Apr 27, 2022|
JD’s Data: Highlights of Third-Party Merchants’ Growth on JD.com
by Doris Liu
As digital and real economies are further integrated in China, JD.com has been devoted to creating more space for the growth of its third-party merchants with its new ecosystem and new business model.
Several key results of the merchants’ growth were highlighted in a recent report released by JD Research Institute for Consumption and Industrial Development:
1. In 2021, the number of product launches on JD.com increased by more than 150 percent year-on-year (YOY), and more than 25,000 brands saw the sales volume of their new products doubled YOY.
In the past five years, the number of the total product categories sold on JD have increased by 83 percent and the new brands by 40 percent. C2M (Customer-to-Manufacturer) products have been more commonly seen, allowing consumers to enjoy the customized products and services that best suit their needs.
2. In the first three months of 2022, the daily sales volume of more than 11,000 stores on JD surged over 10 times YOY.
3. Due to a healthier market environment, the number of merchants in the Fashion and Lifestyle category grew rapidly, with the number of industrial, pharmaceutical, health, agricultural, and apparel stores increasing the highest, reflecting the robust growth potential of expanding product categories.
In 2021, the number of merchants operating in the industrial and pharmaceutical categories grew by more than 170 percent YOY, while the number of merchants in personal care, nutrition and health, agriculture and gardening, and apparel and underwear grew by more than 70 percent YOY.
4. JD’s business ecosystem has attracted and retained customers with higher purchasing power. In the first three months of 2022, the average daily users of JD’s third-party stores grew 84 percent YOY among the group aged 26-45, which is normally regarded as the customers who spend the most per capita with the strongest purchasing power.
5. In the first three months of 2022, the average daily GMV (Gross Merchandise Value) for each third-party store in the categories of skiing , pharmaceuticals, and jade and jewelry went up more than 100 percent.
6. To continuously improve the consumer experience, JD has optimized its after-sales services. In January 2022, the merchants’ after-sales service length was shortened to 50 percent of that in January 2020.
Thanks to JD’s open ecology, the two different models, first-party and third-party merchants, are developing together and making contributions with their respective values.
Many small and medium-sized enterprises have been affected by the pandemic, and are confronted with challenges such as rising production costs and insufficient orders. With its experience in promoting third-party stores, JD.com has made it a top priority to further support and help relieve the pressure for third-party merchants.
Thirty measures benefiting the merchants on JD.com have been announced for the upcoming 618 Grand Promotion, which is China’s largest mid-year shopping festival. Click here to read more about the supportive measures.