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.
Apr 22, 2024|
JD.com Debuts AI Digital Representative of Founder Richard Liu During Livestream, Drawing 20 Million Views in Under One Hour
During a livestream on April 16th, JD.com introduced an AI digital representative of its founder, Richard Liu (Qiangdong Liu), nicknamed “procurement and sales manager Brother Dong (采销东哥).” Liu appeared in both JD Home Appliances and JD Supermarket’s livestreaming rooms, attracting over 20 million views within the first hour and generating RMB 50 million in sales throughout the entire livestream.
The digital representative almost perfectly replicates Liu’s facial expressions, body language, gestures, and voice, capturing even the subtlest movements of his fingers. Behind this technology is JD Cloud’s ChatRhino, an advanced large language model (LLM) that brings the avatar to life.
Behind the Technology
The LLM precisely mirrors Liu’s distinctive expressions and movements, naturally weaving in his occasional finger twiddles while he speaks, accentuating points with hand gestures, and adding nods at just the right moments for emphasis, creating a natural and authentic representation. Perfecting the voice proved to be a greater challenge. Those who have heard Liu speak are well-acquainted with the distinct inflections of his Suqian accent—a characteristic touch from his small-town roots in Jiangsu province. Observers will note the brisk pace of his speech, lighter enunciation, and his tendency to meld words in a seamless flow. His “sh” sounds carry a nasal quality, and he often addresses people as “brothers” to boost morale.
While programming the standard Mandarin dialect is relatively straightforward, teaching the AI to adopt the nuances of the Suqian dialect and Liu’s unique vocal patterns required a precise level of customization from the ChatRhino LLM. For example, the LLM had to provide accurate judgments on when to introduce the nasal tonality or the specific moments to merge words, ensuring the AI’s linguistic output mirrored Liu’s signature speaking style authentically.
Beyond replicating vocal characteristics, the AI’s voice must also be suitable for the casual, dynamic atmosphere of e-commerce livestreaming, such as adopting colloquialisms like “xiong di men” — a phrase comparable to “folks” or “guys” in English — to create a friendly rapport with the audience. JD Cloud’s ChatRhino team fine-tuned the model to focus on sociable nuances. The initial dataset for the LLM consisted predominantly of Liu’s formal speeches—spirited and compelling, yet too ceremonious for the interactive world of livestreaming. To cultivate a more congenial and approachable persona, the team utilized Liu’s recent casual conversations as the primary source material, rich with personal anecdotes and travel tales. This approach shaped the AI’s voice into one that is that is not only natural and approachable but also genuinely engaging for the end user.
As a fully self-developed technology product of JD Cloud, the ChatRhino Digital Representative solution has already served over 4,000 brand merchants, contributing to a 30% increase in order conversion rate during idle hours and helping merchants reduce livestreaming costs, enhance operational efficiency, and optimize user experience. Equipped with 50,000 hours of voice data, this technology enables digital representatives to intelligently adapt to various livestreaming styles dynamically.
The AI is also adept at managing 70% of routine live chat inquiries autonomously without any manual intervention, while also optimizing its responses with a self-improving algorithm. For instance, digital representatives can autonomously fields questions using product details and scripts, and post-livestream, and assimilate new information. Mirroring the acumen of seasoned sales professionals, it boasts a 90% accuracy rate in offering tailored product recommendations when solicited by customers.
The recent introduction of a cutting-edge livestream control console serves as the “brain” for the digital representative solution. It diligently monitors real-time inventory, adjusting the showcased products in the livestream and tailoring the script to ensure relevance—sidestepping items that are out of stock and spotlighting those in high demand. It also gauges and fine-tunes the frequency and style of interactions based on live audience engagement. With this advanced platform, businesses managing multiple livestreams can effortlessly operate thousands of sessions concurrently via cloud services, bypassing the need for intricate local setups. This innovation yields a substantial cost reduction of 30%.
Human-Machine Synergy
The intention behind digital avatars is not to outshine or compete with human talent but to harness the potential of technology to work in concert with livestreamers, maximizing overall growth. Essentially, the digital representative solution serves as a tool for brands and merchants to leverage long-tail traffic once real livestreamers conclude their broadcasts. JD’s analytics indicate this strategy can boost order conversion rates by 30% during off-peak hours, such as late into the night.
Digital representatives also excel in specific product categories that require detailed explanations, such as health products like nursing beds, electric wheelchairs, and oxygen concentrators. The solution can provide constant, round-the-clock guidance, adding substantial value to livestreams when traffic is typically lower.
Last week, JD.com announced an investment of one billion yuan into video content creation. This investment underscores JD’s commitment to leveraging the power of short videos and livestreams to transform the online shopping experience for its users and create new growth avenues for brand merchants.
Apr 20, 2024|
JD.com Unveils Ambitious Plans for 618 Grand Promotion: Aiming to More Than Double High-Performing Merchants
JD.com is gearing up for this year’s 618 Grand Promotion with an ambitious goal: to more than double the number of merchants achieving sales over one million yuan on its platform. At the recent Conference of Merchants and Ecosystem Partners on April 18, JD.com introduced a range of supportive initiatives aimed at achieving this ambitious target.
Sandy Xu, CEO of JD.com, noted at the conference that the company will dedicate significant resources to bolster traffic support, incorporate advanced AI technology, and enhance service capabilities. These efforts are particularly focused on empowering third-party merchants, including small and medium-sized enterprises in its marketplace.
Key initiatives include optimizing the platform’s traffic distribution ecosystem to prioritize highly-rated stores and products and competitively priced products through enhanced search and recommendation mechanisms. Additionally, JD.com will continue to offer merchants free access to high-traffic channels, which include significant incentives such as the popular 10-billion-yuan discount and free shipping programs.
To engage more content creators, JD.com recently announced that it will allocate over one billion yuan in cash incentives and traffic resources. This investment aims to cultivate a vibrant ecosystem that supports merchants’ traffic, business growth, and innovation.
At the core of JD.com’s strategy is technological innovation, which involves integrating AI-driven solutions into merchant operations. This includes the deployment of JD’s proprietary large language model, ChatRhino, and an AI-empowered merchant operation platform that offers are variety of free AI applications, and more. These technologies streamline various operations scenarios, enhance efficiency, and reduce costs for merchants.
For instance, On April 16th, JD.com unveiled an AI digital avatar of its founder, Richard Liu, as a sales host on its livestreaming platform. This event attracted 20 million viewers in just one hour and generated sales exceeding RMB 50 million ($6.9 million). This AI-driven virtual host technology, developed by JD Technology, is now supporting over 4,000 brands on the platform. Additionally, merchants such as a sashimi knife seller can utilize JD.com’s AIGC content generation tool to quickly produce high-quality demonstration images, bypassing traditional costs associated with product photography.
JD.com also continues to enhance its service capabilities, particularly for small and medium-sized merchants. This includes personalized business guidance, comprehensive training programs, and upgraded after-sales services, ensuring a seamless shopping experience for customers.
As of March 2024, JD.com has seen a significant increase in active third-party merchants on its platform, surpassing one million. This growth is a testament to the platform’s effectiveness and its appeal to both new and established merchants.
JD Health Won 2 Domestic Awards
