A gradual easing-off in growth for China’s seafood sales through online channels appears to be underway.
Often thought to be the principle driver of new distribution, online sales in China are still growing at a fast pace, just not as rapidly as in prior years, perhaps in a signal that the market is maturing.
There was a 19.3 percent growth in sales in the first half of 2019 in first-tier cities like Beijing and Shanghai, compared to 30 percent growth in 2018, according to research presented at a conference in Beijing this week, hosted by the China Aquatic Promotion Processing and Marketing Association (CAPPMA). In China’s third- and fourth-tier cities, growth averaged 24 percent according to the report, which was compiled by CAPPMA and the market and strategy institute at the China Academy of Social Sciences.
The research also shows transaction volume was worth CNY 16.9 billion (USD 2.4 billion, EUR 2.2 million) in the period January to June, a year-on-year increase of 22.9 percent. Online channels’ share of sales also appears to have slipped in third- and fourth-tier cities, from 53 percent of total sales in 2018 to 50 percent in the first half of 2019.
Shellfish and dried seafood were the big drivers of sales growth in the first half of this year – rising 42.5 and 34.7 percent, respectively, in value terms. Shrimp was the top category in 2018 with CNY 5 billion (USD 709.2 million, EUR 640.5 million) in sales, followed by crab, with CNY 4.7 billion (USD 666.6 million, EUR 602.3 million) in sales. Sales of fish and ready-to-eat product totaled CNY 4.1 billion (USD 581.6 million million, EUR 525.2 million) and CNY 3.8 billion (USD 539 million, EUR 486.9 million), respectively.
Also at the show, leading online retailer JD.com signed a memorandum of understanding on “strategic cooperation” with CAPPMA.
Photo courtesy of Jasni/Shutterstock
