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.
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)
JD Opens two Home Appliance Flagship Stores in Henan and Jiangsu
