- Jan 05, 2021
- Business Update
JD Private Label Helps Food Company Grow
by Ling Cao
JD Original, JD’s private label brands department, had helped Zhong’ao Food exceed sales expectations in the past year. By deepening the cooperation, products produced by Zhong’ao became popular among customers on JD, and were showcased in promotions during the coming of the new year.
Zhong’ao is a Hebei-based food company mainly producing meals and snacks for commercial airlines, who faced big challenges for sales and production due to the pandemic. The whole air industry has shrunk during this period. According to the International Air Transport Association (IATA), the total number of global travelers decreased by 62% from 2019 to 2020, while sales decreased by 59%.
By cooperating with JD, Zhong’ao’s online sales have far exceeded expectations and even created a popular food product in August 2020. The product is the fried snack made of flour and sugar called Xiaomahua, which has been sold on the Huixun store, one of JD’s private label brands. As a result, 80,000 of Xiaomahua were sold in August, and the number reached over 200,000 by November. Now, 60-70% of Huixun’s products have been produced by Zhong’ao. In addition, JD’s brand awareness also attracted other brands to cooperate with Zhong’ao, such as Daoxiangcun, a popular time honored snack brand of Beijing.
Lingzhai Li, general manager at Zhong’ao said, “We were pretty worried about our production and sales during COVID-19. We saw many enterprises were trying to undergo digital transformation, so we wanted to work with JD for a trial. However, we didn’t expect the scale could be so promising.”
JD has provided an integrated service for Zhong’ao, including livestreaming, precise marketing and more.
Xiaosong Wang, senior vice president of JD.com and head of JD Original said, “We take a very professional approach, and give special care and attention to each product and each specific partner. We believe that products are always the key for retail, and technology-driven philosophy can help us improve supply chain efficiency. With these factors, we want to work with partners to achieve a win-win, providing cost-effective and high quality products to customers.”