JD.com Data: Mid-Spring Agricultural Sales Boom

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by Xiaoqian Han

Online shopping in rural areas has grown rapidly on JD.com in recent years. Ahead of the 2022 spring equinox, which falls on March 20 this year, “green consumption” such as agricultural produce, gardening, and plants has increased significantly. Recently, JD’s Institute of Consumer and Industry Development released a report presenting an analysis of green consumption.

Here are some of the key takeaways from the report:

  • Online consumption of agricultural products has increased dramatically.

  • The compound fertilizer revenue increased more than 10 times year on year.

  • Consumption of agricultural technology services has increased more than tenfold.

  • Generations born after 1985 (after age 85) and 1975 (after age 75) are the largest groups of consumers of agricultural and gardening supplies, contributing 32% of online sales. Post-85s choose to buy fertilizer, animal feed, flowers and plants; people over 75 like to buy gardening supplies and seeds.

Consumption of physical products

Since the beginning of spring on February 4, 2022, the online transaction volume of JD.com’s agricultural products, plants and other green consumption has increased by more than 40% year-on-year (YoY), and the Fertilizer and Gardening revenue increased 317% and 247% YoY.

In the agricultural products category, the transaction value of compound fertilizers increased more than 10 times year-on-year. The volume of nematicides and agricultural machinery sold increased more than 6 times year-on-year.

In addition to consumer demand for agricultural products in rural areas, urban consumer demand for plants is also increasing. The turnover of small-scale landscape plants increased more than 9 times YoY, and the volume of large-scale landscape plants and gardening tools increased more than 150% YoY.

Consumption of service products

The transaction value of agricultural technology services increased more than 10 times year-on-year, and the volume of gardening services increased 247% year-on-year. Before the spring equinox of 2022, the proportion of agricultural technology consumption services in rural areas at the county level increased by 20%, and the proportion of transaction volume increased from 62% to 82%.

The proportion of gardening service consumption in cities is higher than that of rural counties, and nearly 60% of gardening service consumption occurs in cities. Consumers in urban areas represented by major cities like Beijing, Shanghai and Guangzhou prefer to buy gardening supplies, flowers and plants. Consumers in rural county-level areas prefer to purchase animal feed, livestock tools, and prescription veterinary drugs.

From the perspective of consumption characteristics in different regions, Eastern China shows the highest growth in online agricultural products market share. East Chinese consumers prefer to buy fertilizers, flowers and plants, and gardening supplies; Consumers in northeastern China prefer to buy prescription animal feed, agricultural tools and veterinary drugs; consumers in northern China prefer to buy pet food, prescription veterinary drugs and gardening supplies.

Consumer demographics

In the online market for agricultural products, the post-85 and post-75 are the largest consumer groups, contributing 32% of online transaction volume. Compared to the proportion of consumption of all age groups, the proportion of consumption of the user group over 46 years of agricultural products is significantly higher than the proportion of consumption of all categories. On the other hand, the post-85 prefer to buy fertilizers, animal feed, flowers and plants; the post-75 prefer to buy gardening equipment and seeds.

Different from traditional e-commerce, JD.com is a new entity that offers digital technology and capabilities, regulates upstream merchants, and connects consumers with quality to promote rural revitalization and drive more farmers to financial success.

(hanxiaoqian3@jd.com)


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