Jun 19, 2021|
JD Reports over RMB 343.8 Billion Yuan Transaction Volume for 618 Grand Promotion
by Ella Kidron
China largest retailer, JD.com reported a total transaction volume of over RMB 343.8 billion yuan for its 18-day 618 Grand Promotion. As of 00:11:34 in the wee hours of June 18 the transaction volume already exceeded that of last year’s total (RMB 269.2 billion yuan), and by 14:04 transaction volume reached RMB 305.6 billion yuan.
“We’ve seen pretty good momentum in China this promotion season,” said Chenkai Ling, vice president of JD.com and head of strategy at JD Retail. “We kicked off the promotion around May 24th and got a lot of early insights on consumer behavior. What’s more, we’ve seen the number of brands and merchants participating in the sale double,” Ling added, referring to the ubiquity of the mid-year sale which started as JD’s birthday and is now celebrated by all players, online and offline, annually.
One of the highlights is the supermarket category, an area in which JD has continued to perform strongly, thanks to a high guarantee of authenticity, quality, and delivery speed. “Some categories peaked during COVID-19, but for a lot of other categories such as fresh and FMCG, we can see a lot of momentum,” said Ling, explaining the reason behind the 618 boom.
In the first three minutes on Jun. 18, JD Super, JD’s online supermarket, saw sales increase 10 times, and in the first two minutes, packaged foods exceeded RMB 300 million yuan while the maternal and baby category exceeded RMB 200 million yuan.
In the first hour on Jun. 18, JD Fresh saw sales increase 70% YOY. Looking at sub-categories, seafood, meat, eggs and poultry, and fruit and vegetables increased 160%, 105% and 80% respectively. Sales of dishes which require little effort to prepare (literally referred to as “fast-hand-dishes”) increased 160%.
Five minutes after midnight, the alcohol category exceeded RMB 200 million and the personal care and home cleaning categories both increased 20 times YOY. In the first 6 minutes, toys had a nine-fold increase.
The pet category has boomed. Post-90s consumers spent an average of RMB 507 yuan per month on pet products in 2021. During 618, smart pet products increased 47% YOY. Ling explained that previously not a lot of people took ownership of pets, but now with the China’s aging population coupled with COVID-19, people are seeking the companionship of pets leading to a boom.
618 is always a popular time for consumers to stock up on products. For example, in the first two minutes on Jun. 18 milk sales had a six-fold increase as did drinking water, while grains, oil, rice, etc. increased five times YOY. Toilet paper increased nine times.
International products from all over the world have had a good showing as well. As of Jun. 18 at 10 a.m., transaction volume of imported products increased 10 times compared with the previous period. JD Worldwide imported gaming phones increased nearly three times. Imported dry cat food increased 108%. On Jun. 1, National Pavilion (dedicated zones on the JD platform for products from a particular country), sales increased 80% YOY. From Jun. 1-16, imported supermarket sales doubled compared to the previous period.
As of 21:40 on Jun. 18, on demand retail platform Dada-JD Daojia’s sales exceeded RMB 300 million yuan, underscoring the widespread use of omnichannel and consumers’ elevated delivery speed expectations.
Services also had a strong showing. Fresh flower orders, “Good Houses by JD” orders increased 108% and 280% respectively. “People are not only buying physical items but also starting to buy certain services,” said Ling. Early on in the promotion season JD saw health services increase 800% YOY. “Consumers are starting to consider internet health services as part of their lives.”
Electronics, a category requiring a high level of confidence in quality, did not disappoint either. From 00:00-10:00 gaming phones increased nine times in the first 15 minutes on Jun. 18. One-hour delivery phones services saw a 20 times increase in the same time period. New energy ACs were up 8 times, gaming TVs exceeded the total of the month of May. Seventy five-inch and over large screen TVs increased 300% YOY. Sales of Xiaomi phones increased 150% YOY.
Another quality and confidence indicator, the luxury category also shined. Sales of Salvatore Ferragamo, Burberry, Tod’s and Bally saw 209%, 10-times, 192% and 25-times increases YOY respectively.
More than reflecting JD’s strength as a retailer and supply chain player, this year’s 618 underscores how the company is enabling partners to reach consumers in China with more precision and deliver an unparalleled experience. It also shows consumption momentum in China at the half-year point.
During the 618 Grand Promotion, the use of JD’s autonomous delivery robots increased 24 times and the daily orders proceed by JD’s smart warehouses doubled.
As for what 618 means for the rest of the year? “We see this trend during Jun. 18 but we expect it will continue through the whole year,” said Ling, citing a heightened appetite for consumption among consumers.
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.com Pasture Initiative Kicks with Partnership in New Zealand
