Apr 14, 2023|
JD.com Identifies Five Consumption Trends Driving Significant Growth in China’s Cross-Border E-Commerce Market
by Vivian Yang
Over the past three years (2020-2022), JD Worldwide, JD.com’s cross-border e-commerce platform, saw a 64% increase in sales of cross-border products, with user numbers nearly tripling and product volume growing by 43%. This growth reflects strong demand and supply, as highlighted in the “2023 Cross-Border Imported Products Consumption Report” released by JD’s Consumption and Industry Development Research Institute on April 12 in Beijing.
The report identifies five key consumption trends for cross-border imported products in China, providing valuable insights for international brands looking to establish themselves in the Chinese market, particularly those offering premium and niche products.
1. Prioritizing Scalp Care
According to a 2019 survey conducted by China’s National Health Commission, approximately 250 million Chinese individuals experience hair loss, with 84% encountering this issue before turning 30. An increasing number of people are seeking to enhance their personal care routines, viewing their bathrooms as sanctuaries for relaxation and self-indulgence. This trend presents the immense market potential for innovative products across various related categories.
2. Embracing Harm-Free Skincare
An increasing number of middle-to-high-end JD users aged 20-45 are willing to pay more for skincare products that align with their values, prioritizing natural, eco-friendly ingredients.
3. Choosing Sustainable Makeup
Echoing the trend for safer skincare, environmentally sustainable cosmetics sales on JD Worldwide outpaced the category’s sales by three times during last year’s 618 Grand Promotion event.
4. Opting for Premium Low-Lactose Infant Formula
This category has seen remarkable growth in China, outperforming ordinary formula products in transaction volume by 4.5 times in 2022. Brands like Nestle, Aptamil, and Friso are favored by Chinese parents who are increasingly discerning when it comes to their children’s nutrition.
5. Savoring Relaxing Beverages
JD’s consumer survey indicates that many Chinese people have adopted the habit of drinking alcohol for relaxation and better sleep at home. With a wide range of imported alcohol options available online, preferences vary among different age groups, with Gen-Z favoring brandy/cognac, middle-aged users opting for imported beers, and older consumers preferring wines.
According to the report, the top five imported products by transaction volume on JD Worldwide in 2022 were healthcare, baby and maternal, cosmetics and skincare, consumer electronics, and pharmaceutical products. The fastest-growing imported categories included consumer electronics, personal care, home appliances, alcohol, and cosmetics.
Female users (55%) continue to be the primary shoppers for cross-border products, focusing on family needs and personal well-being. Popular categories on JD Worldwide include skin and hair care, baby care, perfume, and cosmetics.
The 26-35 age group accounts for nearly 50% of all cross-border imported product shoppers. Consumers in this demographic often seek distinctive goods to express their individuality and tastes.
While first-tier market consumers remain the primary purchasers of imported products, there is a growing interest in lower-tier markets, driven by China’s advanced e-commerce logistics and improved supply chain efficiency.
Apr 22, 2024|
JD.com Debuts AI Digital Representative of Founder Richard Liu During Livestream, Drawing 20 Million Views in Under One Hour
During a livestream on April 16th, JD.com introduced an AI digital representative of its founder, Richard Liu (Qiangdong Liu), nicknamed “procurement and sales manager Brother Dong (采销东哥).” Liu appeared in both JD Home Appliances and JD Supermarket’s livestreaming rooms, attracting over 20 million views within the first hour and generating RMB 50 million in sales throughout the entire livestream.
The digital representative almost perfectly replicates Liu’s facial expressions, body language, gestures, and voice, capturing even the subtlest movements of his fingers. Behind this technology is JD Cloud’s ChatRhino, an advanced large language model (LLM) that brings the avatar to life.
Behind the Technology
The LLM precisely mirrors Liu’s distinctive expressions and movements, naturally weaving in his occasional finger twiddles while he speaks, accentuating points with hand gestures, and adding nods at just the right moments for emphasis, creating a natural and authentic representation. Perfecting the voice proved to be a greater challenge. Those who have heard Liu speak are well-acquainted with the distinct inflections of his Suqian accent—a characteristic touch from his small-town roots in Jiangsu province. Observers will note the brisk pace of his speech, lighter enunciation, and his tendency to meld words in a seamless flow. His “sh” sounds carry a nasal quality, and he often addresses people as “brothers” to boost morale.
While programming the standard Mandarin dialect is relatively straightforward, teaching the AI to adopt the nuances of the Suqian dialect and Liu’s unique vocal patterns required a precise level of customization from the ChatRhino LLM. For example, the LLM had to provide accurate judgments on when to introduce the nasal tonality or the specific moments to merge words, ensuring the AI’s linguistic output mirrored Liu’s signature speaking style authentically.
Beyond replicating vocal characteristics, the AI’s voice must also be suitable for the casual, dynamic atmosphere of e-commerce livestreaming, such as adopting colloquialisms like “xiong di men” — a phrase comparable to “folks” or “guys” in English — to create a friendly rapport with the audience. JD Cloud’s ChatRhino team fine-tuned the model to focus on sociable nuances. The initial dataset for the LLM consisted predominantly of Liu’s formal speeches—spirited and compelling, yet too ceremonious for the interactive world of livestreaming. To cultivate a more congenial and approachable persona, the team utilized Liu’s recent casual conversations as the primary source material, rich with personal anecdotes and travel tales. This approach shaped the AI’s voice into one that is that is not only natural and approachable but also genuinely engaging for the end user.
As a fully self-developed technology product of JD Cloud, the ChatRhino Digital Representative solution has already served over 4,000 brand merchants, contributing to a 30% increase in order conversion rate during idle hours and helping merchants reduce livestreaming costs, enhance operational efficiency, and optimize user experience. Equipped with 50,000 hours of voice data, this technology enables digital representatives to intelligently adapt to various livestreaming styles dynamically.
The AI is also adept at managing 70% of routine live chat inquiries autonomously without any manual intervention, while also optimizing its responses with a self-improving algorithm. For instance, digital representatives can autonomously fields questions using product details and scripts, and post-livestream, and assimilate new information. Mirroring the acumen of seasoned sales professionals, it boasts a 90% accuracy rate in offering tailored product recommendations when solicited by customers.
The recent introduction of a cutting-edge livestream control console serves as the “brain” for the digital representative solution. It diligently monitors real-time inventory, adjusting the showcased products in the livestream and tailoring the script to ensure relevance—sidestepping items that are out of stock and spotlighting those in high demand. It also gauges and fine-tunes the frequency and style of interactions based on live audience engagement. With this advanced platform, businesses managing multiple livestreams can effortlessly operate thousands of sessions concurrently via cloud services, bypassing the need for intricate local setups. This innovation yields a substantial cost reduction of 30%.
Human-Machine Synergy
The intention behind digital avatars is not to outshine or compete with human talent but to harness the potential of technology to work in concert with livestreamers, maximizing overall growth. Essentially, the digital representative solution serves as a tool for brands and merchants to leverage long-tail traffic once real livestreamers conclude their broadcasts. JD’s analytics indicate this strategy can boost order conversion rates by 30% during off-peak hours, such as late into the night.
Digital representatives also excel in specific product categories that require detailed explanations, such as health products like nursing beds, electric wheelchairs, and oxygen concentrators. The solution can provide constant, round-the-clock guidance, adding substantial value to livestreams when traffic is typically lower.
Last week, JD.com announced an investment of one billion yuan into video content creation. This investment underscores JD’s commitment to leveraging the power of short videos and livestreams to transform the online shopping experience for its users and create new growth avenues for brand merchants.
Apr 20, 2024|
JD.com Unveils Ambitious Plans for 618 Grand Promotion: Aiming to More Than Double High-Performing Merchants
JD.com is gearing up for this year’s 618 Grand Promotion with an ambitious goal: to more than double the number of merchants achieving sales over one million yuan on its platform. At the recent Conference of Merchants and Ecosystem Partners on April 18, JD.com introduced a range of supportive initiatives aimed at achieving this ambitious target.
Sandy Xu, CEO of JD.com, noted at the conference that the company will dedicate significant resources to bolster traffic support, incorporate advanced AI technology, and enhance service capabilities. These efforts are particularly focused on empowering third-party merchants, including small and medium-sized enterprises in its marketplace.
Key initiatives include optimizing the platform’s traffic distribution ecosystem to prioritize highly-rated stores and products and competitively priced products through enhanced search and recommendation mechanisms. Additionally, JD.com will continue to offer merchants free access to high-traffic channels, which include significant incentives such as the popular 10-billion-yuan discount and free shipping programs.
To engage more content creators, JD.com recently announced that it will allocate over one billion yuan in cash incentives and traffic resources. This investment aims to cultivate a vibrant ecosystem that supports merchants’ traffic, business growth, and innovation.
At the core of JD.com’s strategy is technological innovation, which involves integrating AI-driven solutions into merchant operations. This includes the deployment of JD’s proprietary large language model, ChatRhino, and an AI-empowered merchant operation platform that offers are variety of free AI applications, and more. These technologies streamline various operations scenarios, enhance efficiency, and reduce costs for merchants.
For instance, On April 16th, JD.com unveiled an AI digital avatar of its founder, Richard Liu, as a sales host on its livestreaming platform. This event attracted 20 million viewers in just one hour and generated sales exceeding RMB 50 million ($6.9 million). This AI-driven virtual host technology, developed by JD Technology, is now supporting over 4,000 brands on the platform. Additionally, merchants such as a sashimi knife seller can utilize JD.com’s AIGC content generation tool to quickly produce high-quality demonstration images, bypassing traditional costs associated with product photography.
JD.com also continues to enhance its service capabilities, particularly for small and medium-sized merchants. This includes personalized business guidance, comprehensive training programs, and upgraded after-sales services, ensuring a seamless shopping experience for customers.
As of March 2024, JD.com has seen a significant increase in active third-party merchants on its platform, surpassing one million. This growth is a testament to the platform’s effectiveness and its appeal to both new and established merchants.
JD.com Bolsters Zespri Kiwifruit Imports, Aims to Sell Over 2 Million Trays in 2023
