Consumers Lured by Promise of Safe Groceries Online

Reuters reports that food has become one of the fastest-growing segments of e-commerce in China, with online sales of produce expected to climb as react to recent food scandals:

The trend is adding momentum to a Chinese online retail boom driven by a rapidly expanding middle class, with companies such as COFCO Ltd and Shunfeng Express betting that a decent slice of a 1.3 billion population will pay for the of mind they say their services offer.

“I think people are willing to pay a higher premium than in the West. In other markets, like the UK, food e-commerce is about convenience. Here, there’s going to be a higher quality and safety premium,” said Chen Yougang, a partner at consultancy McKinsey.

But convincing some skeptical Chinese consumers on food quality will remain a battle. -based Zhang Lei expressed doubt on the credentials of some products being touted as organic.

“Everyone knows that in China organic is not the real thing,” said the mother of one. [Source]

See more on food safety in China via CDT.

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