Sep 14, 2020|
JD Super and Nestlé Deepen Digital Cooperation to Precisely Target Consumers
by Hui Zhang
JD Super, JD.com’s online supermarket, has leveraged big data to deepen its cooperation with Nestlé in consumer operations and product innovation. Nestlé shared the results of this cooperation with a virtual audience during a press conference on September 8th as part of the 9.9 JD Super Festival to celebrate JD Super’s founding.
How to precisely target potential consumers and recommend the right products to them has always been an obstacle for brands to overcome during the marketing process. JD Super and Nestlé’s partnership is focused on this effort.
User Lifecycle
JD points to both new user growth and current user maintenance in terms of user growth. The company launched a series of innovative initiatives to achieve quality user growth, and worked together with Nestlé to attempt in a full lifecycle user operation in the coffee category to precisely determine the brand’s target customers. By analyzing the shopping behavior of current users, JD introduced the concept of user lifecycle, and divided current users into different periods, including introduction period, growth period, maturity period and decline/loss period. Through machine learning and quantitative analysis, JD has formulated the optimal matching of marketing channels and user benefits and interests to promote user growth and drive conversion rates at all stages in the user lifecycle.
For example, consumers who bought Nestlé coffee on JD.com more than four times within the most recent 180 days are allocated into the maturity period. Consumers who have purchased fewer than four times are the target consumers for Nestlé, and JD data has helped reveal that they favor coffee which is usually sweet or milky. Nestlé selected specific coffee products for JD.com based on this information and JD matched appropriate marketing channels and user benefits and interests to promote user growth and drive conversion rates. In June alone, the conversion rate of people who were reached through advertising is two times more than those who haven’t been reached. Following the user lifecycle operation effort, the number of users in each period has also changed for the better, with a 12.19% increase in the maturity period, a 14.54% increase in the high-potential period, and a 16.27% reduction in the loss period in June as compared with May.
C2M
In addition to user lifecycle operation, JD also used its Consumer-to-Manufacturer (C2M) to help the Nestlé bring products to JD that are more consistent with the e-commerce giant’s needs. Tea Coffee, which is one of the co-developed products, has seen an increase of 100% in sales from June 1-18th month-on-month.
“We used big data to help Nestlé find users precisely, not only promoting sales but also helping the brand better understand whom should they take into consideration in product innovation,” said Tianfang Wang, the sales manager responsible for the coffee business on JD.com.
JD.com and Nestlé also won a marketing award, the 11th Tiger Roar Award, for their online-offline marketing innovation. The Tiger Roar Award organized by Hooxiao.com focuses on China’s marketing forefront and provides enterprises with the most progressive marketing ideas.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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