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)

French Jewelry Brand Philippe Ferrandis Launches on JD

by Rachel Liu

On July 10th, French Jewelry Brand Philippe Ferrandis debuted on JD, bringing elegant French fashion to JD through its CAMELLIA SERIES, CLASSIC CAMELLIA SERIES, MONA LISA SERIES, CLOVER SERIES, STAR SERIES and more.

Philippe Ferrandis was founded in Paris in 1986, and its founder Mr. Philippe Ferrandis used to be the jewelry designer for brands including Chanel. In 2011, Philippe Ferrandis was named a “Living Heritage Company” by the French Ministry of Economy, alongside Van Cleef & Arpels, Bvlgari, and Cartier.

Philippe Ferrandis debuted on JD, bringing elegant French fashion to JD

Philippe Ferrandis and Gas Bijoux, which joined JD on July 3rd, are both from luxury brand management group AZLOOK. “We are glad to introduce Philippe Ferrandis to JD. We believe more Chinese customers will know about the brand and enjoy the glamour of French jewelry, “ said an AZLOOK spokesperson. Following the strategic partnership between JD and AZLOOK, the two sides will introduce more classic jewelry brands from around the world.

 

(liuchang61@jd.com)

JD MRO Valued at More than US$2 Billion

by Yuchuan Wang

By the end of the first half of 2020, JD Business, JD.com’s enterprise procurement business, has served over 8 million enterprise clients, covering 91% of global Fortune 500 companies. According to the China Enterprise Digital Procurement Development Report 2019, JD Business ranks first among procurement platforms with a market share of 52.3%.

In the meantime, JD MRO, the subsidiary procurement platform for maintenance, repair and operations products, raised US$230 million in Series A round of financing and became the most valued MRO platform with the highest post-money valuation of more than US$2 billion.

So far, JD Business has supplied anti-epidemic materials to 1.3 million clients including those from the medical and railway industries. It also developed a lite SaaS (software-as-a-service) digital procurement platform, available to enterprises nationwide for free.

In addition, JD Business also helps its upstream suppliers to explore the domestic enterprise procurement market. It has helped over 100 brands, including Apple, Lenovo and Midea, sell RMB 100 million yuan of products in the first half of 2020.

“As the largest intelligent enterprise procurement platform in China, JD Business will continue to apply technology innovations throughout the industry. We will provide more valuable services to our clients and lead healthy development of the market,” said Chunzheng Song, President of JD Business.

 

(yuchuan.wang@jd.com)

How JD and Lego Build More Happiness for Chinese Families

by Vivian Yang

A newly finished market survey done by JD Retail shows that during the first hour of June 18th during JD’s Grand Promotion event, transaction volume of Lego products on JD Super, JD’s online supermarket, was five-fold the same period last year, which once again demonstrated the magic blocks’ popularity.

China has a vast toy market with customers of a wide range of ages. To better reach its customers, Lego started to eye the online market in 2015, establishing a strategic cooperation with JD Super, followed by JD’s first-party Lego store and Lego’s flagship store on JD.com in 2017.

The survey also shows that through JD Super’s big data and omnichanel solutions, Lego is able to further acquire consumer insights, improve daily operation and increase market penetration, bringing more popular products and happy experiences to Chinese families. During JD Super’s Christmas sales season in 2019, JD and Lego jointly created an online Christmas party that achieved RMB 22 million yuan in sales on Christmas Day.

To better cater to the taste of grown-ups, based on rich consumer feedback and analysis, Lego enhanced its IP products offering for Chinese consumers, releasing joint products with Star Wars and The Avengers.

JD’s first-party Lego store and Lego’s flagship store on JD.com in 2017.

Each year, Lego releases at least 10 new products on JD Super. This May, Lego chose JD Super as the initial platform to launch its LEGO Dots, a strategic new brand line. The launch has also been noticed and discussed enthusiastically on Chinese social media.

Lego chose JD Super as the initial platform to launch its LEGO Dots, a strategic new brand line.

With the shared goals to better serve local customers and provide a superior shopping experience, JD Super and Lego will continue to deepen cooperation in areas such as marketing, omnichannel development, user growth, and lower-tier market penetration.

 

(vivian.yang@jd.com)

O&O Consulting: Digitization is the New Engine for Industrial Growth

by Ling Cao

As China’s largest retailer, JD has helped companies to connect to domestic channels via creative sales and marketing models. During 618, over 10,000 foreign trade companies have joined the campaign. Sales volumes doubled and the campaign also helped release a massive amount of inventory.

O&O Consulting recently published the “2020 618 Online Retail Market Research Report”. It shared that, due to the epidemic, many factories and industries which rely on foreign trade business have suffered, and digitization is needed urgently, and will be the new engine for industrial economic growth, and JD Super’s digital innovative marketing is one of the tools in this effort.

Zheng’an, a county located in a mountainous area of Guizhou province, is dominating the guitar industry globally. Its guitars have been exported to over 30 countries and regions, including the U.S. and Brazil. More than 6 million guitars were sold in 2019, generating sales of nearly RMB 6 billion yuan. COVID-19, however, has disrupted normal operations and led to order delays, as well as shrank over 60% of domestic market share.

On June 18, JD Super cooperated with county head of Zheng’an to do livestreaming, and invited singers and guitar players and bands to join the initiative. The initiative generated RMB 590,000 yuan in sales.

 

(ling.cao@jd.com)

O&O Consulting: Omnichannel Further Integrated during 618

by Yuchuan Wang

The “2020 618 Online Retail Market Research Report” published by O&O Consulting, a Beijing based firm, shows that during this year’s 618 promotion, omnichannel integration and e-commerce livestreaming provided more convenient services and more diversified choices to Chinese consumers.

COVID-19 has accelerated the progress of omnichannel integration. As a leader in the area, during this 618, JD.com has collaborated with numerous offline establishments such as department stores, supermarkets and convenience stores to offer a round-the-clock seamless shopping experience, including price and coupons synchronization between online and offline. In addition, transaction volume of JD’s omnichannel supply chain innovation project increased 30 times from June 1- 18 compared with the same period in April.

According to the report, livestreaming also plays an important role in omnichannel development. During this 618, JD launched over 300,000 livestreams to stimulate consumption, benefitting both consumers and brands.

JD Live invited more than 100 civil servants, such as mayors and county heads as livestreaming anchors to promote local agricultural products, attracting more than 120 million visitors. JD also invited top executives from brands. The livestreaming with Unilever executives led the brand’s transaction volume to increase over 60% year-on-year during 618.

 

(yuchuan.wang@jd.com)

JD Health Will Host the Nationwide Inaugural “JD-PharmExpo”

by Vivian Yang

JD Health will host the inaugural online “JD-PharmExpo” from August 3rd to 5th, under the theme of “Open, Shared and Accessible”. The expo aims to accelerate the integration of the pharmaceutical industry, and so far has received enthusiastic responses and support from the industry.

The event will be organized through a matrix of platforms including an app, mini-apps, and a website to create an online exhibition center for participants to interact through livestreaming, AR/VR exhibition rooms, and online conference rooms. Other interactive formats, such as online new product release conferences and product ordering conferences will also be available to facilitate communications between exhibitors and buyers.

JD Health’s B2B platform known as JD Medicine Procurement(药京采) has grown into a comprehensive online pharmaceuticals trading platform that covers the nationwide pharmaceutical industry with over 170,000 pharmaceutical retailers, demonstrating JD Health’s distribution channel and supply chain strength.

The online expo is expected to receive over 5 million visits. Over 500 enterprises will participate as exhibitors, over 200,000 professional visiting members will register, and over 200 livestreaming sessions will be held. JD Pharmaceutical Procurement will provide branding, supply chain, business scenarios and data services to all the users on its platform.

During the expo, JD Health will invite senior experts from the WHO and the State Council’s medical reform group, as well as professionals from top global pharmaceutical enterprises to contribute to topics concerning the development of China’s pharmaceutical industry, digital transformation, and industrial innovation, among others.

Partners through the pharmaceutical industry, including international pharmaceutical companies, pharmaceutical distributors, and insurance companies, will also carry out a number of contract-signing activities. With the collective effort of all partners, the online fair will be truly representative of the “Internet+Health” ecosystem.

Zhou Xinyuan, head of JD Pharmaceutical Procurement and general manager of Channel Innovation of JD Health noted that “the inaugural ‘JD-PharmExpo’ is committed to effectively integrating the pharmaceutical industry, helping it become more professional, digitalized and intelligent, and creating a more convenient, efficient and smart industrial chain. We hope the event will become a strong driving force for the circulation reform of the pharmaceutical industry.”

 

(vivian.yang@jd.com)