Jun 5, 2020|
JD: The Largest Retailer of Moutai Safeguards Its Authenticity
by Rachel Liu
JD’s annual 618 Grand Promotion started on June 1st. In the first five minutes, sales of Moutai products increased 118 times y-o-y.
Moutai‘s outstanding flavor has made it one of the most popular liquor brands in China. Every year the amount of Moutai that can be sold on market is limited. As such, it is not just a product for consumption, but also for collection. JD’s partnership with Moutai started in 2014, and this March, JD deepened its partnership with Kweichow Moutai to source products directly from the brand. JD got the largest quota of Moutai products among all retailers in China, reinforcing its position as a reliable source for Chinese consumers to buy Moutai.
Now, Moutai’s popular products, such as 43% alcohol Moutai, Chennian Moutai and classic 53% alcohol Feitian Moutai, which is the hardest to get, are all available on JD. Getting a bottle of Moutai to a JD customer is not a simple process, and JD and Moutai have worked closely to ensure that all customers can buy Moutai on JD with peace of mind, and in a fair way. This cannot be achieved without JD’s commitment to authenticity, self-built logistics system and leading retail technology.
Before June 1st, the first day of JD’s June 18 Grand Promotion, every day at 10 a.m., members of JD’s premium membership, JD PLUS were able to buy 53% alcohol. After June 1st, sales of the product open up from time to time. Each customer can only buy two bottles at a time, and no more than five bottles in a single month. Purchase is only open to customers who have had their real names verified, ensuring no customer can register multiple accounts to buy the product. The product will be sold out in a few seconds every time. To prevent scalpers from trying to game the system, in 2017, JD launched an “anti-scalper” system for Moutai products. Leveraging big data to analyze customers’ browsing history, demographic, location, and occupation, the system can automatically distinguish scalpers from real customers. So far, it has intercepted over 100,000 scalpers’ orders.
The entire transportation of Moutai products is done by JD Logistics. JD Logistics will pick up the products from Moutai and store them in JD’s own warehouses, making sure the products are safely stored and ultimately delivered to the consumer. Since June 2018, JD.com has launched a blockchain traceability system for Moutai. All Moutai products have JD’s exclusive traceability codes. After receiving their Moutai products, consumers can scan the code with the JD app or WeChat, and see the complete journey of the product, including when and where the product entered JD’s warehouse and all the steps in the transportation process, re-assuring customers that the product is authentic. JD shares traceability data with Moutai every month to improve the system with Moutai experts. After the beginning the traceability program, customers’ satisfaction on shopping experience has improved significantly to over 99%.
JD has also worked with Moutai’s sub-brand Wangmao, which targets a younger consumer base, and became the exclusive sales channel for Wangmao products. Going forward, JD.com will fully leverage its technology, logistics, big data, and supply chain capabilities to work with Moutai on deeper cooperation in omnichannel projects, finance, and logistics to spur their quality growth.