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)

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)