Nov 16, 2020|

JD Data: Unpacking JD Singles Day User Growth


by Ella Kidron

The Singles Day Grand Promotion wrapped up last Wednesday (Nov. 11th), with JD recording RMB 271.5 billion yuan (US$ 41.1 billion) in transaction volume during the 11-day sales period (Nov. 1st-11th). On the back of the sale, the JD Big Data Research Institute did an analysis of consumer behavior during the period, and in particular, of consumer trends across generations and geographies.


Internet consumption trends transcend age and generation

Results from this Singles Day Grand Promotion indicate a very obvious move of Gen-X and people who were born 1965-1980 and baby boomers (people who were born 1946-1964) to e-commerce. Compared with the 618 Grand Promotion (June 18th), the increase in purchases by age 45 and up consumers is particularly evident in the medical and health care, food and fresh, and home categories, all of which are high frequency, and related to health, safety and family. COVID-19 has accelerated this trend, but did not create it. Another factor is reliable platforms.

JD Big Data: Consumer Growth by Category Single Day Promotion 1:11

JD Big Data Research Institute

Source: JD Big Data Research Institute

Compared with the 618 period, sensitivity of promotion information and customer reviews for this group is up 70% and 75% respectively. Mobile device dependency has also increased – mid-to-old age users who previously preferred cash are adjusting to placing orders and making payments with their mobile phones. Across all ages, JD’s advantages in categories such as home appliances and consumer electronics, grocery and medical and health care, as the first choice for consumers was made clear. This is driven by quality services, in addition to quality products.


“Lower-tier markets” do not equal mid-to-low end products

Many consumers in lower-tier markets skipped the use of PC and went straight to mobile. China’s 3-6 tier markets account for more than 70% of China’s population, among which there are 670 million mobile internet users. The data shows that these consumers are demanding high quality products. In the first five minutes on November 11th, JD Super saw transaction volume generated by lower-tier markets consumers up 12 times YOY. Users in lower-tier markets accounted for 80% of JD Super’s new users during the Singles Day period. In the same period, remote orders (orders where the recipient and sender address are different) grew 40% YOY, among which the proportion of orders of high price products with a high environmental friendliness from higher-tier market users to mid-to-low tier market recipients was even higher than in the higher-tier markets themselves.


New products, C2M satisfy consumer demand, influence supply chain

During the Singles Day Grand Promotion, JD sold over 300 million new products, including Consumer-to-Manufacturer (C2M), many of which became No. 1 in their categories. In addition to satisfying diverse consumer demand, a wider range of products also boosted brand performance. Over 264 brands realized over RMB 100 million yuan in sales; 13,532 key brands saw sales their sales more than double. In addition, 205 time-honored Chinese brands saw transaction volume double. Transaction volume generated by JD PLUS members, who make up 98% of JD’s loyal user pool, grew 71% YOY.