Sep 21, 2020|
JD White Paper: Consumers Have New Priorities for Home Appliance Purchases
by Ella Kidron
Consumers in China are considering new priorities when making home appliance purchases, as reflected in a new industry white paper by JD.com. The white paper, JD.com 2020 Refrigerator and Washing Machine White Paper, was released on September 16th at an industry event hosted by the retail giant.
In the past, consumers tended to only replace home appliances when they were broken and therefore no longer usable. JD data, however, indicates that this behavior has changed in the continued pursuit for an upgraded lifestyle and now the number of reasons for replacing a home appliance have become more diversified. JD data indicates that 47% of users who replaced their washing machine opted to change because they either wanted to upgrade or were not satisfied with the available functions.
This upgrade is apparent in the premium pricing of home appliances. Sales of refrigerators priced at RMB 4,800 yuan and up increased 110% YOY, while sales of washing machines priced at RMB 4,000 yuan and up increased 50%. New products were a major leader of category growth, with new fridges, washing machines and dryers increasing 141%, 174% and 486% respectively, and accounting for 44%, 46% and 88% of total sales respectively.
The role of data in the development of home appliances is also increasingly prominent. On the one hand, data helps show that post-epidemic consumers are paying more attention to smart, health conscious appliances and consider quality as tantamount. This is particularly true in the fridge category, where products with anti-bacterial and anti-odor qualities have received positive reviews from consumers.
Consumer-to-Manufacturer (C2M) where data is used to create products that will better meet market demand is also a trend in the home appliances space that looks as if it’s here to stay. In the first half of 2020, the number of JD Home Appliance C2M products with partners had already reached 2,046, and the contribution of C2M products accounted for 10% of JD’s retail sales in the first half of the year. JD and LG alone have developed seven C2M refrigerators and washing machines in just two months. All products were designed based on customers’ preferences, revealed through data analysis, and consideration of the latest trends in the home appliances industry.
According to the 2020 H1 China Home Appliance Market Report released by China Center for Information Industry Development (CCID Group), online sales account for 51.84% of China’s home appliance market. Even though the industry saw a dip in Q1 partially due to lockdowns making delivery and installation highly inconvenient, the second quarter saw a boom, particularly online which grew 44.8% YOY, and there are clear signs of continued recovery in the second half of the year. JD’s white paper also reflects this reality.
Dec 20, 2024|
Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference
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)
Dec 13, 2024|
JD.com Targets 5 Billion RMB with Chilean Product Partnership as 2024/25 Season Cherry Sales Launch
On December 12, JD Super, the supermarket division of JD.com (also known as JINGDONG), launched the Chilean Specialties Festival and kicked off 2024/25 Chilean cherry sales with the recent arrival of the first “Cherry Express” ship in China. In a ceremony attended by the Chilean Ambassador to China, H.E. Mr. Mauricio Hurtado, JD Super signed a strategic cooperation agreement with Chilean brands, aiming to achieve 5 billion RMB in sales of Chilean products, including cherries, wine, and salmon, over the next three years.
The sea-freight Chilean cherry sales launch event was officiated by Ambassador Hurtado, Chao Junwen, Secretary-General of the China Chamber of Commerce for Foodstuffs and Native Produce, and Juan Latife, General Manager of Garces Fruit China, Chile’s leading cherry exporter.
Through large-scale direct sourcing, JD’s procurement team has reduced the import costs of Chilean cherries, offering consumers prices that are approximately 15% lower than those on other e-commerce platforms for the same grade and size.
To ensure quality and proper grading, JD Super has introduced a caliper offering this season. Each box of cherries comes with a caliper that allows consumers to accurately grade the fruit and ensure they have received high-quality Chilean cherries.
Since late October, JD’s online channels and its 7Fresh omnichannel supermarket chain have been selling the season’s air-freight Chilean cherries. This product offering, which has been met with enthusiasm from Chinese consumers, is supported by JD’s extensive national cold-chain logistics network and instant delivery services that can deliver orders within 30 minutes, making it easy and affordable for users to enjoy the early batch of Chilean cherries.
“This large-scale procurement cooperation will allow JD Super to continue leveraging our strong supply chain capabilities and work closely with Chilean partners to offer a wider variety of Chilean products at competitive prices and services to Chinese consumers,” said a spokesperson of JD Super.
(vivian.yang@jd.com)
JD Opens two Home Appliance Flagship Stores in Henan and Jiangsu
