- Dec 17, 2020
- Business Update
JD Awarded Best Channel for Hugely Popular Smart Locks
by Ella Kidron
Smart locks are growing rapidly in China, and JD is a driving force of this industry’s e-commerce boom. The retail giant received an award for its stellar performance in the smart locks space this week. The award for the industry’s “most valuable channel” of 2020 was presented at the “2020 China Smart Lock Industry Quality Improvement Plan” event, sponsored by Daily Hardware Technology Development Center of China, Youju Research Institute, Tencent Home and Youju New Media, held in Shenzhen on Dec. 15.
Qiang Yue (岳强), head of the smart home division under JD Home and Life shared an analysis of channel development in China’s smart lock industry at the event. According to JD’s big data, in the past three years, nearly one million customers have purchased smart locks, of which male consumers account for 65%. The three-year compound growth rate of sales of smart locks on JD has exceeded 50%.
But there is still huge potential for the market. Starting from a small base in 2015, the smart lock market in China has grown exponentially. Counterpoint Research expects the penetration of smart door locks in Chinese households to grow to 20% by the end of 2020, compared with only 5% in 2018.
On JD, the compound growth rate of traffic has reached 360% and page views increased seven times, indicating that there may be a handful of consumers curious about smart locks, but who have yet to take the plunge. Second-tier cities consumers make up 43% of the current base. Well-off, post-‘90s consumers are the main forces of consumption in this area, while post-’85 fathers are also gaining momentum. Millennials are the dominant consumer group for real estate in China; they have also adapted to a digital lifestyle having grown up surrounded by technology.
Qiang Yue, head of smart home, JD Home and Life
JD also published a “golden list” – a ranking of the hottest selling brands of smart locks, coinciding with the event. The ranking is based on 10 key characteristics including sales, growth rate, popularity, brand reputation and potential, among others. Products from leading brands like Xiaomi, Phillips, Samsung and more are on the list. This list, and other related “golden lists” in other categories give consumers an added level of confidence in the quality and performance of products when making purchases on JD.