Premium quality products are becoming increasingly popular in China, and more and more e-commerce companies are turning its focus from low prices to high quality including Netease Yanxuan, Mijia Youpin (Xiaomi), Biyao, and Tmall (Taobao Xinxuan).
China’s upper middle class and affluent households will drive 75% of consumption growth, and the proportion of young consumer groups in overall growth is 69%.The average disposable income per capita in China was 23,821 yuan in 2016, an increase of 8.4% over the previous year.
The quality e-commerce platforms focus on delivering high quality products directly to consumers with competitive pricing and faster response to the market demand.
Netease launched Yanxuan in April 2016 and reached 30 million registered users and 60 million yuan GMV by September 2016. Xiaomi launched Mijia Youpin brand in April 2017 focusing on smart devices such as TV, smartphone, and routers.
Biyao was founded in January 2014 and launched in July 2015. Alibaba launched a Tmall store called Taobao Xinxuan at good.tmall.com, selling directly to consumers.
Quality Retail E-Commerce Platform Users
Taobao Yanxuan saw more female users (56.35%) while the majority of Xiaomi’s Mijia Youpin and Biyao users are male (71.87%, 67.58% respectively).
Quality retail e-commerce users are mainly between 24 and 35 years old who have higher and stable income with high-quality requirement on the products.
Over 60% quality retail e-commerce users in China are from tier-1 and tier-2 cities. Mijia Youpin sees higher penetration in tier-3 cities (26.88%).
Yanxuan and Taobao Xinxuan both focus on household products while Biyao on apparel and Mijia on smart household products.