iResearch: JD Is the First Choice of Fresh and Medical Products for Chinese Customers

by Yuchuan Wang

On July 14th, iResearch, China’s leading consulting company, released the 2020 China Post-Epidemic Insight Report on Retail Consumption. The report analyzed the long-term impacts of COVID-19 on the consumption market: consumers will have higher trust of retail model platforms; there is a transformation from smaller basket size but high frequency to bigger basket size but medium frequency for online consumption; and consumer behavior is influencing the online retail landscape.

The report shows that over 23% users changed their preference of channels buying daily goods, medical care and fresh products. Overall, users tend to favor JD and PDD more. The preference for Tmall has remained the same while Taobao has declined. JD has become Chinese consumers’ first choice for fresh and medical care products.

JD has become Chinese consumers’ first choice for fresh and medical care products.

iResearch also finds that users have significantly raised their frequency in using e-commerce platforms after the epidemic outbreak. Among all platforms, the growth rate of high-frequency users on JD is the fastest. The number of users who use JD three or more times a week on average increased 3.0%, with a growth rate of 16.7%. The number of people who use JD twice and once a week increased 2.3% and 1.7% respectively.

The number of people who use JD twice and once a week increased 2.3% and 1.7% respectively.

According to iResearch, from the epidemic outbreak to the 618 promotion, the growth rate of the number of unique devices and users’ effective spending of time on e-commerce has gone from slow to fast, reflecting 618’s role in driving post-epidemic consumption. Among major platforms, the growth rates of JD in both areas are higher than the industry average.

Among major platforms, the growth rates of JD in both areas are higher than the industry average.

In addition, 38% of users indicated they would choose JD as the priority platform for the 618 promotion. Consumers care most about discounts and delivery service for big promotions like 618.

In addition, 38% of users indicated they would choose JD as the priority platform for the 618 promotion.

The report also shows that daily goods, consumer electronics and home appliances, home products are most important to consumers during 618. In these categories, more consumers choose JD as their shopping platform than other platforms.

In these categories, more consumers choose JD as their shopping platform than other platforms.

 

(yuchuan.wang@jd.com)

JD Initiates Program to Support New Brands, Starting from Beauty

by Rachel Liu

This April, JD initiated the new brand promotion program to support the development of new brands on JD, and first tested the program during this 618 Grand Promotion. Ten beauty brands joined the testing, including makeup brand colorkey, makeup tool brand AMORTALS, skincare brand FARMACY, and male skin care brand JACB, and saw rapid sales increases.

The program aims to provide solutions for new brands that  entered the market and e-commerce recently, while providing new and niche brands to customers. Brand who join the program can enjoy support on marketing resources and operation trainings to increase sales, promote repeat sales, and boost store followers and new customers.

Data shows that China is the second largest beauty market in the world, reaching approximately RMB 500 billion yuan in 2019. Since June 2019, the sales increase of beauty products in China surpassed 12%. In particular, skincare, makeup and male makeup all saw strong increases.

In the future, the program will integrate more brands from home furnishing, sports and apparel, hoping to support the development of more new brands on JD.

 

(liuchang61@jd.com)

Only Manu Atelier Store in China Opens on JD

by Ella Kidron

On July 13th, Manu Atelier’s official first party flagship store on JD.com opened. It is the brand’s first store in China, online or offline. The Turkish leather goods brand’s bags have been frequently spotted on the arm of Kate Middleton, Gigi Hadid, Sarah Jessica Parker and more.

Manu Atelier was founded in 2014 by sisters Merve and Beste Manastir. They inherited craftsmanship from their father, Adnan Manastir, one of Turkey’s oldest artisans, who is said to have created leather goods by hand at his atelier in Istanbul since he was eleven years old. The Manu Atelier brand combines high-end leather with pure handicraft to bring a chic and modern twist. A small arrow logo makes the brands products instantly recognizable.

The beloved Cylinder series, the Mini Cylinder series, the Jackie series, the Carmen Series and the Ruched Demi series of bags will all be made available on JD. As the brand is not just about bags, but also does phenomenal shoes, the lace-up duck boots series, Chae ankle boots series and duck pumps series will also be available to Chinese consumers.

Manu Atelier adds to the list of nearly 200 luxury brands to have joined JD.com this year. The brand’s products will be delivered via JD Luxury Express, providing consumers a chance to not just get their hands on the latest “it bag”, but also brings a ceremonial experience to the purchase.

 

(ella@jd.com)

JD Computer and Digital Store Builds “One-Hour Delivery Circle”

by Rachel Liu

Over 400 JD Computer and Digital stores around China are building a “One-hour Delivery Circle” for customers. When customers order digital products, they can make orders through JDDJ (JD Daojia, a local on-demand retail platform under Dada Group), and enjoy one-hour delivery service.

On July 13th, HP’s OMEN 6 gaming laptop was launched exclusively on JD, and a customer in Shanxi province was able to receive the laptop in 21 minutes after ordering, as the product was launched on JD and in a JD Computer and Digital store nearby his office. Hundreds of JD Computer and Digital stores in 110 cities joined in the launch.

With the establishment of the “One-Hour Delivery” Circle, JD hopes to fully integrate online and offline, bringing fast and convenient shopping experience to customers.

 

(liuchang61@jd.com)

AHKAH Launches First Online Store in China on JD

by Rachel Liu

On July 15th, Japanese fashion jewelry brand AHKAH launched a flagship store on JD, choosing JD as the first online platform to partner with in China.

AHKAH, founded in 1997, enjoys very high popularity in Japan. It’s thiran heart series has sold well both in and outside of Japan. In addition to this iconic series, JD’s buyers also selected products that meets Chinese customers’ preferences based on JD’s big data, including the fairy tale collection, fil rouge series, première étoile series, and more.

Japanese fashion jewelry brand AHKAH launched a flagship store on JD

The addition of AHKAH brings more fashion choices to JD’s female customers in different ages, and further expands JD Luxury’s jewelry brand group. “Online shopping is such a popular trend now. We hope to a bring better experience for our customers with the opening of our online store,” said Lei Tu, Board Director & President of Greater China at AHKAH: “JD is one of the most influential e-commerce platforms in China, and its commitment to authenticity has been recognized by Chinese consumers. We believe we can deliver both our products and our brands’ aesthetic to more Chinese consumers through working with JD.”

 

(liuchang61@jd.com)

Richard Liu makes JD an Employment “Stabilizer” with 260,000 Jobs and Annual Benefit of RMB 6B Yuan

by Vivian Yang

Richard Liu, founder and CEO of JD.com, has been keeping his promise to provide all JD employees with their full salary, social security insurance and housing fund benefits.  Operating a company with over 260,000 employees in the face of COVID-19, this promise is all the more remarkable. Though it means JD must put aside RMB 6 billion yuan a year, it provides a sense of security for the company’s hard-working employees and their families.

A news report on July 14th by CHINANEWS.com, a news website based in Beijing, mentioned that internet companies play an important role in absorbing new graduates in the job market, which in 2020 amount to 8.74 million in total. With its huge employee base, JD is cited as a “stabilizer” for society to ensure employment and economic growth during this time.

JD’s size and steady business growth enable it to offer more on employment opportunities even amid the pandemic. So far JD has received 130,000 resumes from its campus recruiting campaign for the fall of 2020. The number of offers given to new graduates has doubled since last year. Many new hires have already started their onboarding process. Among them, the number of technical positions such as algorithm and software engineers as well as overseas graduates are rising.  Additionally, JD Customer Service alone recruited 2,000 graduates in the first half of 2020.

To provide a superior shopping experience, there are over 10,000 people working for JD Customer Service, the largest customer service team in the internet industry. JD’s proprietary logistics service also offers various opportunities. On top of that, JD’s business growth in several of its businesses such as JD Retail, JD Digits, JD Health and JD MRO(management, repair, operation) are all in need of young talent.

In addition to recruiting from campuses to join its team, JD is also supporting college graduates to start their own e-commerce businesses through providing training and resources in financing, marketing, traffic and more.

The report made a comparison of China’s leading internet companies in terms of employee numbers. Currently, Alibaba has 100,000 employees, Tencent and ByteDance have 60,000 employees each, Baidu and Meituan have 30,000 employees each, and Pinduoduo and DiDi have 10,000 employees each. That adds up to 300,000 employees altogether for the seven companies, while JD has 260,000 alone.

The report made a comparison of China’s leading internet companies in terms of employee numbers.

 

(vivian.yang@jd.com)

Posted in ESG

Computer and Digital Products Sales on JD Surge 268% YOY after Gaokao

by Ling Cao

JD data shows that during July 9-11, the three days after the National College Entrance Exam (also known as “Gaokao”), sales of JD Computer and Digital products increased by 268% compared with the three days of the Gaokao (July 7-9).

During July 9-11, the top 5 categories in terms of sales are laptops, tablets, headsets, smart watches and gaming computers. Sales of computer brands Lenovo, HP, ASUS and MECHREVO all increased over 150%. High-end computers ranging from RMB 4,000 to 7,000 yuan are the most popular.

During the Gaokao, the JD Computer and Digital department setup offline Gaokao “love stations” outside hundreds of exam locations around China. The department has also cooperated with Intel, AMD and other manufactures to provide discounts and gifts for families of students taking the Gaokao.

 

(ling.cao@jd.com)

JD.com and Beijing Tourism Group Strengthen Cooperation on Digital Transformation

by Vivian Yang

On July 10th, JD.com and Beijing Tourism Group (BTG) reached a strategic agreement to deepen cooperation online and offline through strategic investment, business partnership and exploring new opportunities.

Both JD.com and BTG are well-known Beijing-based enterprises. JD will help BTG to build up its digital insights and data technology capabilities as well as private cloud to improve its management of customers, merchants, logistics, capital and information flow.

The two parties will also work together to explore opportunities in smart city and customer source integration.

According to JD.com, the outbreak of COVD-19 only made the two sides speed up the cooperation on digital transformation. Recently, JD hosted a livestream show for Quanjude Peking roast duck restaurant, a time-honored Chinese brand under BTG.

BTG has extensive business in the tourism industry covering dining, hotels, transportation, travel, shopping, entertainment, culture and airlines. At present, the group owns 132 business brands, which are collectively valued at over RMB 100 billion yuan in total, and operate over 7,000 offline stores across 400 cities in China, receiving 300 million customers on an annual basis.

With summer’s arrival and the end of the National College Entrance Exam (“Gaokao”), more Chinese families have begun to plan their domestic travels. JD Travel’s recent data shows that searches for air and train tickets in the first two weeks of July jumped, especially for popular tourist destinations like Sanya, Chengdu, Shanghai, etc. Travel ticket searches and bookings for resort hotels were up by 237% and 175% respectively compared with June.

Discussion around cooperation between the two sides began in 2019. Prior to that, JD.com and JD Digits concluded a strategic investment in a subsidiary of BTG named Huilian Technology LLC. It will act as the main body for the cooperation, promoting the digitization of consumer-facing services in the tourism group.

 

(vivian.yang@jd.com)