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Research Update

Research Update

24

June

2019

National Academy of Development and Strategy of Renmin University of China and Jingdong Institute of Digital Science and Technology Jointly Issued “Online Consumption Data Report”

Recently, National Academy of Development and Strategy of Renmin University of China and Jingdong Institute of Digital Science and Technology Jointly Issued Online Consumption Data Report.

According to the Report, 1.4 billion people and more than 100 million households have built a solid chassis to stabilize China's economy. Consumption has become a powerful engine to stimulate China's economic growth.

In 2018, the total retail sales of consumer goods in China totaled 38.1 trillion yuan, an increase of 9% year on year. The contribution rate of consumption expenditure to GDP growth reached 76.2%, higher than 18.6% in the same period last year. Consumption has become the first driving force of economic growth for five consecutive years. Among them, online consumption growth is particularly prominent.

According to the Report, online sales grew by more than 30% in 2018 compared with 2017. From the intergenerational and regional perspective, the elderly over 60 years old and the people in the central and western regions have become a new growth point to stimulate consumption. Specifically, online sales of the elderly over 60 years of age increased by more than 65% in 2018 compared with 2017; online sales of the population in central China increased by more than 40% in 2018 compared with 2017, which is higher than the average level of online consumption growth.

Xu Ling, Vice President of Jingdong Digital Technology and President of Personal Services Group, said that the current consumer sector in China shows a pluralistic trend of development, not only the "quantity" growth, but also the "quality" improvement, while showing a clear "stratified" characteristics. Behind it is the growing segmentation of the consumer market, the gradual differentiation of consumer demand, and the huge structural differences of consumer demand among different genders, generations and regions. Based on the accumulated online consumption data, digital insight will provide support for the micro-level analysis of the characteristics and laws of consumer market development.

Professor Nie Huihua, Standing Deputy Dean of the National Academy of Development and Strategy, Renmin University of China, suggests that manufacturers and sellers should pay close attention to the demographic changes of customers or target consumers, be good at tapping potential customers with advanced technologies such as big data, and skillfully use the "long tail" theory to tap individual needs.

At the same time, according to the Report, the growth of consumption per capita and consumption level of the people borne before 1960 in 2018 is far higher than that of other generations of consumers, which shows that the old people have got rid of the stereotypical image of "saving clothes and food, staying at home and caring grandchildren" and paid more attention to their quality of life.

According to the Report, a new "blue sea" of consumption will emerge gradually and new business formats will come into being. Chinese people have never stopped pursuing the higher quality of life. Science and technology will witness and help China to upgrade its consumption.