Jun 19, 2019|
Consumers “Trading up” and Seeking Quality Drives Record-breaking 6.18
Total sales transaction volume during JD.com’s June 18 Anniversary Sale (“6.18”) reached new heights this year of $29.2 billion. Key drivers leading to breakthrough results with China’s largest retailer were new products as well as Chinese consumers’ continued interest in and pursuit of higher quality.
New products were a laser focus of JD’s retail strategy overall this year. JD has launched an exclusive channel within its platform to socialize and promote these products as well as bring them to market, making them easy for consumers to find, and helping brands strategically reach new consumers. Consumers are also “trading up” from lower tier cities, showing greater interest in brands similar to consumers in higher tier cities.
Transaction volume growth was twice as high in lower tier cities than the overall growth on JD.com. The percentage of new users from lower tier cities was also much higher than the percentage of new users overall. Two campaigns involved participation from over 100 million users. One was an innovative “birthday red envelope” campaign, which encouraged and rewarded consumers for sharing on social platforms. Another campaign engaged users to share, vote for and win shared rewards for their cities.
JD has discovered a powerful way to market to Chinese consumers called Consumer-to-Manufacturer (C2M). This initiative employs big data and consumer insights, providing insights to brands to adjust their manufacturing and marketing approaches with the goal of providing consumers with products they want before they even know they want them. Transaction volume of new products and C2M products during 6.18 increased 289% compared with the same period last year. One out of every three monitors sold during this year’s 6.18 campaign were C2M products. HP saw a 100% increase in sales of its Zhan 66 laptop, a C2M product, during 6.18.
Several new brands have also launched on JD during 6.18. Most recently, beloved Italian designer brand Prada, as well as Miu Miu and Car Shoe, two sister brands under the Prada Group, launched authorized flagship stores on JD.com. Farfetch also launched a flagship store on JD during the period, enabling JD consumers to access more than 3,000 brands through Farfetch’s network of more than 1,000 brand and boutique partners. JD also worked with the world’s top hotel brands to empower subscribers of its premium membership program, JD Plus, with exclusive privileges at 15,000 high-end hotels around the world, marking the first time JD Plus benefits can be enjoyed outside of China. During this 6.18, JD sold more than 2.8 million JD Plus memberships.
Technology continues to be key to improving the consumer experience and exceeding expectations during the sales festival. 91% of orders coming from JD fulfillment centers were delivered same-or next-day. During this year’s 6.18, JD’s smart customer service robot fielded more than 32 million inquiries, of which it solved 90% of those independently, freeing up human customer service for more complicated inquiries.
For more 6.18 sales highlights, please refer to the graphic below.
* Transaction volume is calculated to include total value of all orders for products and services placed in the company’s online platform, regardless of whether the goods are sold or delivered or whether the goods are returned and shipping charges paid by buyers to sellers, and excludes products or services with list prices above RMB100,000 as well as transactions conducted by buyers who make purchases exceeding RMB1,000,000 in the aggregate in a single day (similar to the company’s major industry peer GMV definition)
Dec 20, 2024|
Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference
On December 19, Dada NOW, China’s leading local on-demand delivery platform under Dada Group, was awarded the “Leading Restaurant Empowerment Platform” accolade at the 10th China Catering Innovation Conference in Shanghai. Celebrated for its innovative 4D Service Standards, Dada NOW delivers professional, flexible, intelligent, and customizable services to top food and beverage brands including CHAGEE, KFC, Luckin Coffee, McDonald’s, and Pizza Hut, garnering extensive acclaim within the catering industry.
4D Service Standards
The “Leading Restaurant Empowerment Platform” award honors platforms that provide comprehensive and professional services to restaurant businesses. Leveraging years of experience with leading restaurant brands, Dada NOW has crafted its 4D Service Standards to effectively address delivery challenges and enhance service quality. These standards include:
- Dedicated: Integrated solutions for warehousing, picking, and delivery.
- Dynamic: Tailored delivery solutions for diverse vendor scenarios, including store-stationed and crowdsourced rider options.
- Data-driven: Efficient data management systems utilizing AI technology for order dispatching, fulfillment timeliness, and quality inspection.
- Designable: Customized services for large supermarkets and restaurant merchants to bolster brand value.
Fast and Accurate Delivery
In the fast-paced food delivery sector, Dada NOW’s survey data indicates that 63% of brand merchants and consumers expect timely delivery, 21% prioritize location accuracy, and 9% value punctual pickup. Dada NOW completes delivery in as quickly as 9 minutes, with a 99.5% on-time completion rate and a 98% accuracy delivery rate. Real-time order matching is achieved in as fast as 0.3 seconds, ensuring fast and accurate service.
Unlike delivery providers that only focus on a single merchant type, Dada NOW provides both supermarket and restaurant deliveries. The differing peak times between these sectors allow for capacity complementation, enhancing efficiency and reducing costs. With a nationwide network of over a million riders and an industry-leading on-demand delivery model, Dada NOW has executed over 900 million route plans, swiftly allocating resources during peak periods such as lunch and dinner rushes, new product launches, and promotional events.
Customized Solutions for Merchants
To meet the strong customization needs of brand merchants, Dada NOW can offer bespoke services for each store, integrating its delivery capacity, products, and technological solutions. A notable example is the partnership with Sam’s Club, for which since 2017 Dada NOW has developed customized solutions in delivery capacity models, co-branded equipment, rider training, and system integration. This collaboration has achieved nearly 100% coverage of customized rider equipment such as helmets, uniform and delivery containers, and provides excellent customer service experiences. This highly effective collaboration demonstrates Dada NOW capabilities that are also transferrable to the restaurant sector.
Luckin Coffee, a long-standing partner of Dada NOW, exemplifies the high standards in the coffee and tea beverage sector, achieving a “30-minute delivery rate of 99.9%” to maintain peak freshness delivered to customers’ doorsteps. Dada NOW’s flexible rider network effectively manages peak demands and large order volumes during product launches and promotions through an intelligent order dispatching system, ensuring optimized delivery routes and careful handling to prevent issues like coffee spillage. Since 2023, this partnership has earned Dada Now several accolades from Luckin Coffee, including the “Best Strategic Cooperation Award” and “2023 Outstanding Delivery Partner,” with rider Tu Yanping being recognized as one of four “Annual Gold Riders” nationwide.
Dada Group operates two core businesses: JD NOW, formerly known as JDDJ, an instant retail platform, and Dada NOW, a local on-demand delivery service. Leveraging its extensive crowdsourced delivery network of millions of riders, Dada NOW provides a comprehensive service system open to merchants and individual senders across various industries and product categories. The company’s two platforms operate independently and collaboratively.
(vivian.yang@jd.com)
Dec 13, 2024|
JD.com Targets 5 Billion RMB with Chilean Product Partnership as 2024/25 Season Cherry Sales Launch
On December 12, JD Super, the supermarket division of JD.com (also known as JINGDONG), launched the Chilean Specialties Festival and kicked off 2024/25 Chilean cherry sales with the recent arrival of the first “Cherry Express” ship in China. In a ceremony attended by the Chilean Ambassador to China, H.E. Mr. Mauricio Hurtado, JD Super signed a strategic cooperation agreement with Chilean brands, aiming to achieve 5 billion RMB in sales of Chilean products, including cherries, wine, and salmon, over the next three years.
The sea-freight Chilean cherry sales launch event was officiated by Ambassador Hurtado, Chao Junwen, Secretary-General of the China Chamber of Commerce for Foodstuffs and Native Produce, and Juan Latife, General Manager of Garces Fruit China, Chile’s leading cherry exporter.
Through large-scale direct sourcing, JD’s procurement team has reduced the import costs of Chilean cherries, offering consumers prices that are approximately 15% lower than those on other e-commerce platforms for the same grade and size.
To ensure quality and proper grading, JD Super has introduced a caliper offering this season. Each box of cherries comes with a caliper that allows consumers to accurately grade the fruit and ensure they have received high-quality Chilean cherries.
Since late October, JD’s online channels and its 7Fresh omnichannel supermarket chain have been selling the season’s air-freight Chilean cherries. This product offering, which has been met with enthusiasm from Chinese consumers, is supported by JD’s extensive national cold-chain logistics network and instant delivery services that can deliver orders within 30 minutes, making it easy and affordable for users to enjoy the early batch of Chilean cherries.
“This large-scale procurement cooperation will allow JD Super to continue leveraging our strong supply chain capabilities and work closely with Chilean partners to offer a wider variety of Chilean products at competitive prices and services to Chinese consumers,” said a spokesperson of JD Super.
(vivian.yang@jd.com)
Prada Partners with JD.com to Expand Digital Presence in China
