by Vivian Yang

Healthcare products and services continue to grow in the Chinese market as JD’s Singles Day consumption data demonstrated on November 11^th when the shopping festival reached an all-time peak.

According to JD Health’s sales data from November 1^st to 11^th, online medical consultations increased by 6 times YoY, orders of healthcare-related services grew more than 3 times, sales of cross-border pharmaceutical products increased by 15 times, mask sales increased by 17 times, and imported healthcare products increased by 270% YoY.

The staggering growth revealed three main trends of healthcare-related consumption in China：

Buying medicine services via omnichannel

COVID-19 has accelerated Chinese consumers’ acceptance of the role that the internet can play in improving healthcare services. This not only involves online medicine sales and medical consultation growth but also provides new opportunities for offline pharmacies and drug delivery services.

Transactions from JD Health’s O2O drug delivery services increased 21 times during the Singles Day Grand Promotion period, with the first order delivered to the customer’s doorstep within 9 minutes and 21 seconds. So far JD’s fast medication delivery service is offered in more than 200 cities across China. Meanwhile, over 40 JD Pharmacy chain stores have opened offline with many in lower-tiered cities, providing more and better medicine products and services to a wider range of patients in China.

JD Pharmacy offline chain store 

Spending more on disease prevention

In the post-COVID era, keeping healthy is a top priority and more people are willing to spend money to do so. Products that help ensure a robust immune system were must-buys for many during the shopping festival: sales of vitamin/mineral products increased by 6 times YoY, probiotics products increased by 200% and enzyme products increased by 180%. Nourishment products for wintertime were also popular items in the shopping cart, with sales of tonic products’ sales increasing by 5 times, black sesame pills’ sales increasing by 3 times, and bird’s nests growth via overseas direct purchases doubling YoY.

Bookings of full-body checkups and vaccination services on JD.com surged at the same time. Orders for body checkup services increased by 160% YoY; HPV and flu vaccination orders both increased by 32 times YoY; and vaccine reservation orders for shingles, which most frequently occurs in winter, increased by 28 times compared with the same period last month.

Paying for the whole family’s health protection

Paying for higher quality healthcare services for vulnerable family members such as elderly parents, young children, and expectant mothers is a rising demand for many middle-aged Chinese people. JD Health presented diversified choices to answer these needs.

For example, products for osteoporosis prevention for the elderly increased by 7 times YoY, Calcium supplements for kids increased by 220 times YoY, and folic acid products for pregnant women increased by 130% YoY during the shopping festival.

Also worth mentioning is the family medicine kit introduced by JD Health, which has been well received by customers. In addition to the commonly used medicines for cold, fever, skin problems and more, the purchase of the kit also includes a free consultation service from professional pharmacists and offers replacements for expired medicines.

Since the COVID-19 outbreak, China’s telemedicine industry has exploded. JD Health is at the forefront of that charge, with monthly consultations for JD’s Internet Hospital platform growing tenfold since the beginning of 2020, now totaling two million each month. Additionally, JD Pharmacy is growing rapidly, and recent cooperation agreements have been signed with major pharmaceutical companies like Pfizer, Bristol-Myers Squibb, and GlaxoSmith Kline. With the influence of COVID-19, the top 5 products in terms of sales were nucleic acid testing (no comparison for last year as this is new this year), masks (up 17 times YOY), thermometers (up three times YOY), flu vaccinations (up 32 times YOY) and online medical consultations (up six times YOY). JD’s online consultations have become increasingly popular, especially for chronic disease management. The top three chronic disease-related consultations covered cardiovascular diseases, diabetes and respiratory diseases.

 

(vivian.yang@jd.com)

by Ella Kidron and Ling Cao

Omnichannel has proven to be a powerhouse as a growth driver for both To-B and To-C development. This was made apparent during Singles Day Grand Promotion. The company reported transaction volume of RMB 271.5 billion yuan (USD $41.1 billion) for the 11-day sales period from November 1^st-11^th. Omnichannel marketing and retail are making it possible for consumers to shop whenever and wherever they want.

JD’s fresh food footprint which started purely online in 2012 has now become omnichannel. The company’s omnichannel supermarket SEVEN FRESH covers a number of cities in China. Notably, during the Singles Day period, on Nov. 6^th, JD opened a SEVEN FRESH in Wuhan, the epicenter of the epidemic outbreak in China. JD played an instrumental role in making sure that residents of Wuhan could access fresh fruits and vegetables during lockdown, setting up several programs to deliver at a time when no other logistics operators were able to. SEVEN FRESH is one of the demonstrations of the company’s commitment to the long-term health and wellness of Wuhan residents post-pandemic.

Jonathan Wang, vice president of JD.com and head of SEVEN FRESH said: “The epidemic has accelerated the need for more and more customers to buy fresh food online and it has become a habit. Based on an omnichannel retail strategy, SEVEN FRESH aims to provide customers with a superior in-store experience and fast delivery services within 30 minutes. We’ve seen SEVEN FRESH’s online orders increase significantly.”

JD’s omnichannel convenience store initiative, JD New Markets, is also playing a key role in this years’ Singles Day Grand Promotion. These convenience stores are JD’s B2B2C business. That means that JD helps source high-quality products for these individually owned stores, while also supporting the stores with digital marketing, customer insights and more.

This Singles Day, products from popular brands like Lay’s and many more participated in cross category and brand-specific promotions to provide the best products at the best prices to nationwide store owners through the JD New Markets initiative.

“In the fourth year for JD New Markets to join the Singles Day Grand Promotion, we have shouldered the responsibility of deeply integrating the digital and real economy,” said Arthur Zheng, President of JD New Markets. “As we have seen steady growth, we also help nationwide mom-and-pop stores with our supplies. Joined by brands, distributors, retailers, and consumers, we will deliver an even better omnichannel retail experience and sustainable growth.”

During Singles Day, sales of JD New Markets reached 208% of sales last year. The New Markets team also provided innovative marketing solutions for store owners and brands. Conversion rate of orders resulting from an individual JD New Markets livestream show reached 75%, which means that 75 of every 100 viewers placed orders.

For a specific breakdown of stats please view our infographic here: https://jdcorporateblog.com/jd-reports-to-record-rmb-271-5-billion-singles-day-performance-2/

 

(ella@jd.com; ling.cao@jd.com)

by Martin Li

JD’s cross-border e-commerce platform has brought products in and out of China to consumers, putting a variety of quality products at consumers’ fingertips.

Thanks to JD Worldwide, JD.com’s platform for imported products, global borders are no barrier for Chinese consumers who want to purchase milk powder from New Zealand, watches from Switzerland, pet food from England and more.

Dr. Jianguang Shen, Chief Economist of JD Digits,said: “The recovery in the overseas markets has boosted China’s exports, helping factories to resume production and enhancing consumers’ confidence. All these provided positive conditions for the Singles Day event to hit a new high.”

The best-selling imported brands this Singles Day include Apple, Sony, Siemens, Phillips and Panasonic. Best-selling products include the Apple iPhone series, Lancôme toner, Sharp’s 60-inch smart internet liquid crystal TV, the HP Zhan66 14-inch light laptop, and the Siemens 610L refrigerator.

The proportion of female consumers of imported products is 21.2% higher than the JD platform average. Consumers in this category are generally three years younger than the JD average.

Global Sales, JD’s outbound e-commerce platform, also witnessed a 144% growth in transaction volume.

The top three fastest growing markets were New Zealand, the United States and Hong Kong SAR.

Among the popular products with overseas consumers were outdoor toys, drinks, diapers, pet products and household products.

Outdoor toy sales increased by 747% year on year. Plus, JD’s private label products saw a 350% growth in number of orders.

 

(bjlihao3@jd.com)

 

 

 

 

 

 

by Ella Kidron and Rachel Liu

Fast-moving consumer goods and fresh food were a highlight of JD’s Singles Day Grand Promotion during which the company reported transaction volume of RMB 271.5 billion yuan (USD $41.1 billion) for the 11-day sales period from November 1^st-11^th. With COVID-19, consumers have gotten used to shopping online for these products and show no signs of stopping anytime soon. Over 20,000 consumer brands saw cumulative transaction volume increase over 100% during the Singles Day promotion period. In the first 10 minutes on November 11^th, 3,000 brands saw transaction volume double YOY. Over 80% of new users of JD Super, JD’s online supermarket, came from lower-tier markets.

Chief Economist of JD Digits, Jianguang Shen, said: “E-commerce is the bellwether of China’s consumption recovery this year. With an increasing share in overall consumption, it played an important role in supporting many suppliers to overcome the impact of the pandemic. At the same time, the rise of new business formats such as fresh food e-commerce are adding new boosts in this sector.”

Carol Fung, President of JD FMCG Omnichannel said: “It is very encouraging to see consumers’ continuous trust in JD Super and in JD.com. This is evidenced by strong growth in multiple products. Trust is what will enable us to win in user growth, lay the foundation for sustainable development and serve consumers to buy anything they need, anytime, anywhere. Omnichannel has become a key theme for our business and more brands are joining hands with us on this. We continue to find that our strong supply chain ability and the development of deep and sustainable win-win partnerships with brands are instrumental in meeting the needs of our diversified consumers across countless scenarios.”

Carol Fung during Singles Day celebration at JD Headquarters in Beijing

JD’s Omnichannel Fulfillment supply chain innovation program sources products from offline outlets located near customers, eliminating unnecessary touch points, increasing efficiency while reducing costs. When a consumer places an order online, the platform matches the order with offline supply closest to the customer in real-time, and then arranges for a courier to deliver to the consumer along the most efficient route. Instead of relying solely on the stock in JD’s warehouses, the omnichannel fulfillment platform will calculate which brick and mortar stores nearest to the customer have the items in stock, and then source the inventory from there, both ensuring supply and delivery speed. As of November 4th, JD has achieved one-hour delivery through the cooperation with JDDJ (JD Daojia, China’s leading local on-demand retail platform) in 328 cities.

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; liuchang61@jd.com)

by Ella Kidron

At midnight on November 12^th JD reported Singles Day Grand Promotion transaction volume of RMB 271.5 billion yuan (USD $41.1 billion) for the 11-day sales period from November 1^st-11^th. The result set a new record.

There is much more behind this number than meets the eyes. The year of 2020 has been no ordinary year, and this has certainly been reflected in Singles Day results. As COVID-19 prevention and control in China has reached a stage of normalization in China, long-term changes in consumer behavior and impacts on economic structure have been observed this Singles Day.

Consumers’ and merchants’ willingness to participate in Singles Day is stronger than ever. JD’s perks are also its best yet, both in terms of discounts and high quality services. During this year’s Singles Day promotion, JD announced it would sell over 200 million products with 50% discounts, and launch more than 300 million new items through JD’s platform.

Lei Xu, CEO of JD Retail, said: “Singles Day is an important sales time for brands. For those big brands, they have a bigger advantage because they can better meet consumer demands with the help of their brand reputation, supply chain ability, operation and marketing ability, as well as ability to cooperate with e-commerce platforms. That’s why we have witnessed fast growth by well-known international and Chinese brands. In the meantime, consumers pay more attention to quality and price when they choose low-profile brands, which have been affected by COVID-19.”

Singles Day is known for involving complicated coupon schemes that can leave many buyers scratching their head and even stressed out, JD has been simplifying the process each year, and took it a step further this year. Consumers simply put products in their shopping carts, and then JD’s systems do the calculations to ensure the most ideal coupon combo.

While the shopping event is certainly about giving back to the customer, and ensuring the best customer experience, a successful Singles Day is not purely about the cheapest products and the best deals. In fact, consumers have displayed a willingness to buy high priced items if they are also high quality. This is very much in line with JD’s ethos. Xu said: “JD has been advocating against excessive consumption, instead encouraging responsible consumption. We don’t encourage consumers to shop impulsively. It’s more important to consume in a rational manner.”

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)

JD’s 2020 Singles Day Grand Promotion  set a new record, recording RMB 271.5 billion yuan in transaction volume for 11 days of the sale (Nov. 1^st-11^th).

by Ella Kidron

Over 2,000 years ago Virgil said, “The greatest wealth is health”. In the time since, immense stress coming from multiple directions has caused many to forget this, forgoing healthy eating, good sleeping habits, exercise and more in exchange for economic prosperity and security. That has changed immensely with the global pandemic, especially in China where consumption of health and nutrition products is rising rapidly, particularly of imported products. During the Singles Day Grand Promotion (November 1^st to 11^th） JD saw imported health products on its platform grow rapidly reinforcing the newfound importance of this category. On Nov. 11^th, the nutrition and health products category saw sales increase over five times in the first 30 minutes. The full say saw over 100% growth in sales. And, as of 5pm on the day, sales had already exceeded the whole of the 11^th last year. The top three brands were By-Health, Swisse and Move Free.

“The pandemic has had a big impact on many industries, including health and nutrition products,” said Adeline Liu (Liu Ying), a buyer in the Health and Nutrition products category for JD Worldwide, JD.com’s platform for imported products. She joined JD in July 2019. “The industry has seen extremely rapid growth this year.”

Adeline Liu at CIIE in Shanghai

With Singles Day upon them, the team has been working with suppliers and partners to get the best prices for consumers for the holiday. Since Singles Day pre-sale started on October 22^nd, which is earlier than previous years, we’ve been getting ready since early October,” Liu said. It just so happens that the Singles Day period also coincides with the massive China International Import Expo (CIIE) in Shanghai, on the sidelines of which Liu has managed to grab a few minutes for this conversation by phone.

Sourcing from over 100 countries and regions

Over the course of the week at CIIE, Liu and her colleagues met with and visited booths of dozens of brands on site, on the hunt for the right health products for JD’s over 417 million active customer base. CIIE and similar events are just one of the channels Liu relies on to learn about source products. Others include, prior to the pandemic, overseas business trips to meet with brands, as well as regular attendance at industry events and partnerships with foreign embassies in China.

“In addition to routine data analysis of internal and industry trends, we also go overseas to understand brands that are famous overseas but haven’t yet come to the Chinese market.” JD Worldwide source from over 100 countries and regions.Some of the most popular destinations include the U.S., Australia, New Zealand and Japan. Liu and her team would typically go on at least 10 business trips a year (overseas or domestic), but travel has been less frequent this year with the COVID-19 outbreak. Brands which consistently perform well on JD include EZZ, Doctor’s Best, Swisse, Blackmores and more.

EZZ promotion on JD for Singles Day

Even though business travel is not on the table at the moment given various quarantine measures and restrictions, Liu is kept plenty busy in China. With the pandemic, Chinese consumers’ attention to increasing immunity and improving overall health has meant a heightened awareness of and eagerness to purchase health products. In particular, products that improve immunity and nourish health have been well received by consumers. Long-term gastrointestinal management products (such as probiotics), bone health products, beauty and anti-aging products are all growing rapidly. “Compared to overseas markets, China’s nutrition market kicked off late and consumer awareness of these products isn’t as high yet as elsewhere.”

Navigating a complex market on behalf of consumers

The complexity of the market and the sudden frenzy created as a result of skyrocketing demand isn’t lost on Liu. Being able to adeptly navigate the market is challenging, but absolutely essential in her role as a buyer. Sometimes it means being able to identify real imported products from their imposters. Other times it’s about ensuring that the effectiveness of a product is not exaggerated. “There are plenty of products claiming to cure this and that illness.” It’s especially important to look out for this with middle-to-old age customers who might be less familiar with e-commerce. Interestingly, data Liu and the team have seen shows much evidence of young people buying products from older relatives. It’s something they keep in mind when advertising – choosing to focus on older parent and grown child scenarios, for example.

Going to all lengths to ensure quality

Nutrition products are different from other categories in that it might take a while to see their effects. “Usually you need to consume a product for at least a month before you see any changes – at very least two or three weeks.” For products where taste is a factor, the team will test it. Where taste is less of a factor, they rely on product information, brand history, and other details to make decisions. Once a product is selected, the team goes through an extremely stringent evaluation process to ensure quality. One of the important considerations is that the product actually contains the amount of whatever nutrient it claims it has.

Shelf stocked with nutrition products in buyers’ area at JD Headquarters in Beijing

First, buyers select products which comply with the local import regulations and that are on China’s Customs clearance list. Then they ensure that the products comply with JD platform quality management standards and specifications (including the accuracy of the product efficacy description). Once the product enters JD’s bonded warehouse, the company has full control over the quality and will randomly sample products to ensure consistency, and add traceability codes making it possible to trace the supply chain of the products.

JD undergoes extensive market research to understand which products might be most well-received by consumers on its platform and works with suppliers to get the most advantageous prices for customers. “Our international logistics system helps us achieve sufficient price advantages,” explained Liu.

Generally speaking, products of imported brands are more popular in China. “Many consumers associate international products with high quality, strict safety standards and even patented high tech, but we also see some quality domestic brands coming up.”

Sometimes products even out perform their expectations. The team engaged in an in-depth cooperation with the Canadian Embassy in Beijing, in which the embassy helped recommend products and brands that JD buyers would select according to consumer demand, consumer portraits and more. “Canadian seal oil was extremely well received. We didn’t expect that.” Whereas the more common fish oil contains two Omega-3 essential fatty acids, Eicosapentaenoic acid (EPA), and Docosahexaenoic acid (DHA), seal oil contains an additional Docosapentaenoic acid (DPA) and is believed to be even more beneficial.

Looking ahead

“As consumers’ demand for health products gets more diversified and they consume more of them, it’s easy for them to feel like they’re taking a whole bunch of medication.” The team will look for creative products that get away from the feeling of endless pill popping. For example, instead of only looking at procuring pills, they will seek out vitamins in the form of chewy candy or even nutritional liquids. “This makes our product pool richer, and gives consumers more choices,” said Liu.

Matching precise user demand with supply is a focus. “We also have plans to do C2M for quality products with existing partners. In addition, our team will also go overseas to find more authentic, high quality products for consumers.” C2M, or Consumer-to-Manufacturer, is JD’s program to leverage consumption data across its platform as well as analysis of industry trends to help guide brands on product development and marketing. Liu’s team has already done some custom gift boxes and product combinations, but envisions having even more custom products down the line and are actively involved in relevant conversations.

Under the pandemic, China’s health products market looks immensely promising. With an estimated market size of RMB 330 billion yuan for 2021, JD’s buyers are fully aware of the importance of staying ahead of the trends. But it’s not just about providing a platform to buy health products. For JD, it’s about integrating the products into the entire consumer life cycle and combining them with services. Integrating JD Health’s family doctor program with doctors’ recommended suitable health products according to a users’ individual situation, for example.

Liu offers one final tidbit of advice for navigating the market, both in China and elsewhere. “When choosing a product, don’t pay too much attention to how high the nutrition content is. Rather look at nutrient absorption because there’s no guarantee your body can absorb all of the nutrients the product has. Choose the type of product that’s right for your body.”

 

 

(ella@jd.com)

by Ella Kidron

JD’s 2020 Singles Day Grand Promotion  set a new record, recording RMB 271.5 billion yuan in transaction volume for 11 days of the sale (Nov. 1^st-11^th).

Find information on the first 10 days of the sale and the first hour of Nov. 11^th here: https://jdcorporateblog.com/jd-singles-day-when-peak-day-arrives-consumer-enthusiasm-is-strong-in-first-hour/

 

(ella@jd.com)