Jun 1, 2022|
JD Data: Living Scenarios and Life Values Drive Sales of New Home Appliances
by Doris Liu
The home appliance market is increasingly focused on satisfying the needs of modern living scenarios and life values, according to a white paper released by JD.com and market consultancy All View Cloud on May 27, with consumers’ demand shifting from being driven by basic functions to life quality.
The white paper analyzed the current consumption trends from the dimensions of market, demand, consumers, scenarios and more, indicating that the concept of new home appliances is inevitable in terms of market development.
Chinese consumers are experiencing multiple changes in living space, family size and lifestyle, accompanied by a series of newly-created scenarios in recent years such as entertainment spaces for games and movie watching; kitchens with more use of built-in and integrated home appliances; and pet living spaces with smart devices, which in turn have stimulated the rapid growth of the new home appliance market.
According to the China Center for Information Industry Development, China’s home appliance market recovered comprehensively in 2021 after a COVID-related slump in 2020, with retail sales rising by 5.7 percent year-on-year (YOY) to RMB 881.1 billion yuan.
As the pandemic has fanned demand for home appliances, entertainment TV sets on JD.com saw a spike of 4.5 times in 2021 sales YOY; meanwhile the number of searches and new launches went up 1.7 and 2 times respectively, according to the white paper.
In regard to kitchen appliances, 25 percent of the middle-aged group and 45 percent of consumers who need home renovation prefer built-in refrigerators. The sales value of the ultra-thin flat built-in refrigerators in 2021 on JD.com climbed 2.5 times YOY in popularity, with the number of searches and new launches rising 100 and 50 percent respectively.
Another trend of integrated appliances was also underlined. During JD’s Singles Day Grand Promotion in 2021, sales of fresh air ventilation and air-conditioning integrated systems exceeded the annual turnover of 2020, while sales of products that integrate multiple functions of a regular and steam oven, range hood and stove system jumped 4 times compared with that of 2020.
At the same time, the younger generation born after 1990 has become the main consumer group, affecting the market with their product demand in both function and attractive looks. For instance, according to JD Home Appliances, retro-styled small electric appliances grew 3 times YOY in turnover in 2021, meaning that consumers tend to embed their life values in product selection as well.
The concept of new home appliances leads the way for the industry. As future products will need to cater to consumers’ preferences in function, look and use experience in various scenarios, JD Home Appliances will collaborate with more brands to not only promote the business, but also upgrade the industrial structure.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
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JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns
JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.
Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.
JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.
Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.
As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.
The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.
JD618’s Pre-Orders Delivered Major Sales Increases for Big Brands
