May 22, 2020|
In-Depth Report: JD Central is a Digital Enabler of Offline Retail Businesses in Thailand: CEO
by Martin Li
JD Central (JDC) can be a digital enabler of offline retail businesses seeking omnichannel transformation in Thailand, according to Vincent Yang, the company’s CEO.
JDC is the e-commerce joint venture between China’s largest retailer JD.com and Thailand’s retail conglomerate Central Group. It officially went into operation in 2018 and is a combination of direct-to-consumer and marketplace businesses.
Vincent Yang, CEO of JD Central.
JDC’s self-defined role as a digital enabler differentiates the company from most e-commerce players in the second largest economy in Southeast Asia. In an over-heated competition, most players are pursuing traffic and number of product varieties by ‘burning money’.
However, Yang aspires to develop JDC into a platform on which offline retail businesses can be enabled digitally and consumers can buy the best value products, rather than a pure seller.
“With our technology, service and increasing trust from consumers and partners, we are ready to enable more traditional retail businesses which want to go online,” said Yang.
First to make an ‘authenticity’ claim in Thailand
JDC is the first online shopping platform in Thailand claiming to provide 100 percent authentic products.
“Before we came, there was no public awareness of authenticity in online shopping in Thailand,” recalled Yang.
Authenticity of products is a top priority which can’t be compromised within JDC, according to Yang.
Currently, JDC is widely recognized as an online provider of authentic products in Thailand, especially for large ticket items like computers, telecommunications devices and consumer electronics. Over 90 percent of its users are younger than 35.
“Many people have developed a habit of checking products on JDC first as reference even if they eventually won’t buy them from us,” said Yang.
In contrast to most e-commerce platforms in Thailand, JDC doesn’t pursue aggressive product category expansion.
“We focus on providing selection of the best value products to improve our customers’ everyday lives,” said Yang.
JDC’s commitment to authenticity is shared by an increasing number of brands. There are over 10,000 brands on JDC’s platform, including Apple, Samsung, Huawei, Xiaomi, Foremost, D-Nee, Sabina and Lee.
Besides authenticity, fast home delivery also contributes to JDC’s reputation as a trusted online shopping destination.
JDC makes use of its own and third party delivery resources to cover the whole Thailand, thanks to which over 85 percent of its orders can be delivered to buyers within three days after they are placed online
In Bangkok and surrounding areas, over 95 percent of orders placed on JDC’s direct-to-consumer platform can be delivered to customers’ homes the next day.
JDC has eight warehouses in Thailand and is seeking to build more in an effort to put products as close to customers as possible.
During the ongoing COVID-19 lockdown, JDC has been witnessing a sharp increase in the number of orders. April saw a 400% growth in the number of orders, compared with the same period of last year.
“You stay home, we deliver” is the commitment JDC made to customers who are cooped up at home due to the coronavirus.
An online gateway for offline retail businesses
When people visit JDC’s e-commerce website https://www.jd.co.th/ or open its app, they can have access to a variety of products sold in offline subsidiaries of Central Group, including Powerbuy, Tops Online, Officemate, Robinson, Super Sports, B2S, Baan＆Beyon and Thai Watsadu.
These offline businesses have their flagship stores on JDC and operate their online businesses on the platform.
A screenshot of JD Centrall app.
“In Thailand, many large enterprises have their own massive enterprise resource planning systems (ERP). However, these ERP systems are designed for traditional offline retail scenario, which don’t apply to online scenarios,” said Yang.
“JDC is the only company in Thailand capable of providing the most complete, efficient and cost-effective integrated e-commerce solution to offline enterprises, no matter if they are big or small,” he added.
Yang said JDC seeks to provide curated solutions based on specific needs.
“Enterprises with zero e-commerce capability can choose our direct-to-consumer platform. Those which can do e-commerce, can user our marketplace platform, on which we provide services including product launch, marketing, payment, warehousing, logistics and fulfillment. For those with an offline presence, we provide O2O solutions,” said Yang.
JDC’s effort to enable offline retail business resonates with Thailand’s national agenda titled Thailand 4.0, which encourages digital transformation of traditional industry.
Thai e-commerce may grow even faster
“When I came to Thailand in 2017, the e-commerce industry featured a lack of solutions, poor public awareness and low penetration. At that time, local players couldn’t provide a good shopping experience,” recalled Yang.
However, the recent three years have seen an accelerating development in the industry. “It may only take five to seven years for the Thai e-commerce industry to accomplish what took ten years in China,” said Yang.
In China, JD.com has over 387 million users and can deliver 90 percent of orders same or next day.
Yang said the competition in the past two years has become rational in Thailand as more players start to attach importance to shopping experience and product quality.
“It’s not our goal to disrupt offline retail businesses. On the contrary, we hope to use technology and service to drive their digital transformation. For example, the most popular shopping malls in Thailand including Central World and Paragon may see half of their sales coming from online channels in twenty years,” said Yang.
Diversified team
Yang also stressed the importance of a diversified team in developing the e-commerce industry in Thailand.
“JDC has over 1,000 employees, of which under 30 are Chinese. We let different teams go by different paths to achieve their goals after we reach consensus on orientation,” said Yang.
“Many JDC teams are composed of people from both SEA and China. SEA people know local market and needs best while people based at the headquarters of JD.com in China can provide developed solutions. Such a combination always generates the best applications,” said Yang.
Yang referred the diversified team at JDC was his biggest personal gain in Thailand.
“I also grow with the team,” he said.
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
A Carnival Indeed: JD.com Sold 27,000 Tons of Fresh Products in a Week
