On Mar. 19, WeChat issued Work Resumption Alliance Report [1] (微信复工者联盟). The report compares WeChat background big data from Mar. 2 to 10 and Feb. 2 to 10 to reveal the consumption rebound in the Chinese market in the post-epidemic era after everyone returned to work.
***The data collected in this report represent the situations of those merchants and consumers who use/accept WeChat payments/applets. Alipay and WeChat Pay are the most comprehensive online payment tools in China.
Overview: Retail Sales Grows Fast
After the resumption of work, seven WeChat retail applets monthly sales volume exceeded 100 million RMB [1], some businesses applets daily sales growth was 11 times greater than the sales figures recorded in December 2019.
Online Services Accelerate Recovery
The catering industry was one of the sectors most affected during the outbreak. Although the catering industry has shown some signs of recovery, data shows consumers generally trust and rely on the security provided by delivery services. The consumption rebound in the catering industry is mainly dependent on online consumption. Takeaway purchases soared 402% [1].
Covid-19 has stimulated online purchases of fresh foods. Group purchasing, exemplified by the Pinduoduo model, has also become a popular way for communities to purchase fresh foods in China. In the past, fresh foods and FMCGs did not sell well online [2], especially in third- and fourth-tier cities. China's response to the COVID-19 pandemic required many citizens to stay at home and adhere to social distancing requirements. Most citizens tried to avoid going out, which lead to a sharp decrease in bricks and mortar sales. During this time, consumers were introduced to the fast and contactless delivery systems used by online stores and food delivery platforms. Purchasing habits formed during the COVID-19 pandemic are expected to have a lasting impact.
Milk Tea Sales Skyrocket
According to the report, the number of orders of tea drinks proliferated by 744% [1], far more than other food categories. To satisfy consumers post-Covid milk tea cravings, Naixue (奈雪), a milk tea chain in China, launched a 5-liter canister of milk tea (equivalent to ten cups) [3]. This product should be valued at 240 yuan (approx. $36), but is retailing for only 99 yuan (approx. $15) for a limited three day period.
Significant Increase in Shopping
Both supermarkets and convenience stores have seen a rebound in consumption in the post-covid era. In particular, supermarkets with a broader range of products saw a 68% increase in purchases compared with the situation during the outbreak [1].
Delivery Service
According to data, 3 million courier workers across the country have returned to work to continue supporting consumers in realizing contactless courier deliveries [1]. After courier workers returned to work, the number of orders placed by consumers via WeChat applets rose 179%[1], while the DAU growth of logistics-related applets reached 255% [1].