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Recently, NielsenIQ released the report “Exploring China’s New Engine of Online Growth: Insights from the CBI Index on Consumer Evolution. Drawing insights from the “China Online Consumption Brand Index (CBI) (2023-2025)” report released by the National School of Development at Peking University , it analyzed the latest dynamics and trends in China’s online consumption market. Based on big data from Taobao and Tmall platforms and through modeling and analysis, the study found that despite current economic conditions, China’s consumption market has demonstrated strong resilience. As consumers increasingly pursue quality and discerning consumption, e-commerce platforms have played a key role in promoting branded consumption.
Retail Market Sales Growth Accelerates, with E-commerce Platforms Driving the Growth of the FMCG Industry
Data from the National Bureau of Statistics of China shows that in the first quarter of 2025, the total retail sales of consumer goods reached 12.5 trillion yuan, a year-on-year increase of 4.6%, which is 1.1 percentage points faster than the previous year. Among them, the growth rate of national online retail sales reached 7.9%, higher than the average level of total retail sales of consumer goods, and the proportion of physical goods sold online in the total retail sales of consumer goods has reached 24.0%. In March, the growth rate of total retail sales of consumer goods accelerated compared to January-February, reaching 5.9%, and the macro fundamentals of consumption showed a stabilizing trend.
With the government’s continued release of signals to boost consumption and the implementation of related measures, new impetus will be injected into the consumer market, driving further development of the fast-moving consumer goods (FMCG) market. The report points out that in the next 12 months, consumers’ willingness to spend on health and wellness products, dairy products, and home care items—categories of FMCG—will increase and is higher than the average level in the Asia-Pacific region, with the market size expected to expand steadily.
The report indicates that China’s FMCG industry is experiencing a steady recovery, with e-commerce platforms becoming a significant driving force for industry growth. In 2024, the total sales of China’s FMCG industry across all channels increased by 2.8% year-on-year, with the online e-commerce channel showing a remarkable growth of 10.2%. According to the sales data monitored by NielsenIQ, the peak sales season for e-commerce remains a key driver of growth. Meanwhile, the China Online Consumption Brand Index (CBI) saw significant quarter-on-quarter growth in the second and fourth quarters, further highlighting the role of e-commerce festivals like “6.18 Shopping Festival” and the “11.11 Global Shopping Festival” in boosting brand consumption. Therefore, seizing the opportunities of online channels is crucial for brand management.
Consumer Preferences Drive Brand Upgrades, with Steady Growth in Brand-Driven Consumption
With the rise of new consumption concepts, consumer demands are undergoing profound changes. Nowadays, consumers are no longer satisfied with a simple balance of price and functionality; instead, they have higher expectations for quality, experience, and brand value. This shift in demand has driven FMCG consumption from being “purely price-sensitive” to being “sensitive to both quality and price.” E-commerce platforms, as the hub connecting supply and demand, are reshaping consumption scenarios, pushing brands from “low-price competition” to “value-depth cultivation,” stimulating the launch of new products, and driving the growth of FMCG categories. Data from the National Bureau of Statistics of China shows that in March 2025, the year-on-year growth rate of online retail sales of physical goods reached 14.9%, far higher than the 5.9% growth rate of total retail sales of consumer goods.
On the other hand, as consumers’ pursuit of quality, experience, and brand value continues to rise, brand-driven consumption in the Chinese market is showing a steady growth trend. The report points out that consumers are more rationally seeking the best solutions at reasonable prices in their purchasing decisions, and brands have become an important avenues to meet this demand. Data shows that the online brand consumption index in China rose from 59.42 in the first quarter of 2023 to 63.38 in the first quarter of 2025, demonstrating the online market’s role in driving consumption of quality brands.
Moreover, the increasing attention consumers pay to health and self-care experiences is driving brands to upgrade their product design and functionality. For example, the application of professional ingredients such as hyaluronic acid, which has crossed from skincare to body care and oral care products, and the popularity of low-fat, low-salt foods, reflect consumers’ dual pursuit of health and quality.
New Products Drive the Growth of E-commerce FMCG Categories, with Quality and Innovation as Key Factors
The report indicates that new products are the primary driving force behind the growth of e-commerce FMCG categories. According to the sales data monitored by NielsenIQ, on the Taobao and Tmall platforms, emerging brands account for about 40% of the total number of brands. Tmall, as the leading platform for new product launches and a center for growth and a leader for innovation and growth, has particularly notable performance and potential in new product sales. In particular, skincare products, detergents, and yogurt had the highest proportion of new products on the Tmall platform, while packaged water, liquid milk, and small-packaged edible oils were the categories with the highest growth rates for new products.
The report emphasizes that brand equity and innovation are the core drivers of online consumption growth. E-commerce platforms, through AI technology empowerment and full-process CRM resource support, help brands better grasp market trends and consumer demands. Brand merchants need to meet consumers’ pursuit of quality and emotional value by optimizing packaging design, enhancing product performance and innovation, emphasizing health attributes and self-care experiences, thereby achieving brand upgrades and “premium pricing.”
