by Hui Zhang

Diversified consumer demands for luxury products boosted sales on JD.com during the Singles Day period with sales of luxury products doubling year-on-year. Shoppers’ enthusiasm for luxury products gave a hint to the economic recovery in China after the pandemic.

JD’s data showed that sales of apparel, shoes, luggage and bags increased by 116%, 132%, and 93% respectively year-on-year. High-end products such as Fabergé’s jewelry; Veja’s white leather sneakers; Stefano Ricci’s leather belts, which are popular among male consumers in Beijing, Shanghai and Guangzhou; and Ami Paris’ sweaters were all widely welcomed by JD’s consumers, with Ami Paris’ classic sweaters sold out only in 30 minutes.

Luxury consumers are getting in on the game earlier. The number of consumers making their first luxury purchase on JD increased 279% YOY, and Generation Z consumers entering the world of JD Luxury increased 200% YOY.

Kevin Jiang, President of International Business, JD Fashion and Lifestyle, said: “We are seeing more diverse demand from our consumers. The mainstream luxury brands, such as Prada, Ferragamo, Burberry, Rimowa, Hugo Boss, and Coach, continue to perform strongly, but new brands, including designer brands, such as Manu Atelier, Ami Paris, and Stone Island, and also brands with strong character, such as Faberge and Stefano Ricci, are also showing amazing potential.”

Five more high-end brands, JW Anderson, Anya Hindmarch, Queen Anne Silver, Bohemia Crystal, and White Mountaineering, have all launched official flagship stores on JD.com during the Singles Day period, with some of them choosing JD as their first e-commerce partner in China. So far, JD has established partnerships with over 200 luxury brands, including Prada, Miu Miu, Delvaux, and Salvatore Ferragamo.

 

(zhanghui36@jd.com)

by Ella Kidron

Four key theme emerge from the Singles Day results JD reported on Nov. 12^th. The company announced transaction volume of RMB 271.5 billion (US$41.1 billion) for the 11-day sales period (Nov. 1^st-11^th).

 

Lower-tier markets a huge source of consumer growth and product diversity

JD’s investment in the lower-tier markets is made clear through this Singles Day. Lower-tier markets are a big source of customer growth. During this Singles Day period, over 80% of new customers on JD Super came from lower-tier markets, and in the first five minutes of November 11^th, JD Super saw a 12-time YOY sales increase from these areas.

Lei Xu, CEO of JD Retail, said: “JD has been growing rapidly in the lower-tier markets through its logistics layout, development of commodity supply chain and creation of marketing products.” He added that the growth rate of users in the lower-tier markets is much higher than in the first- and second-tier markets, underscoring the immense potential of JD’s investments in these areas.

Thanks to JD’s strong supply chain advantages, the company is helping products from rural areas in all over China access the nationwide market. One example occurred in Sichuan province. To prep for this Singles Day period JD built a sorting warehouse in Meishan, a tier four city in the Southwest part of China. Meishan is one of the biggest places of origin for citrus in China. It produced nearly 1.4 million tons in 2019. The warehouse helped local citrus growers more easily sort and transport local specialty citrus to customers nationwide within 24 hours.

This type of program has two real benefits – first, it supports farmers in giving them a channel for market access, and second, it brings the freshest available produce to Chinese consumers.

 

Personalization of products ensures precise satisfaction of consumer demand

Consumer-to-Manufacturer (C2M) is another major area of growth as consumer demand is getting more and more individualized. C2M is a flexible manufacturing model that leverages the company’s big data insights to jointly develop tailored products with brand partners based on exactly what customers want, as revealed through their shopping behaviors and preferences. It creates a smart manufacturing industry in which products are developed according to direct consumer feedback.

During the Singles Day promotion period, transaction volume of C2M products increased 228% YOY. Since the start of 2020, overall sales of C2M goods (private label brand) have increased nearly 654% compared with the same period last year. Well-known home appliance brands have opened more than 350 production lines to provide 80,000 exclusive products to JD during the promotion, more than half of which are C2M home appliances. Sales of C2M home appliances customized based on JD’s big data account for nearly 27% of all home appliances sales.

 

Consumption of services drives consumption of products

In the context of an overall consumption structure upgrade, service consumption has already become a new motivator. In many cases, service consumption is actually driving the consumption of goods. Dr. Jianguang Shen, Chief Economist of JD Digits, said: “As China is doing a good job in controlling the virus situation, the resumption of work and production are progressing smoothly. Migrant workers have been able to return to cities, and service consumption such as travel within the country is bouncing back significantly. Additionally, demand for imported and high-end products continues to grow.”

Consumers’ attention to service quality on e-commerce platforms is also up. An e-commerce service satisfaction survey by Southern Metropolis Daily in Guangzhou saw that users are more willing to pay services offered by platforms, among which JD’s value-added services rank first among all e-commerce players in China.

This Singles Day, JD launched or upgraded 20 different services. For example, several of JD’s categories supported an extended 30-day price guarantee. Third party merchants participating in the grand promotion on JD provided “refund + compensation” price protection services. JD’s first party pet food division upgrading its trial program from seven to 30 days with a full refund. In addition, a portion of home decor categories extended its worry-free return policy from seven to 30 days.

JD’s services business also saw tremendous growth during Singles Day. Sales of JD Quality Alliance automotive products increased 247% YOY. Orders of hotel bookings increased 7.2 times YOY. Over 15 million fresh flowers were sold through JD’s online platform. Additionally, the company saw a 9-time increase in per customer transaction amount by JD PLUS (JD’s premium membership program) members on JD Auction.

 

Singles Day is not just for consumers, but for enterprises too

COVID-19 has caused many challenges to the supply chain for enterprises that faced transportation challenges and shortage of funds. During this challenging time, JD has helped various enterprises get back on their feet. JD Business provides a one-stop solution for enterprise procurement. It now serves 428 of Fortune 500 enterprises in China.

Ahead of this Singles Day, JD also held a big promotion for enterprises on maintenance, repair and operations products, during which overall procurement volume of the industrial products grew 213% year-on-year. Data during Singles Day shows that newly registered enterprise clients increased 863% YoY in a single day. The top 3 industries making the most orders are finance, manufacturing and telecommunications, while the top 3 industries with the fastest transaction volume growth YoY are Internet, property and energy.

A specific breakdown of stats can be seen here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/

 

 

(ella@jd.com)

by Ling Cao

JD Fresh has formed an industrial alliance for aquatic products with over two hundred enterprises across the industry chain, covering brands, e-commerce players, and supply chain providers. The alliance announced during this week’s FHC (Food & Hotel China) 2020 conference in Shanghai aims to integrate resources for building a safer and more standard aquatic products ecosystem for customers.

JD Fresh Aquatic Products Alliance established during FHC China with industrial partners

Xianglong Meng, senior business manager of China programs at Marine Stewardship Council (MSC) said, “As the international standard institution representative, MSC will help promote sustainable fishing, and support JD Fresh’s supply chain building in sharing resources and applications. For example, MSC will launch a seafood mini program that enables customers to see transparent product information. In the future, MSC will cooperate with industry players including JD Fresh to set up aquatic products standards, providing high quality and safe fresh food to customers’ tables.”

Minghui Wang, operations manager at JD Fresh said, “The alliance aims to find more new opportunities and build a win-win platform within the industry during the post-epidemic era, getting through the impact brought from the pandemic.”

Minghui Wang, operations manager at JD Fresh speeches at the event

During the conference, JD Fresh also signed a cooperation agreement with Sinoexpo Informa Markets, a leading business exhibition company in Shanghai to explore cooperation in offline exhibitions and promotions for brands and merchants.

During this year’s Singles Day Grand Promotion, sales of domestic aquatic products from JD Fresh increased 230% YoY, and sales of shrimp and fish increased 80 times and 100 times YoY.

 

(ling.cao@jd.com)