Sep 2, 2020|

JD Boosts Sales of a Cosmetics Merchant by 25 Times in Three Months


by Yuchuan Wang

One of JD’s cosmetics merchants experienced enormous growth in three months, from June to August, increasing sales by 25 times. As one of many merchants selling on JD at the height of the COVID-19 pandemic, the cosmetics shop Nanwu’s recent success has been fueled by increased reliance on online shopping in China, according to sales manager Yao Wang, who attended JD’s annual meeting of cosmetics merchants in Guangzhou, held on August 27th.

Wang, who has been named a sales champion twice in the past three years of the offline shop Nanwu, said that 60% of Nanwu’s customers were local loyal customers, but the epidemic had prevented them from buying offline. In addition, the epidemic had decreased people’s reliance on makeup as masks became mandatory. “It made a lot of people more accustomed to showing only half of their faces,” she said.

In light of these circumstances, Wang and the store head decided they needed to adapt their approach, opting to move their business online and sell through JD. Additionally, Nanwu placed its inventory in multiple JD warehouses in Hangzhou, Guangzhou and Tianjin, to ensure faster shipping to more regions in China.

The move was risky, but paid off quickly—Nanwu’s daily sales online jumped from around 20 orders a day to an average of 180 nowadays — with peak times sometimes seeing as many as 500 orders.

He’en, another cosmetics company, also saw increased business for its online shop by making use of JD’s logistics services. Supported by JD’s warehouse and delivery service, He’en’s products are now sold nationwide, and even support same-day delivery for some orders. Since transitioning to use JD’s warehouse services, He’en’s average monthly sales have increased by 325%.

In March, Lei Xu, CEO of JD Retail, flagged that the company had observed much better performance from merchants who used JD’s warehouse and logistics services than those who didn’t during COVID-19.