JD Retail: Eyes on High Quality, Consistent Growth in 2020
At its annual conference held on Sunday, January 12, JD Retail, the retail powerhouse of JD.com, announced its business target for accelerated quality growth in terms of transaction volume, revenue, user base and profit in 2020. This year, JD Retail will focus on strategy, business breakthroughs, organizational restructuring, culture cultivation and talent management to achieve its targets.
“Having earned the trust of Chinese consumers as their first choice in many categories – home appliances, digital products, fast-moving consumer goods, fresh food, healthcare, baby and maternal products, and more – JD Retail had a successful 2019,” said Lei Xu, CEO of JD Retail. “Never straying from our trust-based, customer-centric mission, JD Retail will continue to carry out the value proposition of trust to work with brands and merchants to achieve quality growth in 2020.”
In addition, JD Retail will continue to focus on various business initiatives in 2020, such as omnichannel integration projects, further penetrating into lower-tier markets and building up a healthy and powerful retail ecosystem.
- The core of omnichannel management lies in supply chain management, digitalized operation and capabilities in integrated marketing. JD Retail launched several key online and offline integration initiatives in 2019, such as opening new brick and mortar outlets like JD E-Space, a 50,000 square meter mega-experience store in Chongqing, and its 7FRESH Life and SEVEN FUN concepts under the 7FRESH brand. JD’s supply chain innovation program launched last year enables consumers to make an order online, and then JD’s system will use AI algorithms to identify the most effective way to deliver the product. The program can reduce the cost of operations by over 50%,and consumers can get the products within 2 hours – within just 15 minutes at the fastest.
- JD Retail took several measures to better meet the demand from consumers in the lower-tier markets and made great achievements. JD’s reaccelerated net revenue growth in the third quarter of 2019 was driven by its lower tier market penetration strategies. In particular, the growth rate for electronics and home appliances categories in lower-tier cities was more than double that of tier 1 and tier 2 cities. Over 70% of new customers in Q3 came from lower-tier cities, which is a new record.
- With supply chain capabilities as the core, JD Retail will further empower brands and merchants in big data, marketing and operations. With insights about Chinese consumer behavior, this year JD Retail put increased emphasis on its Consumer to Manufacturing (C2M) program, in which JD’s specialized data analytics tool can help brands understand how to maximize performance, modify their brand offering in China to better suit local tastes, and boost customer satisfaction. JD’s C2M initiative started with projects in the IT products category a few years ago, and has achieved amazing success. Today, over 70% of IT products sold on JD are C2M products – solidifying the influence JD has in China’s IT industry, online and offline. JD’s C2M program has been extended to broader categories, such as home appliances, fast moving consumer goods and more.
Let’s look back at JD Retail’s other highlights in 2019.