Feb 3, 2023| JD Retail

JD Shop Now Sales Soar During Chinese Spring Festival

Vivian Yang

by Marry Ma

JD.com’s on-demand retail service “Shop Now” released the 2023 Report of On-demand Consumption in Spring Festival on January 28. During the Chinese Spring Festival from January 21 to 27, sales increased by 90% compared to the same period of last year’s Spring Festival. The search volume for Spring Festival decorations such as couplets, lucky characters, and red paper cuttings has increased more than 3.5 times that of the same festive period last year.

Data from JD Shop Now shows that gift boxes, fruits, alcoholic beverages, and mobile phones are the most popular goods during the Spring Festival. On New Year’s Eve, the consumers’ order amount increased by 171 percent year-on-year.

Gift box sales remain popular throughout the entire Spring Festival period, with overall year-over-year growth of over 50 percent. Among them, sales of baijiu gift boxes and fruits and nuts gift boxes have grown more than 10 times, while sales of fruits gift boxes, baked goods gift boxes, and dried seafood gift boxes have grown more than three times.

As many areas have started to experience snow and low temperatures, warm clothing items have also been popular, with sales of wool caps, gloves, electric blankets, and heaters increasing more than 2.5 times year-over-year.

Data from JD Shop Now shows that during the Chinese New Year period, sales of mobile phones increased by more than 70 percent compared to the previous year, cosmetics and perfume sales increased by more than 120 percent, and sales of home appliances increased by 226 percent.

Sales of smart health monitoring products on JD Shop Now increased by more than 10 times, and sales of massagers, electric health pots, and air purifiers increased by more than 2 times. The data shows that the sales of kitchen appliances such as floor-cleaning robots, cooking machines, and air fryers increased by more than 8 times compared to the previous year.

In order to bring pets home for the New Year, pet owners ordered travel equipment for cats and dogs on JD Shop Now, with sales increasing by 176 percent year-over-year, and sales of cat and dog toys, pet beauty tools, and pet medical supplies all increased by more than 110 percent year-over-year.

(mayiqian3@jd.com)

Mar 29, 2023| JD Retail

Annual Sales of Home Appliances on Shop Now Platform Increases 9-Fold Year-on-Year

Yuchuan Wang

by Mary Ma

JDDJ and Shop Now, the on-demand retail business jointly launched by JD.com, and Dada Group (Nasdaq: Dada), has reported great growth amidst significant expansion over the last 12 months in recent annual results.

In particular, the home alliance category has seen large growth. In March, JD.com published the “JD.com Helps the High-Quality Development of the Home Appliance Industry White Paper”. The white paper revealed that the home appliance industry is embracing the innovative on-demand retail, to achieve growth.

In 2022, sales in this category on JD Shop Now increased by more than 9 times year-over-year, making it of the most important channels for top home appliance brands.

As the key players in JD.com’s omni-channel service, JD Shop Now and JDDJ has connections to 11,000 brick-and-mortar home appliance stores, which accounts for about 60% of the top home appliance manufacturers and covered 300 cities in China.

As the on-demand retail business in JD.com’s ecosystem, JDDJ provides consumers with a service of “order online, deliver from nearby stores within one hour”. Based on analysis of home appliance trends, JDDJ identified the pain points of physical stores and provided integrated solutions in connecting off- and on-line inventories, user and service digitalization, to optimize cost, efficiency and experience.

As for large and heavy appliances, together with well-known merchants, JDDJ has established a “deliver and install” service, which can be fulfilled as quickly as the next day. The innovative service has greatly improved consumers’ experiences in home appliance consumption.

Since last year, home appliance’s on-demand retail business has been growing rapidly, and the online sales of offline stores are expected to exceed RMB 10 billion yuan in the next two years.

The key of on-demand retail is the digitalization of traditional stores. As the representative of open platform model, JDDJ does not touch the inventory, and brings high quality products and services to consumers together with all-category retailers and brand owners on-board.

By merging the borders of online and offline shopping, the omni-channel retailing model extensively integrates physical and digital channels, resources and capabilities to bring the ultimate experience to consumers while stimulating greater consumer potential.

At present, there is a surging need from retailers and brand owners for access to online traffic and efficient on-demand fulfillment solutions. More retailers are now starting to build their own O2O team and by leveraging JDDJ, they can expand their on-demand retail business rapidly.

(mayiqian3@jd.com)

Mar 28, 2023| JD Retail

JD Announces “One-Stop Shopping for Home Products and Appliances”

Yuchuan Wang

by Yuchuan Wang

On March 21, JD Retail announced “one-stop shopping for home products and appliances” and relevant plans for home appliances. It also announced that JD Home Appliance will stock RMB 100 billion worth of goods for the 20^th 618 Grand Promotion this year, with bulky order purchase target of 5 million units.

From 2012 to 2022, with the transition of sales channels, from offline to online to omni-channel, China’s home appliance industry developed new business models while maintaining healthy and rapid development. The industry continued to grow in 2022 and generated revenue of RMB 1.75 trillion, with a year-on-year growth rate of 19.9%. Additionally, Chinese home appliance brands also achieved great success in international markets, while creating new jobs and making innovations in brand and technology.

Despite this growth, the industry continues to face challenges, as well, including rising real estate costs, global supply chain issues, and product and innovation homogenization.

To continue to build momentum and address these challenges, JD Home Appliance is unveiling a new approach of “persistence and change”. It includes being persistent in putting customers first and upgrading services, retail-driven, healthy and sustainable development, upgrading product offerings, making structural breakthroughs, developing omni-channel and establishing an industry ecosystem, enhancing cost and efficiency, and achieving win-win outcomes with partners.

The approach also includes changes in promoting a product stratification initiative for both structural and low-priced products, accelerating sales and growth of new and trending products, improving pricing capabilities to ensure fair prices, upgrading the trade-in service to fully stimulate user demand, accelerating omni-channel layout, and expanding the marketplace business (POP platform) to create an open platform for businesses to achieve sustained profits and steady growth.

JD Home Appliance is working with partners to enhance customer experience and boost sales of new products through innovative actions such as the launch of JD Mall and trade-in services. It is also expanding to new areas, such as the lower-tier market, which offers significant potential for growth of home appliance brands. According to Yi Xiao, president of washing machine business unit of Midea, China has approximately 490 million families and daily consumption of home appliance mainly comes from 200 million of them. That means there is an untapped market of nearly 300 million to be served.

(yuchuan.wang@jd.com)