- May 20, 2021
- Business Update
Internationalization of JD 618 on Display at Kickoff Conference
by Ella Kidron
JD.com held the kickoff event for its 618 Grand Promotion on May 21. The event gathered representatives from over a hundred brand partners. Awards were presented to the top 10 brands across 12 different categories. Among the award recipients are several top international brands, which underscores the international nature of JD’s 618 Grand Promotion.
The 10 Best International Brand awards come from seven different countries – Australia, France, Japan, South Korea, Switzerland, the U.K. and the U.S. Brands include Swisse, Royal Canin, Apple, Dyson, Danone, Lego, Nestlé, SK-II, Lancôme and Panasonic. In additional, several of the brands in other categories, such as omni-channel cooperation, Customer-to-Manufacturer, innovation, smart products, service consumption and supply chain partnership also hail from overseas. Brands in these categories come from 10 countries. These brands are associated with high quality, a value which has only become more important to consumers as their spending power has improved. Senior brand representatives were in attendance to accept the award and celebrate the official start of the 618 promotion season.
“JD 618 is truly going global,” said a JD spokesperson. “The Chinese market is a top priority for many of the world’s top brands, and JD’s supply chain strength provides them with the capabilities they need to succeed here and to connect with consumers. The awards issued today represent not only how we and our brand partners have growth together, but also the importance of the JD platform in bringing leading international brands to China with impeccable quality and service.”
At the event, the JD Big Data Research Institute unveiled seven trends to characterize this year’s 618, all of which indicate pursuit of quality, more individualized demands and the shift to buying services as well as commodities. Chinese brands are increasingly popular, especially with young consumers and seniors. At the same time, more international brands are being purchased at home.
The recent International Consumer Products Expo held in Haikou, Hainan province, provided insight into the convenience of the Hainan Free Trade Port for international brands. JD Worldwide, JD’s platform for international products, was an early mover, establishing duty free stores in Hainan earlier this year, and implementing preferential policies to facilitate overseas brands’ sales to Chinese consumers.
On the supply chain front, the widespread use of omni-channel models is driving unprecedented delivery speed. JD has already expanded its “One Hour Delivery Circle” to include consumer electronics such as mobile phones. Something else that’s clear is consumers are sure of and more specific as to what they want. The rise of young consumers with specific demands is driving the growth of sub-categories, such as mini-washing machines for baby clothes, and mini-dishwashers for singles and small families.
Rural vitalization is in full swing. In e-commerce this means the diversification, scale and high quality of agricultural products. In another vein, responsible consumption, including a preference for green, energy-saving and repurposed products, is becoming a greater consumption priority. This is also driving an emphasis on “greening” the supply chain at each step in the process. JD’s Green Stream Initiative is invested in enabling all supply chain actors from production to consumption to engage in greener operations, maximizing the number of products which can be shipped to consumers directly from their origins and reducing the number of touchpoints from factory to consumer.
Finally, digitalization covering the entire supply chain is improving efficiency, enhancing experience and reducing costs. JD’s open supply chain platform is able to quickly rearrange and allocate supply chain resources, making the whole system more agile and responsive. This is critical during 618 when JD will work to put products as close to customers as possible with the help of AI and big data analysis and then deliver them as quickly as possible. During last-year’s Singles Day Grand Promotion, the company used these capabilities to deliver a lipstick to a customer in Northeast China only six minutes after she placed her order.
The promotion is now entering its 18th year. Originally it was a means of giving back to consumers for their loyalty on JD, but now 618 is a mid-year shopping festival observed by all e-commerce players in China, and increasingly by offline stores as well. Pre-sales begin on May 21st, and the official promotion runs from Jun. 1-18 on JD.com, at all of the company’s offline stores (SEVEN FRESH, JD E-SPACE, JD Home Appliances, JD Auto Shop, and more), as well as at stores and restaurants of the company’s partners, making it possible for consumers to buy whatever they want, whenever and wherever they want it, and receive it as conveniently as possible.