- Nov 12, 2020
- Business Update
JD Singles Day Wrap-up #1: Deep Commitment to Brands Drives Success
by Ella Kidron
At midnight on November 12th JD reported Singles Day Grand Promotion transaction volume of RMB 271.5 billion yuan (USD $41.1 billion) for the 11-day sales period from November 1st-11th. The result set a new record.
There is much more behind this number than meets the eyes. The year of 2020 has been no ordinary year, and this has certainly been reflected in Singles Day results. As COVID-19 prevention and control in China has reached a stage of normalization in China, long-term changes in consumer behavior and impacts on economic structure have been observed this Singles Day.
Consumers’ and merchants’ willingness to participate in Singles Day is stronger than ever. JD’s perks are also its best yet, both in terms of discounts and high quality services. During this year’s Singles Day promotion, JD announced it would sell over 200 million products with 50% discounts, and launch more than 300 million new items through JD’s platform.
Lei Xu, CEO of JD Retail, said: “Singles Day is an important sales time for brands. For those big brands, they have a bigger advantage because they can better meet consumer demands with the help of their brand reputation, supply chain ability, operation and marketing ability, as well as ability to cooperate with e-commerce platforms. That’s why we have witnessed fast growth by well-known international and Chinese brands. In the meantime, consumers pay more attention to quality and price when they choose low-profile brands, which have been affected by COVID-19.”
Singles Day is known for involving complicated coupon schemes that can leave many buyers scratching their head and even stressed out, JD has been simplifying the process each year, and took it a step further this year. Consumers simply put products in their shopping carts, and then JD’s systems do the calculations to ensure the most ideal coupon combo.
While the shopping event is certainly about giving back to the customer, and ensuring the best customer experience, a successful Singles Day is not purely about the cheapest products and the best deals. In fact, consumers have displayed a willingness to buy high priced items if they are also high quality. This is very much in line with JD’s ethos. Xu said: “JD has been advocating against excessive consumption, instead encouraging responsible consumption. We don’t encourage consumers to shop impulsively. It’s more important to consume in a rational manner.”
A specific breakdown of stats can be seen here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/