JD Helps Time-honored Brands Grow through E-commerce

JD Helps Time-honored Brands Grow through E-commerce

by Rachel Liu

Many time-honored brands of China are said to be preparing for their A-share listing in Shanghai. Behind the energetic growth of these brands, e-commerce platforms such as JD have made great contribution in helping them improve brand recognition and expand their market shares.

JD has become the largest sales channel for 80% of the time-honored brands launched on its platform. Most of the time-honored brands on JD have seen compound annual growth from 50% to 300%.  JD also provides the brands with a sales channel that covers 362 cities in China. Ninety percent of the brands successfully expanded to markets outside of their local provinces.

Wu Fang Zhai (五芳斋) is a popular Chinese snack brand from Zhejiang province, famous for its Zongzi (rice dumpling, a snack eaten during Dragon Boat Festival). After joining JD, it has expanded its market to all over China. During the Dragon Boat Festival this year in June, JD was Wu Fang Zhai’s largest sales channel and the fastest increasing channel for the brand for the year. JD also worked with Wu Fang Zhai to develop C2M products that can meet the flavor preferences of both northern and southern patrons.

Guangzhou Restaurant(广州酒家), a traditional Cantonese food brand from southeast China, saw sales from northeast provinces increase rapidly since launching on JD in 2014, despite the fact that flavor preference in the northeast are very different.

Beijing Daoxiangcun(稻香村), a snack brand that used to sell only in Beijing and nearby areas, saw 60% of YOY sales increase in 2019 on JD, and is welcomed by customers all over China.

The seasoning brand Haitian(海天), famous for its soy sauce, has achieved compound annual growth of 60.5% since joining JD five years ago. Since the beginning of 2020, its YOY sales increase on JD has been more than doubled, 90% higher than the industry average.

 

(liuchang61@jd.com)

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