Nov 12, 2020|
JD Singles Day Wrap-up #4 – Omnichannel Models Showcase JD Supply Chain Prowess
by Ella Kidron and Ling Cao
Omnichannel has proven to be a powerhouse as a growth driver for both To-B and To-C development. This was made apparent during Singles Day Grand Promotion. 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. Omnichannel marketing and retail are making it possible for consumers to shop whenever and wherever they want.
JD’s fresh food footprint which started purely online in 2012 has now become omnichannel. The company’s omnichannel supermarket SEVEN FRESH covers a number of cities in China. Notably, during the Singles Day period, on Nov. 6th, JD opened a SEVEN FRESH in Wuhan, the epicenter of the epidemic outbreak in China. JD played an instrumental role in making sure that residents of Wuhan could access fresh fruits and vegetables during lockdown, setting up several programs to deliver at a time when no other logistics operators were able to. SEVEN FRESH is one of the demonstrations of the company’s commitment to the long-term health and wellness of Wuhan residents post-pandemic.
Jonathan Wang, vice president of JD.com and head of SEVEN FRESH said: “The epidemic has accelerated the need for more and more customers to buy fresh food online and it has become a habit. Based on an omnichannel retail strategy, SEVEN FRESH aims to provide customers with a superior in-store experience and fast delivery services within 30 minutes. We’ve seen SEVEN FRESH’s online orders increase significantly.”
JD’s omnichannel convenience store initiative, JD New Markets, is also playing a key role in this years’ Singles Day Grand Promotion. These convenience stores are JD’s B2B2C business. That means that JD helps source high-quality products for these individually owned stores, while also supporting the stores with digital marketing, customer insights and more.
This Singles Day, products from popular brands like Lay’s and many more participated in cross category and brand-specific promotions to provide the best products at the best prices to nationwide store owners through the JD New Markets initiative.
“In the fourth year for JD New Markets to join the Singles Day Grand Promotion, we have shouldered the responsibility of deeply integrating the digital and real economy,” said Arthur Zheng, President of JD New Markets. “As we have seen steady growth, we also help nationwide mom-and-pop stores with our supplies. Joined by brands, distributors, retailers, and consumers, we will deliver an even better omnichannel retail experience and sustainable growth.”
During Singles Day, sales of JD New Markets reached 208% of sales last year. The New Markets team also provided innovative marketing solutions for store owners and brands. Conversion rate of orders resulting from an individual JD New Markets livestream show reached 75%, which means that 75 of every 100 viewers placed orders.
For a specific breakdown of stats please view our infographic here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/