China’s E-Commerce Research Center recently released a report entitled "The E-Commerce Market in China in 2017". Among the e-commerce sectors considered was the market for fresh food, which reported sales of 85.14 billion yuan (US$12.92 billion) in the first half of 2017 and is anticipated to reach 165 billion yuan (US$25.0 billion) in total sales by year’s end.
In contrast, in 2016 this sector reported total sales of 91.4 billion yuan (US$13.87 billion), so expected year-on-year growth is around 80%.
The fresh foodstuffs business has the highest requirements and barriers to entry of any e-commerce sector, with challenges in logistics, finance, and user operations. Meanwhile, it has the highest purchase frequencies and a large space for innovation and imagination.
While difficult to implement successfully, e-commerce’s low penetration into the foodstuffs market (around 3%), potential market size (hundreds of billions), and high-frequency consumption patterns still entice ...
Already subscribed? Sign in.
Don't Miss Out.
Invest with as little as one bottle of water per week.
Join other top analysts and business executives and navigate the unique market with China Internet Watch.
Cancel at any time