Oct 14, 2022| ESG, JD Retail

How JD.com Made a Produce Star out of Suqian Hairy Crabs

Vivian Yang

by Vivian Yang

More than 160,000 “Suqian Hairy Crabs” were sold on JD.com in less than three weeks during the first Harvest Carnival and Shopping Festival of Agricultural Specialties this September. The crabs emerged as a top-ranking best-selling category on the platform during this crab season, marking another milestone for JD in empowering high-quality yet less well-known agricultural products, an ambitious goal the company has set for itself in contributing to China’s rural revitalization on its own terms.

Suqian, a humble city in northern Jiangsu province, is blessed with variegated waters including the Hongze and Luoma lakes. These lakes are perfect breeding homes for hairy crabs, but their marketability has long been curbed by conditions including scattered raisers, varying quality resulting in the undercutting of purchasing prices, and weak branding.

To tackle these hurdles and build up a local specialty image, the Suqian Rural Bureau joined hands with JD.com in early 2021. Under an all-around partnership, JD supported local farms to establish standardized crab-raising systems, jointly developed product criteria for “Suqian Hairy Crabs” and its source-tracing system, and set up near-shore warehouses for temporary crab farming, hand-picking, packing and fresh delivery. On the marketing and sales side, JD offered over RMB 10 million worth of resources and leveraged its omni-channel capabilities to incubate the brand, as well as implementing strict brand authorizing policies, with the sole purpose of introducing the best Suqian hairy crabs to customers nationwide.

Thanks to all these efforts, during last year’s Singles’ Day Grand Promotion, sales of Suqian hairy crabs increased 600 times YoY; and that of the whole year rose by 173 times. Moreover, JD also brought the crabs to the limelight during China’s 2022 Spring Festival gala show on national TV , which JD was selected as this year’s exclusive interactive partner, to let the whole country know about the name of the crabs.

“Many people of my generation who grew up in the countryside are eager to change our hometowns for the better, but oftentimes, our condescending and wishful thinking will do no good,” said Richard Liu, Chairman of JD.com. As a Suqian native who feels indebted to his hometown and the village folks who all chipped in for his university tuition, Mr. Liu has a natural calling and grounded understanding of supporting rural development. “We need to bend down, see the details and think in their shoes, then start with patience from the basic business infrastructure work,” he added.

As early as 2015, JD.com introduced the “3F plan”, namely Factory to Country, Finance to Country, and Farm to Table, which is designed to form a complete loop to boost the rural economy in which farmers receive financial and other support in selling produce, and then are able to purchase more industrial supplies for a better life and greater reproduction.

After years of investment on infrastructure in rural areas, in October 2020, JD.com further announced the “March to Rich Plan (MRP)”, aiming to establish a modernized circulation system with its digitally intelligent supply chain capabilities, to promote both high-quality agricultural products and the consumption upgrading in China. The plan vowed to drive RMB 1 trillion yuan output value for rural areas in China in three years’ time span, and by this August, it has achieved more than RMB 620 billion yuan in 22 months. Millions of farmers have directly benefited from the MRP that helped increase their income remarkably.

(vivian.yang@jd.com)

Dec 25, 2024| JD Health, JD Retail

JD Report: Five Health Consumption Trends for 2024

Vivian Yang

On December 24th, JD.com’s Consumption and Industry Development Research Institute, in collaboration with HealthInsight, a media think tank specializing in the health sector, released an insightful analysis of China’s 2024 health consumption landscape. The report outlines five key trends in the health industry, highlighting the increasing consumer demand for proactive health management and the industry’s evolving dynamics.

The Rise of Weight Management Solutions

Modern lifestyles have contributed to rising obesity rates with 34.3% of Chinese adults classified as overweight and 16.4% as obese. Obesity is associated with over 200 diseases, posing significant health risks. The introduction of semaglutide, a GLP-1 receptor agonist for long-term weight management, in China marks a promising development. The market for GLP-1 weight loss drugs in China is projected to exceed 37.852 billion RMB by 2030. On JD.com, searches related to “weight management” have increased more than 3.8 times year-on-year, with growing demand for diet products and home fitness equipment such as kettlebells and leg trainers.

Addressing the Growing Mental Health Concerns
With 95 million people in China affected by depression, mental health is an increasing concern. Consumers are turning to books, stress-relief toys, online consultations, and meditation to manage stress. On JD.com, searches for “mental health” have doubled, with significant interest in emotional release tools and psychological books. JD Health’s Internet Hospital now offers specialized clinics with over 2,300 counselors addressing issues like anxiety, depression, and sleep disorders.

The Booming Sleep Economy
Over 300 million Chinese experience sleep disorders, often due to irregular schedules. The sleep economy is booming with the market size reaching 495.58 billion RMB in 2023 and expected to surpass 600 billion RMB by 2027. JD.com has seen a 210% increase in searches for sleep aids, with high demand for sleep headphones, eye masks, and nutritional supplements. Sales of sleep-enhancing pillows and mattresses have also grown significantly.

Everyday Integration of Medical Devices

The home medical device market is expanding as consumers increasingly monitor their health independently. Products like heart rate-monitoring smartwatches and glucose meters are becoming household staples. This year, JD.com data shows that purchases of vision care devices and smart health monitoring equipment have tripled. The market for home medical devices is expected to reach 380 billion RMB by 2025.

Shifting Focus to Preventive Health Management

Emphasizing early screening and intervention, JD.com has seen a significant rise in orders for health services such as genetic testing and early cancer screening. These trends highlight a shift from treatment to prevention, driven by technological advancements and policy support. As consumer awareness grows, health consumption is becoming a major force in economic development, presenting opportunities for rapid growth in the health industry.

In conclusion, the 2024 health consumption landscape is characterized by a strong shift towards proactive health management and the integration of technology into everyday health practices. These trends not only reflect changing consumer priorities but also indicate significant growth opportunities for businesses in the health sector. JD.com remains committed to supporting these developments by providing innovative products and services tailored to the evolving needs of consumers across the dynamic health sector.

(vivian.yang@jd.com)

Dec 20, 2024| JD Retail

Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference

Vivian Yang

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)

JD.com is Runner-Up Chinese Company on Forbes’ 2022 World’s Best Employers