China’s Fresh Food E-Commerce GMV Is Expected to Exceed 100 Bn Yuan in 2017

Source:iResearch June 06,20163:34 PM

Thanks to the government’s favorable policies in China, the trade volume of China’s agricultural products keeps increasing in recent years. In 2015, the trade volume attained 4.8 trillion Yuan, up 24.8% compared with the previous year and it is expected to continue its steady growth in the future according to iResearch.

China’s fresh food e-commerce market developed fast with a growth rate higher than 80% every year, GMV of which accounted for 3.4% in the total retail sales of China’s agricultural product retailing. Thus, it is forecasted to have a promising future.

iResearch holds the opinion that China’s fresh food e-commerce GMV is expected to exceed 100 billion Yuan in 2017 with a penetration rate of 7%.
In online fresh food market in 2015, the top 3 popular goods were fruits, dairy products and meat.  Although vegetable is an important category in online fresh food market, its purchase rate is comparatively low in online market. Meanwhile, dairy products are largely imported due to the strong demand and become one of the most popular online fresh food. What’s more, customers who have purchased fresh food online are generally satisfied with this business, and the purchase rate of imported fresh food is higher than that of domestic fresh food.
As people now have well-off and fast-paced lives in China, price is not the key advantage for fresh food e-commerce, since most fresh food has become necessity in people’s lives. Rather, online fresh food shopping can save purchasing time at the supermarket, which is the biggest attraction for customers.

Due to the unique features of fresh food, the development of online fresh food shopping promotes the improvement of delivery in this sector. The same-day delivery rate of fresh food has reached 52.5%, and two-day delivery rate has exceeded 2/3. 

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