Express delivery and e-commerce reach the countryside: rural consumption willingness rises sharply

In the first half of 2015, the consumer confidence index in China's first- and second-tier cities declined relatively quickly, while the confidence index in rural areas climbed 2 points to 106 points. Despite the decline in employment expectations, rural consumption willingness showed a relatively large increase.

Recently, the world-renowned market research company AC Nielsen released its second-quarter survey of China's consumer confidence index. The data show that in the first half of 2015, the consumer confidence index in China's first- and second-tier cities declined relatively quickly, while the confidence index in rural areas climbed 2 points to 106 points. Despite the decline in employment expectations, rural consumption willingness showed a relatively large increase.

This indicates that China's consumption pattern is changing. “The rise in rural consumption willingness is mainly due to the policy support for express delivery reaching the countryside, the convenience of e-commerce purchasing channels, and the pursuit of a better rural quality of life,” said Yan Xide, general manager of Nielsen China.

Nielsen's survey data from 3,500 consumers across cities at all levels and rural areas nationwide show that 25% of people believe purchasing is convenient and that they can “buy whatever they want, whenever they want”; among them, 83% believe this is because online shopping provides great convenience, while another 20% believe they have a certain level of financial capacity. In the past three months, the group of people spending on online shopping increased by 64%, 11 percentage points higher than the national overall level.

At present, driven by the policy of express delivery reaching the countryside, in the second quarter express delivery outlets covered 48% of townships, with 50,000 new outlets built, and the number of express parcels delivered to the countryside reached 2 billion, driving 160 billion yuan in sales of industrial goods in the countryside. “Express delivery reaching the countryside” and “e-commerce reaching the countryside” have become important pillars for boosting rural consumer confidence. Notably, a comparison of online shopping rankings found that, in addition to clothing and household daily necessities ranking in the top two, in rural areas the corresponding maternal and infant products, personal cosmetics, and travel ranked relatively high.

From the perspective of regional markets, the eastern region, as a benchmark for China's economic reform and development, has taken the lead in transforming its consumer market, which can be seen as a weather vane for China's future consumption changes. Consumers in the eastern region tend to spend on enjoyment-oriented consumption such as dining out (59%), clothing (53%), and personal digital devices (51%).