Chongqing- In recent years, especially following the pandemic, the economic situation, both domestic and international, has undergone profound changes. Consumer mentality and habits have changed significantly as the consumption market has grown to rank first globally in terms of scale, becoming the main driving force for economic growth.
Since the Double Eleven national online consumption event has been held under a new development pattern, e-commerce in Chongqing achieved new vitality and key breakthroughs.
Statistics showed that the Double Eleven period from November 1st to 11th achieved online retail sales of 939.23 billion yuan (about USD 143 billion) nationwide, an increase of 23% year-on-year.
Chongqing posted online retail sales of 12.14 billion yuan, an increase of 22.9% on the previous year. The city ranked 13th in China, an advancement of one place compared to last year.
Following the conclusion of Double Eleven, the following characteristics have been identified through analysis;
Potential in online consumption growth is effectively tapped into as the market expands in scale
On the Tmall platform, Chongqing consumer purchases ranked 7th among cities nationwide, behind Shanghai, Beijing, Hangzhou, Guangzhou, Shenzhen, and Chengdu.
On JD.com, consumption increased by 98% month-on-month as Chongqing's purchasing power ranked 14th in the country. The districts of Yubei, Shapingba, and Nan'an ranked among the top 3 in total online consumption figures in the municipality.
Meanwhile, online shopping's permeation rate has increased significantly, as middle-aged and elderly consumers enjoy improved internet access. The number of people aged over 56 years old on the JD platform has increased by over 30% year-on-year, with JD supermarkets and fresh products their favorite consumer categories.
Orders placed by college students is 20% higher than the city average, with new growth points emerging in electrical appliances like mobile phones and computers.
Urban and rural consumption has become more balanced, as lower-tier transaction volumes in towns and counties grew rapidly. Among these demographics, household transactions in commodities increased 27 times year-on-year, with Yunyang County ranking first in terms of growth.
The role of leading online platforms has become more pronounced
As seen through the eye-catching performance of Chongqing JD Mall, Chongqing RRS, and Chongqing MaomaoChong. Over 150 companies achieved online retail sales in excess of 1 million yuan on these platforms, while nearly 190 stores reached the same figures.
Local product brands made great efforts to attain new heights. Food, digital, and clothing products remained the top best selling categories in the Chongqing online retail market, with sales reaching 2.85 billion yuan, 1.57 billion yuan, and 1.18 billion yuan, respectively.
Online retail sales in the pharmaceutical, maternal, and household product industries showed rapid yearly growth to rank third with high demographic permeation levels.
Traditional brick and mortar retailers also leveraged online development to make rapid gains. In Chongqing, physical online retail sales reached 10.07 billion yuan, a year-on-year increase of 25.5%.
Lee & Man Tissue Factory actively prepared for Double 11 with a mass increase in advance production. Line equipment was in operation 24 hours a day to reach a monthly production capacity of 150 million packs weighing a total of 15,000 tons.
On November 1st, 10 million packs of tissues were sold. Haijie Disinfection and Sanitary Products had nearly 200 employees working in two shifts to operate at full capacity. Over the Double Eleven period, they achieved one-third of their annual sales volume.
Service-oriented online sales recovered steadily in Chongqing, with a figure of 2.07 billion yuan achieved. Air tickets, hotels, and buffets featured among the top three, while online sales of Zhubajie exceeded 46 million yuan.
The trend of live e-commerce broadcasts has become ever more popular and dynamic
In Chongqing, a total of 13,492 live broadcasts attracted an audience of 57.733 million viewers, producing a transaction volume worth 240 million yuan. There were 142 active presenters and 941 stores that ran independent broadcasts. Categories such as digital products, grains, cooking oil, seasonings, and daily commodities ranked highly, while Golden Dry Roll small noodles sold best across the whole network.
Transaction volumes in cross-border e-commerce attained new heights. Statistics showed that combined transactions at the Lianglu Cuntan Bonded Port Area, Xiyong Comprehensive Bonded Zone, Highway Bonded Logistics Center (Type B), and Chongqing Railway Bonded Logistics Center (Type B) numbered over 2.77 million, generating an amount in excess of 400 million yuan.
Development in rural e-commerce has rapidly gained pace, as further improvement has been made to the support network of infrastructure, supply chains, logistics, and services, which have enhanced the rural-based industry's competitiveness. Online retail sales amounted to 1.74 billion yuan, with Fengdu County, Qianjiang District, and Wanzhou District ranking in the top 3. Agricultural products became the main category for online sales in rural Chongqing, which accounted for 840 million yuan in sales. The categories of livestock and poultry, fruit, and grain and oil achieved online sales of 180 million, 180 million, and 110 million, respectively. Beef, mutton, and grapefruit also become hot-selling products.
Traditional brick and mortar stores combined on and offline sales to forge ahead of competitors. Major shopping malls offered large scale promotional discounts over Double 11 to expand sales through greater traffic flow. Promotions included online live broadcasts, fire sales, as well as offline group vouchers and discounts.
Multi-party guarantees have promoted healthy development in the e-commerce industry
Warehouse facilities and the express logistics support chain have seen continued improvement. The Chongqing Municipal Commission of Commerce and the Chongqing Municipal Postal Administration planned ahead to establish a collaborative guarantee mechanism for e-commerce and allocated maximal resources to support express delivery over the peak time.
Major express delivery companies have adopted measures such as building cloud warehouses and renovating automated equipment to achieve faster delivery times. The combined express delivery volume of 18 major brands in Chongqing was projected to reach 59.68 million packages, with a total of 134 million individual parcels for customer delivery, a year-on-year increase of 60.3%.
Yuantong Chongqing Transfer Center installed new automated equipment as part of a system upgrade that increased output by 50%. SF Express and the Chengdu Branch of China Railway Express jointly launched the Chengdu-Chongqing Road and Rail Link + Same-Day Delivery model, which sped up express delivery times between Chengdu and Chongqing Express by 6 hours. The Chongqing Airport E-commerce Smart Warehouse and holding facility stored 1.8 million items. SF Express, Zhongtong, and the Chongqing Branch of Yunda enhanced their workforce and ungraded equipment, such as the intelligent sorting mechanism, to greatly improve guarantees in delivery capabilities.
Regulation has also been overhauled to achieve optimal performance. The Port and Logistics Office of Chongqing Municipal People's Government has made every effort to ensure timely customs clearance and to stabilize operations of the Cross-Border E-Commerce Public Service System. Chongqing Customs has established a cross-border tracking system to ensure the origin and current whereabouts of all goods can be traced. Smooth cross-border channels for returned goods were implemented to protect the rights and interests of consumers. Jiangbei District, Xiushan County, and other market supervision departments issued guidance over the Double Eleven period for rational consumption, standardized e-commerce practices, regulation compliance, and honest operations.