JD Report: Post-1995 Consumers Spend More on Entertainment than Post 1985

by Ling Cao and Yuchuan Wang

On May 4th, JD published its report on youth (defined as 16-35 years old) consumption. According to report, the youth generation are becoming the main purchasing power for families and are hard-working, while spend more on entertainment, especially for the post-1995 generation, who spent 21.1% on work and 26.69% on entertainment consumption, which is higher than the post-1985 generation, who spent 13.07% and 16.02% respectively. From January to April, the top categories for youth consumption are snacks, mobile phone accessories, grains, oils and seasoning, household paper products, and diapers and wipes.

Although the dogs and cats market has been impacted by COVID-19, other pet categories have performed well, including birds, turtles and insects. The growth of purchases in these categories by the youth generation is 10% higher than that of the platform average. As for flowers and plants, the sales growth from the post-1995 generation increased 35% y-o-y, and was higher than the post-1985 generation.

The youth generation is more willing to spend money on electronics and gaming products. Sales of gaming products from January to April increased 270% y-o-y. In addition, computers increased 35%, mobile phones increased nearly 30% and gaming equipment increased by 40%.

The post-1985 generation has the highest y-o-y growth rate for book consumption basket size, with female consumption at 27% higher than the platform average. The post-1985 generation are buying the most in the fitness products category, while the post-1995 generation have the highest growth rate in the category. Haircare products was the only category where post-1985 consumption was higher than post-1995.

2020 Youth Consumption report infograph

 

(ling.cao@jd.com; yuchuan.wang@jd.com)

Growth Rate of JD Delivery Orders Jumped during May Day Holiday

by Ling Cao

JD data shows that delivery orders increased nearly 70% during May 1-5 holiday, nearly doubling the industry average. Orders in tier five and six markets increased nearly 80% and 100% respectively.

Chinese official data shows that the industry collected a total of 1.1 billion delivery parcels from May 1st to 5th, increasing 41.8% y-o-y, while the industry has sent over 1 billion parcels, as increase of 38.93% y-o-y.

JD data indicates that delivery orders in Beijing increased nearly 60% during this period. Orders in Chengdu and Xi’an increased both nearly 70% while Wuhan reached 80%.

JD has long provided superior delivery service for customers. Recently, JD opened up a fast parcel delivery service in over 140 cities. The service allows customers to send parcels to be received as fast as the same day within a city, and as fast as the next morning between different cities. JD will refund the delivery fee if it doesn’t meet the guaranteed delivery time.

 

(ling.cao@jd.com)

JD Adds Air Cargo Covering Yangtze River Delta and Greater Bay Area

by Ling Cao

On May 7th, JD flew its first all-cargo aircraft, which is a dedicated freight Boeing 737-300F, from Shenzhen to Wuxi. The aircraft is branded with the JD Express logo. The initiative will enable JD to provide faster and more reliable delivery service to customers in Yangtze River Delta and Great Bay Area. Customers who place orders in the afternoon can receive them the next morning, expanding coverage at this speed by 300% to 24 cities.

The aircraft is branded with the JD Express logo

The all-cargo aircraft is based on a partnership between JD and Zhejiang Loong Airlines. The parties will target to fly six round trips a week, covering business-to-customer transportation and individual parcel delivery throughout China. JD also opened this service to third party merchants and partners beyond the JD platform.

The use of an all-cargo aircraft is more reliable and flexible than the common alternative of bellyhold capacity on civil passenger airlines because flight times can be adjusted according to industry demand. In full capacity, this aircraft can load 14 tons of goods, covering 130 cubic meters – 10 times the amount of bellyhold capacity on a single civil passenger aircraft.

Customers in over 120 cities can send parcels for delivery via air by JD

The aircraft also addresses some of the challenges regarding air transportation resource availability during COVID-19.

JD has already partnered with industry leading airlines, including China Southern Airlines, Air China Cargo and China Eastern Airlines. Customers in over 120 cities can send parcels for delivery via air by JD. Covered areas have expanded from tier 1-2 markets to lower tier markets, providing enterprises and individual customers a high-quality express delivery service.

Going forward, JD plans to open more all-cargo flights from Wuxi to Tianjin, stretching the service to Beijing-Tianjin-Hebei area.

 

(ling.cao@jd.com)

China’s May Day Holiday Releases Pent up Demand in Consumer Categories

by Rachel Liu

As travel restrictions due to COVID-19 eased across China ahead of the 5-day May Day holiday, pent up Chinese consumer demand for daily necessities, home appliances and outdoor activities products resulted in a significant boost in sales. On May 1st, about 30,000 customers visited JD E-Space, JD’s 50,000-square-meter shopping destination in Chongqing, China, with sales on the day reaching RMB 14 million yuan.

While more people gathered with their friends and relatives during the holiday, the sales of wine, Chinese liquor (baijiu), beer and imported liquor have all increased. For example, according to the data from JD Super, JD’s online supermarket, the sales of Dassai increased 6.6 times y-o-y while the sales of Hennessey increased over three times y-o-y. Also, the sale of cooking oil was 2.5 times same period last year.

Parents saw the holiday as an excellent opportunity to get the children out of the house. JD Super’s data shows that ales of children’s scooters increased 250% y-o-y, and sales of children’s electric cars from FUERBO increased 470% y-o-y. Food supplements also did well, with the American brand Earth’s Best experiencing a 300% y-o-y sales increase.

The demand for home appliances also went up. During a May 1st promotion, according to JD data, the whole day sales for home appliances was twice that of the same day last year. The epidemic has caused people to see home appliances that handle sterilization as must-haves. On May 1st, the sales of sterilization air conditioners and refrigerators increased four times and 80 times, respectively. With people moving about more freely, the demand for indoor installment and repair of home appliances also rose.

As the quarantine was lifted in Beijing on April 29th, the sales of products related to outdoor activities and service products subsequently increased in the city. Data from JD’s Big Data Research Institute has shown that on this day, the sales of outdoor equipment increased by 249% and cycling products by 117% compared to average sales in April. Sports-related services, such as venue reservation services increased 655%. JD’s offline stores also experienced sales increases. Orders for car repairs, maintenance and cleaning increased 2.5 times in JD Auto Service, JD’s offline automobile repair stores. In JD’s 7FRESH stores, sales of beverages and food boxes, barbecue, and beer were over double that of average daily sales.

On May 2nd, JD launched a ‘Super Hubei Day’ – its first Super Brand Day for a Chinese province – to promote local food in partnership with local brands, including crawfish, oranges, duck eggs and others. JD also provided resources to support fresh food brands in Hubei, leveraging livestreaming to increase sales.

 

(liuchang61@jd.com)

JD CENTRAL Joins Thailand’s Initiative to Support Thai Farmers

by Martin Li

JD CENTRAL, the e-commerce joint venture of JD.com in Thailand, has joined the Thai Fruit Golden Months initiative, to support Thai farmers who have been struggling with exporting their agricultural products during the ongoing COVID-19 lockdown.

Thai Deputy Prime Minister and Commerce Minister Jurin Laksanawisit (L) and K. Rvisra Chirathivat, CMO of JD CENTRAL at the launch ceremony.

Thai Deputy Prime Minister and Commerce Minister Jurin Laksanawisit (L) and K. Rvisra Chirathivat, CMO of JD CENTRAL at the launch ceremony.

The initiative was launched by the Ministry of Commerce in the country on April 30th. Deputy Prime Minister and Commerce Minister Jurin Laksanawisit attended the launch ceremony with representatives of companies which joined the initiative.

To support Thai farmers, JD CENTRAL will promote Thai fruit on its e-commerce platform, providing new sellers with benefits including commission waiver, free design service for virtual stores and free live chat customer service.

free live chat customer service.

The sale lasts from May 1st to June 30th.

“The farmers need help, and it’s time to lend them a hand. Come and join us!” said K. Rvisra Chirathivat, CMO of JD CENTRAL.

 

(bjlihao3@jd.com)

JD.ID Completes Handover of Medical Supplies to Support COVID-19 Initiative in Indonesia

by Martin Li

JD.ID, the e-commerce joint venture of JD.com in Indonesia, has completed the handover of medical equipment it helped procure via JD.com in China to the Ministry of State Owned Enterprises (SOEs).

The medical equipment arrived at Soekarno-Hatta International Airport in Jakarta on April 30th. The parcels consisted of 121,050 sets of personal protective equipment (PPE), 200 ventilator machines, and more than 1.2 million other medical products including masks, disposable gloves, thermometers, goggles, test kits, and medicines.

Representatives of JD.ID hand over the medical supplies to Erick Thohir (R), Minister of the SOEs, at Soekarno-Hatta International Airport in Jakarta on April 30th.

Representatives of JD.ID hand over the medical supplies to Erick Thohir (R), Minister of the SOEs, at Soekarno-Hatta International Airport in Jakarta on April 30th.

Erick Thohir, Minister of the SOEs, received the equipment from representatives of JD.ID at the airport, with the company’s CFO Sandy Permadi and head of corporate business development and B2B solutions Andrew You.

The medical supplies are worth more than 41 billion rupiahs (US$2.7 million) and were procured by the Indonesian initiative Relawan Anak Bangsa (RAB) (Nation’s Children Volunteers in English) and are composed of 24 large-scale company members in the country.

Among the company members are Wahana Artha Group, PT Adaro Energy Tbk, MSJ, Harum Energy, PT Cikarang Listrindo Tbk, Northstar, BFI Finance, Triputra Group, Persada Capital Investama, PT Panca Amara Utama, PT Surya Esa Perkasa Tbk, Rock Pool, CBS Holdings, PT Impack Pratama Industri Tbk, Altira, KFC, XXI, Rajawali Corp, KPN Corp, Barito Pacific, PT Anugerah Bara Kaltim, Hutchison Port, and Kino Group.

RAB will donate the medical supplies to a state-owned humanitarian foundation, Yayasan BUMN Hadir Untuk Negeri, which will distribute them to those in need.

“Our greatest hope is that, through support from the RAB movement, in collaboration with JD.com, there will be more parties who offer to help medical workers and health volunteers, who are the frontline guards, ” said Zhang Li, CEO of JD.ID.

In addition to helping procure the medical supplies for the RAB, JD.ID also provides an online donation platform for people who want to be directly involved through the JD Cares #IndonesiaFightsCorona program (JD Peduli #IndonesiaLawanCorona).

The program is a collaboration with Kitabisa.com, which aims to help medical staff and volunteers who need PPE as well as the disadvantaged, homeless, and informal workers who need masks, antiseptic fluids, and other medical equipment.

 

(bjlihao3@jd.com)

Sales of Garbage Disposals on JD.com Increase 3 Times YOY Ahead of Mandatory Trash Sorting Regulations in Beijing

by Yuchuan Wang

On May 1st, Beijing became the newest city to adopt citywide mandatory trash sorting. According to JD’s big data, page views for garbage disposals during April 22nd to 24th increased 322% year-on-year and the transaction volume increased nearly 3 times, of which Beijing accounted for 21% of the total sales, much higher than other cities.

The data also shows that “garbage disposal unit” has become a key search term for JD’s enterprise clients and the sales in April increased 165% on a year-on-year basis. Top items include elevator trash bins for hotels, hotel room bins, outdoor bins and medical-use bins.

JD Business, JD’s enterprise procurement channel, has launched solutions to help local companies comply with the new recycling policies, covering scenarios such as buildings, office area, residential area, airports and train stations. JD Business already provided solutions to enterprises including Beijing China Railway Construction Engineering Group (北京中铁建工), Zhongfu Building Property Co (中服大厦物业公司) and Wanlongzhou Catering (万龙洲饮食).

JD Business, JD’s enterprise procurement channel, has launched solutions to help local companies comply with the new recycling policies,

At JD.com’s 7FRESH chain supermarkets, degradable lunch containers and environmental-friendly shopping bags are already being used. Collaborating with recycling products brand LOVERE, 7FRESH uses discarded plastic bottles to develop shopping bags which can hold 10 to 15 kilograms’ weight of items and be used more than a hundred times.

Last year, JD’s AI team developed a solution that enables people to take a photo of the type of waste they have and be guided on how to dispose of it properly. The function was also made available as an API via NeuHub, JD’s open AI platform, so that enterprises can easily implement the technology in their own businesses.

 

(yuchuan.wang@jd.com)

JD’s Nucleic Acid Test Booking for Groups Covers 31 Cities

by Tracy Yang

On April 28th, JD Health announced a partnership with leading testing institutions in the industry, including KingMed, USCI, CapitalBio eHealth, BGI, ADICON, Biomedlab and Xiaoniaokuaiyan to launch group nucleic acid testing appointment services, so as to ensure the smooth development of the resumption of work, production and school in China. Just last week, JD and KingMed opened China’s first COVID-19 nucleic testing online reservation platform and expanded it to 11 cities across the country.

Currently the nucleic acid testing group service provided by JD Health covers 31 cities, including Beijing, Shanghai, Shenzhen, Tianjin and Hangzhou, and the number of service sites has reached 96. Online reservation services in more cities are on the way. It is worth mentioning that Wuhan, Xiaogan and Yichang, three cities in Hubei province, are covered by the testing services.

Enterprises, schools, and relevant institutions with COVID-19 testing needs may open JD.com ‘s App, search for “Nucleic Acid Testing” (in Chinese) to enter the reservation page, and follow the procedure to make group orders and organize personnel to go to the selected testing sites for sampling at the scheduled time. Within 24 hours, they can check the test report online. If the group has more than 50 people and has the proper sampling environment, they can do the testing at their locations instead of a testing site.

In addition, JD.com is also opening more entrances to help enterprise customers make reservations. In addition to the reservation methods above, enterprise customers can also log on to JD Business (https://b.jd.com), JD.com’s enterprise procurement portal, or go to the “Enterprise Procurement” channel on the JD app.

 

(tracy.yang@jd.com)