JD News Roundup Vol. 2 (April 4-17)

In our bi-weekly digest, we consolidate a selection of recent news and provide some context on why it matters.

JD News Roundup Vol. 2 (April 4-17)

By Ella Kidron

Hubei province on the road to recovery following COVID-19 lockdown: JD data looking at enterprise procurement indicates that business in Hubei province are gradually resuming operations. From March 25th to 31st, the demand for goods from Hubei enterprises on JD’s platform increased 44.9% compared with the week earlier. On April 8th, JD announced a plan to invest more than RMB 6 billion in the recovery of Hubei province over the next three years, launching a series of initiatives to support the local economy and the development of local industry. Following the lift of the lockdown, there has been an explosive increase in the number of large items delivered by JD Logistics in Wuhan, Hubei province. Compared with the same period in March, in the first week of April, deliveries increased over 900%. Among the top items were furniture, home appliances and fitness equipment. Air conditioners, refrigerators and gas water-heaters experienced the most significant increase in demand.

Brands find ways to connect with consumers during COVID-19: As another way to help cultural brands during this time, JD has worked with museums and galleries in China to bring experiences online. Live streaming of activities from clubbing to traveling have boomed in China during COVID-19 as a way to help people stay connected and entertained while at home during lockdown or self-quarantine. Not just a means of entertainment, the experience also boosts sales of the museum’s stores on JD. On March 10th, the Guanfu Museum (founded by Chinese writer and collector Weidu Ma) hosted a session, attracting over 200,000 visitors in two hours. Sales of the museum’s flagship store increased approximately 460%.

Consumption trends in the “new normal”: JD data finds that, as COVID-19 is entering a new phase in China, people are going outside for more outdoor activities, and consumption reflects that. As compared with February 1-17, from March 1-17, sales of cycling-related products, fishing supplies, sportswear and other goods more than doubled month-on-month. Fishing seems to be a highly popular activity, with sales of fishing supplies up 155% month on month. Spring outing consumption among the 25-45 age group is 12.1% higher than the whole of JD’s platform.

New brands and products join the JD family: New brands and services continue to come on JD at a steady clip. Most recently, JD launched a trade-in service for the iPhone SE in which consumers who buy the iPhone SE now under a promotion can later have the opportunity to trade it in and deduct its full value from the cost of new model. This follows the launch of a trade-in service with Apple’s iPad Pro and Macbook Air launched in March – the first of such services for JD to launch with Apple. In other news, water and housing products giant Lixil Group launched a flagship store on JD on April 9th. It is the first online store to integrate four of Lixil Group’s leading brands:  GROHE, American Standard, INAX and Lixil Kitchen. On April 9th, JD’s supply chain solution helped support important partner Xiaomi with its 10-year anniversary sales promotion. To mark the official end of the lockdown in Wuhan, a delivery robot delivered some of the Xiaomi products to customers in Wuhan, Hubei province.

JD demonstrates tech and supply chain leadership with products, rankings and partnerships: Earlier this week, JD Cloud & AI launched its edge computing product portfolio. The products, “Edge Physical Computing Service” and “Distributed Cloud Physical Server” are aimed at helping enterprises develop innovative businesses in the era of 5G&IoT. In a recently released ranking by ifenxi, a leading analytics agency in China, JD ranks third among China’s top 30 cloud computing companies. Finally, JD and Blue Yonder, Inc. (formerly JDA Software Inc.), formed a strategic agreement focused on providing supply chain transformation solutions for merchants in China.

Omnichannel Fulfillment expansion: Through a new cooperation with Dada Group, JD has expanded its Omnichannel Fulfillment program with one-hour delivery of daily necessities supported by Dada Now. Customers can directly buy over three million products from participating stores on JD.com and receive them in as fast at 15 minutes, and in an hour on average. JD’s Omnichannel Fulfillment supply chain innovation program integrates many offline channels to deliver orders that originate from JD directly, making the supply chain more efficient and sourcing products even closer to customers.

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(ella@jd.com)

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