Apr 13, 2021| JD Retail

JD Highlighted in AustCham Shanghai Webinar on Chinese Beauty Market

Rachel Liu

by Kelly Dawson

During the economic uncertainty of 2020, a spike in imported cosmetic sales was a bright light on JD.com and other Chinese platforms, said Mark Tanner of marketing and research agency China Skinny, during a webinar hosted in partnership with AustCham Shanghai on April 12.

“Last year was the first time in generations that people in China spent less than the year before,” Tanner said during the webinar. “But one of the bright lights was significant growth in imported cosmetics, with an increase of 30% sales industry-wide YOY. Because of COVID, people had to repatriate their spending, much like with luxury products.”

The first quarter of 2020 saw a dip in cosmetics sales as people stayed indoors during the early lockdown period, but once conditions began to stabilize, cosmetics sales boomed—first for eyeshadow and eyeliner, visible even while wearing face masks; and later for lipstick, as face mask usage became less strict, Tanner said.

During JD’s Singles Day Grand Promotion in November 2020, lipstick sales grew 167% YOY; and lipstick was a top choice for men buying gifts for their partners during Chinese Valentines Day (“Qixi”，falled on August 25, 2020) Tanner noted, citing JD.com’s sales statistics.

As customers spent more time at home, the pandemic accelerated both the growth of online shopping, and an increased focus on self-care.

“The idea of ‘Be kind to yourself,’ with products including luxury, beauty and self-care, all have grown well into the triple digits YOY on JD,” Tanner said. “Overall, it’s looking really good for imported products.”

(kellydawson@jd.com)

May 18, 2022| JD Retail

JD Worldwide Launches Fresh Supermarket for Imported Merchandises

Doris Liu

by Doris Liu

JD Worldwide, JD’s cross-border e-commerce business, recently launched its Fresh Supermarket, offering customers fresh products from overseas including the United Kingdom, Germany, France, the United States and more.

A significant portion of those brands are sold for the first time through China’s online channels, such as American ice cream brands Ben & Jerry’s and Klondike, as well as Iceland, a British supermarket chain with an emphasis on frozen foods.

JD Worldwide has reached cooperation with Iceland Foods Ltd to jointly explore a more efficient and innovative cross-border e-commerce cooperation model, so as to enhance the overall richness of fresh products on JD Worldwide. The goal is to offer customers the quality consumption experience of “shopping around overseas well-known supermarkets without leaving home and buying all imported fresh food in one stop”, said a spokesperson of JD Worldwide.

Relying on JD’s advanced capabilities, JD Worldwide shares efficient and comprehensive integrated supply chain solutions with global fresh food brands. Cross-border fresh products have stricter requirements for supply chain and logistics technology due to their short shelf life and high loss rate. With JD’s nearly 80 bonded and overseas warehouses across the world and logistics services reaching over 220 countries and regions, the Fresh Supermarket on JD Worldwide is able to achieve direct sourcing from places of origin to guarantee product quality, and deliver the products from other countries to China’s bonded warehouses, then to consumers with full cold chain delivery.

Any international brand interested in building their business with JD in China can apply via https://www.jd.hk/cooperation_en or by emailing worldwide@jd.com.

(liujun215@jd.com)

| ESG, JD Retail

JD Supports Trade-in Service of Appliances in Drive Greener Business

Doris Liu

by Doris Liu

As a steadfast promoter of green consumption, JD.com has secured a leading position of home appliances in China not only by providing a wide range of products with superior full-service capabilities, but also by helping push forward the recycling economy in the form of trade-in services and more.

According to the National Development and Reform Commission, China’s household appliances ownership has exceeded 2.1 billion items, with an estimated scrappage volume of 200 million items in 2022.

A considerable number of families are still using home appliances that were bought during 2009 to 2011, when China had implemented trade-in policies to expand consumer demand and improve energy use efficiency. It is worth noting that air conditioners with a safe service life of 10 years are just entering the replacement cycle.

By replacing new energy-efficient products in a timely manner, safety hazards can be effectively eliminated and consumers’ energy expenses can be largely reduced as well. Data from the China National Institute of Standardization shows that the energy efficiency of air conditioners can drop by 40-50 percent after 10 years of use. Taking 1-HP inverter air conditioners as an example, new energy-efficient products can save nearly 40 percent of electricity compared with the old models which were manufactured 10 years ago.

JD has introduced a variety of stimulus steps to push consumers to replace appliances that are beyond their safe service life. For example, the trade-in service has been further simplified. Rather than following the industry’s valuation mechanism that is mainly based on product model and status, JD Home Appliances launched a one-price trade-in model in 2022, which allows customers to trade in their old appliances by selecting a specific product category. Each category has a fixed price, regardless of the product’s brand or status. The service has covered more than 95 percent of cities, counties and towns nationwide, and besides the subsidies for new purchase, customers also enjoy free dismantling and free transportation of the old appliances.

Promotions of energy-saving and emission-reducing products also help. Noting that the public’s consciousness of health and environmental protection has been strengthened with the demand for quality products, JD has also initiated rounds of promotions for energy-saving and innovative products.

The “2022 Air Conditioning Industry Trends Report” jointly released by JD Home Appliances and market consultancy All View Cloud shows that the domestic air conditioning industry retail sales in 2021 were down 1.2 percent year-on-year (YOY) at RMB 152.7 billion yuan, and the retail volume was down 8.7 percent YOY at 46.89 million items.

However, amid the overall decline, online sales of fresh air ventilation and air-conditioning integrated systems in 2021 rose 492.7 percent YOY at RMB 820 million yuan, said the report. JD.com’s sales of such products increased by more than six times YOY in 2021, as it had carried out an array of promotions and awareness-raising activities.

Through in-depth insights of the market, JD also provides brands with customers’ health needs to help the manufactures enhance R&D of the fresh air ventilation and air-conditioning integrated system, pushing for upgraded products.

JD Home Appliances has offered trade-in services since 2016, with more than 30 recycling categories such as large and small home appliances. According to the company’s calculation, the air conditioners, fridges and televisions with primary energy efficiency sold through JD.com in 2021 can reduce nearly 2 million tons of carbon emissions. Honored as the “Annual Influential Enterprise in Carbon Neutral Field” by domestic websites early this year, JD will continue to operate with the concept of cutting emissions through its businesses.

(liujun215@jd.com)