Mar 5, 2021|

In-depth Report: JD CENTRAL in Thailand Sticks To Doing The Right Things

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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)

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