Are China's online seafood sales immune to coronavirus?

Amid the outbreak customers are, for now, more inclined to shop online, but logistical challenges also come into play for all channels.

Sapmer products featured on Chinese e-commerce site JD.com
Sapmer products featured on Chinese e-commerce site JD.comPhoto: LinkedIn / Eddy Boutouria

As China's burgeoning foodservice industry flounders in the face of the coronavirus, other channels are grabbing market share in a country where food is not only an essential of everyday life, but a cultural institution.

And while it is still early days to call judgement, arguably the biggest "winner" will be online sales.

"Everybody needs to eat," Rabobank China Consumer Foods Analyst Michelle Huang told IntraFish.

Fresh food e-commerce has been higher than usual in recent weeks as people refrain from venturing out, and e-commerce companies have been working overtime to manage demand, said Huang, agreeing that, while early days, this period will likely drive the importance of e-commerce in Chinese consumerism.

China's e-commerce industries are far more advanced than those in any other country, and as such they already play a key role in Chinese life, making it an obvious switch in a time where road and transport hub closures make getting from point A to point B difficult.

Sapmer, Thai Union see sales nudge up

While French tuna giant Sapmer won't yet commit to claiming sales have grown, its blossoming e-commerce business has seen no slowdown in the last couple of weeks, Marketing Manager Eddy Boutouria tells IntraFish.

"We don't have all the figures yet but it seems that our performance on JD.com is satisfying," Boutouria said.

"Our e-commerce activities remain solid because customers prefer to stay at home in safer conditions rather than going to supermarkets."

Thai Union, too, whose King Oscar brand has experienced rapid growth in the Chinese e-commerce market, has seen some movement in online sales in the last two weeks.

"Home delivery and e-commerce sales are slightly higher than normal as people are staying in their homes more," Managing Director of Emerging Markets Sanjeev Pant told IntraFish.

"Online is growing anyway and this will probably make home delivery and online sales' share of total trade go up. However, the next few weeks and months are important to study this trend," he said.

Challenges for everyone

Despite higher sales however, the situation overall does not help anyone grow business. Logistical challenges are not limited to consumers themselves, and e-commerce companies' opportunity to grab market share comes hand in hand with access issues in the face of a shutdown that has seen villages and towns barricading entry points to their communities, said Huang.

"This is a potential area of concern as the government has extended the holiday until February 9th and advised people to stay home and avoid public places," said Pant.

"We do not see major issues in getting products into China ports. However logistics and distribution within the country and distribution to our customers could face constraints. The picture will become clearer in a few weeks’ time."

There is also the issue of the delivery process itself not transmitting infection, and some e-commerce players are taking measure to protect themselves from any such incidence, Huang told IntraFish.

"We hope the situation will go back to normal as soon as possible," Boutouria said. "Our main concern during this time remains on our staff's safety."

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Published 7 February 2020, 01:37Updated 11 February 2020, 00:08
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