- Sep 08, 2020
- Business Update
JD Highlights Progress in Omnichannel during 9.9 JD Super Festival
by Ella Kidron
JD Super, JD.com’s online supermarket, has seen significant progress since launching its Omnichannel Fulfillment program last year. Changming Li, head of Omnichannel Fulfillment Program, FMCG Omnichannel, told a virtual audience during JD Super’s press conference on September 8th as part of the 9.9 JD Super Festival to celebrate JD Super’s founding, that the platform went from having one water provider partner to many partners, and from being in one city – Beijing, to now being available nationwide.
Omnichannel takes many forms on JD Super, all aimed at making the shopping process and the back end, more seamless. JD Super has already helped many offline merchants with online sales, not only diversifying the products available to customers, but also helping partners to increase their online sales channels. According to JD Big Data, during the first half of 2020, over 10,000 brands saw sales increase 100%, 7,000 brands saw sales increase 200%, 5,000 brands saw an increase of 300%, 200 brands saw sales of over RMB100 million yuan and over 20 brands saw sales of cover RMB 10 billion yuan.
As the key representative project of JD FMCG’s omnichannel efforts, through the Omnichannel Fulfillment program, JD Super works with partner offline stores to source inventory for orders made online, providing customers with a more convenient shopping experience, and brands with more precise access to performance data. Coca-Cola, Nongfu Spring, WalMart, Yonghui, Bubugao, and other brands have already joined Omnichannel Fulfillment.
Using big data and location based services (LBS), JD has been able to capture and meet consumers’ multi-scenario needs, helping to drive more traffic for brands and open up more growth avenues through an improved omnichannel model. Li explained that JD has strengthened its LBS capabilities, which originally were based on recipient’s address, to become more precise, enabling more useful insights. Furthermore, if a consumer orders Coca-Cola on JD Super, the system determines where the product is located closest to them, enabling delivery in an hour from partner stores such as Walmart, Yonghui Supermarket and many others.
Li said, “In the past, how to digitize offline data, in terms of consumer characteristics and attributes, was very difficult. With Omnichannel Fulfillment, JD as the common touch point, we can connect online and offline information.” This helps both JD and brands better target consumers and ensure the relevance of PUSH notifications, for example. It also improves customer flow, basket price, repeat purchase rate and consumers’ overall stickiness.
JD Super saw a high frequency of visits during the epidemic, as meeting basic needs moved from offline to online or from offline to omnichannel. Liu Hui, Chief Data Officer at the JD Big Data Research Institute, said, “In the first half of this year, rice, grains, oil, fresh food and other categories saw massive growth as compared with prior years. Fruit and vegetables became important categories for online consumption. Growth in these categories exceeded three times.