Aug 20, 2021|
Report: Automotive Consumption Trends of China’s Gen Z in 2021
by Vivian Yang
In the next 10 years, China’s automotive market will see a boom in the third to fourth-tier cities, with people born after 1995 being the main force of car buyers, according to the 2021 Automotive Consumption Report of Gen-Z by JD Big Data Research Institute released on August 18th.
Besides the vast incremental market opportunities, the report also noted that consumption upgrade will continue to be the main trend of the addressable market, largely driven by the users from China’s younger generation with higher education who prefer their driving gears to have better quality, roomier and more popular.
There have been 281 million cars in China by the end of 2020, a number on par with that of the US. At the same time, new energy vehicles experienced leapfrogging development from 2014 to 2020, making the country the world’s largest single market of both new cars and new energy vehicles – a pace in sync with the growth and consumption demand of China’s post-1995 generation.
JD’s data showed that in 2020 online sales of new energy vehicles on JD.com increased by 6.7 times year-on-year, and another 4.3 times in the first half of 2021 compared with the same period of 2020.
“I enjoyed the experience (of online booking of cars and services +offline driving test), as it can offer standard price and services from dealers through the platform that makes everything traceable and gives me peace of mind,” wrote a customer on JD Auto’s webpage.
There’s no less priority for safety and functional performance as Gen-Z choose their automotive products. Actually, according to the report, they are the top group of consumers to buy high-end tires. JD’s data shows that sales of tire brands such as Michelin, Dunlop, Bridgestone, Continental, Pirelli, YOKOHAMA and others achieved 40% growth in the first half of 2021 compared with the same period last year on JD Auto.
At the same time, the motorcycle culture is sizzling among Chinese youth as the sales of motorcycles and e-bikes rise rapidly in both upper- and lower-tier cities. “For one thing, cycling makes commuting and parking much easier in cities, and for another, the growing variety of cycling products on the market is becoming a popular way for young people to show their taste and attitude,” noted Fei Lu, senior researcher of JD Big Data Research Institute.
Women are buying more motorcycles than men in the first half of 2021, and among consumers under 35 who buy motorcycle products on JD.com, the growth rate of females is also faster than males’.
Gen Z are the main shoppers of novel automotive products that are popular on the internet. Best-selling items include multi-function pumps, car wrap films, protective films and more.
Along with the steady increase of car ownership and time growth of car usage, China’s automotive aftermarket also presents huge market opportunities in the coming years. “Let’s say each car will cost an average of RMB 4,000 yuan for annual maintenance. The market is expected to exceed RMB 1 trillion yuan and again the young people will take the lead in the consumption upgrade in this market,” noted Lu.
In response to this trend, JD Auto has been stepping up efforts in building its O2O car service model and promoting the digital transformation of China’s automotive industry for better customer services and brand-building opportunities. So far, JD Auto has opened over 1,200 car services stores in nearly 200 cities across the country.
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
JD Health “Family Doctor” Anniversary: Monthly User Growth Rate Doubles
