Jul 28, 2022|
JD Luxury Links with High-end Brands to Boost Digital Profile
by Doris Liu
JD Luxury has attracted more than 300 big brands to cater to the appetite of Chinese consumers for all things luxury. As JD’s annual Luxury Shopping Festival kicked off on July 25, some 50,000 new products went on sale with a full range of categories from the world’s top brands.
The pandemic has accelerated China’s digitalization as the stay-at-home economy thrives. The luxury market in China was forecasted to grow by 36 percent year-on-year (YOY) in 2021, with some brands seeing a 70 percent surge, according to the China Luxury Report 2021 released by Bain & Company, a global management consulting firm. In addition, luxury brands have become more open-minded in terms of digital engagement, leading to a growth of online and offline personal luxury goods sales in China to 56 and 30 percent respectively, according to the report.
According to Bain & Company, China is expected to become the world’s largest luxury market by 2025.
To be more flexible to adapt to the uncertainties brought by the pandemic, while also connecting with millennials and Gen Z consumers, brands have to act in an open and inclusive manner. JD, with its robust supply chain capabilities and omni-channel advantages, has been chosen by more and more key brands to help accelerate their own digital transformation.
Brand Matrix
With over 300 official flagship stores of luxury and premium brands, JD is now the first company to collaborate comprehensively with nine top-tier fashion brands under the French luxury conglomerate LVMH, after Fendi joined JD Luxury recently following Louis Vuitton, Dior, Bvlgari, Celine, Loewe, Givenchy, Berluti and Rimowa.
The Kering-owned jewelry house Qeelin, Swiss luxury watch and jewelry brand Chopard, and Hermès’ shoe brand John Lobb have launched their flagship stores on JD.com. Other sought-after luxury brands such as Burberry, Salvatore Ferragamo, Delvaux, Prada, Zegna, Tod’s and Bally are also featured on JD Luxury, a luxury fashion-dedicated platform under the J Shop, JD’s upgrade of its Fashion and Lifestyle business.
To match consumers’ demand of refined lifestyle in all aspects, JD also introduced a roster of flagship stores for high-end products like Tom Dixon homeware, Christofle silverware, collectible luxury piece BE@RBRICK, the Canadian luxury outerwear brand Moose Knuckles and so on.
The growing number of luxury brands on JD indicates that JD’s healthy ecosystem has won trust from the industry; meanwhile, JD’s strong reputation for offering an authenticity guarantee is also deeply rooted among over 580 million active users.
Innovative Modes
As a global gathering place for the world’s premier brands, JD Luxury has rolled out diversified and innovative models for the digital layout and customized operation of these brands, which enhances consumers’ shopping experience down to the details, while ensuring a full and unified expression of each brand image.
Luxury brands on JD are able to access multiple options for efficient on-demand operation solutions. The DTC (Direct to Consumer) model of JD’s mini program scheme through JD’s App, adopted by brands such as Louis Vuitton and Fendi, customize and optimize functions to make product suggestions more relevant with recommended outfits to inspire everyday fashion.
JD’s self-operation of the omni-channel retail model enables Prada, Zegna, Maison Margiela and more to seamlessly manage the inventory of online and offline stores – customers can select products that are available in physical stores through JD’s official flagship store, and opt to place orders online and then pick up in the brick-and-mortar store, which enhances a more hybrid customer experience.
Other models are also open for brands with a wider selection of merchandise and scenarios, including JD’s self-operation with brands’ official authorization; the marketplace model; and the newly launched vendor-managed inventory (VMI) model, which allows luxury brand to run the store with independent operation, while also enjoying the warehousing and logistics services offered by JD Logistics.
Additionally, the J Shop offers physical stores. To date, three of them have been jointly developed by JD and Italian luxury retailer COSCIA, located in Chengdu, Shenzhen and Yinchuan. Featuring the themes of luxury, designer brands, light luxury and lifestyle, the stores offer nearly 2,000 selected products covering bags, apparel, footwear, watches, etc.
Customer First
Luxury brands sell more than products; they also focus on creating highly personalized and multi-dimensional experiences for luxury consumers, with supreme customer service, accessibility and convenience across all touch points.
JD Luxury recently launched a Plus Luxury membership program, in which members can receive coupons for top brands as well as premium services such as high-end laundry and exclusive VIP offline events.
Furthermore, services that are markedly specialized and tailored to individual clients smoothly replicate and enrich the in-store shopping experience such as one-on-one online customer service, engraving service, the self-operated same-day delivery, and JD Luxury Express, which offers a white-glove delivery service by specially-trained JD employees.
Creative marketing strategies are also important to appeal to more luxury buyers. For instance, the 3D shopping solution supported by VR technology is sometimes adopted in JD’s stores. Moreover, Tory Burch’s first digital collectible will be released jointly with JD during the Luxury Shopping Festival this year, which will be concluded on July 31, while MCM will launch an in-store interactive game.
With Chinese Valentine’s Day “Qi Xi” (July 7 on Chinese lunar calendar, which falls on August 4 this year) around the corner, JD is joining hands with top brands to organize a crossover campaign, featuring Hennessy X Emporio Armani, Boss X Xiaomi, Alienware X Stone Island, etc.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
JD Joins China International Consumer Products Expo in Haikou
