- Nov 12, 2020
- Business Update
JD Singles Day Wrap-up #2: Grocery E-Commerce from Important to Imperative
by Ella Kidron and Rachel Liu
Fast-moving consumer goods and fresh food were a highlight of JD’s Singles Day Grand Promotion during which the company reported transaction volume of RMB 271.5 billion yuan (USD $41.1 billion) for the 11-day sales period from November 1st-11th. With COVID-19, consumers have gotten used to shopping online for these products and show no signs of stopping anytime soon. Over 20,000 consumer brands saw cumulative transaction volume increase over 100% during the Singles Day promotion period. In the first 10 minutes on November 11th, 3,000 brands saw transaction volume double YOY. Over 80% of new users of JD Super, JD’s online supermarket, came from lower-tier markets.
Chief Economist of JD Digits, Jianguang Shen, said: “E-commerce is the bellwether of China’s consumption recovery this year. With an increasing share in overall consumption, it played an important role in supporting many suppliers to overcome the impact of the pandemic. At the same time, the rise of new business formats such as fresh food e-commerce are adding new boosts in this sector.”
Carol Fung, President of JD FMCG Omnichannel said: “It is very encouraging to see consumers’ continuous trust in JD Super and in JD.com. This is evidenced by strong growth in multiple products. Trust is what will enable us to win in user growth, lay the foundation for sustainable development and serve consumers to buy anything they need, anytime, anywhere. Omnichannel has become a key theme for our business and more brands are joining hands with us on this. We continue to find that our strong supply chain ability and the development of deep and sustainable win-win partnerships with brands are instrumental in meeting the needs of our diversified consumers across countless scenarios.”
Carol Fung during Singles Day celebration at JD Headquarters in Beijing
JD’s Omnichannel Fulfillment supply chain innovation program sources products from offline outlets located near customers, eliminating unnecessary touch points, increasing efficiency while reducing costs. When a consumer places an order online, the platform matches the order with offline supply closest to the customer in real-time, and then arranges for a courier to deliver to the consumer along the most efficient route. Instead of relying solely on the stock in JD’s warehouses, the omnichannel fulfillment platform will calculate which brick and mortar stores nearest to the customer have the items in stock, and then source the inventory from there, both ensuring supply and delivery speed. As of November 4th, JD has achieved one-hour delivery through the cooperation with JDDJ (JD Daojia, China’s leading local on-demand retail platform) in 328 cities.
A specific breakdown of stats can be seen here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/