Consumption has become the leading driver of China's economic growth for three consecutive years, with online retail experiencing remarkable growth. By analyzing sales data from multiple e-commerce platforms, it is evident that the shift in network consumption patterns has been significantly influenced by big data and artificial intelligence technologies. These advancements have led to a more sophisticated, intelligent, and personalized shopping experience.
Experts suggest that on the supply side, there should be a stronger push toward smart manufacturing, increased innovation, and improved design to enhance product quality and create new demand through better supply. This aligns with the evolving consumer preferences and market dynamics.
According to recent statistics from the National Bureau of Statistics, consumer spending contributed 64.5% to China’s economic growth in the first three quarters of this year, reinforcing the consumer-driven growth model. Xing Zhihong, spokesperson for the National Bureau of Statistics, highlighted that the continuous rise in consumer spending, the emergence of new business models, and improvements in consumer policies and environment have all played a role in unlocking consumption potential.
Online retail sales have shown strong growth, with physical goods increasing by 29.1% year-on-year and non-physical goods rising even faster at 52.8%. In the first half of 2017, China's online retail transaction volume reached 3.1 trillion yuan, growing by 33.4% compared to the previous year. Gao Feng, spokesperson for the Ministry of Commerce, noted that the online retail market has been expanding rapidly due to factors such as internet user dividends, consumer upgrades, and the integration of online and offline commerce.
The reporter analyzed data from major platforms like Alibaba, Amazon, JD.com, and NetEase, identifying five key trends shaping current online consumption:
First, consumers are less price-sensitive and more focused on quality. During promotional periods, prices of electronics and home appliances rose, yet high-end products like dishwashers and water purifiers saw sales increase over five times compared to the same period last year. According to Alibaba’s quality consumption index, items such as smart toilets, dehumidifiers, and fitness wear have become popular choices.
Second, smart consumption is emerging as a significant growth area. Alibaba reported a substantial increase in smart devices, including smart homes, virtual reality gear, and other innovative products. JD.com also noted a sharp rise in sales of AI TVs, smart refrigerators, and robotic vacuums.
Third, rural online consumption is growing faster than urban areas. In the first half of 2017, rural retail sales reached 537.62 billion yuan, up 38.1% year-on-year. Experts believe that the expansion of e-commerce into rural areas and cross-border platforms has unlocked new consumer potential.
Fourth, domestic brands are gaining traction. In sectors like home appliances and mobile phones, Chinese brands now dominate the market. Domestic brands accounted for 74.5% of total sales in the first half of 2017, showing strong competitiveness.
Fifth, cross-border e-commerce is becoming increasingly popular. Amazon reported that seniors are now actively participating in international shopping, with those spending over 5,000 yuan being the most active group. Regions like Sichuan, Shandong, Hubei, and Liaoning are showing rapid growth in cross-border purchases.
Liu Nan, CEO of Nut Bud, believes that demand for cross-border e-commerce will continue to grow, especially as consumers seek more personalized and diverse options in daily necessities. With the rise of the "second-child era," the variety of products available in the market is expected to expand further.
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