JD and Loufan County to Launch “JD Farm County Demo Base” to Promote Digital Agriculture

by Yuchuan Wang

JD Logistics and Loufan county in Taiyuan city, Shanxi province, signed a partnership on August 20th, to launch the first county-level JD Farm demonstration base in order to build a model for the digitization of the agricultural industry. The project uses JD’s expertise in e-commerce and informatization technologies such as big data, AI, cloud computing and IoT.

“We hope to empower agriculture with digital management tools and eventually help farmers sell quality produce at the best prices. Leveraging JD’s supply chain and e-commerce abilities, we bring produce directly from farms to consumers’ tables,” said Zhiwei Qiao, head of JD Farm, on the signing ceremony.

Loufan is famous for its potatoes and rice. Leveraging satellite and remote sensing multispectral imaging technology by drones, JD will help Loufan build a digital map that is able to analyze the growth of key crops and forecast crop yield. The technology can also be applied to build an alert system for floods and insect infestation.

JD will help Loufan build a digital map that is able to analyze the growth of key crops and forecast crop yield
Loufan county, Taiyuan city, Shanxi province

JD Logistics’ digital agriculture management platform will collect real-time farming data, encrypt it with blockchain technology and integrate the information into a QR code on product packages. Blockchain-enabled traceability will give consumers peace of mind as they have full visibility into production information and can trace the origin of the product.

In addition to helping Loufan digitize the agricultural production process, JD is determined to help local products sell across the nation. JD will open its logistics and supply chain technology and operations experience and empower local supply chain development through building JD’s Loufan logistics center and cloud warehouse solution. The company will help train and cultivate over 3,000 logistics and supply chain professionals in Loufan.

JD will also provide its e-commerce resources including marketing resources, social e-commerce tools, livestreaming platform and livestreamers to help local producers build their own brand image, and thus attract more favorable prices.

As a trend for the agricultural industry, digitization will help farmers make more informed decisions and improve productivity. Since 2018, JD Logistics began its JD Farm project which empowers traditional farms with intelligent tools. So far, the company has cooperated on nearly 30 farm projects nationwide. Forty percent of JD Farm’s employees have an agricultural education background.

 

(yuchuan.wang@jd.com)

JD and China Telecom Launch Joint Membership Card

by Rachel Liu

On August 18th, JD and China Telecom jointly launched the “JD PLUS x China Telecom Membership Card”. Customers who buy the membership card can enjoy benefits of both JD PLUS (JD’s premium membership program) and China Telecom, and potentially other platforms. This marks the first cross-membership project in China between an e-commerce company and a mobile network operator.

Customers can buy the cross-membership card for RMB 198 yuan/year to enjoy the China Telecom PLUS membership (worth of RMB 199 yuan/year) and JD PLUS membership (worth of 198 yuan/year). The first 80,000 customers can enjoy a discounted price of RMB 148 yuan. JD PLUS members can enjoy 12 benefits each year including shopping coupons worth RMB 1,200 yuan, coupons for delivery worth RMB 360 yuan, and more. China Telecom PLUS members can enjoy RMB 15 yuan of coupons each month, which can be used towards mobile phone top up or shopping on JD. If customers do not want to receive the China Telecom coupons, they can also enjoy the iQIY (popular video website in China) VIP or Tencent Video membership for one year instead.

In addition to the cross-membership with China Telecom, JD has been building innovative projects with mobile network operators. During the 2019 Singles Day (November 11th ) Shopping Festival, JD and China Telecom jointly launched the first online 5G data package. JD and China Mobile also signed a 2019 5G service partnership to jointly provide 5G data packages, 5G experience service, trade-in services for 5G phones and 30-day trial services. Following the partnership with China Telecom, JD is also discussing membership projects with China Mobile and China Unicom, the other two main mobile operators in China.

On August 5th, JD launched an updated service package for mobile phone buyers, which includes five services: 30-day return, one-hour delivery, free-trial for 7 days, trade-in and “30365” service. One week after the launch, orders of mobile trade-in services on JD increased over 50% compared with the week before launching.

 

(liuchang61@jd.com)

JD Earnings: Is the “JAT” Era Coming?

by Vivian Yang

According to JD’s second quarter earnings report released on August 17th, the company delivered a solid financial and operating results: net revenue grew by 33.8% to USD 28.5 billion, the highest growth rate for the past 10 quarters.JD’s second quarter earnings report released on August 17th, the company delivered a solid financial and operating results

The second quarter’s revenue performance is primarily led by the successful 618 Grand Promotion, the largest nationwide mid-year shopping festival initiated by JD.com 17 years ago. In the quarter, the general merchandise category registered a record high growth rate of 45%, as people continue to shop with JD online after the coronavirus period, with growing dependence on its supermarket and healthcare products.

Continued revenue growth in recent years demonstrates the unique advantage of JD’s business model based on supply chain ability and the economies of scale realized after years of investment.

By virtue of such significant revenue growth, JD is making steadily climbing up the Fortune Global 500 list. The company is ranked 102nd on the list of 2020, up by 37 places compared with last year, marking its fifth consecutive year on the list as the largest “retail and internet service” company in China, ahead of the two Chinese tech titans Alibaba and Tencent.

JD is making steadily climbing up the Fortune Global 500 list. The company is ranked 102nd on the list of 2020

This has inspired Fortune magazine to coin a term, “JAT”, referring to the three most prominent Chinese technology companies, JD.com, Alibaba and Tencent, who keep on transforming and growing against all odds and uncertainty arising in the past year.

Revenue is the key measurement for the Fortune Global 500. This is believed to be a stable measurement method to reflect the overall performance of a company over a longer period of time. In addition, an overview of worldwide companies by revenue can help people get a glimpse on the rise of falls in different industries.

 

(vivian.yang@jd.com)

JD Earnings: Revenue Champion Category is FMCG and Fresh Produce

by Ella Kidron

JD’s position as not only the largest supermarket, but as Chinese consumers’ grocery store of choice was made clear in the second quarter 2020 earnings results, reported on August 17th.

On the earnings call, CFO Sandy Xu explained that the supermarket category, including FMCG and fresh produce, became the single largest product category by revenue in the first half of 2020, surpassing mobile phones, home appliances, and computers – JD’s former “champion categories” (which also performed well).

Xu said, “This steady shift demonstrates our strengthened brand recognition and consumer perception as an ‘everything-store’ with increasingly broader selections.” She explained that consumer demand for fresh produce continued to be robust in Q2, leading to an over 140% growth in the number of sales orders YOY, and strong topline growth following the jump in the first quarter. She added, “We are delighted to see that our supermarket category continued to realize scale benefits, improved operating efficiency with our in-house fulfillment capacity and collaborated effectively with third party partners under our omnichannel strategy.”

Behind the strong results is both customers’ and brand partners’ recognition of and trust in JD as a reliable provider of essentials. Brands’ dependence on strong partnership with JD, especially under the extraordinary circumstances of COVID-19 is a key trend of the second quarter results. A Nielsen report from the 618 Grand Promotion found that JD’s growth rate in the consumer goods sub-categories represented by food, clearly exceeded that of the market, demonstrating consumers’ trust in the platform.

Furthermore, JD’s own big data found that as of June 30, 2020, over 10,000 brands have achieved YOY turnover growth of over 100%, 7000 brands saw over 200% YOY turnover growth, and 5,000 brands saw 300% growth YOY. Two hundred brands saw transaction volume exceed RMB 100 million yuan, while over 20 brands realized transaction volume of over RMB 10 billion yuan. Famous Chinese cooking oil and rice brand Jinlongyu debuted 15 products on JD Super in the first half of 2020, among which the best performing product realized over RMB 500,000 in sales, achieving a month on month increase of 100%.

Another brand in the same category, Fulinmen leveraged JD’s massive user base and big data insights to create hot-selling C2M (Consumer-to-Manufacturer) products. Two customized cooking oil products saw sales increase over 5000% compared with the previous period. JD’s C2M initiative helps brands better understand and tailor their products to consumers. C2M projects can vary in complexity from adjusting size or packaging, to creating full-fledged new flavors or styles of a product, all with the goal of providing consumers the products they actually want and need.

There are several underlying reasons for the rapid growth of JD’s FMCG Omnichannel business, a combination of JD’s long-term approach to consistency and quality as well as its creativity in innovative business models. For starters, its forward-looking plan and business layout. Over the years, the platform has consistently provided high quality products and services, giving it a good word of mouth reputation among consumers. In addition, particularly during the height of COVID-19, JD Super relied on the technology, supply chain and logistics advantages of the JD.com ecosystem to work hand in hand with FMCG brands to ensure adequate supply and stable prices of daily necessities, and the overall impact of the pandemic on business. In the first half of 2020, JD sold a daily average of 1.47 million liters of cooking oil, and roughly 3 million kilograms of rice and flour. During the 618 Grand Promotion, three core categories under JD Super, namely dry food, baby and maternal, and alcohol all saw turnover exceed RMB 100 million yuan.

JD Super also leveraged a network of over one million offline stores and over 17 million available products to support work resumption and consumption recovery. The “One Hour Life Circle” concept, which brings daily necessities and other consumer goods to consumers’ fingertips, minimizing touchpoints between order and delivery, is one example of how JD Super has used its supply chain capability to add significant convenience to consumers’ lives when it was needed most.

During the earnings call, JD Retail CEO Lei Xu said: “Profitability improvement in the FMCG Omnichannel business, especially in FMCG and fresh, was very obvious this year. JD Super (JD’s online supermarket) is already the largest supermarket in China, online or offline.”

 

(ella@jd.com)

 

JDD Leaders Series: Yu Zheng: Dancing in the Sea of Data to Build Intelligent Cities

by Rachel Liu

The story begins on the roads of Beijing. When Yu Zheng, now president of Intelligent Cities at JD Technology, first came to work in Beijing 14 years ago, he found that the traffic congestion was terrible. Instead of complaining, he thought about whether he could find a solution to the problem using his knowledge of AI and big data.

Zheng observed that the taxi drivers in Beijing had vast knowledge of real time traffic situations. The taxis were also equipped with GPS systems, which also relayed traffic information in real-time. Combining the on-road knowledge and experience of taxi drivers and the technological insights from GPS data, Zheng developed an algorithm to calculate and recommend the most efficient routes for drivers. Zheng’s algorithm reduced the average driving time by 20% per trip. Zheng’s research led to the launch of his first urban computing project, “T-Drive,” a smart driving navigation service that notifies drivers of the fastest routes to a destination at a given departure time.

The traffic congestion project was a great success, but Zheng was determined to dive deeper into the issue. He wanted to know the true reason behind the city’s traffic problems and figure out a comprehensive solution. Traffic congestion occurs when the road capacity cannot support the number of vehicles. Using data from the GPS routes gathered from Beijing’s taxis, Zheng was able to determine which areas were the most congested. After identifying the most problematic areas, Zheng suggested a number of solutions, such as expanding public transportation infrastructure and building public facilities such as hospitals and schools, so people don’t need to commute as much.

Yu Zheng, now president of Intelligent Cities at JD Technology,

Since then, Zheng has been spending all his time and energy on urban computing. His dream is to use big data and AI technology to tackle urban challenges and build better urban environments. After receiving his Ph.D. in communication and information systems, Zheng joined Microsoft Research Asia in Beijing and led its urban computing research unit. During his 12 years with Microsoft, he laid the foundation for urban computing and authored nearly 100 referred publications in prestigious journals worldwide. He received three technical transfer awards from Microsoft and 24 granted/filed patents. Much of his research was applied to Microsoft products. In 2014, he was named one of the Top 40 Business Elites under 40 in China by Fortune, for his leadership in illustrating the economic impact of urban computing.

Currently, Zheng leads the Intelligent Cities business at JD Technology, and he serves as the Director of JD Intelligent Cities Research concurrently. His work focuses on further deployment of urban computing technologies in Chinese cities on this new platform, and he continues to develop innovations to benefit society. Zheng has released multiple projects such as the Intelligent City Operating System and utilized them in projects covering different industries such as energy, daily life services, agriculture, and others. Zheng is inspired by the path he chose because he is helping to make the world a better place for people to live, a goal many dream to achieve.

 

14 Years of Experience in Urban Computing 

The future intelligent city that Zheng defines has four key characteristics:

1) All objects are connected through IoT technology

2) Data are connected for comprehensive analysis

3) Big data and AI support traditional industries, such as transportation and finance

4) Environmental and industry ecosystems are jointly promoting economic development

To achieve this, Zheng started from various angles. When he began to focus on urban computing in 2006, it was in its preliminary stage industry-wise. There was no big data or AI technology at that time, and he worked with his colleagues to build this area from scratch. In addition to the T-Drive project that tackles traffic problems, Zheng also launched the Urban Air project in 2012 to predict the air quality throughout a city. He believes technology is valuable only when it’s deployed to benefit society. At that time, air pollution in China, especially Beijing, was very severe, so air quality monitoring was becoming increasingly important. However, the monitoring was often not accurate, as the air quality in different locations is always changing over time, and it’s hard to know the air quality in a place without a monitoring station, not to mention to predict the air quality in future days.

Zheng spent two years leading his team to develop the air quality forecast and analytical system based on big data and AI, and successfully applied the system to over 300 cities in China. The system increased the accuracy of prediction by 20% compared to traditional measuring tools. After years of research, he became well known for his expertise on the environment protection and was invited to teach graduate student courses at the School of Environment at Tsinghua University.

Joining JD Technology enabled Zheng to utilize his research on another big platform. He doesn’t treat his role at JD Technology just a job, but his career. He wants to make China a leader in building intelligent cities. When he joined JD Technology in 2018, his team consisted of approximately 20 people. Today, he has built a team of more than 1000 professionals, working on innovative projects which have already been used to help cities and industries develop.

Joining JD Technology enabled Zheng to utilize his research on another big platform.

 

Way of Building Intelligent Cities

The first product that Zheng completed after joining JD Technology was the Intelligent City Operating System, which is an open, componentized, standardized big data and AI-enabled platform to collect, store, manage, and analyze the data of the cities.

Zheng found different industries involved in urban construction have significant differences. For example, transportation and air quality are two completely different subjects. Instead of building different solutions for each industry, it’s more effective to build something that can be utilized by more than one stakeholder.

Zheng decided to build an operating system first, then develop applications on top of it. The operating system is a standardized, duplicable product that can be used in different cities. It can also be opened to other companies to develop various applications for different industries, which is more effective. The Intelligent City Operating System is like Microsoft Windows – basic and fundamental – and the applications are the suite of Office products.

Zheng’s positioning of JD Technology’s Intelligent City Operating System is also unique from other players in the industry – it’s not a simple system integration or cloud service, but a “digital foundation” for intelligent cities. Instead of being the brains of the cities to make decisions, it’s more like an engine(heart) that fuels (pumps blood to) cities’ operations (each part of your body). With the building of the foundation, applications for different industries such as logistics, education, transportation can be developed on the base.

The JUST (JD Urban Spatio-Temporal) data engine that Zheng’s team developed plays an important role in the Intelligent City Operating System, as it can effectively manage and analyze the massive spatio-temporal data generated in the city, such as data relating to traffic, emergency and epidemic management, and speed up the query processing speed by over 10 times.

The Intelligent City Operating System was first recognized by Xiong‘an New Area, a state-level new area in Hebei province. As the physical new city is under construction, Xiong’an is also aiming to be a model for the future intelligent city. Zheng led his team spending two years building the “block data platform” for Xiong’an, to serve as the digital foundation of the city, integrating data from all business areas in order to make future data sharing more efficient.

“We hope all the applications can grow on the block data platform, and don’t want our data to become ‘information islands’. JD Technology ’s Intelligent City Operating System can perfectly meet our demands.” said Zheng Wang, general manager of China Xiong’an Group Digital City Technology Co.

If the Xiong’an project is still building “Windows” in the city, Zheng stepped further and found out what the “Office” can be in Nantong, Jiangsu province, a city close to Shanghai. The Urban Governance Modernization System was built on top of the Intelligent City Operating System to help government officials analyze and make decisions that affect the economy, the environment, public service and more. Integrating the data of each department can make collaborations across different departments more efficient improving the way city governments serve its residents.

One Core and Two Wings

One Core and Two Wings

Yi Ling, Deputy to the National People’s Congress and government official of Nantong, said that they hope to make Nantong an example of urban governance modernization. Nantong’s Urban Governance Modernization Center is the first pilot model in China, with more to follow as part of the first batch. The system has proven to be highly effective – from last June to this February. It has sent 1,817 alarms relating to transportation of dangerous chemical products, including 848 companies with abnormal licenses, 410 abnormal tracks for vehicles and 261 incidents of fatigued driving.

The next step, Zheng believes, should be constructing the two “wings” of the Urban Governance Modernization System: the digitalization of industry development and daily life services. The Nantong project will continue to be improved, and he also plans to duplicate the model to other urban areas, such as the Yizhuang Business Development Area in Beijing, where JD is headquartered, and other cities in Jiangsu province including Suqian and Suzhou.

Besides the projects for an entire city, Zheng’s team has built a “digital commercial street” for Wangfujing, one of the oldest and busiest commercial areas in Beijing, as well as the intelligent parking system at the new Daxing International Airport in Beijing. In 2019, JD Technology launched the first product that uses AI to optimize thermal power plants’ management systems to improve boilers’ efficiency and reduce coal costs and pollution. After applying this technology, a medium-sized thermal power unit with 600,000 kw can reduce coal consumption by 3,600 tons and carbon dioxide emissions by nearly 90,000 tons per year. The product has been put into use in China Energy Investment Cooperation in Nanning, Guangxi Zhuang Autonomous Region and Langfang, Hebei province.

Digital commercial street of Wangfujing

Digital commercial street of Wangfujing

Continue to drive the industry development

While applying technologies into practical issues, Zheng and his team also strive to push forward the academic research in urban computing. Since 2020, Zheng has had nearly 20 papers published in top journals and conferences, including three papers relating to traffic flow forecasting, robust spatio-temporal purchase prediction and learning to generate maps from trajectories published on AAAI (the Association for the Advance of Artificial Intelligence), and two papers published on KDD (Knowledge Discovery and Data Mining) about neural architecture search and inference of couriers’ delivery time based on their trajectories.

To improve the ecosystem of the intelligent city industry, JD Technology also initiated the IEEE P2850 “Intelligent City Operations Standards” with IEEE, which have been incorporated by leading enterprises in the industry such as Google and Microsoft, as well as universities including University of Melbourne, Peking University and Tsinghua University. These are the first standards in the industry on intelligent cities’ data fundamentals. Based on JD’s past experience and exploration on spatio-temporal big data and AI algorithms, it will become the standard digital base in the construction of intelligent cities. All parties involved in the building of intelligent cities can share and use data based on the standard safely.

Zheng prides himself on being a leading scientist in his field but also someone who is able to communicate his vision with his team, officials of cities, and business leaders. Zheng’s ability to simplify complicated technology has allowed his team to carry out his mission in both fronts of technology and business. When asked about how to balance being a businessman and a scientist, he thinks the two identities do not conflict with each other, as he uses them both to make positive impacts.

He’s also an artist on the side. He was the principal dancer of the student art troupe in his college years and had many admirers. His wide range of passions has led him to a life of exploration, helping him build intelligent cities in an effort to make the world a safer, healthier, and happier place.

 

(liuchang61@jd.com)

 

 

 

 

JD.com and Wanda Hotels and Resorts Form Crossover Partnership

by Ling Cao

On August 18th, J.Zao, JD.com’s in-house consumer goods and lifestyle brand, and Wanda Moments, a mid-level hotel brand under Wanda Hotels and Resorts, jointly launched a cooperated hotel in Ningbo, Zhejiang province. The hotel project represents deeper and more creative cooperation following the joint membership agreement JD PLUS, JD’s premium membership program and Wanda formed last year.

Xiaosong Wang, senior vice president at JD.com said, “In addition to online channels, JD wants to explore more opportunities and scenarios to serve not only JD’s existing customers, but also potential customers. The partnership with Wanda Moments is a great trial.”

The brand new hotel combines J.Zao’s capabilities in product development, supply chain, as well as Wanda’s capabilities in scenarios and experience building, in order to provide customers with comfortable, convenient and personalized experience. The hotel can also serve as a place for rest, shopping eating, reading, socializing and shared work.

The lobby of the hotel is a “boundaryless” space, in which J.Zao’s products covering home furnishing, daily necessities, home appliances and digital products are displayed. It can also work as exhibition and event location.

J.Zao, JD.com’s in-house consumer goods and lifestyle brand, and Wanda Moments

JD and Wanda have designed 40 J.Zao themed hotel rooms, in which everything from toiletries and wireless chargers to home appliances are all from J.Zao. JD has also upgraded the room with smart devices. Smart home service in the room powered is by JD Whale, JD’s IoT platform. Customers can easily control devices and services in the room. Both parties have also designed a joint product, the WanVita crossover coffee cup.

JD has also upgraded the room with smart devices.

Apart from the cooperation in hotel design and concept, both parties have strengthened membership benefits by setting up special channel on JD’s J.Zao store, in which Wanda Club’s Gold card members can redeem membership points for products. In addition, customers who try a product at the hotel can buy it online at the J.Zao store, and have JD Logistics deliver to their doorsteps.

Leveraging its supply chain capability and big data driven customer profile, JD has helped promote digitization in the offline retail, hotel and other industries.

 

(ling.cao@jd.com)

JD Earnings: Online Medical Consultation Volume Sees 400% YOY Growth

by Ella Kidron

On August 17th, JD.com reported second quarter 2020 earnings. Among the financial highlights, general merchandise grew by 45% year on year, led by categories such as supermarket and healthcare. In particular, JD Health, which saw strong topline growth in online pharmacy sales, also realized 400% YOY growth in online medical consultation service volume as more people became aware of and accustomed to the new service.

On the call to discuss the results, JD Retail CEO Lei Xu said, “JD Health is the largest pharmaceutical retailer in the healthcare industry in China, and more than that, it’s the front runner and a first mover in the Internet-led healthcare area. The company’s positioning is as a healthcare management system that is built on our advantages in supply chain and focused on providing technology driven medical services for all stages of the customer lifecycle.”

Xu explained, “The JD Health consumer structure is similar to our e-commerce platforms. However, in terms of the online medical consultation serves, we have seen that people from the higher tier cities – first and second tier cities, and young people have a much higher level of acceptance.” Xu also mentioned JD’s partnership with Tianjin Nankai Hospital launched earlier in the year, focused on building the “Nankai-JD Internet Hospital”, a new medical service model integrating online and offline medical resources.

On August 18th, the day after the earnings call, JD Health announced a new JD Family Doctor initiative. Through the program, up to eight family members can share a package of extremely high quality medical services, bringing the best medical resources to consumers at accessible prices. JD Family Doctor is meant to supplement China’s existing public medical resources, and is part of JD’s commitment to use its resources and technology strength to improve people’s lives. One of the biggest benefits is that it can be used for individuals to manage their own health, as well as to have visibility into and be able to support health management for family members such as parents, from afar.

In a press conference to announce the initiative, JD Health CEO Lijun Xin explained that it is based on five pillars – trust, professionalism, good value, heart-warming and usefulness. When seeking medical resources, trust is a pivotal factor in people’s decision process, and can even trump professionalism. JD’s online medical consultation program has received recognition from tons of consumers on the platform.

Launched towards the end of 2019, with the outbreak of COVID-19, JD began offering a segment of the services on the platform for free. Over the course of the year, consumers have become not only more willing to try, but also more reliant on online consultation services, especially when it is not convenient to get to the hospital. Xin said that the number of medical consultations JD receives through the platform is equivalent to the consultation volume of 10 3A (the highest level) hospitals in China combined.

Also a highlight of the earnings report are JD’s two new specialized virtual treatment centers within the JD Health app covering Traditional Chinese Medicine and Otorhinolaryngology (more commonly known as Ear, Nose and Throat, or ENT). In addition to these two centers, the other specialized virtual medical treatment centers within the JD Health app cover areas including heart disease, mental health, diabetes, kidney disease, pediatrics, oncology and maternity, among others.

 

(ella@jd.com)

Sizzling Adult Products Consumption under COVID-19. JD Data Doesn’t Lie

by Ella Kidron

When it comes to adult products, COVID-19 may have impacted purchase choices, but certainly hasn’t caused consumer interest to wane.

A report released just ahead of Chinese Valentine’s Day (Qixi七夕, July 7th on the lunar calendar, falls on July 25th this year) by the JD Big Data Institute finds that while the pandemic drove a huge increase in demand for contraceptives, it also seems to have stimulated long-distance partners’ desire to make purchases for their counterparts from afar.

Above all, the report underscores that JD’s strong supply chain capabilities, wide range of high quality choices, fast logistics and protection of privacy have taken away some of the traditional embarrassment some consumers of the adult products categories face, and made it more convenient for people to satisfy their needs in this area. Furthermore, JD’s constant delivery, ensured a strong market for adult products brands, even under the pandemic.

JD data shows that from January to June, demand for family planning products increased over 30% YOY, and was roughly equivalent to every person who has bought related products on JD buying 44 condoms and two boxes of emergency contraceptives each. In February, growth of condoms alone increased nearly 50% YOY. Impacted by the pandemic, adult products growth in Hubei province, the epicenter of the pandemic, fell sharply in February this year compared with that of last year, after which it gradually approached the national average and then slowed a tad in June.

As can be seen from the dramatic changes in related search keywords, likely affected by the external environment under COVID-19, the growth of adult toys in 2020 is lower than that of contraceptives and functional medicines. The aircraft cup  / masturbation cup (飞机杯) and vibrator (震动棒) ranked as the top men’s and women’s adult products respectively, followed by simulation dolls (仿真娃娃) and egg vibrators (跳蛋). Lingerie, other adult toys and simulation dolls ranked top three in terms of traffic. Looking deeper into men’s products, it so happens that the largest “doll” merchants are from Wuhan, explaining some of the impact on inflatable / simulation dolls this year.

With the gradual improvement of the COVID-19 situation in the second quarter, JD’s big data analysis found that “remote” orders for condoms and contraceptives demonstrated a significant upward trend since April, with the number of emergency contraceptives purchased reaching 150% in May, compared with the same period last year, perhaps suggesting the reuniting of long-distance lovers following lockdowns and road closures. Overall, emergency contraceptives have increased 53% YOY.

One thing worth noting is that tropical Hainan province, dubbed “China’s Hawaii” saw the fastest year-on-year turnover of adult products on JD in June, increasing 111% YOY and 208% month-on-month. According to Trip.com’s “Interprovincial Travel Recovery Half Month Report”, Hainan’s Sanya firmly topped the list of the most popular destination cities in June, with the number of tourists growing by 210% month-on-month.

Among consumers who have purchased contraceptives on JD, the most frequent feedback is along the lines of, “JD delivers quickly”; “The quality of the imported goods is the same as what you can get at the hospital”; and “Prices are cheaper than the drugstore.”

In 2020, the purchase of masturbation products for the opposite sex by women consumers has increased by about 30%.  Intercity orders increased by about 120%, perhaps suggesting an attempt to ensure their partners’ needs are taken care of even when they are not together. There is a significant increase in purchases by women with higher education backgrounds.

The top 10 brands on JD in terms of turnover in 2020 are: Durex, Okamoto, Wanaike, Jinge, Bililing, Jissbon, Cialis, Mizz zee, Duzihate and Skvakom. From a category perspective turnover is highest in contraceptives, followed by functional medicine and then the sexual interest / adult toys category.

According to an iResearch report, in 2020 the adult toys market will exceed RMB 130 billion yuan in size, and Internet retailing in the space will exceed RMB 60 billion yuan thanks to the privacy and convenience advantages it offers.

 

(ella@jd.com)