- Nov 05, 2018
- Chinese Consumers
JD.com to Buy RMB 100 Billion in Overseas Brands’ Products
JD.com, China’s largest retailer, will purchase nearly RMB 100 billion worth of products from overseas brands. The company announced its plans at the first ever China International Import Expo (CIIE) in Shanghai.
As disposable incomes in China rise, consumers increasingly demand high-quality products, especially imported products. JD’s data from more than 300 million customers on its e-commerce platform shows that e-commerce has rapidly emerged as one of China’s most preferred channels for buying overseas brands. Last year, the number of users purchasing products from overseas brands grew by 37.1% compared to 2016. The volume of imported goods in 2018 to date has already skyrocketed 150% as compared with two years ago.
JD is the top gateway for overseas brands into the China market, providing comprehensive support from technology and marketing to logistics. The company’s “Retail as a Service” strategy, in which JD uses its strengths to empower its partners, has proved enormously appealing to household names from all over the world. The growing family of leading international brands partnering with JD to facilitate their e-commerce strategy now includes the likes of Saint Laurent, Alexander McQueen, Dell, Nestle, Avène and many more.
As China’s e-commerce transformation continues to unfold, consumers have gravitated especially towards premium, smart, and green products. According to JD’s data, the highest performing categories among its customers this year have been mobile phones, computer and office suppliers, home appliances, maternal and childcare, and digital products. Advanced economies such as the U.S., Japan, South Korea, Germany, and the Netherlands remain the most popular sources of imported goods.
Chinese consumers buying online are mostly younger (26-45 years old), white-collar workers with middle-to-high incomes. China’s most developed regions, particularly the coastal cities, account for the largest uptake of imported goods. The growth rate for purchases of overseas brands, however, is now highest in fourth- and third-tier cities, where these brands are often not available in brick and mortar stores.
“This commitment is an extension of our promise to provide the best customer experience no matter where are consumers shop,” said Ye Lan, Chief Public Affairs Officer at JD.com. “Our consumers are demanding more high-quality products from around the world, and JD’s unmatched capabilities in e-commerce, logistics, and marketing offer a one-stop solution to bring top imported brands to China. We look forward to partnering with more brands in the years ahead.”
JD already has a strong track record of connecting Chinese consumers with international brands. JD Worldwide, the company’s cross-border e-commerce platform, has attracted more than 20,000 brands from over 70 countries. It has also unveiled dozens of dedicated country malls showcasing the very best brands from countries such as Ireland, Thailand, Japan, and South Korea. Furthermore, JD has launched numerous one-day sales events for specific countries, including Canada, France and Britain, offering special promotions and discounts on high-quality imported products from many countries around the world.