- Mar 19, 2021
- Business Update
JD to Digitize Nearly a Hundred Fresh Produce Markets in Shanghai
by Ling Cao
JD will help nearly a hundred fresh produce markets in Shanghai go digital, starting in late this month. A pilot program will be launched today.
Using JD’s omnichannel fulfillment service, local residents will be able to access fresh produce online via JD and have their orders delivered in as fast as within one hour. This is the first time that an entire produce market in a city has been put on an e-commerce platform. The program is a partnership among JD Fresh, Shanghai Municipal Government and Beijing Rally Data Software.
In China, customers are used to buying fresh vegetables, fruits, meat and seafood at a fresh produce markets in the vicinity of where they live, emphasizing the importance of freshness and cost-effectiveness. In Shanghai, with a population of over 24 million, trips to the market are an integral part of local culture. These markets have faced operational challenges, in part due to COVID-19, as well as the rapid development of e-commerce and the fact that young urbanites lack time to visit in the morning, when produce is at its freshest.
JD has integrated its capabilities in omnichannel to help transform entire markets into digital operations. Each merchant may simply upload their inventory information to an online system and be connected with JD. When customers place orders online, JD coordinate to have products sent from certain merchants at the market nearest to the customers’ location and be delivered to doorsteps in just one hour, helping merchants increase their sales and better manage inventory turnover. JD will also standardize the management process of the markets, helping with procurement, display and sales, improving overall operational efficiency. JD will perform spot checks and hold merchants to strict quality standards as well.
In addition to ensure a better livelihood for local residents, the program can also help promote a wholesale model in markets for hot-selling products via JD’s big data, forming a long-term and sustainable business model.
Yun Hu, general manager of Shanghai branch of Beijing Rally Data Software shared, “By participating in the program, we can help those merchants who lack online experience to improve their sales channels, as well as benefit customers, achieving a win-win.”
Wei Ye, head of JD Fresh said, “Going forward, JD plans to copy the model and apply it in other cities, helping fresh produce markets make digital transformation, and ensuring a superior and convenient shopping experience for customers.”