Mar 11, 2022|
JD.com’s Earnings: JD.com Commits to On-Demand Retail through Omni-channel
by Mengyang He
JD.com reported its fourth quarter and full year 2021 results on March 10, recording full year net revenues of RMB 951.6 billion yuan (US$149.3 billion), with an increase of 27.6 percent YOY. Notably, JD.com saw a YOY growth of nearly 80 percent in its omni-channel transaction volume in 2021, further reiterating its commitment to on-demand retail through the omni-channel approach.
With consumers’ increasing need for on-demand consumption of different product categories, a variety of merchants have joined the initiative to deliver products within an hour, further expanding the on-demand retail business.
China Resources Vanguard (CR Vanguard), one of China’s largest retail chains, serves as an example of JD’s omni-channel capabilities. Last July, more than 1,800 supermarket stores of CR Vanguard settled on JD Daojia (JDDJ), covering all types of business models of CR Vanguard, all of which are accessible through Shop Now, which is a new business dedicated for JD’s on-demand consumer retail section jointly launched by JD.com and Dada Group in 2021. Last September, CR Vanguard recorded a fourfold increase of transaction volume realized through Shop Now services compared to six months ago in March.
Zhijiang Xu, CMO of China Resources Vanguard, said “The cooperation between China Resources Vanguard and JD Daojia (JDDJ) in omni-channel fulfillment, products, users, marketing, and other aspects has laid a solid foundation for Shop Now. Deep collaboration and co-creation will enable both parties to better seize the opportunities of on-demand retail and have a win-win future.”
During the fourth quarter of 2021, JD.com reinforced its omni-channel innovation project through its collaboration with over 600 stores of CR Vanguard. JD.com leveraged the on-demand delivery and retail platform of Dada Group, which was recently consolidated by JD.com, to help CR Vanguard achieve a growth of over 400 percent YOY in transaction volume during 2021’s Singles Day Grand Promotion.
“On-demand retail is an important part of JD’s omni-channel strategy, which helps us expand our touchpoint with our customers and provides diversified shopping scenarios,” noted Lei Xu, President of JD.com.
JD.com has successfully built collaborations with more than 370 supermarkets including Walmart and Yonghui, covering over 34,000 stores with over three million SKUs, providing consumers with on-demand shopping options through JD.com’s app, including the recently launched in-app tab “Nearby”, which gives customers access to JD.com’s one-hour delivery service in nearly 400 cities in China.
As JD.com continues to expand its omni-channel layout, brands, merchants and brick-and-mortar stores in various fields are leveraging JD.com’s omni-channel capabilities to accelerate digital transformation and high-quality development. JD.com has opened over 10,000 physical stores, such as JD Mall, JD Electronics Experience Store, JD Home Appliance Store, JD Computer Digital Store, JD Home, JD Pharmacy, SEVEN FRESH Supermarket, JD Convenience Store, JD Automobile Club, etc. In addition, JD.com is also providing services in product selection, operation, supply chain, logistics, and finance to 3.67 million pharmacies, specialty stores, supermarkets, convenience stores, automobile repair shops, and flower shops across China.
“JD.com’s open ecosystem and supply chain capabilities have improved operational efficiency and sustained high-quality growth to partners. JD.com’s long-term business strategy and investment outlook will always focus on creating value for customers and partners,” added Lei Xu.
In the field of home appliances, for example, JD.com launched the first JD Mall in Xi’an last year, bringing an immersive shopping experience that integrates online and offline to consumers.
Additionally, as of March 2022, more than 4,000 physical maternal and baby stores have settled on JD Daojia (JDDJ) and Shop Now. In 2021, the transaction volume of maternal and baby products through JD Daojia (JDDJ) and Shop Now increased by over 200 percent YOY. The data shows that more physical stores represented by maternal and baby stores have achieved better and faster growth through JD.com and Dada’s digital capabilities and on-demand retail solutions.
After Dada Group was consolidated by JD.com, the parties will deepen omni-channel cooperation, in which Dada will further undertake JD.com’s on-demand retail delivery business. The two parties will jointly enhance the consumption experience with continuous innovation, especially the convenient and efficient on-demand consumption experience.