- Nov 26, 2020
- Business Update
JD’s Successful C2M Cases in Computer and Digital Products
by Rachel Liu
One of the most important practices of JD’s smart supply chain technology is C2M (Consumer-to-Manufacturer). During the annual JD Y Open Day, a summit held by JD’s Y business team which focuses on supply chain technology, the JD Computer and Digital Products team introduced several C2M cases in which JD and brands jointly designed and launched products based on JD’s comprehensive customer insights.
JD’s customer insights can precisely recognize customers’ changing demands and help brands improve their products accordingly. When children’s education shifted online under COVID-19, JD suggested Baidu add education-related functions to its popular Xiaodu smart speaker. Under JD’s guidance, Baidu changed the size of the screen on the speaker from 6-inch to 8-inch, as it’s better for children’s eyesight. It worked with Xue’ersi (学而思), China’s leading online education company, to integrate its online courses into the speaker. The speaker can also be used to play stories for children and look up English words. The product was quickly sold out on its first day on the market, and became the most hot-selling product in the category.
Another highly popular C2M product on JD is curved monitors. JD big data found that many customers, especially fans of computer games, were searching for keywords such as “curved monitor”, “high-resolution” and more. Products reviews show that many customers were hesitating to buy high-end monitors because of the high price. Seeing the trend, JD worked with upstream display manufacturers to design curved monitors with lower prices. Through optimizing the procurement and manufacture process together with JD, manufacturers saw the production cost of the monitors decrease 40% and profit increase 20%. As a result, customers were also able to enjoy the high-end monitors at 50% of the previous price. The time needed to bring the monitors to market was shortened to six months, while the process usually takes eight to 12 months. Since the beginning of 2020, sales of curved monitors on JD reached RMB 200 million yuan.
Another C2M example is the ASUS Tianxuan gaming laptop, designed specifically for game and cartoon lovers. The product is now the top 3 best-selling gaming laptop on JD. Under JD’s advice, the brand designed a cartoon figure as the product ambassador to attract young customers.
Ecovacs and JD jointly designed a sweeping robot with a mopping function, as Chinese families usually doesn’t use carpets. Although the new robot is twice as expensive as the old sweeping robots, it is very popular on JD and consistently ranks top 10 in the category.
In the future, JD is eying more detailed and scientific C2M analysis. “We discovered that customers of computer and digital products attach more importance to the products configuration. So, we set a parameter for each factor that may impact customers’ shopping decisions and quantify the analysis process, to see what factors to focus on when we develop new products,” said Aqiang Qin, head of supply chain management, JD Computer and Digital Products. “We are also trying to make connections between different categories to explore new marketing opportunities. For example, we found that the customer profiles of LG and Dell are highly similar, including customers’ ages and the scenarios in which they use the products. It’s very useful to put the two brands together for analysis, and this gives us more opportunities to develop.”