JD’s Cold Chain Enables Rapid Sales Growth of Fresh Food

JD’s Cold Chain Enables Rapid Sales Growth of Fresh Food

by Ling Cao

JD’s cold chain logistics orders from January 21 to February 28 increased 30% amid COVID-19. The company’s cold chain strength has made a significant contribution to the growth of JD Fresh’s business during the epidemic period. In just 40 days, from January 20 to February 28, JD sold a total of 130,000 tons of fresh food.

One key factor is the use of JD’s warehousing services, as many of JD’s fresh produce merchants have chosen to put their popular products in JD’s warehouses. The number of fresh products from merchants stocked in JD’s warehouses has increased nearly 300% compared with the same period last year, with sales increasing over 900% YoY for merchants who use JD’s integrated warehousing and logistics services.

“Our steaks sold out in just five days, rather than the 30 days we’d planned for. The demand has far exceeded our expectations.” Said Yanghong Xiao, General Manager of the Zhenniuguan beef store on JD. Xiao added, “Stocking products in JD’s warehouses hugely improved our sales. Sales for products in JD’s warehouse were over 150% higher than sales for products that weren’t.”

Meixiangshike, another beef store on JD also found that 60% of customers will inquire if the products will be delivered by JD Logistics, and  75% customers will choose to buy if the answer is yes.

JD provides a range of different cold chain logistics-related subsidies for merchants who use JD’s warehouse service. The company has also established a special transportation channel for unsalable produce. JD’s cold chain network now covers 31 provinces and cities in China, and a total of 20,000 routes. JD is able to monitor the entire logistics process and uses special containers to guarantee product quality.

 

(ling.cao@jd.com)

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