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How resilient is modern China? Corona virus’ influence on Chinese e-commerce

Normally, China ‘shuts down’ for about 2 weeks during Spring Festival, and people massively travel around to spend this holiday with their family, enjoying quality time, food and drinks.

However, this year has been completely different. How? Cities have been on lockdown and people have been confined to their own homes, limiting themselves from outdoor movements. Why? The novel corona virus.

With several government announcements imposing regulations over the past weeks, restricting physical gatherings (including for work and education) the country and its people have been making a stand containing the spread of the virus.

Starting this week, big cities such as Shanghai are slowly and carefully returning to work, albeit mostly remotely when possible, taking into consideration the influx of people migrating back to the city.

Undoubtedly, that the situation has and will further influence the perception and trust in the China market on a global level when production lines will fall behind. Domestically, as China has a very innovative e-commerce infrastructure, it will have negative influences (ie. Meituan and Elema, food delivery platforms as most restaurants have closed, and most delivery logistics platforms since they have ceased business; except for Shunfeng logistics), but also positive ones.

With people being confined to their home’s, online ordering for groceries have seen immense increase in these couple weeks. E-commerce platforms such as JD, Dingdong, and HeMa for fresh produce, all have their own delivery platform.

The coming times will remain difficult, waiting for the situation to be resolved through prevention, control and also natural circumstances (waiting for summer heat). But as we live in an e-commerce driven society, there are also positive foresights.

Certain sectors that we predict will have positive trends:

  • Online gaming
  • E-learning
  • Online retail
  • Social platforms

In addition, we believe that new innovative platforms can and will be created that can serve the need of the people in these difficult times.

If you would like to know more about related news and developments, please don’t hesitate to contact us at Dr2 Consultants Shanghai by emailing shanghai@dr2consultants.eu.