Data shows that the online trade of fresh produce reached an overall value of 105.16 billion yuan [15.18 billion USD] in the first half of 2018. This is the first time that the overall value exceeded 100 billion yuan [14.44 billion USD]. The overall value increased by 23.5% in comparison with the first half of 2017.
Statistical development of the online trading market for fresh produce in China
Market analysis shows that young consumers in particular favor fresh produce. The fresh produce market is flourishing and the overall value of this market is expected to exceed 200 billion yuan [28.88 billion USD] in 2018. However, as market competition grows fiercer, the fresh produce market may see a rearrangement of players. On the one hand, small and medium e-commerce shops may go bankrupt or merge; on the other hand, tycoons like Alibaba and JD continue to increase their investment in refrigerated distribution and fresh produce supply chains, thus strengthening their dominant position in the market.
Market analysts state that fresh produce is a high-grade consumer product that does not come cheap. The online trade in fresh produce currently suffers from three weaknesses: first, market competition grows fiercer and larger companies become even more dominant. Second, the product quality of fresh produce is difficult to guarantee. If every step from purchase, through storage and transport, to retail is secure, only then can retailers give a guarantee to consumers that they will receive top-quality products. Third, the threshold for online trade in fresh produce is becoming higher. This, in particular, is because the requirements in refrigerated storage and distribution increases the cost price in the industry, so many of the smaller companies are forced to withdraw.
Source: China Commercial Industry Research Institute