Nov 27, 2020|
JD and Midea C2M Fridge Is a Hit with Core Families
by Ella Kidron
JD and Midea applied the retail giant’s C2M (Consumer-to-Manufacturer) platform approach to create a best-selling fridge designed for families with children. Dr. Max Shen, supply chain chief scientist at JD.com, shared the case as part of his talk at JD’s second annual Y Open Day, a full-day sharing session to discuss supply chain innovation, held on Nov. 26th at JD’s headquarters in Beijing.
Through in-depth analysis of customer data, JD realized that consumers’ awareness of food safety was increasingly strong post-COVID 19. This is especially the case for families with children. Looking at consumer search behavior, JD was able to see that in addition to basic functions to retain freshness, other priority functions included sterilization, microcrystalline (believed to help preserve meat and other food items), anti-odor, separation of dry and wet storage and more.
This is reflective of the fact that consumer demand on the whole is becoming increasingly individual, driving brands and retailers to shift their focus from a market of many to a market of one. Based on this information, JD recommended that brand partner and domestic appliances powerhouse create a fridge focused on health-conscious functions such as sterilization capabilities as the main selling points.
Before marketing the product, JD used its simulation platform for new products to test two scenarios, one focused on technical parameters and one focused on the mother-and-child family scenario, to help understand how to make the product messaging better appeal to consumers. The results showed that Midea should strengthen its emphasis on the sterilization function and on the family scenario and reduce its emphasis on technology elements such as smart control. When the fridge series finally came to market during this year’s 618 Grand Promotion (June 1st-18th), daily average sales were up four times YOY.
JD’s C2M process helps brands avoid pitfalls of bringing new products to market, providing support from comprehensively understanding what type of product to create, to how to sell it to consumers. Dr. Shen explained that JD has gradually moved from its self-operated retail model to opening up, and is promoting increased coordination throughout the entire supply chain as a result.
C2M is one example of how intelligent supply chain can bring immediate value to consumers. Dr. Shen said: “We can further realize the overall optimization and reconstruction of each link in the value chain, from the consumer end to the production end, and work with partners to create a demand-driven, open and collaborative, and agile and responsive digital supply chain system, and inject new momentum into improving the efficiency of the social supply chain.”