Oct 30, 2021|
JD Releases New Product Report and Targets to Offer 400 Million New Products in Upcoming Singles Day Grand Promotion
by Yuchuan Wang
JD.com will offer over 400 million new products during this year’s Singles Day Grand Promotion. More than 1,200 new product categories are expected to see sales double. JD.com released a “New Product Consumption and Market” report on Oct. 28, showing a 50% year-on-year increase of new product launches and sales in the first three quarters of 2021.
JD’s data shows that the average basket size of new products during peak promotions such as 618 and 11.11 is 30% higher than normal days (data reflects Jan.-Oct. 2021). According to customers’ feedback, 62% of customers consider “upgrade” as the driving factor for new product purchases, which mainly fall into three categories powered by “rigid demand” (for products used in daily life and work): technology or function innovation, durability and popular styles. Cell phones, computers and home appliances are the representative categories of such rigid demand, and the sales of these new products also reflects the current consumption trends, showing the core of national consumption.
In contrast, consumers’ flexible demands are also increasingly driving consumption. Products that are strong in “appearance” and “experience” add extra points for consumers. For example, the upgrade of iPhone 13’s processor and camera is not as attractive as the new color Sierra Blue. “Low sugar and low calorie” products address the needs of consumer groups that pursue not only good taste but also healthiness.
Flexible demand is driven by the diversified needs of consumers, which shows the trends of satisfying consumers’ niche demands.
Consumers’ willingness to buy a familiar brand’s new products in 2021 increased 5% as compared to 2020, while for unfamiliar brands, over 25% consumers are interested in trying their new products; for example, plant-based meat.
Female and young consumers tend to be attracted by innovative appearance design of new products. The adorable all-electric microcar Wuling Hongguang MINI EV saw 45,000 units sold in 10 days after its debut. Among the sales, 68% comes from the macaron color series, and 65% of the customers are female, with 80% under the age of 35.
In addition to appearance, consumers also pay attention to the user experience. On the first day of JD’s 618 Grand Promotion, sales of skin-care shower products increased 300% on a yearly basis. Smart wet dry vacuums saw an increase of 11.4 times in terms of sales, with 55% customers being female, and 84% being between the age of 26 to 45.
All-in-one vs. only one
The flexible demand has also given rise to an interesting trend for new products: some products own more functions to satisfy customers’ comprehensive needs, while some products reduce many functions to satisfy niche market needs.
For example, integrated stove and air conditioners with air purifier function are selling well on JD, with new products sales in Q3 2021 having increased the most as compared to other categories’ average. At the same time, mothers are buying more different tooth brushes for kids with different functions to be used for the cleaning of different teeth and in different scenarios; pet owners prepare different kinds of products for the care of their pets.
The popularity of all-in-one products are designed to increase using efficiency and to satisfy people’s demands in saving labor, time and space—while the time saved will be spent on social, entertainment, healthcare, pet and more.
C2M and new product
The customized C2M (Consumer-to-Manufacturer) products can accurately reach their target customers, creating products that customers chase to buy. The shelf sales ratio of C2M products on JD in 2021 is 48% higher than non-C2M products. The number of customers is 11 times more.
Through the end-to-end C2M solution JC2M, JD enables the procedure of creating C2M products to be low-cost and efficient. Data shows that C2M products contribute 42 times the profit when compared with a traditional new product, creating more value for manufacturers and brand owners.
And according to user research, young people under the age of 35 accept C2M products more quickly, with a “very satisfied” rate of 52%.
At present, 40% of the gaming laptops on JD.com are manufactured via C2M. JD’s JC2M intelligent manufacturing platform has been deeply involved in the design of products from more than 1,000 brands.