Jun 10, 2021|

JD.com and Xinhua jointly release JD Electronics Consumption Index


by Ella Kidron

The JD Big Data Research Institute and Xinhua News Agency jointly released an index on demands for electrical appliances and electronic devices on Jun. 9.

The announcement comes as JD.com is in the midst of the nation’s biggest shopping festival, the 618 Grand Promotion (Jun. 1-18). The index is based on the observation that the use of these devices has transitioned from being a means to substitute labor to a means to satisfy additional demands. A lower index score indicates the use of devices to substitute human labor for practical tasks such as steaming food and vacuuming, while a higher index indicates satisfaction of other needs such as entertainment and comfort.

Electronic devices and the extent of their usage are gradually becoming a symbol of people’s happiness in a given area, based on whether they meet basic needs or more luxurious ones. According to the report, the index score for the whole of China is 43.04, revealing that with the continued rise of income and quality of life levels, consumers have higher expectations as they pertain to experiences offered by electronic devices, paying more attention to product quality and being more willing to try and embrace new product categories.

To produce the report, JD selected and calculated the index score for 36 cities in China. This indicates regional differences in terms of consumers’ view on which products satisfy work, production, home, social, entertainment, and other needs. It is easy to assume that in rapidly developing Shenzhen the index score for the first tier city would be high, but that’s not the case. In the fast-paced and competitive [coastal] city, the index is low on the whole, indicating a tendency to use electronics to reduce physical pressure and increase efficiency.

In cities such as Sanya, Hainan province, Nanning, Guangxi Zhuang Autonomous Region, Kunming, Yunnan province, Xining, Qinghai province, and Hohhot, Inner Mongolia Autonomous Region, the index score is comparatively higher, indicating more widespread use of electronics for everyday life and recreation. Unsurprisingly, Sanya, a popular beach vacation destination in China, has the highest score.

Mobile phones are the clear leaders in terms of category of electronics, confirming the consensus that they are no longer a “nice to have” and are now an essential. Cooking-related electrical appliances generally have the same demand across all cities, while emerging products such as air fryers have high scores reflecting consumers’ attention on a healthy and diversified diet.

JD has been working closely with different brands to meet consumers’ precise demands. The Consumer-to-Manufacturer (C2M) initiative is one way in which the company helps brands and other partners better understand what consumers want and how to tailor to these needs.