JD.COM’s ＂2023 China Brand Development Trend Report＂： the product category of Guochao has expanded by more than 2 times, and the consumption scene is more than RMB.

On May 10th, the 7th China Brand Day was ushered in. On this occasion, JD.COM Institute of Consumption and Industrial Development released "2023 China Brand Development Trend Report", which comprehensively analyzed the development characteristics of China brand’s "transformation and upgrading" under the background of supply-side structural reform, high-quality consumption and digital economy era. According to the report, from quantitative change to qualitative change, the brand growth of China presents the characteristics of double upgrading of consumption and supply. From 2019 to 2022, among brands with a certain sales scale, the turnover growth rate (multiple) of domestic goods is 1.2 times higher than the sales growth rate (multiple), and the growth rate of per capita consumption exceeds 70%. Consumers’ spending on domestic goods continues to increase, indicating that with the upgrading and reform of mass consumption structure, more high-quality and high-value China brand goods will be favored by consumers in 2022. At the same time, from the perspective of the growth of the number of brands and product categories, the growth rate of product categories will be higher than the number of brands in 2022, and more China brands will focus on expanding their product lines to meet the personalized and diversified needs of consumers.

Quality domestic products penetrated into the county rural market, and the proportion of domestic products continued to increase.

According to the latest data released by the National Bureau of Statistics, in the first quarter of 2023, the total retail sales of social consumer goods was 1,149.22 billion yuan, a year-on-year increase of 5.8%. Specifically, according to the location of business units, the retail sales of urban consumer goods was 9,966.4 billion yuan, an increase of 5.7%; The retail sales of rural consumer goods reached 1,525.8 billion yuan, an increase of 6.2%. Among them, the growth rate of rural consumption is faster than that of towns. Analysts believe that the wide consumption in rural areas will become an important driving force to promote consumption and expand domestic demand. It is particularly worth mentioning that the county connects urban and rural areas, which is an important channel and carrier for the circulation of goods, services and production factors in urban and rural areas, and also an important part of stimulating the potential of domestic demand. Driven by the new consumption mode, the potential is being accelerated.

JD.COM 2023 China brand consumption trend shows that from 2019 to 2022, among brands with a certain sales scale, the proportion of domestic products in the county rural market increased by 10%, while that in the first-tier cities increased by 8.2%; The county rural market is more interested in quality domestic products. The number of per capita purchases in the county rural market increased by 34% year-on-year, and the per capita consumption increased by 133% year-on-year. Judging from the proportion of domestic shopping users in different market grades and categories, the proportion of consumers in mobile phone communication, maternal and child, household appliances, home improvement building materials, food and beverage in the county rural market is higher than that in the first-tier market; The number of consumers in fresh food, medical care, computer office, household daily use and kitchen utensils accounts for the proportion, and the first-line market is higher than the county rural market. Consumers in developed cities also prefer domestic products in products closely related to daily life, which fully shows their recognition of the quality, function and design of domestic products.

"Cultural identity" continues to boost "national tide economy"

With the rapid growth of China’s brand, the national tide has produced more and more influence among consumers, especially young consumers, making more enterprises pay more attention to adding China elements to their goods and even services. This will further enrich the goods of rich countries and attract more consumers to pay attention to and recognize the national tide, thus forming a positive cycle from the supply side to the consumption side.

China brand has launched more fashionable products that are in line with consumers’ aesthetics. According to the report, from 2019 to 2022, from the industrial point of view, the types of products with the national tide as the design concept expanded by 231%, and the number of brands producing national tide products increased by 223%; From the consumer side, the number of consumers who bought goods related to the national tide increased by 74%, and the transaction amount increased by 355%. More importantly, the connotation and structure of the new consumption concept represented by the national tide consumption are also constantly upgrading, showing the trend of high quality, all categories and multiple forms. In particular, young people, represented by Generation Z, are playing a more and more important role in the consumers of the national tide. Their love for China culture and their pursuit of diversity and individuality have also made the attention of the national tide continue to increase.

Innovative products of traditional festivals continue to be concerned by consumers.

The consumption of domestic products formed by traditional festivals and cultures is becoming increasingly popular, which is mainly reflected in the consumption of food. In addition to the traditional classic tastes, major food companies are constantly developing new products and new combinations in terms of packaging and taste, attracting more consumers’ attention.

In terms of consumers’ concern about traditional holiday time-honored products, brand accounts for 88% of the key factors in the decision-making before the purchase of Dragon Boat Festival Zongzi, and taste accounts for 86% of the key factors in the decision-making after the purchase. Among the key factors in the pre-purchase decision-making of moon cakes in Mid-Autumn Festival, the types of moon cakes account for 52% and the brands account for 30%. Among the key factors of repurchase decision, the taste of moon cakes accounts for 90%; Among the key factors in the pre-purchase decision-making of Yuanxiao/Tangyuan, the brand accounts for 95%; Among the key factors of repurchase decision, the taste of Yuanxiao/Tangyuan accounts for 77%. At the same time, with the diversified development of shopping channels, a large number of traditional brands represented by time-honored brands are welcoming considerable development, and many time-honored products have also achieved "breaking innovation". Research shows that 75% of young people are interested in time-honored innovative products, and the consumption trend also confirms this point. A large number of young consumers will take the initiative to choose time-honored brand products.

From focused consumption in daily life to multi-scene consumption.

Through in-depth insight into consumers’ needs, China brand continuously improves product quality and product richness, so as to further embrace consumers. In recent years, more domestic products in sub-sectors that meet consumers’ daily life scenes have achieved rapid growth.

According to the report, from 2019 to 2022, the number of shopping users of domestic products such as infant dining chairs, outdoor windbreakers, sports waist protectors, toothpaste, baby sheets/mattresses, sunglasses and pet feeding increased by over 100% year-on-year, and the number of shopping users of domestic products such as car appliances, razors, gold jewelry, sports protein powder, functional drinks and game headphones increased by over 200% year-on-year.

Judging from the changing trend of the concentration of shopping categories, in 2019, the TOP5 sub-categories of domestic products were mobile phones, biscuit cakes, nuts roasted seeds and nuts, leisure snacks, milk and dairy products, accounting for 14.0% in total; In 2022, the number of shopping users of domestic products was divided into mobile phones, convenience foods, milk and dairy products, roasted nuts and condiments, accounting for 8.8% in total. From the trend of the number of users in TOP5 sub-category, the concentration decreased by 5.2%, indicating that more domestic products in sub-category are concerned. At the same time, affected by the external environment, from 2019 to 2022, the proportion of shopping users of domestic products increased, and the TOP5 sub-categories were personal protective equipment, cold medication, home care, paper pumping and vitamins.

On the whole, whether in the field of home appliances where domestic products are developing strongly or in the field of food where new products are emerging one after another, China brands are emerging a large number of quality products that meet consumers’ personalized and diversified needs, and consumers’ perception of domestic products has also undergone major changes, and their sense of identity, belonging, value, ritual and security has been significantly improved. It can be said that the brand of China has shown its great strength.