Nov 16, 2020|
JD Home: Connecting Online and Offline during Singles Day
by Rachel Liu
JD Home stores, JD’s offline retail experience stores, have seen an increase of over 1 million members coming from both online and offline during this Singles Day period (November 1st to 11th).
JD started to build JD Home stores in 2016, aiming to provide a place for customers to touch and feel products, especially electronics products, before they shop online. With JD’s brand endorsement, customers have strong trust in the stores. JD Home also shares supply chain, inventory and logistics with JD, providing rich choices on products. Based on JD’s big data and Location Based Services (LBS), JD can also help with store location selection. As of November 2020, JD had 2,000 JD Home and JD Mobile Stores.
To help the JD Home store owners better run their stores, JD has provided multiple kinds of support covering livestreaming, customer attraction and one-hour delivery.
During COVID-19, many JD Home stores saw declining customer numbers as people were hesitant to be in stores. JD helped the store owners to do livestreaming to expand sales channels by providing trainings and awarding livestream shows. JD Logistics continued to support fulfillment and delivery service.
On November 1st, JD Home stores held over 300 livestream shows on JD, Wechat and Kwai (one of China’s most popular short video platforms), and many stores saw sales generated from livestream reach RMB one million yuan. On November 11th, over 60% of sales in JD Home stores were generated by customers from third to sixth tier cities. During the entire Singles Day period, JD Home’s livestream received over 100 million views on JD, Wechat and Kwai, and over 40% of customers were from lower-tier markets.
Earlier this year, JD Home and JDDJ (JD Daojia) jointly launched one-hour delivery service. Customers who order products on the JDDJ platform from JD related offline stores, can enjoy one-hour delivery service provided by Dada couriers. Under this model, when receiving the orders, JD doesn’t need to send the orders through warehouses, fulfillment centers and delivery stations. Instead, the orders can be transferred directly to the offline stores near the customers through LBS, optimizing customer experience and efficiency.
During Singles Day, new customers who used one-hour delivery increased four times YoY. The average delivery time for the service on November 11th was 36 minutes.