes online sales of food and drink products. As a result, food products will now have an import tax rate of 10% while alcohol products will have an import tax rate of 50% and a consumption tax rate of 10% to 20% (Mintel, 2016). The packaged food industry is dominant in the country's online grocery industry. Overall, online marketplaces are the most established and advantageous platforms in China's e-commerce market for Canadian businesses as they reduce the cost and time needed to develop and run an independent retail site. We assist and facilitate organizations and individuals procure market research reports, helping them in the decision … Retrieved from http://www.economist.com/news/business/21703428-chinas-wechat-shows-way-social-medias-future-wechats-world. In addition, the company would need to have a local partner that can import and distribute the ordered goods. Sales via online channels are expected to make up a fifth of overall the group’s sales in 2020, up from 15 per cent last year, Huang said. The top e-grocery retailers in China are Alibaba and JD.com. In addition, the Chinese government released a list of imported commodities for retail cross-border e-commerce, referred to as the “Positive List”. Meanwhile, its main rival Alibaba Group, the parent company of Tmall and Tmall Global, experienced a decline in market share of 1.3% over the same review period. The Economist, China's mobile internet: WeChat's world, 2016. The cross-border online malls are a lower risk approach to entering the market, as they require relatively little investment from the foreign company (Canadian Trade Commissioner Services, 2016). *: Compound annual growth rate Furthermore some of the online shopping websites from China can provide a quit good discount for a customer while offering wholesale offers. 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