On May 10th, the sixth China Brand Day, the Institute of Sociology of the Chinese Academy of Social Sciences, the National Conditions Survey and Big Data Research Center of the Chinese Academy of Social Sciences, together with Douyin E-commerce and Judian, jointly released the "2022 Domestic Products Market Development Report: New Media, New Consumption and New Culture" (hereinafter referred to as the "Report") in Beijing. The "Report" pointed out that the rapid development of domestic consumption has led to the rise of domestic goods, and consumption upgrading and personalized demand have become the driving force for the development of domestic goods. E-commerce is becoming an important engine to promote the consumption growth of domestic brands, driving domestic brands to "go out of the circle".
Domestic brands ushered in a new window of development
Yang Dian, deputy director of the Institute of Sociology of the Chinese Academy of Social Sciences, said that the "Report" systematically analyzes the background of the rise of domestic goods, the current situation of the domestic goods market, the reasons why consumers choose domestic goods, and the problems and future trends facing the domestic goods market, especially from the perspective of consumer sociology, the characteristics of new consumer groups, the emergence of new consumer cultures, and the role of new media such as Douyin e-commerce in promoting the rise of domestic goods, in order to promote the rise of domestic goods in the mainland. It is of great social value to promote the overseas development of mainland brands and promote the further development of consumer sociology.
The "Report" pointed out that with the upgrading of residents' consumption, the pattern of the rise of domestic products is taking shape. On the demand side, in recent years, the state has introduced a number of measures to stimulate consumption, expand domestic demand, and continuously cultivate consumption hotspots by promoting consumption expansion and upgrading, accelerating the release of consumption potential, and providing a market space with greater potential for domestic brands. On the supply side, the manufacturing industry and supply chain are becoming more and more mature and perfect, and the industry is upgraded, laying a solid foundation for the rise of domestic brands. Under the joint action of the dual forces of the demand side and the supply side, the rise of domestic products has become an inevitable trend.
The "Report" shows that in this context, the attention of domestic products has risen rapidly, and consumers are inclined to buy domestic brands in most categories such as food, dairy beverages, and household products. The young people after 90/95 have become the main force of new consumption, and domestic brands have ushered in a new window of development. The knowledge literacy of the new consumer population is constantly improving, has a stronger sense of autonomy and cultural self-confidence, no longer blindly worships foreign brands, is willing to pay for personality and interest, pays more attention to consumer experience, and becomes the fundamental driving force for the rapid rise of domestic brands.
The "Report" discloses that under the influence of multiple factors such as the rise of new consumer groups and changes in consumer demand, domestic product consumption has entered a high-speed development channel. Clothing, beauty, food, personal care, automobiles and other fields have shown the rising trend of domestic brands. In addition, the consumption of domestic goods shows obvious regional differences. Overall, the more developed the economy, the more exuberant the consumption of domestic goods, and the users of second-tier and above cities account for nearly half of the domestic consumer population. From the perspective of cities, first- and second-tier cities lead the consumption of domestic goods, and Shanghai, Guangzhou and Beijing win the top three. From the perspective of provinces, the eastern coastal provinces are consuming strongly, and the central and western regions are catching up. Guangdong Province has the strongest consumption power, followed by Jiangsu and Zhejiang; Henan, Shandong, Sichuan, Anhui, Hubei, Hebei, Hunan and other provinces have entered the top ten provinces of consumption, showing strong consumption potential.
Emerging media have become a powerful driving force for the development of domestic products
According to the Statistical Report on the Development of China's Internet Network, as of December 2021, the scale of short video users in the mainland reached 934 million, accounting for 90.5% of the total netizens, and the scale of online live broadcast users reached 703 million, accounting for 68.2% of the total netizens.
The "Report" pointed out that with the advent of the era of short video and live broadcasting, emerging communication media have become an important window for young people to understand the world, and emerging media have become a powerful driving force for the development of domestic products.
On the one hand, the platform represented by short videos and live broadcasts has innovative, interesting, personalized and diversified forms, so that more people can feel the charm of traditional culture and enhance cultural self-confidence. On the other hand, the integrated development of e-commerce has expanded the sales channels of domestic products, and e-commerce live broadcasting has also become a popular shopping method for consumers, and has played an important role in the promotion and sales of domestic goods.
In addition, with the continuous innovation of media integration, the form of e-commerce is also constantly innovating, providing more new paths for the development of the domestic market. Interested e-commerce, represented by Douyin e-commerce, combines product information with users' potential shopping interests to release potential consumer demand and allow more domestic products to be seen and purchased.
The "Report" believes that with the change of user consumption mode, the stickiness of online consumption in the mainland has been significantly enhanced, and the e-commerce platform has become an important channel for domestic sales. Emerging formats continue to iterate and grow at a high speed, and have become an important engine driving the growth of domestic consumption.
Interested e-commerce helps domestic brands "out of the circle"
Under the background of the comprehensive rise of domestic products, the influence of domestic brands in many fields is increasing day by day. From clothing to meet personalized needs, to affordable makeup that does not lose big brands, to 3C electronics and smart phones with high-tech content, they are all sought after by users, and 90% of consumers are optimistic about the future development of domestic brands.
On e-commerce platforms such as interest e-commerce, the number of domestic brands has also continued to grow, and explosive products have continued to emerge. For example, Douyin e-commerce data shows that from April 2021 to March 2022, the number of domestic brand goods on the platform increased by 508% year-on-year; in the explosive list, the number of domestic brands accounted for 92%, and the number of domestic goods accounted for 93%.
The "Report" believes that e-commerce platforms are becoming an important channel to help domestic brands "go out of the circle". The cutting-edge brands have achieved significant growth under the support. Mature brands have expanded the consumer group and attracted more consumer attention, and the long-established brands have effectively gained insight into user needs with the help of the platform, met the new consumer needs of young consumer groups such as fashion and personalization, and won new market space. For example, the veteran domestic brand Bee Hua successfully broke the circle through short video live broadcasting, breaking the traditional user impression, evoking user memories, causing emotional resonance, and promoting user consumption.
The "Report" pointed out that the new media platform is also constantly seeking innovation to support the brand, interest in e-commerce has become a new force in the e-commerce industry, the platform through in-depth user insights, to help brands reach consumers faster and more accurately, cultivate innovative new products, explosive products, meet the diversified and personalized needs of users, and promote the structural upgrading of domestic products. At the same time, in terms of sales channels, it also lowers the threshold for new domestic brands, and with the help of e-commerce platforms, the ability of domestic brands to cultivate new products is improved, and the cycle of creating a new brand is also greatly shortened.