Report: Online Supermarkets in Shanghai Popular Among Young, Affluent

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Apr. 22 – Our good friends at the China-based market research and consulting firm DDMA released a new report yesterday illustrating the growing popularity of shopping for drinks, snacks, grocery, and personal care items via online supermarkets. The study finds that the emerging trend is particularly prevalent among younger white collar workers and affluent individuals.

The study also evaluates the performance of the key online supermarkets in Shanghai, and identifies the key reasons consumers use online supermarkets, and the barriers to using them.

“There are six major players in Shanghai: No. 1 Store, Taobao Supermarket, Lianhua OK Blemall, Auchan, Dahuozhan, Binggo,” said DDMA Project Manager Jonathan Axup in a Q&A session discussing the recent report. “For all of China, there is just one: No. 1 Store.”

According to Axup, No. 1 Store was the first online supermarket to be launched in China when it was launched exclusively in Shanghai in July of 2008 and it is still the most frequently used online supermarket in the city.

“Roughly 89 percent of white collar Shanghai online supermarket users have shopped on No. 1 Store before,” Axup says. “The second most popular in Shanghai is Taobao Supermarket, with 39 percent having used this before.”

Axup describes the five main factors driving the adaption of online supermarkets in Shanghai to be convenience; good value for money; preferred shopping environment; product selection; and increased product trust.

Key findings in the report include:

  • 22 percent of white collar consumers in Shanghai that bought fruit juice in the past two weeks did so via online supermarkets
  • 40 percent of white collar consumers in Shanghai that bought candy or chocolate in the past two weeks did so via online supermarkets
  • 25 percent of white collar consumers in Shanghai that bought personal care or skincare products in the past two weeks did so via online supermarkets
  • 58 percent of white collar consumers in Shanghai have bought a new brand of beverage, snack or personal care for the first time from online supermarkets

The study was conducted with a sample of 150 white collar, key grocery decision makers (those who do actually purchase products) aged between 25 and 45 years old in Shanghai with monthly personal incomes above RMB6,000. Findings are based on quantitative and qualitative consumer research.

The report, titled “Online Supermarkets in Shanghai: Growing Popularity Among Younger White Collar and Affluent Consumers,” can be downloaded here.

Related Reading

Does the ‘Taobao Effect’ Threaten Retailing in China?

2011 Shanghai Consumer Sentiment Report Available

5 Responses

  • GR Krishna says:

    How can consumers get “trust”,if they buy online. It happens sellers put something in catalogue, but there is no guarantee that we get the same thing and even sellers are not legally bound to that.

  • Critic says:

    40% of all chocolate sold online? Please check your sources! I usually regard China Briefing as trusted news, but this seems unbelieveable.

  • @Critic

    DDMA’s report states that its study was conducted on a specific group of consumers in a specific city over a specific time…not 40% of all chocolate sold online.

    “40 percent of white collar consumers in Shanghai that bought candy or chocolate in the past two weeks did so via online supermarkets.”

    Furthermore, DDMA clearly states their sample group:

    “The study was conducted with a sample of 150 white collar, key grocery decision makers (those who do actually purchase products) aged between 25 and 45 years old in Shanghai with monthly personal incomes above RMB6,000.”

  • Jonathan Chan says:

    Thank you for the fascinating info.

    Please kindly verify whether .pdf content shows up proper.

    The report is consisted of underlines and empty boxes w/o any info.

    Happy Easter

  • @Jonathan

    Report download should be working properly. Will email you a copy just in case.

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