Jan 26, 2021|
Ecommerce Report: Chinese Consumers Increasingly Motivated by Health-Consciousness
by Kelly Dawson
In a new report released by China-focused digital marketing agency Alarice, corporate innovation coach Nishtha Mehta pointed to JD’s healthcare arm JD Health, which listed on the Hong Kong Stock Exchange in Dec. 2020, as a “great example of both speed and a variety of customized products and services. Demand for online healthcare services has boomed over the pandemic, as people avoided outpatient clinics and pharmacies.”
Post-COVID-19, Chinese consumers are increasingly driven by a desire to enhance well-being, not only for themselves through the purchase of health and self-care products but also for the greater good, as evidenced by a spike in interest toward environmentally sustainable brands, according to this report.
“Personal care will be more and more important and Chinese consumers will continue to spend more time and money purchasing safe, eco-friendly products and eating more healthily after the [COVID-19] crisis,” said Alberto Antinucci, a digital innovation strategist and China expert, in the report. In fact, recent analysis by McKinsey found that 70% of respondents signal willingness to spend more to buy environmentally conscious products, and three fourths plan to continue a healthier diet after the pandemic.
Indeed, as fears around the virus have led to more diligence among customers toward personal hygiene and health, JD Health has seen massive growth with both health products and services. As of that month, JD Health’s daily online consultation interactions averaged 100,000, making it the largest online medical consultation platform in China; and during the first 30 minutes of JD’s 2020 Singles Day Grand Promotion, JD’s nutrition and health products category saw sales increase by over five times YOY.
“I believe JD has and will continue to offer a compelling alternative to Alibaba’s mass offering by focusing on niche and personal services,” said Jerry Clode, founder of China-focused brand strategy agency The Solution, in the report. Clode raised the example of JD’s fresh produce business, which as of October 2020 leads China’s online fresh produce sales with a market share of 25.8%, according to the China Association of Market Information and Research.
“JD has successfully created a perception amongst consumers that they are more dedicated to delivering products fresh and in optimal condition,” he said.
Although there has been a rise in health-consciousness among all categories, consumers born after 1990-1995 (segments deemed “post-90s” and “post-95s”) are driving the consumption of health-related products, according to the report.
Post-95s, referred to as Gen Z in the US, were the main purchasers of traditional-style health foods during the 2020 Singles Day Grand Promotion, for products including bird’s nest soup and thermal underwear. Many purchased these items not only for themselves but also for family members, as remote orders increased during a period when many families remained separate for longer than usual due to anxieties around travel.
As Chinese consumers became more health-conscious, environmentally sustainable brands and products also saw a boost because they were associated with healthy and clean characteristics. “Many Chinese saw COVID-19 as a sign from Mother Nature to stay in line,” theorized Mark Tanner, founder and managing director of marketing strategy firm China Skinny, in the report.
JD’s commitment to developing a sustainable, ethical approach is firmly rooted in the core identity of the business, as evidenced by its extensive poverty alleviation efforts and ongoing projects including the JD Green Stream Initiative.
Younger consumers are also driving the market trend of “Guo chao” (which translates to “national fashion”), in which products feature traditional Chinese motifs. One example is JD’s cooperation with the Forbidden City Cultural Products flagship store on a traditional almanac calendar and other products ahead of Chinese New Year.
“They’re seeking customized and limited edition products as opposed to mainstream products that feature flashy logos or brand names,” said Beverly Law, a senior digital marketing executive for Alarice, in the report. “Guochao isn’t just a fashion trend. It also reflects a strong appreciation and recognition of Chinese culture.”
This trend is also motivated by a growing desire among post-95s toward customization and personal expression, a demand that JD’s ongoing C2M initiative aims to address with tailored products reflecting consumers’ evolving tastes.
Analysts interviewed for the report were largely optimistic, and for good reason: As China’s economy has largely recovered from the upheaval of COVID-19 in 2020, revenue in China’s e-commerce market is projected to reach US $1,250,539 million in 2021.
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)
JD Health Won 2 Domestic Awards
