JD.com and COFCO’s Fulinmen to Upgrade Cooperation

JD.com and COFCO’s Fulinmen to Upgrade Cooperation

by Hui Zhang

JD.com and COFCO’s (China Oil and Foodstuffs Corporation) cooking oil sub-brand Fulinmen reached agreement to upgrade their cooperation to facilitate product innovation, marketing promotion and logistics services on September 7th, 2020.

JD.com will share market insights with Fulinmen to co-develop new products or customize products especially for consumers on JD.com. Both sides will take advantage of JD’s big data, focusing on consumer operation, sharing promotion resources and expanding sales channels, to further enhance the brand’s influence and sales performance. To reduce the cost of supply chain and improve distribution efficiency, JD.com will make full use of its logistics network throughout the country to provide an integrated logistics solution covering warehousing, distribution, consumer services and after-sales services to Fulinmen.

JD.com has established cooperation with Fulinmen in 2016 and both sides have jointly developed many Consumer-to-Manufacturer (C2M) products including nutritious vegetable blend oil, homemade flavor rapeseed oil, Shandong local style peanut oil and flaxseed blend oil since then. JD’s C2M initiative involves leveraging the platforms big data insights to help brands better understand how to create or tailor products to suit the preferences of JD’s consumers. Fulinmen debuted two customized oil products on JD.com during the e-commerce giant’s annual Grand Promotion from June 1st to 18th, and sales of the above mentioned products on June 18th is 50 times that of May 18th. In addition, the two sides customized flaxseed blend oil and walnut blend oil based on JD’s big data and market insights, and sales of the flaxseed blend oil increased by 1,500% on June 1st comparing with May 1st.

“JD Super is not only an important partner of Fulinmen, but also an external pushing hand of Fulinmen’s digitalization upgrade,” said Hongchao Yu, general manager of COFCO Fulinmen. “Fulinmen will further upgrade its cooperation with JD.com, establishing long-term cooperation in building the new ecosystem of oil and food consumption.”

From January to June this year, sales of more than 10,000 FMCG brands on JD Super, JD.com’s online supermarket, increased by 100% compared with the same period last year. Sales of 200 FMCG brands exceeded RMB 100 million yuan, with sales of more than 20 brands exceeding RMB 1 billion yuan.

Cooking oil has always played an important role in people’s diet. Fulinmen, as one of the major brands of cooking oil in China, has been leading the industry in terms of sales since its first bottle of cooking oil was sold in 1993. The brand also manufactures other food, such as condiments, rice, sugar and miscellaneous grains.

 

(zhanghui36@jd.com)

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