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China Facts: on fresh produce e-commerce; the next black...

 

In 2016, China's fresh produce e-commerce reached RMB 91.4 billion in transaction volume, up 68.6% Y-O-Y. A study from September 2016 shows that only 7% of Chinese grocery shopping happened online. Grocery isn't the easiest thing to sell online. Unlike most commodities that are conveniently standardized, each piece of fruit, vegetable and meat is unique. To have a comparative advantage over local groceries, e-commerce must carry a wide enough variety, and it needs to have a significant scale from the start or the big stock will just spoil. All this hard work is, eventually, met with low net margins*)    

 

 

*) JD vs Alibaba September 20th 2017

 

 

 

 

 

 

 

 

 

 

 

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Hans Henrik Pontoppidan
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