Apr 9, 2021| JD Retail

JD Launches Home Cleaning Service

Vivian Yang

by Vivian Yang

JD.com launched a home cleaning service operated fully in-house on Apr. 8, which marks another big step for the e-commerce giant in the local service market. The company’s trust-based and high-quality brand image gives it a leg up when introducing its self-managed domestic services and addressing some knotty problems in this industry.

According to JD’s website, customers can enjoy four main benefits of home cleaning services: standardized services – all cleaners need to complete strict training programs provided by JD and pass more than one hundred skill tests both in written and practical to get the qualification to serve on JD’s platform; transparent prices – consumers just follow the fixed price rates on JD’s app to order services and add hours for any overtime work via the platform; customer service hotline – customers can feedback to JD’s own customer service hotline anytime for the company to track and ensure the quality of the cleaning service; three layers of insurance – for each service order, JD will purchase personal safety insurance for both the customer and the cleaner, as well as the insurance against damage or loss of customers’ property.

As part of the standardization effort, each JD cleaner must be equipped with more than 30 items in their toolkit.

As part of the standardization effort, each JD cleaner must be equipped with more than 30 items in their toolkit. For example, the cleaning cloth set alone includes nine towels and four rags that are specified to be used in different rooms to ensure hygiene and cleaning effectiveness.

Cleaners need to follow multiple anti-COVID measures to conduct the door-to-door service, such as showing their health code, wearing masks and shoe covers, strictly adopting the seven-step handwashing technique, taking all waste with them in customized trash bags after service and more.

“This home cleaning service is a new addition to JD’s local life service offerings within a 3 kilometers radius,” said Keren Wu, general manager of JD’s local life business unit. “Such JD-standard premier services in customers’ vicinity will be gradually introduced in Beijing, Shenzhen, Shanghai, Guangzhou, Hangzhou and more cities.”

In addition to home cleaning, JD operates a number of local life services in-house including food delivery, car maintenance, pharmacy, healthcare services and more.

(vivian.yang@jd.com)

Mar 29, 2023| JD Retail

Annual Sales of Home Appliances on Shop Now Platform Increases 9-Fold Year-on-Year

Yuchuan Wang

by Mary Ma

JDDJ and Shop Now, the on-demand retail business jointly launched by JD.com, and Dada Group (Nasdaq: Dada), has reported great growth amidst significant expansion over the last 12 months in recent annual results.

In particular, the home alliance category has seen large growth. In March, JD.com published the “JD.com Helps the High-Quality Development of the Home Appliance Industry White Paper”. The white paper revealed that the home appliance industry is embracing the innovative on-demand retail, to achieve growth.

In 2022, sales in this category on JD Shop Now increased by more than 9 times year-over-year, making it of the most important channels for top home appliance brands.

As the key players in JD.com’s omni-channel service, JD Shop Now and JDDJ has connections to 11,000 brick-and-mortar home appliance stores, which accounts for about 60% of the top home appliance manufacturers and covered 300 cities in China.

As the on-demand retail business in JD.com’s ecosystem, JDDJ provides consumers with a service of “order online, deliver from nearby stores within one hour”. Based on analysis of home appliance trends, JDDJ identified the pain points of physical stores and provided integrated solutions in connecting off- and on-line inventories, user and service digitalization, to optimize cost, efficiency and experience.

As for large and heavy appliances, together with well-known merchants, JDDJ has established a “deliver and install” service, which can be fulfilled as quickly as the next day. The innovative service has greatly improved consumers’ experiences in home appliance consumption.

Since last year, home appliance’s on-demand retail business has been growing rapidly, and the online sales of offline stores are expected to exceed RMB 10 billion yuan in the next two years.

The key of on-demand retail is the digitalization of traditional stores. As the representative of open platform model, JDDJ does not touch the inventory, and brings high quality products and services to consumers together with all-category retailers and brand owners on-board.

By merging the borders of online and offline shopping, the omni-channel retailing model extensively integrates physical and digital channels, resources and capabilities to bring the ultimate experience to consumers while stimulating greater consumer potential.

At present, there is a surging need from retailers and brand owners for access to online traffic and efficient on-demand fulfillment solutions. More retailers are now starting to build their own O2O team and by leveraging JDDJ, they can expand their on-demand retail business rapidly.

(mayiqian3@jd.com)

Mar 28, 2023| JD Retail

JD Announces “One-Stop Shopping for Home Products and Appliances”

Yuchuan Wang

by Yuchuan Wang

On March 21, JD Retail announced “one-stop shopping for home products and appliances” and relevant plans for home appliances. It also announced that JD Home Appliance will stock RMB 100 billion worth of goods for the 20^th 618 Grand Promotion this year, with bulky order purchase target of 5 million units.

From 2012 to 2022, with the transition of sales channels, from offline to online to omni-channel, China’s home appliance industry developed new business models while maintaining healthy and rapid development. The industry continued to grow in 2022 and generated revenue of RMB 1.75 trillion, with a year-on-year growth rate of 19.9%. Additionally, Chinese home appliance brands also achieved great success in international markets, while creating new jobs and making innovations in brand and technology.

Despite this growth, the industry continues to face challenges, as well, including rising real estate costs, global supply chain issues, and product and innovation homogenization.

To continue to build momentum and address these challenges, JD Home Appliance is unveiling a new approach of “persistence and change”. It includes being persistent in putting customers first and upgrading services, retail-driven, healthy and sustainable development, upgrading product offerings, making structural breakthroughs, developing omni-channel and establishing an industry ecosystem, enhancing cost and efficiency, and achieving win-win outcomes with partners.

The approach also includes changes in promoting a product stratification initiative for both structural and low-priced products, accelerating sales and growth of new and trending products, improving pricing capabilities to ensure fair prices, upgrading the trade-in service to fully stimulate user demand, accelerating omni-channel layout, and expanding the marketplace business (POP platform) to create an open platform for businesses to achieve sustained profits and steady growth.

JD Home Appliance is working with partners to enhance customer experience and boost sales of new products through innovative actions such as the launch of JD Mall and trade-in services. It is also expanding to new areas, such as the lower-tier market, which offers significant potential for growth of home appliance brands. According to Yi Xiao, president of washing machine business unit of Midea, China has approximately 490 million families and daily consumption of home appliance mainly comes from 200 million of them. That means there is an untapped market of nearly 300 million to be served.

(yuchuan.wang@jd.com)