Dec 22, 2020|
JD Holds Partners Conference for its Private Brands, Aiming to Create Long-term Value for Customers
by Ling Cao
“Leveraging JD’s supply chain, brand awareness and technology-driven capabilities, JD hopes to join hands with partners together to focus on creating a value chain in the industry, helping manufacturers undergo digital transformation,” said Xiaosong Wang, senior vice president of JD.com and head of JD Original, JD’s private label brands department, during a partner conference at JD’s headquarters. He said that JD aims to provide integrated solutions for partners who work with JD.
JD’s private label brands cover comprehensive categories, including several sub-brands including J.Zao, Hommy, LATIT and Huixun. Dr. Jon Liao, CSO of JD.com, shared during the conference, “JD Original is one of the key chances for JD to go from the downstream chains in retail including merchandise, logistics and post-sale sectors, to the retail industry’s upstream chains including design, R&D and services sectors. JD will hold an open attitude to closely tie with partners to build the ecosystem together.”
Dr. Jon Liao
Based on big data and precise marketing solutions, JD Original will help brands find the right customers with the right demand, gaining sustainable growth. Specifically, JD Original will focus on C2M (Consumer-to-Manufacturer) initiatives and creative marketing methods.
Tom Tang, general manager of J.Zao, shared that since the beginning of this year, J.Zao’s customers and orders both grew nearly 400% YOY. Additionally, customers who search J.Zao on JD increased 147% YOY. This is all based on the quality of products and the algorithm-powered technology for customers. He added, “JD targets to achieve higher growth with partners next year by sharing information and abilities together.”
Livestreaming is another key factor to ensure JD’s private label brands’ growth. For example, in January Huixun brand’s livestream on Kuaishou drove 4.2 million orders in 10 days. In June, the brand’s livestream on Kuaishou resulted in four Huixun products each selling 1 million orders. And in November, after JD made livestreaming a standard marketing solution, Huixun held 27 livestreams in just one month.
Wilson Zhu, COO of Li & Fung said, “In today’s global economy environment, not all manufacturers are able to easily transition to digitalization. JD Original is a blue sea: combined with JD’s brand recognition, it creates a “short cut” between manufacturers, brands and customers.”
While Bin Chang, founder and managing director of GenBridge Capital, which is the private equity growth fund led by JD, shared during the conference, “Only by data-driven processes can we help brands and manufacturers understand customers. For manufacturers and partners, a very important ability will be learning to use the new generation of infrastructure to leverage platforms like JD.