As the partner for Red Top Award, the leading award in China’s home appliance industry, JD joined a ceremony on Dec. 16 revealing this year’s winners, including BOSCH washing machine, Casarte refrigerator and Galanz air fryer, which are sold on JD.com.
Shuai Tang, general manager of marketing and operations at JD Home Appliance joined the summit discussion and revealed the consumer trends of the industry based on JD’s data.
According to Tang, the key that drives the revolution of the industry is the constantly changing demands of customers, which are becoming more unique, especially in different scenarios. This is the motivation for brands to expand into high-value, premium products and more niche markets. JD is leveraging its bid data and customer operation capabilities to provide more suggestions to manufacturers and help them with product upgrades.
This year, JD launched a special section to promote the award-winning products, as well as a livestream show to provide a detailed introduction for customers.
During the past Singles Day, many niche and innovative products received great sales performance on JD. For example, sales of laser TVs, TVs with touch screens and OLED TVs increased 4.5 times YOY. High volume built-in dishwashers saw sales increase over 4.5 times. JD’s C2M (consumer-to manufacturer) home appliance products also saw sales increase . Sales of water heaters that can monitor water quality increased 130% YOY. Robotic vacuums that can automatically collect trash from Viomi, and a LG washing machine that can automatically adjust performance based on the amount of clothes both saw sales increase rapidly.
Behind the hot-selling products is JD’s accurate insights into its target customers. Through big data brands can recognize customers’ pain points and market trends, and make innovations in research and development of products; then they can recommend the right products to the right customers. JD’s digital smart supply chain has become the motive and foundation for the home appliance industry to improve their products.
Christofle, the world’s leading brand for silver cutlery and silver accessories, joined JD.com on Dec. 17, making JD the first e-commerce platform in China to partner with Christofle to open its official flagship store.
The Christofle store on JD provides the brand’s new products and classic, best-selling items covering the collections of MOOD, Jardin d’Eden, Malmaison, Oh, Albi, Vertigo, and others. Various categories of products including dining, barware, home decoration, children, jewelry and personal accessories are available on JD.
JD, which is well-known as a guarantee of authenticity and high-quality products, has a large consumer base of loyal, high-income consumers with strong consumption power, which echoes Christofle’s consumer demographic. JD’s technology strengths and big data capabilities enable it to provide user engagement tools for brands to help them reach out to their targeted consumers more precisely within JD’s 441 million active consumers’ pool.
“Christofle has been a household name for ‘Arts on Table’ for more than 150 years,” said Kevin Jiang, president of International Business at JD Fashion and Lifestyle. “The opening of Christofle’s flagship store will bring JD consumers a variety of high-end choices for cutlery, and JD will assist Christofle to better penetrate the Chinese market.”
The eclectic Christofle cutlery collection is crowned with refined silver accessories and silver jewelry by famous designers. Over the years, Christofle has furnished many royal houses, well-known institutions and luxury hotels with its silver cutlery and accessories. These have included the Orient Express, Napoleon III’s table, the Elysée Palace as well as many sultans’ palaces and aristocratic homes around the world.
JD launched an e-sports gaming phone alliance today with industry partners in Sanya, Hainan province. The alliance leverages JD’s expertise in supply chain, technology, distribution, marketing and payment solutions to upgrade the gaming ecosystem and to make JD the top choice for customers purchasing gaming devices.
According to an industry report, China’s e-sports market grows 10% annually, and is expected to reach RMB 270 billion yuan by 2022. JD previously launched the JD Esports plan in middle of the year, aiming to expand to gaming phone hardware, service and competitions. Based on the plan, JD formed the JDE gaming team, and released new gaming related products with Lenovo, ROG, Black Shark and Nubia’s Hong Mo, promoting industry growth.
Daniel Tan, president of JD Mobile Devices said during the conference, “With the development of the whole industry, gamers pursuit of a superior experience is even higher. The JD Esports Plan can provide an integrated service for them, as well as help our partners achieve maximum business value.”
Daniel Tan
During the ceremony, JD announced a series of services for gamers, including a special trial service, one hour fast delivery, a special network guarantee and more. Based on the JD Esports plan, JD will also help train professional gamers, appeal to more fans by working with livestreamers on platforms like Huya, create Consumer-to-Manufacturer (C2M) products with brands, and launch brick-and-mortar experience shops.
Left: Malaysian Ambassador to China, Mr. Raja Dato’ Nushirwan Zainal Abidin; Right: Rachel Liu, Global Corporate Affairs, JD.com
JD Worldwide opened Malaysia Overseas Flagship Store on December 16th. The newly launched store will introduce nearly 1,000 products from over 60 Malaysian brands. An online ceremony held between Kuala Lumpur and Beijing to celebrate the store’s launch was attended by Malaysian Ambassador to China, Mr. Raja Dato’ Nushirwan Zainal Abidin; Datuk Seri Tiong King Sing, Malaysia Prime Minister’s Special Envoy to China and Chairman of the Malaysia China Business Council; Larry Lee, vice president of JD. com; and Frank Yu, general manager of marketing and operations at JD Worldwide.
Fei Zhan (left) of BMW Motorrad China and Qing Yan of JD Auto on the JD flagship store unveiling ceremony
BMW Motorrad opened its official flagship store on JD.com on December 16th. R18, the manufacturer’s latest-released cruiser model, which is the largest and heaviest BMW to date, will be offered on JD. The announcement was made at a BMW event in Beijing to celebrate the entrance of three R18 editions to the Chinese market.
Moin ul Haque (6th from left), Pakistani ambassador to China and Stard Huang (7th from left), VP of JD and President of International Logistics in a group photo at JD HQ in Beijing.
Pakistani ambassador to China Moin ul Haque paid his first visit to JD’s headquarters in Beijing on December 16th, and expressed a warm welcome to the company to develop cross-border e-commerce business in Pakistan. JD started partnering with the large Pakistani logistics company Transfreight in October, bringing JD’s warehouse management system to the country.
JD’s joint-venture ecommerce company JD Central (JDC) celebrated its 12.12 Year-End Campaign with an offline event in Bangkok, from Dec. 9 to 13. This marks the first time JD Central has sold products offline, offering consumers O2O experience with various products across FMCG, electronics, home appliance, fashion, fresh, etc. Visitors at the event could choose between picking up products on site, or home delivery.
From left to right: Xiaohua Luo, GM of SME platform at JD Business, Zhixiang Sun, vice president of JD.com, Junzhang Luo, deputy director of the China Centre for Promotion of SME Development, Pingjun Zhou, assistant to director of the China Centre for Promotion of SME Development
JD.com and the China Centre for Promotion of SME Development of the Ministry of Industry and Information Technology launched a plan to ensure the sustainability of SMEs during the APEC SME Business Forum held between Dec. 13-15 in Shenzhen. The plan will focus on providing measures to help SMEs lower business costs and expand sales channels, as well as talent training, promoting long-term business sustainability.
Qiang Yue, head of smart home, JD Home and Life
During the “2020 China Smart Lock Industry Quality Improvement Plan” event held on December 15 in Shenzhen, JD received an award for its stellar performance in the smart locks space as the “most valuable channel” for the industry. Qiang Yue, head of the smart home division under JD Home and Life shared an analysis of channel development in China’s smart lock industry at the event.
As JD has embraced an omnichannel retail strategy, consumers have benefited from increasingly fast delivery times propelled by the company’s rapidly expanding network of offline stores and an advanced supply chain. Less discussed but arguably equally important is the lifestyle opportunity that omnichannel provides customers to curate their experiences and manage their time— one more way in which JD is putting the customer first.
While most global industries and enterprises including JD have steadily followed the path of digitalization, it’s JD’s recognition of the need for online-offline integration in the face of increasing fragmentation of consumer demand that will be key to future success, said David Roth, chairman of BrandZ and CEO of The Store WPP EMEA and Asia， who accepted JD’s phone-interview from his London office .
“JD is one of the leaders in understanding this strategic challenge,” Roth said.
Online-only retail can only truly work with utilitarian products for which people feel a low emotional connection, and feel low to zero enjoyment picking them up in store, he said. Such products might include toiletries or kitchen cleaning solution, for example.
On the other end of the spectrum are products for which customers feel great enjoyment in touching and feeling, and for which they might even bring a friend or family member along for advice while shopping. With these products, the physical part of buying is an integral part of the customer journey, even if ultimately the final step in purchase is completed online.
JD’s omnichannel approach reflects an understanding that consumers are reluctant to forfeit these experiences, and may in fact feel that a shopping experience has been diminished as a result of missing the opportunity to participate in an offline interaction, Roth said.
JD consumers can now engage in shopping experiences online, offline, through livestreaming, content commerce, social commerce and more. Being able to curate where, when and how to enjoy shopping experiences allows consumers to pick and choose how they will spend their time and energy. In this sense, JD’s approach to omnichannel enables consumers to curate a desired lifestyle.
“See, Touch and Feel”
JD’s omnichannel approach extends across multiple categories and industries, with its over 12,000 offline home appliance experience stores across China serving as a clear example of how offline stores can add value for consumers.
Visitors to JD E-Space, JD’s 50,000 square meter experience store in Chongqing, have free rein to try anything in the store. Customers debating between washing machines are encouraged to take them for a ‘spin’; participate in baking tutorials, and more.
“JD is allowing people to make transactions not only in a functional way, but also in an inquisitive way that allows them to touch and feel and ask questions,” Roth said.
JD E-Space in Chongqing
The company plans to open 20 JD E-Space experience stores in first-tier cities across China by 2025. These offline stores play an important role in the company’s expansion into lower-tier markets, where customers are still acclimating to online shopping. Customers can also access post-sales services at the offline stores, which helps provide peace of mind.
“E-commerce penetration in lower-tier markets still needs to be cultivated,” said Shuangxi Wu, head of JD’s refrigerators and washing machines sales department. “The experience stores help them access JD’s rich home appliance product selection.”
JD’s omnichannel strategy is also powering its promise for ever faster delivery, through the Omnichannel Fulfillment supply chain innovation program, which leverages the inventory of multiple types of offline channels including supermarkets, convenience stores and brands’ offline stores in order to drastically shorten delivery time to consumers.
Additionally, omnichannel is playing a role in the expansion of luxury brands into the e-commerce space. Shoppers who want to buy a Prada purse can visit an offline store for the upscale ambiance of a luxury store; and then later purchase the item online through JD, with a guarantee that it will be delivered from the same store at which they viewed the purse.
As always, JD’s omnichannel offerings are backed by an advanced supply chain network that ensures seamless integration of all shopping experiences across categories, with features including price synchronization and more.
Growth of omnichannel
Even as online shopping has exploded worldwide as a result of COVID-19, JD has steadily continued a path of expansion into the offline space. Digitalization remains essential, but without the omnichannel component, retailers will remain one step behind.
In past years, many Western retailers were entirely focused on the desire to exit the physical space, Roth said. “The model switch came from China,” he said. When JD begun opening offline stores, “Western companies were very curious, but I don’t think they really fully understood the change in strategy.”
The Western model has traditionally taken a “hub and spoke” approach, with inventory stocked at a main hub and then delivered to consumers through the supply chain. Western retailers embraced this model, prioritizing efficient supply chain and 100% on-shelf availability.
“The Chinese companies turned that thinking on its head,” Roth said of JD and other Chinese e-commerce companies that have shifted into omnichannel. “They realized that the future of retail doesn’t lie in 100% on-shelf availability, but instead about the speed in which products can get to customers—first with next-day delivery, then same-day, and now even within 30 minutes in some cases.”
Once JD identified speed of delivery as the main priority, the “hub and spoke” model could no longer work, because the distances were too great, Roth said. Expanding the network of offline stores was the smartest solution, resulting in the necessity of an omnichannel model.
“This new thinking was an entirely different paradigm,” Roth said.
Future of omnichannel
Moving forward, the most important question for retailers will be, “How can you serve customers both physically and digitally?” Roth said. “And equally important: How can you integrate the two?”
There will always be a place for offline channels, Roth predicts. “If a company wants to compete, they will need to offer both physical and digital. The balance and proportion between the two will change over time, but the true key to success will be synergy between the two, whether through sharing data or learnings to understand and explore between offline and online.”
He imagines a time in which an IOT-connected world will ensure that utilitarian products like washing detergent will automatically arrive at your home when your supply is low, based on the number of cycles registered on your washing machine.
In contrast, products with higher emotional connection, like fashion, for example, will necessitate the continued existence of offline stores. JD will aim to serve this demand, in recognition that customers have wide-ranging needs.
“For a retailer, the way to measure success is customer experience,” said Chenkai Ling, vice president of JD.com and head of Strategy Development, JD Retail. “Consumers are getting more sophisticated and have higher demands.”
However, there are a class of products that could go in either category—fresh vegetables, for example—and the future of these products will be in the hands of retailers and brands to create emotional propositions that prevent them from becoming pure commodities, Roth said. JD’s SEVEN FRESH omnichannel supermarket offering is rapidly expanding in this space.
As the omnichannel model continues to develop, JD will play an important role, Roth predicts. “JD is at the forefront of creating the pieces of the jigsaw puzzle that makes up this ecosystem,” he said.
JD.ID, the e-commerce joint venture of JD in Indonesia, has posted its strongest transaction growth in the past four years in its year-end campaign.
The campaign lasted from Dec. 10-12, concluding on the National Online Shopping Day (HARBOLNAS) in Indonesia. The first hour of the three-day campaign saw a record three-time growth in the number of transactions, compared with the same period of last year.
In partnership with brands and sellers, JD.ID offered diversified discounts. Among the most popular items sold were groceries, heath care products, baby products, smartphones, tablets and accessories, home appliances and home living products. These items were also top sellers during the company’s 11.11 campaign, which was held from Nov. 9-11. This reflects strong demand for daily necessities by Indonesian consumers who mostly are still working from home due to the COVID-19 pandemic.
“We really appreciate the positive response from our JD friends during the end of the 2020 shopping festival. Through the implementation of this campaign, we hope that loyal customers can feel the “joy” by enjoying an unforgettable shopping experience at JD.ID,” said the company’s marketing head Mia Fawzia.
“We also want to thank the brand partners and sellers who have contributed to the success of this program, especially the JDers (which refers to JD.ID employees) who are tireless in preparing and providing the best service to all customers in Indonesia,” she said.
“In the future, in 2021, JD.ID will return with various special promos, ranging from discounted prices, shopping vouchers, cash back, free shipping, and many more. On the logistics and operational side, we are also committed to always providing the best end-to-end service, from warehouses, drop points, couriers, customer service, to after-sales. We will ensure every aspect of our service is in prime condition, so as to provide maximum comfort and shopping satisfaction for all customers. And last but not least, we will present a wide selection of quality products with #DijaminOri (original guarantee),” she added.
JD Health announced on December 16th that it has collaborated with CareCapital, an investment company dedicated to the global dental and oral care sector, to bring digital power to the oral health industry and promote healthcare.
The two parties will build an online and offline integrated smart supply chain for the dental and oral care sector, leveraging JD Health’s B2B procurement platform JD Medicine Procurement and CareCapital’s offline distribution network, aiming to improve the medicine circulation and procurement efficiency.
Relying on JD Health’s strength in telemedicine, the partnership will also help nationwide patients get access to a larger group of excellent doctors and medical institutions online, providing an even more convenient online consultation experience for dental and oral diseases. In addition, JD Health and CareCapital will explore a new model for family oral care in the future.
“Oral health very much influences our general health and life experience, but is often neglected,” said Lijun Xin, CEO of JD Health. “Through this partnership, JD Health and CareCapital will jointly improve the efficiency of the supply chain for the oral care sector, broaden the channels of oral health education, and contribute to the digital and intelligent upgrade of the industry.”
JD.com and the China Centre for Promotion of SME Development of the Ministry of Industry and Information Technology launched a plan to ensure the sustainability of SMEs.
The announcement was made during the APEC SME Business Forum held between Dec. 13-15 in Shenzhen and gathered nearly 100 APEC members, representatives of financial institutions, SMEs, and industry experts.
From left to right: Xiaohua Luo, GM of SME platform at JD Business, Zhixiang Sun, vice president of JD.com, Junzhang Luo, deputy director of the China Centre for Promotion of SME Development, Pingjun Zhou, assistant to director of the China Centre for Promotion of SME Development
The plan will focus on providing measures to help SMEs lower business costs and expand sales channels, as well as talent training, promoting long-term business sustainability. Leveraging JD’s e-commerce platform, marketing and supply chain capabilities, the plan can help enterprises transition to a more digitalized business model.
Since 2020, JD Business has cooperated with local government and institutions to provide a series of policies for SMEs, covering 21 cities around China including Beijing, Shanghai, Shenzhen and Chengdu.
Lipo Shan, director of the Centre said, “As the economy’s basic component, the strong development of SMEs is a key factor for the nation’s economic sustainability. The plan played a significant role.”
Zhixiang Sun, vice president of JD.com said, “The plan aims to help SMEs achieve comprehensive growth, injecting new vitality into China’s economic recovery.”
