Jul 2, 2020| JD Retail

JD’s Observation: Three Trends for Service Consumption

Vivian Yang

by Vivian Yang

JD Life and Services provides online-to-offline services covering car maintenance, travel booking, home-buying, auctions and fresh flowers delivery. As the provider of diversified services, which attend to various consumer needs and have a long consumption chain, JD Life and Services has been striving to improve its “Product + Service” integration model to let customers immerse themselves in handy, fluid and tailored-made shopping experiences.

Such integrated services have been well-received by customers as reflected in JD’s 618 Grand Promotion consumption data. Three trends about the rise of service consumption are identified:

Rise of Spending on High-Quality Services

From buying goods to buying services, Chinese consumers’ demand for services that enable greater life convenience has grown rapidly in recent years while JD ensures that customers are in good hands with premium service providers and omnichannel solutions.

For the automotive aftermarket, online-to-offline conversion rates keep going up. During 618, over 80% tire buyers on JD selected platform-offered offline car repair services. Transaction volume of car maintenance services on JD increased 293% YoY.

JD Real Estate introduced an RMB 6.18 yuan (less than US$1) “Five Benefits Service Package”, comprising of housing selection assistance, exclusive offers, price protection, “cancel for any reason” insurance, and online reservation. During 618, over 500,000 home-buying orders were made with these standard benefits on JD.com.

Increased Demand for Door-to-Door Services

From going out to search and shop to matching products and services and deliver them to customers’ doorsteps, JD Life and Services leverages its technology, resources, channels and infrastructure to make the shopping process more transparent and efficient.

For example, flower service has long been bugged by problems such as decentralized planting, long supply chain, high risk of packaging damage, and inconsistent service quality. To solve these pain points, JD brought in its cold chain logistics and Allianz insurance services (JD has a 30% stake in Allianz China) in its flowers booking and delivery service, standardizing several products and services, such as one-hour flash delivery. The transaction volume of flowers on JD platform increased by 150% during 618 Grand Promotion.

Through developing door-to-door services, JD is plugging in more and more quality guaranteed offline merchants and service providers on the platform who make daily chores easier for JD customers and gradually help JD Life and Services expand its business scope at the same time. For example, during 618, laundry pick-up service orders increased 15 times. Online payment for bills of electricity, water, gas, phone services, and more increased 9 times compared with the same period last year.

Enthusiasm for Offbeat Products and Services

Many offbeat products and services are finding favor with customers. For example, young customers who seek to display their lifestyles via their motorcycle gear, are seeking more personalized and fashionable products on JD. JD has held several cycling culture events and enriched product selection and after-sales services to meet this demand. During 618, transaction volume of retro motorcycles increased 5 times YoY.

Online auction starts to gain traction as well. During 618, JD offered an array of auction items, including house properties, jewelries, luxury goods, ceramics, art collections, handicrafts, tea and wine, automobiles, etc. Online auction of old coins has been viewed more than 1.21 million times, and auction of Pu-erh tea cakes has been viewed over 270,000 times during 618.

According to China’s National Statistics Bureau, service consumption expenditure in 2019 accounted for 45.9% of per capita household consumption expenditure, 1.7% higher than in 2018. The steady growth is mainly attributed to the country’s rapid urbanization and the widespread consumption upgrade.

Compared with the over 60% share of service consumption expenditure in developed economies like the US and Japan, China has vast potential to further develop in this field. Under the backdrop of post-COVID economic recovery, JD is playing its role in boosting the development of service consumption based on the trust it builds with both the customers and merchants as well as the insights it has accumulated through integrating online and offline consumption.

(vivian.yang@jd.com)

Dec 25, 2024| JD Health, JD Retail

JD Report: Five Health Consumption Trends for 2024

Vivian Yang

On December 24th, JD.com’s Consumption and Industry Development Research Institute, in collaboration with HealthInsight, a media think tank specializing in the health sector, released an insightful analysis of China’s 2024 health consumption landscape. The report outlines five key trends in the health industry, highlighting the increasing consumer demand for proactive health management and the industry’s evolving dynamics.

The Rise of Weight Management Solutions

Modern lifestyles have contributed to rising obesity rates with 34.3% of Chinese adults classified as overweight and 16.4% as obese. Obesity is associated with over 200 diseases, posing significant health risks. The introduction of semaglutide, a GLP-1 receptor agonist for long-term weight management, in China marks a promising development. The market for GLP-1 weight loss drugs in China is projected to exceed 37.852 billion RMB by 2030. On JD.com, searches related to “weight management” have increased more than 3.8 times year-on-year, with growing demand for diet products and home fitness equipment such as kettlebells and leg trainers.

Addressing the Growing Mental Health Concerns
With 95 million people in China affected by depression, mental health is an increasing concern. Consumers are turning to books, stress-relief toys, online consultations, and meditation to manage stress. On JD.com, searches for “mental health” have doubled, with significant interest in emotional release tools and psychological books. JD Health’s Internet Hospital now offers specialized clinics with over 2,300 counselors addressing issues like anxiety, depression, and sleep disorders.

The Booming Sleep Economy
Over 300 million Chinese experience sleep disorders, often due to irregular schedules. The sleep economy is booming with the market size reaching 495.58 billion RMB in 2023 and expected to surpass 600 billion RMB by 2027. JD.com has seen a 210% increase in searches for sleep aids, with high demand for sleep headphones, eye masks, and nutritional supplements. Sales of sleep-enhancing pillows and mattresses have also grown significantly.

Everyday Integration of Medical Devices

The home medical device market is expanding as consumers increasingly monitor their health independently. Products like heart rate-monitoring smartwatches and glucose meters are becoming household staples. This year, JD.com data shows that purchases of vision care devices and smart health monitoring equipment have tripled. The market for home medical devices is expected to reach 380 billion RMB by 2025.

Shifting Focus to Preventive Health Management

Emphasizing early screening and intervention, JD.com has seen a significant rise in orders for health services such as genetic testing and early cancer screening. These trends highlight a shift from treatment to prevention, driven by technological advancements and policy support. As consumer awareness grows, health consumption is becoming a major force in economic development, presenting opportunities for rapid growth in the health industry.

In conclusion, the 2024 health consumption landscape is characterized by a strong shift towards proactive health management and the integration of technology into everyday health practices. These trends not only reflect changing consumer priorities but also indicate significant growth opportunities for businesses in the health sector. JD.com remains committed to supporting these developments by providing innovative products and services tailored to the evolving needs of consumers across the dynamic health sector.

(vivian.yang@jd.com)

Dec 20, 2024| JD Retail

Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference

Vivian Yang

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)

100% of JD’s Nucleic Acid Tests on Fresh Produce Are Negative