Nov 13, 2020| JD Retail

JD Singles Day Wrap-up #7: Four Key Themes from the Grand Promotion

Ella Kidron

by Ella Kidron

Four key theme emerge from the Singles Day results JD reported on Nov. 12^th. The company announced transaction volume of RMB 271.5 billion (US$41.1 billion) for the 11-day sales period (Nov. 1^st-11^th).

Lower-tier markets a huge source of consumer growth and product diversity

JD’s investment in the lower-tier markets is made clear through this Singles Day. Lower-tier markets are a big source of customer growth. During this Singles Day period, over 80% of new customers on JD Super came from lower-tier markets, and in the first five minutes of November 11^th, JD Super saw a 12-time YOY sales increase from these areas.

Lei Xu, CEO of JD Retail, said: “JD has been growing rapidly in the lower-tier markets through its logistics layout, development of commodity supply chain and creation of marketing products.” He added that the growth rate of users in the lower-tier markets is much higher than in the first- and second-tier markets, underscoring the immense potential of JD’s investments in these areas.

Thanks to JD’s strong supply chain advantages, the company is helping products from rural areas in all over China access the nationwide market. One example occurred in Sichuan province. To prep for this Singles Day period JD built a sorting warehouse in Meishan, a tier four city in the Southwest part of China. Meishan is one of the biggest places of origin for citrus in China. It produced nearly 1.4 million tons in 2019. The warehouse helped local citrus growers more easily sort and transport local specialty citrus to customers nationwide within 24 hours.

This type of program has two real benefits – first, it supports farmers in giving them a channel for market access, and second, it brings the freshest available produce to Chinese consumers.

Personalization of products ensures precise satisfaction of consumer demand

Consumer-to-Manufacturer (C2M) is another major area of growth as consumer demand is getting more and more individualized. C2M is a flexible manufacturing model that leverages the company’s big data insights to jointly develop tailored products with brand partners based on exactly what customers want, as revealed through their shopping behaviors and preferences. It creates a smart manufacturing industry in which products are developed according to direct consumer feedback.

During the Singles Day promotion period, transaction volume of C2M products increased 228% YOY. Since the start of 2020, overall sales of C2M goods (private label brand) have increased nearly 654% compared with the same period last year. Well-known home appliance brands have opened more than 350 production lines to provide 80,000 exclusive products to JD during the promotion, more than half of which are C2M home appliances. Sales of C2M home appliances customized based on JD’s big data account for nearly 27% of all home appliances sales.

Consumption of services drives consumption of products

In the context of an overall consumption structure upgrade, service consumption has already become a new motivator. In many cases, service consumption is actually driving the consumption of goods. Dr. Jianguang Shen, Chief Economist of JD Digits, said: “As China is doing a good job in controlling the virus situation, the resumption of work and production are progressing smoothly. Migrant workers have been able to return to cities, and service consumption such as travel within the country is bouncing back significantly. Additionally, demand for imported and high-end products continues to grow.”

Consumers’ attention to service quality on e-commerce platforms is also up. An e-commerce service satisfaction survey by Southern Metropolis Daily in Guangzhou saw that users are more willing to pay services offered by platforms, among which JD’s value-added services rank first among all e-commerce players in China.

This Singles Day, JD launched or upgraded 20 different services. For example, several of JD’s categories supported an extended 30-day price guarantee. Third party merchants participating in the grand promotion on JD provided “refund + compensation” price protection services. JD’s first party pet food division upgrading its trial program from seven to 30 days with a full refund. In addition, a portion of home decor categories extended its worry-free return policy from seven to 30 days.

JD’s services business also saw tremendous growth during Singles Day. Sales of JD Quality Alliance automotive products increased 247% YOY. Orders of hotel bookings increased 7.2 times YOY. Over 15 million fresh flowers were sold through JD’s online platform. Additionally, the company saw a 9-time increase in per customer transaction amount by JD PLUS (JD’s premium membership program) members on JD Auction.

Singles Day is not just for consumers, but for enterprises too

COVID-19 has caused many challenges to the supply chain for enterprises that faced transportation challenges and shortage of funds. During this challenging time, JD has helped various enterprises get back on their feet. JD Business provides a one-stop solution for enterprise procurement. It now serves 428 of Fortune 500 enterprises in China.

Ahead of this Singles Day, JD also held a big promotion for enterprises on maintenance, repair and operations products, during which overall procurement volume of the industrial products grew 213% year-on-year. Data during Singles Day shows that newly registered enterprise clients increased 863% YoY in a single day. The top 3 industries making the most orders are finance, manufacturing and telecommunications, while the top 3 industries with the fastest transaction volume growth YoY are Internet, property and energy.

A specific breakdown of stats can be seen here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/

(ella@jd.com)

Dec 25, 2024| JD Health, JD Retail

JD Report: Five Health Consumption Trends for 2024

Vivian Yang

On December 24th, JD.com’s Consumption and Industry Development Research Institute, in collaboration with HealthInsight, a media think tank specializing in the health sector, released an insightful analysis of China’s 2024 health consumption landscape. The report outlines five key trends in the health industry, highlighting the increasing consumer demand for proactive health management and the industry’s evolving dynamics.

The Rise of Weight Management Solutions

Modern lifestyles have contributed to rising obesity rates with 34.3% of Chinese adults classified as overweight and 16.4% as obese. Obesity is associated with over 200 diseases, posing significant health risks. The introduction of semaglutide, a GLP-1 receptor agonist for long-term weight management, in China marks a promising development. The market for GLP-1 weight loss drugs in China is projected to exceed 37.852 billion RMB by 2030. On JD.com, searches related to “weight management” have increased more than 3.8 times year-on-year, with growing demand for diet products and home fitness equipment such as kettlebells and leg trainers.

Addressing the Growing Mental Health Concerns
With 95 million people in China affected by depression, mental health is an increasing concern. Consumers are turning to books, stress-relief toys, online consultations, and meditation to manage stress. On JD.com, searches for “mental health” have doubled, with significant interest in emotional release tools and psychological books. JD Health’s Internet Hospital now offers specialized clinics with over 2,300 counselors addressing issues like anxiety, depression, and sleep disorders.

The Booming Sleep Economy
Over 300 million Chinese experience sleep disorders, often due to irregular schedules. The sleep economy is booming with the market size reaching 495.58 billion RMB in 2023 and expected to surpass 600 billion RMB by 2027. JD.com has seen a 210% increase in searches for sleep aids, with high demand for sleep headphones, eye masks, and nutritional supplements. Sales of sleep-enhancing pillows and mattresses have also grown significantly.

Everyday Integration of Medical Devices

The home medical device market is expanding as consumers increasingly monitor their health independently. Products like heart rate-monitoring smartwatches and glucose meters are becoming household staples. This year, JD.com data shows that purchases of vision care devices and smart health monitoring equipment have tripled. The market for home medical devices is expected to reach 380 billion RMB by 2025.

Shifting Focus to Preventive Health Management

Emphasizing early screening and intervention, JD.com has seen a significant rise in orders for health services such as genetic testing and early cancer screening. These trends highlight a shift from treatment to prevention, driven by technological advancements and policy support. As consumer awareness grows, health consumption is becoming a major force in economic development, presenting opportunities for rapid growth in the health industry.

In conclusion, the 2024 health consumption landscape is characterized by a strong shift towards proactive health management and the integration of technology into everyday health practices. These trends not only reflect changing consumer priorities but also indicate significant growth opportunities for businesses in the health sector. JD.com remains committed to supporting these developments by providing innovative products and services tailored to the evolving needs of consumers across the dynamic health sector.

(vivian.yang@jd.com)

Dec 20, 2024| JD Retail

Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference

Vivian Yang

On December 19, Dada NOW, China’s leading local on-demand delivery platform under Dada Group, was awarded the “Leading Restaurant Empowerment Platform” accolade at the 10th China Catering Innovation Conference in Shanghai. Celebrated for its innovative 4D Service Standards, Dada NOW delivers professional, flexible, intelligent, and customizable services to top food and beverage brands including CHAGEE, KFC, Luckin Coffee, McDonald’s, and Pizza Hut, garnering extensive acclaim within the catering industry.

4D Service Standards

The “Leading Restaurant Empowerment Platform” award honors platforms that provide comprehensive and professional services to restaurant businesses. Leveraging years of experience with leading restaurant brands, Dada NOW has crafted its 4D Service Standards to effectively address delivery challenges and enhance service quality. These standards include:

Dedicated: Integrated solutions for warehousing, picking, and delivery.
Dynamic: Tailored delivery solutions for diverse vendor scenarios, including store-stationed and crowdsourced rider options.
Data-driven: Efficient data management systems utilizing AI technology for order dispatching, fulfillment timeliness, and quality inspection.
Designable: Customized services for large supermarkets and restaurant merchants to bolster brand value.

Fast and Accurate Delivery

In the fast-paced food delivery sector, Dada NOW’s survey data indicates that 63% of brand merchants and consumers expect timely delivery, 21% prioritize location accuracy, and 9% value punctual pickup. Dada NOW completes delivery in as quickly as 9 minutes, with a 99.5% on-time completion rate and a 98% accuracy delivery rate. Real-time order matching is achieved in as fast as 0.3 seconds, ensuring fast and accurate service.

Unlike delivery providers that only focus on a single merchant type, Dada NOW provides both supermarket and restaurant deliveries. The differing peak times between these sectors allow for capacity complementation, enhancing efficiency and reducing costs. With a nationwide network of over a million riders and an industry-leading on-demand delivery model, Dada NOW has executed over 900 million route plans, swiftly allocating resources during peak periods such as lunch and dinner rushes, new product launches, and promotional events.

Customized Solutions for Merchants

To meet the strong customization needs of brand merchants, Dada NOW can offer bespoke services for each store, integrating its delivery capacity, products, and technological solutions. A notable example is the partnership with Sam’s Club, for which since 2017 Dada NOW has developed customized solutions in delivery capacity models, co-branded equipment, rider training, and system integration. This collaboration has achieved nearly 100% coverage of customized rider equipment such as helmets, uniform and delivery containers, and provides excellent customer service experiences. This highly effective collaboration demonstrates Dada NOW capabilities that are also transferrable to the restaurant sector.

Luckin Coffee, a long-standing partner of Dada NOW, exemplifies the high standards in the coffee and tea beverage sector, achieving a “30-minute delivery rate of 99.9%” to maintain peak freshness delivered to customers’ doorsteps. Dada NOW’s flexible rider network effectively manages peak demands and large order volumes during product launches and promotions through an intelligent order dispatching system, ensuring optimized delivery routes and careful handling to prevent issues like coffee spillage. Since 2023, this partnership has earned Dada Now several accolades from Luckin Coffee, including the “Best Strategic Cooperation Award” and “2023 Outstanding Delivery Partner,” with rider Tu Yanping being recognized as one of four “Annual Gold Riders” nationwide.

Dada Group operates two core businesses: JD NOW, formerly known as JDDJ, an instant retail platform, and Dada NOW, a local on-demand delivery service. Leveraging its extensive crowdsourced delivery network of millions of riders, Dada NOW provides a comprehensive service system open to merchants and individual senders across various industries and product categories. The company’s two platforms operate independently and collaboratively.

(vivian.yang@jd.com)

JD Fresh Forms Industrial Alliance for Aquatic Products