- Apr 14, 2020
- Business Update
JD: Blue Ocean and C2M for Maternal and Baby Products
by Rachel Liu
On April 13th, JD held its annual strategy conference for maternal and baby category online. During the conference, the company announced that in 2020, the maternal and baby category will focus on new retail solutions, new channels, lower-tier markets and innovative marketing strategies to better drive its development on JD.com and in the whole industry.
Based on new customer insights, in 2020, JD will continue to help maternal and baby brands to continue to win in Chinese market, focusing on four aspects: 1) Develop more niche and blue ocean product categories to expand the product selection on the platform, and help brands develop C2M (Consumer-to-Manufacturer) products that can better meet the specific demands of Chinese consumers, 2) Continue to develop omnichannel solutions and leverage JD’s smart supply chain to help brands develop through maternal and baby stores, 3) Conduct more refined customer operations and continue to attract new customers in lower-tier markets, as well as develop more diverse products to suit the different needs of customers in those markets, and 4) JD will leverage its user asset management capabilities, new content development with KOLs and entertainment resources to gain better knowledge of its customers and provide a better shopping experience for parents who shop on JD.
According to JD data, post-90s customers account for 70% all customers of maternal and baby products on JD, and they have become the main customers for the category. The proportion of post-90s customers in lower-tier market is even higher. Post-90s parents prefer trendy products and are less price sensitive. They also prefer to watch livestreams and short videos. In Q1, in the maternal and baby category, the viewing time for livestream and short videos increased 135% on JD, and the amount by which the livestreams drive sales increased 417% YOY – something that would not be possible to achieve without the contribution of post-90s customers.
JD.com is China’s top retailer for maternal and baby products and also the world’s top retailer for leading international brands including Wyeth, Mead Johnson, Unicharm, Kao and Abbott. A report on maternal and baby industry trends released by Nielsen during the conference shows that, in terms of e-commerce penetration rate, JD is leading the category. Among all customers who used mobile apps to buy maternal and baby products in 2019, 51% of them used the JD app.
During COVID-19, JD’s logistics and supply chain capabilities have made it a trusted platform for Chinese parents. As demand for baby products during the pandemic is high, JD uses its resources to ensure continuous delivery, and cooperates closely with brand partners to ensure supply. From late January to March, sales of daily necessities for babies, such as infant formula and diapers, increased 10 times YOY on JD, and health-related baby products increased 600% YOY. –JD’s unique advantages also helped it attract new parents during the pandemic – new customers in the category increased 110% YOY.