Nov 3, 2022|
JD.com Reports RMB 500 Billion Procurement of Imported Products in Three Years
by Vivian Yang
JD.com reported RMB 500 billion yuan in the procurement of imported products over the past three years, overachieving its goal of RMB 400 billion set in 2019, according to the company’s Report on Consumption of Imported Products 2022, which was released on November 2nd in Beijing during the Second Ambassadors’ Forum hosted by JD.com.
- National pavilions flourish during the Single’s Day Grand Promotion
Under the theme of “National Pavilions – Synchronizing the Good Life of the World,” the forum convened 6 ambassadors and 2 counselors from Cyprus, Georgia, Indonesia, Laos, Moldova, Serbia, Sri Lanka and Switzerland, as well as representatives from government and academia, to discuss the role of e-commerce in accelerating imports to China.
(From left to right, Mr. Joel Saurina，Counsellor of Embassy of Switzerland; H.E. Martha A. Mavrommatis，Ambassador of Cyprus; H.E. Djauhari Oratmangun, Ambassador of Indonesia; H.E. Archil Kalandia, Ambassador of Georgia; H.E. Palitha T. B. Kohona, Ambassador of Sri Lanka; H.E. Dumitru Braghis, Ambassador of Moldova; H.E. Maja Stefanovic，Ambassador of Serbia; Mr. Iemsouthi Khouanchay, Commercial Counsellor of Embassy of Laos to China, and Mr. Ye Wei, Vice President of JD.com， President of JD Foods of JD FMCG Omni-channel)
Nearly 20 countries including Germany, Hungry, Cyprus, New Zealand, South Africa, Mexico, Malaysia, Myanmar, Uzbekistan, and more are opening their national pavilions on JD.com during this year’s Singles’ Day Grand Promotion period that lasts from Oct. 20th to Nov. 15th. Joining the 70-plus already opened stores under JD’s national pavilions program, which includes both cross-border and general trade, the total number of national pavilions on JD is expected to exceed 100 by the end of 2022.
“With the on-going trend of a consumption upgrade in China, JD.com is speeding up the building of national pavilions, giving overseas brands an omni-channel window to reach Chinese customers, while offering an excellent shopping experience, thanks to JD’s unparalleled after-sales, logistics service and more,” noted Wei Ye, vice president of JD.com, president of JD Foods of JD FMCG Omni-channel.
JD’s national pavilions program has been developing with solid support from official and authoritative endorsers of embassies, chambers of commerce, overseas brand partners, and importers who help pool resources in respective countries’ online stores, paving the way for products of all categories to enter China quicker, at lower cost and with trust.
- Strong demand for imported products
A number of ambassadors and senior diplomats to China have been directly engaged with Chinese consumers through JD.com, including shadowing JD couriers for parcel delivery, inviting lucky buyers of their countries’ products to visit their embassies, unveiling JD national pavilions, speaking up amid annual shopping festivals, and participating in livestreams to promote local specialties and culture.
The report said in the first half of 2022, SKUs of imported products on JD.com increased 51 percent, signaling a steady import growth on both the supply and demand sides. JD’s business solutions, such as national pavilions and cross-border e-commerce for fresh food emerged as effective means for many importers to mitigate the impact of COVID-19 in recent years.
For imported brands to further succeed in China, attention should be drawn to the rise of the lower-tier markets and young people’s strong desire for personal expression. Digitalization is essential to help them compete with domestic brands in navigating quickly and effectively in this complicated and fast-changing market, noted Hui Liu, director of the Consumption and Industry Development Research Institute of JD.com.
Greater diversity and rising demand for high-end products are the main characteristics of Chinese consumers’ pursuit of imported products. The report pointed out that categories such as mobile phones, personal care, cosmetics, watches, glasses, and baby and mother products that relate to fashion designs, nutrition, and health all enjoy high market share compared with domestic brands, both in terms of sales amount and transaction value.
JD.com officially kicked off this year’s Singles’ Day Grand Promotion on November 1. In the first 10 minutes of the sales, the transaction volume of national pavilions increased over 12 times YoY. Sales of the entire day 1 show that the transaction volume of more than 800 overseas brands increased over 100 percent YoY, and that of over 140 sub-categories of products grew over 100 percent YoY.