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)

by Rachel Liu

People may like to buy calendars ahead of Chinese New Year, as the beginning of a new year brings a fresh start and good luck. JD’s big data shows that themed calendars launched by museums and art organizations have enjoyed great popularity at the turn of the year. On December 30^th, sales of a Forbidden City themed calendar increased 450% YOY.

Designed by the Forbidden City Cultural Products flagship store, the Forbidden City calendar follows China’s traditional Almanac, which is based on the lunar calendar and provides guidance on what to do on each day. The cover of the calendar features the classic “Forbidden City red” color and is decorated with the Shen Wu Gate, the north entrance of the Forbidden City, auspicious clouds, and a crane, which stands for longevity and luck in Chinese culture. This calendar also introduces 24 seasonal division points in lunar calendar. According to JD’s Big Data Research Institute, these traditional almanac and other calendars that introduce Chinese traditional culture are the highest-selling ones on JD.

Calendars designed by the Chinese National Museum and the British Museum also received great popularity. The Chinese National Museum calendar introduces 365 different relics from Chinese history, while the British Museum calendar designed 12 themes, one for each month based on historical relics, providing knowledge and fun for customers. JD data shows that female customers like to gift calendars related to art and culture to their friends, and sales of these two kinds of calendars both increased over 270% YOY.

Some calendars aim to capture the hearts of niche customer groups. For example, there is a special “cloud calendar” for sale on JD designed for customers who love the sky. Each page of the calendar contains a photo of clouds collected from netizens living all over the world since 2016. Sales of book calendars, which introduce one book on each page, increased 3.4 times YOY. Customers can scan the QR codes on each page for audio introductions on each book.

“Calendars are not only a tool for checking dates for Chinese customers, but have become a way to express their tastes and personalities. We noticed that more and more customers like to buy themed calendars or specially designed calendars to add some colors to their desks or send to their friends as gifts,” said a sales representative from JD Fashion and Lifestyle.

 

(liuchang61@jd.com)

by Kelly Dawson

Echoing a rapid spike in online consumption in 2020 by elderly shoppers in China, a new report released by retail analysis firm NPD Group indicates a 49% increase in online spending and 40% increase in frequency of online purchasing by American shoppers 65 and older.  The report, which gathers data from both online and offline consumer receipts, confirms JD’s previous analysis that elderly shoppers are the fastest-growing segment of online shoppers.

Much of this growth has been spurred by the pandemic, forcing elderly consumers to break long-held habits in the name of safety. In China, droves of elderly shoppers went online for the first time, primarily purchasing daily essentials like vegetables, fruit and meat but gradually expanding their purchases to include non-essentials.

Speaking with the Washington Post, Jackie Pardini Hartzell, a spokeswoman for the home improvement chain Lowes, said of the explosion in online consumption by elderly shoppers, “The past year has demonstrated just how quickly shopping behaviors can change.”

In fact, even as the pandemic has calmed in China, many elderly consumers are continuing to take advantage of the convenience and ease of shopping online, helped by JD’s various initiatives to narrow the digital gap for the elderly: including in-store app training for digital payments, booking appointments and more; tailor-made smartphones featuring remote assistance and fast medical consultation services; expanded voice-activated devices and services especially for elderly consumers, and more.

For Chinese retailers like JD, the growth of what many are calling the “silver economy” is no surprise. Already totaling 3.7 trillion yuan in 2018, China’s “silver economy” is expected to reach 5.7 trillion yuan by the end of 2021, according to iiMedia Research group.

As China’s e-commerce industry has expanded, so too has its population of plugged in seniors. According to China’s National Bureau of Statistics, Internet users above 60 rose from 4 percent of the country’s roughly 940 million netizens in 2016 to 10.3 percent in June of 2020. Additionally, JD’s Big Data Research Institute found that in 2020, Internet users aged 56 and above spent 2.3 times as much as the average user in 2017.

 

(kellydawson@jd.com)