Jun 2, 2020|
In-depth Report: Eight Important Post-Epidemic Trends Revealed on Day 1 of 618
by Ella Kidron and Ling Cao
As of 2:00 pm (Beijing time) on June 1st, the first day of JD’s 618 Grand Promotion, transaction volume had already increased 74% YOY. Growth in consumption has also accelerated recovery for merchants, further demonstrating that 618 is not only a shopping event, but also has a role in post-epidemic consumption. Forty brands individually achieved sales of over RMB 100 million.
Based on JD Big Data report, here are eight important consumption trends based on the first day’s data:
1. “Revenge Consumption”
There has been an all-around increase in electronics products, fresh food and household daily use products. The rebound of large household appliances once affected by the epidemic is quite apparent, among which the trend is most obvious in China’s central and southern provinces. Transaction volume has just about doubled in Guangxi, Jiangxi, Sichuan, Hunan and Hubei provinces.
At the same time, JD’s logistics capabilities have ensured that customers can ensure fast and high quality delivery at peak time. Data shows that as of 2:50 pm on June 1st, outbound orders from JD’s warehouses exceeded that of the whole day last year. This includes JD’s retail orders as well as external orders as JD helps merchants deal with fulfillment challenges during the 618 Grand Promotion.
In the realm of non-standard products and services, the migration of consumption and services to online has been further accelerated. Transaction volume of fresh products in many provinces have increased more than 100% compared with the same period last year, among which durian ranked first with a growth rate of 332%. The central and western regions, as well as lower tier cities, have already become the main driving force of growth.
2. Trade-in highlights “Economic” consumption
JD’s trade-in service (in which users can sell back their old products and get discounts and coupons towards new ones) and its full-price trade-in service (in which users can buy a product now, and trade it in for the newer product at a later date) is increasingly popular. The number of users participating in the program for air conditioners increased 390% YOY, while mobile phone trade-in users increased 170% YOY. More than 80% of consumers who bought iPhone 11 chose JD’s full-price trade-in program.
3. Rapid increase in value-protected goods consumption: Homes, Gold, Moutai
Data indicates consumers are more likely to buy value-protected goods which can “pay for tomorrow”. JD’s new real estate model launched at the end of May, and the associated 1000 properties on offer attracted a lot of attention during 618. Within the first hour of June 1st, there had already been 221 orders. Gold bars and gold jewelry transaction volume on June 1st was 100% that of the same period last year, among which 50-100 grams is the most popular purchase announcement. JD provided Feitian Moutai at a special price for JD PLUS users. Total 118 times more Moutai was sold this year as compared with the same period last year. In addition, the total amount of insurance provided by JD-Allianz exceeded RMB 4.5 billion yuan. The number of people buying insurance services increased by 109% compared with the same period last year, and the number of inquiries increased by 65% compared with the same period last year. A total of 5.64 million goods were insured.
4. Next wave of growth for international brands in China
International brands have actively participated in JD’s 618 Grand Promotion this year. Transaction volume of Apple products in the first hour on June 1st was three times that of the same period last year. In addition, L’Oréal, Lancôme, SK-II and other international brands firmly ranked in the top three on the day. Sales of international watch brands are particularly of note – year-on-year growth increased over 50%, further highlighting the opportunity for brands in China amidst global uncertainties.
5. On the Cusp of a 5G Revolution
This round of economic recovery, there is high optimism towards 5G, big data, and AI seen as representing the “new infrastructure”. 5G base station construction programs have been deployed in various places, and there is increasingly wider acceptance of 5G among consumers. As such, the 5G mobile market has seen significant activity. On Just 1st, sales of 5G mobile phones were 14 times higher than on the first day of the Singles Day (November 11th) shopping festival last year, among sales of which Xiaomi, vivo and other domestic brands were a highlight. Some brands even gave users unlimited 5G insurance coverage packages. Sales volume of 5G network cards has also increased significantly, with the most consumers located in Guangdong, Beijing, Shanghai, Jiangsu, and Shandong provinces.
6. “Hot Sale” of Products Indicate Recovery of Consumer Confidence
COVID-19 has drawn increasing attention to taking care of one’s health. On June 1st, transaction volume of health services increased by 128% compared with the same period last year; physical examination packages increased by 126%; maternity services increased 14-fold; nutrition and health products increased 135%, and cross-border imported health products increased 210%.
7. It’s all about Custom, Less “One Size Fits All”
While the epidemic has accelerated consolidation of production capacity resources in the industry, JD continues to promote customization to help better match consumers and goods. In just four hours on Just 1st, JD Super, JD’s online supermarket, sold more customized goods (defined as JD’s C2M, exclusive brand, new product debut, exclusive distribution and exclusive specifications) than on the whole day in 2019. Transaction volume of notebooks developed through JD’s C2M model increased 141% as compared with the same period last year. JD consumers are also seeking differentiate products. For example, sales of e-Sports displays increased 236% YOY, cooking items such as electric ovens, air fryers, multi-purpose pans and chef-style machines increased by more than 200% compared with the same period last year. Honor’s X1 smart screen TV sales exceeded 100 million yuan.
8. Young Consumers more Mature Post-Epidemic
Data indicates that young consumers are taking on more responsibility post-epidemic. Since the beginning of this year, more than 70% of post-1995 consumers have shifted from “buying only for themselves” to “buying necessities for the whole family”. At the same time, middle-aged and elderly female users have made a significant shift from online to offline. These trends were more pronounced during the 618 period. According to data from JD Super, youth have moved into the kitchen, driving a “kitchen economy” trend. Transaction of kitchen paper towel by young people has doubled compared with the same period last year. Awareness of the need to protect the family has also been strengthened – data shows a 34-hold increase in transaction volume of disposable cleaning products and a 340% increase in sterilization products YOY.
(ella@jd.com; ling.cao@jd.com)
Jan 16, 2024|
Harbin’s Rising Popularity as a Winter Destination in China Sparks Surge in Travel and Retail Sales
This winter, the “ice city” Harbin, capital of northeast China’s Heilongjiang province, has emerged as a magnet for tourists from all corners of the country. Harbin’s hospitality has warmed the hearts of these visitors. Their shared online experiences have further fueled the city’s tourism and consumption growth.
According to data from JD.com, searches for Harbin travel have skyrocketed, with a year-on-year growth exceeding 100 times in the past week alone. Harbin’s specialties have also been favored by tourists. JD.com’s data also reveals a substantial rise in the volume of Harbin specialty shipments since December. The Harbin Red Sausage, a beloved local delicacy, has emerged as the top souvenir choice for out-of-towners, seeing an average daily shipment volume in early January that is nearly fourfold higher than in December.
To support this influx of tourists, JD Logistics has strategically established service points at key locations, including Harbin Airport. These hubs ensure comprehensive delivery services, enhancing the overall visitor experience.
This Harbin tourism boom has also spurred a surge in sales of winter apparel. JD.com’s data indicates a rapid growth in the sales of warm clothing items such as down jackets, snow boots, and thermal underwear between January 1st and 7th. The sales growth is especially pronounced in southern provinces and cities such as Jiangsu, Zhejiang, Guangdong, Sichuan, and Shanghai. Notably, tall snow boots registered a 206% year-on-year increase in transactions, while padded cotton caps and thickened long down jackets soared by 158% and 134%, respectively. Beyond clothing, travel gear has also seen a considerable uptick, with a 98% year-on-year growth in transactions for large suitcases and travel backpacks in these southern regions.
To further cater to the needs of consumers gearing up for their Harbin adventures, JD.com launched a “Northbound Warmth Guide” on January 10th, offering a curated selection of warm clothing, shoes, children’s wear, and accessories, and enabling more consumers to purchase thermal equipment in a one-stop shop.
Jun 1, 2023|
JD.com’s 618 Grand Promotion Kicks Off, Record Number of Brands Reach 100 Million Yuan in Sales within the First Ten Minutes
by Yuchuan Wang and Vivian Yang
On the evening of May 31, 2023, JD.com officially launched the 618 Grand Promotion, the largest mid-year shopping festival in China. In a phenomenal display of consumer enthusiasm, over 23% more brands achieved the RMB 100-million-yuan sales milestone within the first ten minutes compared to the previous year. Additionally, an impressive 60% of newly onboarded merchants soared past their daily average sales volume for May, and 50% of small and medium-sized enterprises (SMEs) reported their sales skyrocketing by more than 200%.
This year’s JD 618 Grand Promotion marks the 20th birthday for JD.com and offers more than ten times the number of items as those featured during the 10-billion-yuan discount program, which launched in March. The vast selection comprises over 200 of the most in-demand items and nearly ten thousand best-selling products spanning a diverse range of categories.
Upon the event’s opening, consumers in over 300 cities across the country received their pre-ordered parcels within a matter of minutes. JD.com’s dedication to excellent service, through its proprietary logistics network built since 2007, ensures the delivery of the same or next-day orders nationwide, affirming its “place an order in the morning and receive it in the afternoon” commitment. Today, the unmatched service covers 10 million products and to consumers nationwide.
JD’s on-demand retail service also showcased its advantages immediately. Within the first ten minutes of the promotion’s launch, customers in over 700 counties and cities throughout the country received their orders. The first on-demand delivery through JD Shop Now arrived at a customer’s doorstep in Changsha city within just nine minutes.
Data highlights from the shopping festival collected between 8:00 PM and 8:10 PM on May 31, 2023 include the following:
- A 23% year-on-year increase of brands surpassing a transaction volume of over RMB 100 million within the first ten minutes of the 618 promotion
- Apple’s transaction volume surpassed RMB 100 million in just one second
- Nearly 50% of small and medium-sized merchants have seen their transaction volume increase by over 200% year-on-year
- Transaction volume for home appliances and home furnishings exceeded RMB 5 billion
- Transaction volume for durian increased by more than three times year-on-year
- Transaction volume for men’s and women’s apparel increased by over 120% year-on-year
- Transaction volume for road bikes and cycling apparel increased by over 100% year-on-year
- Transaction volume for new energy vehicle tires increased by nine times year-on-year
- Within five minutes, transaction volume of JD’s cross-border platform JD Worldwide exceeded the total sales of the first two hours from last year
- A near 400% year-on-year increase in merchant usage of JD Cloud’s Yanxi Digital Human livestreaming service compared with the same period from last year’s Single’s Day promotion
- A 100% year-on-year increase in transaction volumes for 150 skincare and beauty brands, including prestigious names like YSL, Helena Rubinstein, Shu Uemura, Proya, and Lancome
- Transaction volume of luxury brands including Bulgari, Tiffany & Co., Bottega Veneta, and Givenchy increased threefold year-on-year.
- Fifteen watch brands, including Longines, Tissot, and Mido, doubled their sales year-on-year
- Entrepreneur and internet celebrity Luo Yonghao joined JD Livestreaming and sold an apartment at 61.8% of the full price, saving over RMB 1.2 million for the consumer
- Electronic product services saw a transaction volume boost of 160% year-on-year
- Trade-in services for home appliances and home furnishing products experienced a transaction volume surge of over 120% year-on-year
Sales of JD Super Doubled on Day 1 of 618, Year on Year
