Aug 24, 2022|
JD PLUS Premium Membership Surpasses 30 Million
by Doris Liu
JD PLUS, a premium membership program offered by JD.com, saw a record high growth rate, with the number of members growing from 25 million at the end of 2021 to over 30 million by July this year, continuing to be among the largest paid membership programs in the industry.
As the first program of its kind in China’s e-commerce sector, JD PLUS joined hands with more than 1,200 well-known brands to create a full-scenario ecosystem covering both online and offline businesses, becoming an entry way to the good life for consumers, said Chen Lin, vice president of JD.com and head of platform business for JD Retail.
The rapid growth of JD PLUS indicates a positive win-win-win for consumers, brands and JD.com. The participation of more and more brands stimulates the offering of membership benefits, which further attracts more customers to take part, thus driving the high-quality growth of both JD.com and brand merchants, as well as creating value for the platform’s refined user operations.
1. Robust and Sustained Momentum for JD’s Growth
According to JD’s data, the JD PLUS program has demonstrated its members’ characteristics of high consumption, high activity and high loyalty. For instance, the consumption amount and frequency of the newly joined JD PLUS members rose more than 150 percent and 120 percent respectively in the first year of the membership. Meanwhile, such members were more inclined to try new products across more categories.
JD PLUS members lead high-end consumption, accounting for nearly 50 percent of the total new product sales during this year’s 618 Grand Promotion. On Samsung PLUS Member Day in March this year, the members also showed an obvious preference for high-end products and new launches, with the transaction amount reaching 50-90 percent in most of the single products priced above RMB 5,000 yuan.
Furthermore, the members are more willing to proactively participate in JD’s business with a higher level of activity in JD Health, JD Fresh and more. Lin believes that the membership program has become a sustained momentum for JD’s high-quality development.
2. One-stop Solution for Better Life
About 80 percent of JD PLUS members are family-oriented users, meaning that daily necessities are crucial for their shopping. So far, delivery vouchers offered by JD PLUS program have helped save nearly RMB 1.8 billion yuan in shipping costs; co-branded bank cards have saved RMB 1.18 billion yuan; and the 24-hour “exclusive customer service for PLUS members” has been provided for more than 30 million times. A JD PLUS member in Shanghai had saved RMB 300,000 yuan during this year’s 618 promotion.
The average number of online benefits available for JD PLUS members every day exceeds 130, which has become the largest number in terms of paid membership programs in the industry.
“Saving money is not the only purpose,” Lin said. “Our original intention is to let more people enjoy a high-quality life conveniently.” JD continues to expand new industries, new benefits and new cards through opening up benefits internally with the broader external ecosystem, so that JD PLUS members get exclusive benefits and services as well as full-scenario benefits.
3. Certain Growth for Partners amid Uncertainties
“Affected by the uncertain market environment, major brands are no longer simply pursuing traffic growth, but focusing more on the refined operation of users,” noted Chunhui Meng, general manager of JD PLUS. As the largest membership system with the highest stickiness in the industry, JD PLUS supports both JD’s high-quality development and growth with external partners, Meng said.
To date, 1,200 established brands including P&G, Dyson, Apple, McDonald’s and KFC, among others, have collaborated with JD PLUS to offer high-value services. Earlier this year, the system also opened to third-party merchants for the first time, so that the merchants can now access PLUS marketing tools with traffic support to select products based on the “PLUS Preference Index”, set special prices for PLUS members and accurately reach target consumers.
JD PLUS was first introduced in 2015, and officially came online in March 2016. From the perspective of brands and merchants, JD PLUS helps achieve higher return-on-investment results, and will leverage JD’s capabilities in digital intelligence and supply chain to explore more needs under different consumption scenarios, said Meng, who is confident that JD PLUS will continue to bring more value to partners and customers.