- Aug 24, 2020
- Business Update
JD Upgrades Yihaodian to the First Online Membership-Only Retailer in China
by Rachel Liu
JD has upgraded Yihaodian (literally means No.1 Store) to Yihaodian Membership Store, the first online membership-only retail platform in China.
Customers can buy an Yihaodian membership for RMB 198 yuan/year. Existing Yihaodian members or JD PLUS members can enjoy a discounted rate of RMB 148 yuan/year. With the membership, customers can enjoy selected, premium products at highly competitive prices, from groceries to fresh food, digital products, lifestyle products and more. JD Logistics will provide same-or-next day delivery service to Yihaodian customers. Yihaodian’s service currently covers four tier-1 cities, namely Shanghai, Shenzhen, Beijing, Guangzhou, and Jiangsu and Zhejiang provinces. It will be open in more cities in the future.
The new Yihaodian model is targeted at middle-class family customers who demand high quality products with competitive prices. Yihaodian also has a team of professional buyers, most of whom have over five years of experience in their own product categories, to personally select products for customers from JD’s supply chain or the customized products. Selected based on big data, the products are usually with positive reviews and high repurchase rates, such as premium steak, seasonal fruits, environmental friendly cleaning products, novel small home appliances and more. The first-party model can also give customers peace of mind when shopping on Yihaodian.
To save customers’ from comparing prices on different platforms, Yihaodian has a price comparison system to monitor prices on different ecommerce channels 24/7. If the price of a product on other platforms is found to be lower than on Yihaodian, it will either lower the price or remove the product. JD also ensures that all prices for products on Yihaodian are lower than the same product on JD.
Yihaodian provides its members with industry-leading customer service. The platform offers “membership fee insurance”, which means if customers make over 12 orders in one year and the money they saved (compared with JD prices) is lower than the money they paid for the membership fee, Yihaodian will provide a full refund of membership fee. Other premium services include a 24/7 customer service line, refund of orders with broken packages and for products nearing their expiration date. The services can provide customers with an easy, convenient and economical experience.
Yihaodian was founded in 2008 as a B2C ecommerce platform that mainly sell groceries. Walmart first invested in Yihaodian in 2011. In 2016, JD acquired Yihaodian as part of its deepened partnership with Walmart.