Health is wealth: Younger Chinese consumers make up 60% of bird’s nest purchases on JD.com

According to data collected by JD, these consumers contributed 60% of purchases on the platform, revealing that consumption of bird’s nest was growing fast among this group of highly educated younger generation.

The data also found that the average annual growth rate of bird’s nest sales on JD.com grew at more than 50% over the past five years.

Health is wealth​

Jing Xu, general manager of TCM nutrition and health management at JD Health told NutraIngredients-Asia​: “We found the younger generation in China, especially those born after 1990s are paying more attention to health as they are busy and might not eat well or rest enough​.”

While edible bird’s nest is a nourishing food long prized in Chinese culture for promoting good health and skin benefits, it used to be exclusively reserved for the Chinese royal family due to its rarity and high price. However, Xu said it was now much “easier and convenient for everyday consumers to buy high-quality bird’s nest at a good price online​.”

In particular, she observed this younger generation were increasingly more open to online shopping.  “JD.com, with its guarantee of authenticity in China, presents an easy choice for younger consumers to buy high-quality bird’s nest at a good price​.”

In addition, the firm had a self-built nationwide logistics network which covered over 99% of China’s population with 90% of the orders able to be delivered within the same or next day, which Xu said can fulfil the younger generation’s demand for fast and speedy delivery.

Regional preferences​

The data also revealed that different regions within China have different bird’s nest consumption preferences.

For instance, Southern China have a stronger preference for dry bird’s nest, while Northern China preferred pre-cooked bird’s nest.

Xu explained: “People living in southern China, such as Guangdong Province, have been eating bird’s nest for a long time and are already accustomed to how to cook dry bird’s nest​.

“However, people living in northern China are relatively new to bird’s nest consumption, and may not know how to cook it themselves. This is why people living in northern China prefer pre-cooked products​.”

Between July 2018 to June 2019, consumers in Beijing city purchased the highest volume of bird’s nest, followed by Guangdong province.

According to Xu, most of the purchases from younger consumers were for own consumption, and that female consumers were more likely to purchase bird’s nest than males on JD’s platform.

“We also found that people buy more bird’s nest during e-commerce shopping festivals such as JD’s 6.18 anniversary sale and Singles Day (11.11), Chinese and Western Valentine’s Day and Double Ninth Festival, with significant sales growth in purchases by women during that period​.”

Quality imports​

Most of the dry bird’s nest sold on JD.com were imported from South East Asia, especially from Indonesia, Thailand, Malaysia, and Vietnam. Xu said JD works directly with bird’s nest manufacturers, such as Tong Heng in Indonesia.

“Purchasing directly from a manufacturer in Indonesia allows JD to ensure all product meets the highest quality standards, creating the best possible value for consumers as well.​”

On the other hand, most pre-cooked bird’s nest products were produced domestically from imported dry bird’s nest.

Among the popular bird’s nest brands on JD.com were Chinese Yan Palace and Xiaoxiandun.

Most recently during the Singles Day shopping festival held from November 1 to 11, 2019, sales of bird’s nest on JD.com have increased by 200% compared with the same period last year.

For Xiaoxiandun alone, sales of its products on November 1, increased by 167% compared with the same period last year.

Sales of bird’s nest manufactured by Tong Heng on November 1 was three times that of the whole month of October.

Xu expressed: “Young consumers in China are now increasingly accustomed to making the lion’s share of their purchases online, and JD’s reputation as the most reliable e-commerce platform in China makes it the ideal choice for them to purchase a luxury item such as bird’s nest.​”