by Ella Kidron

According to Kevin Jiang, president of international business, JD Fashion and Lifestyle, in the past year, customers are moving from buying standard and less expensive pieces to more expensive and sophisticated items.

Roughly one year since the outbreak of COVID-19, the global retail industry has been turned on its head. This is particularly true in fashion, which has been one of the hardest hit sectors. COVID-19 is one of factors driving brands – even the most traditional of luxury brands – to go digital. JD, as an e-commerce company backed by a strong supply chain is contributing to this effort to move online, as well as to go omnichannel.

This was the focal point of a panel JD recently participated on during the National Retail Federation (NRF) Chapter One event held entirely online from Jan. 12-22 in place of NRF’s annual Retail’s Big Show. The panel was moderated by Chris Field, a retail analyst and the managing editor of Retail Connections. Jiang, as well as Karin Tracy, Head of Industry, Facebook and Jessica Murphy, Co-founder and Chief Customer Officer, True Fit, were the featured panelists.

Chris Field (top left), Jessica Murphy (bottom left), Karin Tracy (top right), Kevin Jiang (botton right)

The panel emphasized the immense importance of keeping pace with the customer, while making the experience more responsive, engaging and personal.

“Consumer demands are very diversified,” said Jiang. In the first part of last year, at the height of COVID-19, there was a lot of growth for household and grocery products. “Later, as people got used to buying online, they started buying other categories such as luxury products.” Luxury is certainly not one size fits all in terms of consumer preferences. This is part of the reason Jiang and the team at JD focus on building out its offering of top luxury brands, accessible luxury and small, niche designer brands.

Chris Field (left) and Kevin Jiang (right)

Another key element, in addition to product selection, is experience. “In China, we’ve noticed a lot of brands and department stores expanding, but what has changed is that they are shifting from traditional retail to more experience-driven retail.” As Jiang sees it, eventually everything is heading in the direction of the coexistence of online and offline via a well-oriented and integrated omnichannel solution. Although AR/VR technology allows customers to interact with products and have a more personal online experience, they still want to touch and feel the fabric, and understand the brand story and aspiration behind its designs. At the same time, online is extremely convenient, especially for repeat purchases. Combining the two allows for the best of both worlds.There are conveniences on the supply chain side too – integration means better efficiency in terms of inventory turnover.

One of the benefits of the hybrid omnichannel experience is being able to help customers understand more about the brands. Jiang explained that JD worked with top luxury brand Delvaux to bring VIP JD customers to the brand’s flagship stores, effectively helping Delvaux land new customers in-store. Moving forward, JD will look to further analyze consumer behavior and help brands to attract more customers with increased precision.

 

 

(ella@jd.com)

by Ling Cao

JD Business provided City Service Program in 22 cities with a high concentration of SMEs during 2020. The efforts covered the Beijing-Tianjin-Hebei region, Yangtze River Delta, and Greater Bay Area of Guangzhou, Hong Kong and Macau. Under the program, JD joins forces with local commercial institutions, SaaS providers and brand owners, providing SMEs with integrated services, including coupons, financial services and special discounts, helping them resume production under COVID-19.

As reported on Jan. 26, in Gaobeidian, Hebei province, JD Business helped a bag factory weather the impact of the epidemic. The factory head Mr. Sun said, “Due to epidemic, both export and domestic business have been suffered. Our orders decreased by two thirds, there was a lot of inventory stuck in the warehouse. Thanks to JD’s City Service Program, we have lowered procurement costs, as well as learned how to operate an online store, and continuously get orders from across the nation,” said Sun.

In Q4 2020, the Small and Medium Enterprises Development Index published by China Association of Small and Medium Enterprises kept going up, and marked three consecutive quarters of recovery. While still below the 2019 level, this is a promising indication for SMEs, and there is even more room to develop. Going forward, JD will leverage the program to help more SMEs accelerate their businesses.

A representative from JD Business shared, “Its JD’s long-term plan to help SMEs grow. We will introduce more resources to help them build sustainable business models.”

 

(ling.cao@jd.com)

by Vivian Yang

What books are Chinese people reading, and when and where do they read? To find answers to these questions, JD Big Data Research Institute studied the vast data of JD Books, JD’s book sales department, and revealed a number of interesting findings.

The report launched on Jan. 19 in collaboration with Xinhua News Agency, China’s largest news agency in the form of an online trivia game where readers can test their knowledge and receive more information about reading habits.

“We looked at consumption data for the past ten years on JD Books,” said Fei Lu, senior researcher of the institute. “We hope our findings will help people better understand their own reading behaviors and guide them to more books that are suitable and helpful for them.”

Below are some key findings of people in different reading scenarios:

On the subway

Middle school students and young professionals turn out to be earnest book-reading subway commuters, according to JD’s big data.

Foreign language learning books are one of young people’s favorites. They account for more than 31% of this book category.

Office workers read a lot of success books, with male users buying 1.5 times more than female users. Meanwhile, office workers also consume more psychology-related books (61%) than other age groups possibly to strike a balance in life.

On the Plane

Business people waste no time, often reading management books on the plane. In addition, JD’s data shows that people between 26 to 35 years-old make up more than half of the management books consumers on JD.com.

Taking flight also gives time for many mothers to read books on parenting. Women bought more than 76% of books in this category.

In the Library

While kids are thirsty for all kinds of knowledge, with sales of children books ranking second in the overall list of book sales on JD.com, adults are busy taking examinations. Data shows that people between 26 to 35 years-old bought more than 50% of examination-related books for adults.

The real pensive thinkers, however, appear to be those aged above 56, as they are the group of consumers who bought more philosophy books than any other age groups.

In the Coffee Shop

In terms of reading hobbies, the book consumption data generally reflected certain gender stereotypes: male users bought more books on success, management, IT and internet, while female users prefer more books on youth literature.

Among the readers of economics books, there are twice as many men as women. When it comes to painting books, both genders are almost the same.

In Bed

JD’s big data shows that the peak hour for e-book reading is 9-10 p.m. Books on investment, management, literature and leisure are the most popular during this period.

Besides school related books, teenagers also like to read novels before going to sleep. For smaller kids,  reading for them is always a good way to put them to bed. Data shows that more than 20% of users between 26 to 35 years-old have ordered children books online.

Over 10 years of its development since 2010, JD Books has grown to be China’s leading e-commerce platform of selling books, with a comprehensive reading offerings of books, e-books, reading software and hardware, knowledge services and more.

 

(vivian.yang@jd.com)

by Kelly Dawson

In a new report released by China-focused digital marketing agency Alarice, corporate innovation coach Nishtha Mehta pointed to JD’s healthcare arm JD Health, which listed on the Hong Kong Stock Exchange in Dec. 2020, as a “great example of both speed and a variety of customized products and services. Demand for online healthcare services has boomed over the pandemic, as people avoided outpatient clinics and pharmacies.”

Post-COVID-19, Chinese consumers are increasingly driven by a desire to enhance well-being, not only for themselves through the purchase of health and self-care products but also for the greater good, as evidenced by a spike in interest toward environmentally sustainable brands, according to this report.

“Personal care will be more and more important and Chinese consumers will continue to spend more time and money purchasing safe, eco-friendly products and eating more healthily after the [COVID-19] crisis,” said Alberto Antinucci, a digital innovation strategist and China expert, in the report. In fact, recent analysis by McKinsey found that 70% of respondents signal willingness to spend more to buy environmentally conscious products, and three fourths plan to continue a healthier diet after the pandemic.

Indeed, as fears around the virus have led to more diligence among customers toward personal hygiene and health, JD Health has seen massive growth with both health products and services. As of that month, JD Health’s daily online consultation interactions averaged 100,000, making it the largest online medical consultation platform in China; and during the first 30 minutes of JD’s 2020 Singles Day Grand Promotion, JD’s nutrition and health products category saw sales increase by over five times YOY.

“I believe JD has and will continue to offer a compelling alternative to Alibaba’s mass offering by focusing on niche and personal services,” said Jerry Clode, founder of China-focused brand strategy agency The Solution, in the report. Clode raised the example of JD’s fresh produce business, which as of October 2020 leads China’s online fresh produce sales with a market share of 25.8%, according to the China Association of Market Information and Research.

“JD has successfully created a perception amongst consumers that they are more dedicated to delivering products fresh and in optimal condition,” he said.

Although there has been a rise in health-consciousness among all categories, consumers born after 1990-1995 (segments deemed “post-90s” and “post-95s”) are driving the consumption of health-related products, according to the report.

Post-95s, referred to as Gen Z in the US, were the main purchasers of traditional-style health foods during the 2020 Singles Day Grand Promotion, for products including bird’s nest soup and thermal underwear. Many purchased these items not only for themselves but also for family members, as remote orders increased during a period when many families remained separate for longer than usual due to anxieties around travel.

As Chinese consumers became more health-conscious, environmentally sustainable brands and products also saw a boost because they were associated with healthy and clean characteristics. “Many Chinese saw COVID-19 as a sign from Mother Nature to stay in line,” theorized Mark Tanner, founder and managing director of marketing strategy firm China Skinny, in the report.

JD’s commitment to developing a sustainable, ethical approach is firmly rooted in the core identity of the business, as evidenced by its extensive poverty alleviation efforts and ongoing projects including the JD Green Stream Initiative.

Younger consumers are also driving the market trend of “Guo chao” (which translates to “national fashion”), in which products feature traditional Chinese motifs. One example is JD’s cooperation with the Forbidden City Cultural Products flagship store on a traditional almanac calendar and other products ahead of Chinese New Year.

“They’re seeking customized and limited edition products as opposed to mainstream products that feature flashy logos or brand names,” said Beverly Law, a senior digital marketing executive for Alarice, in the report. “Guochao isn’t just a fashion trend. It also reflects a strong appreciation and recognition of Chinese culture.”

This trend is also motivated by a growing desire among post-95s toward customization and personal expression, a demand that JD’s ongoing C2M initiative aims to address with tailored products reflecting consumers’ evolving tastes.

Analysts interviewed for the report were largely optimistic, and for good reason: As China’s economy has largely recovered from the upheaval of COVID-19 in 2020, revenue in China’s e-commerce market is projected to reach US $1,250,539 million in 2021.

 

(kellydawson@jd.com)