by Rachel Liu

On April 13^th, JD held its annual strategy conference for maternal and baby category online. During the conference, the company announced that in 2020, the maternal and baby category will focus on new retail solutions, new channels, lower-tier markets and innovative marketing strategies to better drive its development on JD.com and in the whole industry.

Based on new customer insights, in 2020, JD will continue to help maternal and baby brands to continue to win in Chinese market, focusing on four aspects: 1) Develop more niche and blue ocean product categories to expand the product selection on the platform, and help brands develop C2M (Consumer-to-Manufacturer) products that can better meet the specific demands of Chinese consumers, 2) Continue to develop omnichannel solutions and leverage JD’s smart supply chain to help brands develop through maternal and baby stores, 3) Conduct more refined customer operations and continue to attract new customers in lower-tier markets, as well as develop more diverse products to suit the different needs of customers in those markets, and 4) JD will leverage its user asset management capabilities, new content development with KOLs and entertainment resources to gain better knowledge of its customers and provide a better shopping experience for parents who shop on JD.

According to JD data, post-90s customers account for 70% all customers of maternal and baby products on JD, and they have become the main customers for the category. The proportion of post-90s customers in lower-tier market is even higher. Post-90s parents prefer trendy products and are less price sensitive. They also prefer to watch livestreams and short videos. In Q1, in the maternal and baby category, the viewing time for livestream and short videos increased 135% on JD, and the amount by which the livestreams drive sales increased 417% YOY – something that would not be possible to achieve without the contribution of post-90s customers.

JD.com is China’s top retailer for maternal and baby products and also the world’s top retailer for leading international brands including Wyeth, Mead Johnson, Unicharm, Kao and Abbott. A report on maternal and baby industry trends released by Nielsen during the conference shows that, in terms of e-commerce penetration rate, JD is leading the category. Among all customers who used mobile apps to buy maternal and baby products in 2019, 51% of them used the JD app.

During COVID-19, JD’s logistics and supply chain capabilities have made it a trusted platform for Chinese parents. As demand for baby products during the pandemic is high, JD uses its resources to ensure continuous delivery, and cooperates closely with brand partners to ensure supply. From late January to March, sales of daily necessities for babies, such as infant formula and diapers, increased 10 times YOY on JD, and health-related baby products increased 600% YOY. –JD’s unique advantages also helped it attract new parents during the pandemic – new customers in the category increased 110% YOY.

(liuchang61@jd.com)

by Ella Kidron

The JD Big Data Research Institute reveals that even as more people are going outside following a period of lockdown and strict home quarantine across the country, the demand for home gym equipment, especially high-end, professional-grade equipment, in China continues to rise.

From April 1^st-6^th, transaction volume of large exercise machines, such as rowers, elliptical and treadmills increased more than 133%, 91% and 96% YOY respectively. At the same time, data from the China Tourism Academy reveals that China’s scenic spots have rebounded strongly, receiving over 43 million visitors during the three-day Tomb Sweeping holiday period from April 4^th to 6^th.

Increased consciousness about health and hygiene has been a trend throughout the  COVID-19 period. As most gyms across the country have not yet reopened, consumers have opted to invest in home gym equipment. In addition to smaller and more portable equipment such as pullers, dumbbells, yoga gear and jump ropes, consumers are gradually tending towards buying more professional, large-scale fitness equipment with unit prices of several thousand yuan, and even as high as nearly 10,000 yuan.

The trend is not exclusive to China alone. With the increasing severity of COVID-19 around the world, high-end home fitness solutions are becoming increasingly popular as people look to stay in shape during quarantine. Gyms and fitness studios have quickly adapted to offering classes online via numerous livestream platforms, from Instagram Live to their own apps. Hardware + software combinations such as home-use “smart” exercise bikes that offer classes via an app saw a sharp increase in sales at the end of March.

Spending more time at home also appears to have given rise to an at-home coffee connoisseur culture. JD’s data reveals transaction volume of that coffee sets during the Tomb Sweeping holiday period increased 130% compared to the holiday period last year, while number of items sold increased over 80% YOY. The transaction volume of coffee grinders and milk frothers nearly tripled as compared with the same period last year, while transaction volume of coffee pots and cups increased by 110% YOY.

(ella@jd.com)

by Rachel Liu and Tracy Yang

Lixil Group, the water and housing products giant, launched a flagship store on JD.com on April 9^th, announcing the collaboration through an online signing ceremony.

This is the group’s first online store that integrates four of its leading brands, namely GROHE, American Standard, INAX and Lixil Kitchen. The store selected a total of around 150 popular products and sets from across the brands covering shower, ceramic bathroom products, bathroom cabinets, and others to provide one-stop kitchen and bathroom decoration solutions for Chinese consumers.

During COVID-19, Chinese consumer demand for high-quality home products has increased in-step with spending more time at home. JD data indicates that demand for health, wellness and smart home products are on the rise. GROHE, INAX, and Lixil Kitchen have all chosen the flagship store for the online debut of their new products for the China market. On opening day, American Standard provided the most competitive prices for customers who are members of JD PLUS, JD’s premium membership program. Lixil’s professional designers will also provide free design solutions for JD customers.

The cooperation with Lixil Group significantly enhances JD’s offering for mid to high-end smart kitchen and bathroom products. The partnership is also beneficial to JD’s home decoration supply chain, providing one-stop solutions for its customers. Lixil group will provide an overall solution that can better meet the complex needs of high-end customers.

In the future, JD and Lixil Group will deepen cooperation in digitization, omni-channel solutions, empowering offline stores and C2M (Consumer-to-Manufacturer) products.

The market outlook for home decoration is strong. China’s home decoration market is expected to reach RMB 3.2 trillion by 2023, and Chinese consumer demand for high-end home decoration products is on the rise.

（liuchang61@jd.com; tracy.yang@jd.com）

by Martin Li

JD data indicates an explosive increase in the number of large items delivered by JD Logistics in Wuhan, Hubei province, after the lockdown lifted. Figures show an increase of over 900 percent in the first week of April, compared with the same period in March.

The most popular bulky items delivered were furniture, home appliances and fitness equipment. Air conditioners, refrigerators and gas water-heaters experienced the most significant increase in demand.

JD data indicates that before the lifting of Wuhan’s lockdown on April 8th, local residents bought products including refrigerators, treadmills, microwaves and television sets. After the lifting of the lockdown, local demand for goods like air conditioners and gas water-heaters rose quickly. These items require installation in addition to home delivery and are more challenging than smaller-ticket goods.

Additionally, large items like office tables, file cabinets and water dispensers have been experiencing a growth in demand as more enterprises resume operations in Wuhan.

A critically important e-commerce logistics center in Wuhan, JD’s large merchandise operation center in Dongxihu District, has seen an increase in the number of vehicles which transport goods into the city from around the country.

The logistics center was still operating during the lockdown, helping many renowned brands transport goods to Hubei, ensuring supply to local residents.

(bjlihao3@jd.com)