Mar 5, 2021|
In-depth Report: JD CENTRAL in Thailand Sticks To Doing The Right Things
by Martin Li
Grand Mom Aead, a SME which sells traditional charcoal roasted cashew nuts in Thailand, has witnessed a robust sales growth on the online platform JD CENTRAL (JDC), JD’s e-commerce joint venture, thanks to diversified services provided by the platform.
“We regularly joined JD CENTRAL’s marketing campaigns to offer extra discount coupons. Our offers late last year received a very good response from customers,” said .Chonravat Ruengruchirah，Managing Director of the nuts seller.
Ruengruchirah said that the services provided by JDC are useful to help SMEs go online during the current pandemic in Thailand, which has taken its toll on offline SMEs and pushed more consumers to purchase online.
In response, the Thai government has been emphasizing the importance to promote SMEs and advocating for a range of measures to make it easier for SMEs to benefit from e-commerce and protect them from unequal competition, predatory pricing and to reduce tax burdens among Thai entrepreneurs among other efforts.
“JDC’s sellers and marketing teams provide strong support. Its frequent launches of marketing campaigns helped increase our sales opportunities. JDC’s store management system, pickup and delivery services with great attention from staff who always follow up on customers’ orders have made both senders and recipients feel more confident,” Ruengruchirah said of the most useful services provided by JDC.
Ruengruchirah added that marketing campaigns could help promote their products, and all the support provided by JD CENTRAL could allow them to distribute more products and generate more sales. “As a result, we really hope that JD CENTRAL will continue to lend a hand to sellers on the platform,” said Ruengruchirah
QPS core of retail
Grand Mom Aead is recipient of one of the 23 awards granted to top brands by JDC on February 25, during the first JD CENTRAL JOYFUL AWARDS, which aimed to underline the global standard and trust of partners and alliances. The awards spanned 9 categories, including fashion, health and beauty, home and appliance, 3C, FMCG and more.
Grand Mom Aead was granted the JOY Super SME Award for small business partners with highest sales who participated most regularly in JD CENTRAL’s campaigns and activities.
Among the other award winners are MI, Watsons, OPPO and Adidas.
JDC CEO Vincent Yang releases QPS in Bangkok on February 25.
“Our awards aren’t about which sellers sold the most products, but about how they performed in terms of QPS,” said Vincent Yang, CEO OF JDC, during the award ceremony. QPS stands for quality, price and service, and aims to set a new benchmark to enable sellers to grow sustainably. “This is what creates real value – it’s not pure reliance on traffic and subsidies,” Yang said.
“JDC is not a traditional e-commerce platform. Our mission is to build Thailand’s most customer-centric e-commerce platform together with our partners through technology and services. QPS is the core of retail. It‘s not about reliance on data and subsidies, which won’t create value,” said Yang.
JDC JOYFUL AWARDS
This dedication to QPS is shared by the award winners. A representative for FOREMOST, a Thai ready-to-drink milk brand that also received a SUPER JOY AWARD for the brand/seller whose performance is excellent in all aspects, said of the brand’s goals on the platform: “FOREMOST is committed to continue providing our quality products made of 100% cow milk to JD CENTRAL’s shoppers at special prices to enjoy the best shopping experiences on the JD CENTRAL platform.”
Do the right things
Despite Thailand’s GDP taking a hit due to the pandemic last year, JDC achieved 169% growth in 2020, compared with 2019.
“The company’s average revenue per user (ARPU) and basket size continues to increase. Continued strong performance is attributed to an ongoing commitment to the essence of retail, which can be measured by QPS,” said Yang. Yang attributed the growth to doing the right things, which is JDC’s value proposition. JDC’s subsidies and support go to brands/sellers which share commitment to QPS, according to Yang.
Ruengruchirah of Grand Mom Aead said that the QPS-based award is increasing credibility of its online store on JDC and giving a boost to its sales growth. “We are full of hope to have continued support from JD CENTRAL in the future,” said Ruengruchirah .
Although the pendulum has increasingly swung in favor of e-commerce under COVID-19, e-commerce only accounts for roughly 5% of total retail sales in Thailand. This is not because of lack of internet access. The number of internet users continues to increase, reaching 48 million in 2020, according to a data report by the Office of the National Broadcasting and Telecommunication Commission.
“It’s not that consumers don’t have demand for e-commerce but that they have traditionally been a C2C market where trust remains a question. This has not changed the essence of Thai e-commerce,” said Yang. QPS is key to build such trust, according to Yang.
Launched in 2018, JDC is a combination of direct-to-consumer and marketplace businesses. Its self-defined role as a digital enabler differentiates the company from most e-commerce players in Thailand.
Brands on JDC
It is the first online shopping platform in Thailand to claim to provide 100% authentic products, echoing the “zero-tolerance to counterfeits” promise of e-commerce parent JD.com. Before JDC entered the market in 2018, Thailand’s e-commerce market was made up of consumer-to-consumer (C2C) players.
Regarding seller enablement, Yang said that consumer behavior in the country is changing rapidly, with the pandemic playing a major role in boosting online commerce in the first half of this year. Even so, sellers including brands and retailers have not been able to keep up with the digital transformation seen elsewhere. “You need to build the warehouses, logistics, and a huge system of solutions to help,” he said.
JDC has been actively using its resources to enable offline businesses that were impacted by the pandemic. There are more than 40 SMEs that use the e-commerce services provided by JDC, including product listing, data analysis, marketing, store design, customer service, and more.
(bjlihao3@jd.com)
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
In-depth Report: SEVEN FRESH’s Secret Ingredient: A Chef with Royal Experience
