by Rachel Liu

On March 17^th, JD Big Data Research Institute released the 2019-2020 Online Sleep-Related Product Report, indicating that China’s young urbanites are suffering from poor quality of sleep.

Based on research combining surveys that JD conducted with customers and big data analysis, the poor sleep quality is primarily due to work-related stress. This has led to a subsequent increase in the sale of more high-end and diverse sleep-aid products, including mattresses, health supplements and smart sleep-aid products.

The research shows that over 70% of customers have sleeping problems, with 51.4% of them born after 1990. The younger generation is getting worse sleep than the older generation. Over 71.5% of customers said that working overtime and work-related stress is the main cause. Geographically, the highest sales of sleep-related products come from Beijing, Shanghai and Guangzhou, indicating that China’s major cities could also be “centers of stress”.

About 55% of customers surveyed believe more comfortable mattresses and pillows can most effectively improve their sleep. In 2019, the sales volume of latex mattresses and coconut palm mattresses surpassed that of traditional spring mattresses to become the best-selling ones on JD. Sales of portable mattress and antibacterial mattresses both increased over 10 times year-on-year in 2019. Pillows made of latex, lavender and buckwheat are also becoming popular.

Apart from comfortable beds, smart sleep-aid products emerged in popularity, such as sleep bracelets, smart sleep goggles, and Bluetooth meditation eye masks. In 2019, the sales of smart beds on JD increased 96% y-o-y.

Data from JD also pointed toward increasing sales growth in health supplements for sleep improvement. Melatonin is particularly popular among those born after 1980 and 1990. During COVID-19, consultation orders for insomnia and sleep improvement experts increased over 10 times y-o-y on JD Health’s online medical consultation platform.

(liuchang61@jd.com)

by Jiong-jiong Yu, Senior Retail Analyst, IGD

A move underscores a shift in China’s retail industry.

Leverage each other’s strengths

Gome, China’s major brick-and-mortar retailer of home appliances and electronics, launched a third-party flagship store on JD.com last week.

Gome, with a net revenue of US$9bn in 2019, sells high end products that would be traditionally sold offline only.

This partnership sees the two parties leverage each other’s strengths. Gome can expand its customer reach by tapping into JD.com’s 360 million active annual users. It can also increase its product range through JD.com’s supply chain. JD.com will be able to enrich its offering via Gome’s large amount of high-end products that are traditionally sold offline, further enhancing its attractiveness to users.

As part of this partnership, JD will provide data, technology and customer service-related support to the Gome online store.

Competitors seeking common ground

JD.com and Guomei would be traditionally be considered competitors. The new partnership underscores a shift in China’s retail industry where competitors are finding common ground to collaborate.

Walmart is also a strategic partner of JD.com. Walmart sold its online business, Yihaodian, to JD.com in 2016 through an alliance agreement. For Walmart, the alliance greatly expands its omnichannel opportunities, enabling the one-hour home delivery service and contributing to its good performance in China.

This article originally appeared on IGD.com, here: https://retailanalysis.igd.com/news/news-article/t/competitors-collaborate-gome-launches-flagship-store-on-jdcom/i/24497

by Ella Kidron

A Wall Street Journal article, “How China kept its supermarkets stocked as coronavirus raged,” published on March 13^th, highlighted the role of JD’s supply chain innovation program, Omnichannel Fulfillment, in ensuring supply of necessities during COVID19. The story provides a comprehensive picture of food supply by private and public institutions during the epidemic period.

The article writes, “JD.com said that when inventories in its warehouses for products like rice, flour and oil started getting tight, it was able to source additional supplies from offline businesses – including mom and pop stores – that were open and closest to customers.” Since demand for these products is generally higher offline in normal circumstances, when the majority of people were remaining in their homes at the start of virus the outbreak, JD turned to its Omnichannel Fulfillment supply chain innovation program.

When a consumer places an order online, the platform matches the order with offline supply closest to the customer in real-time, and then arranges for a courier to deliver to the consumer among the most efficient route. Instead of relying solely on the stock in JD’s warehouses, the omnichannel fulfillment platform will calculate which brick and mortar stores nearest to the customer has the items in stock, and then source the inventory from there, both ensuring supply and delivery speed.

The article also mentions that, “Private companies, including JD.com Inc. and Walmart Inc., rerouted trucks and located supplies that otherwise might not have made it to market.” Early on in the outbreak, JD established a special channel to provide fast aid to Wuhan, the epicenter of the outbreak, from across the country. At the same time, the company relies on priority logistics channels to distribute a variety of materials. The goal is to ensure the fastest delivery of the most urgent materials while ensuring the maximum utilization of limited capacity resources. JD also implemented re-routing and inventory planning schemes to avoid goods that need to go to other regions from having to be transferred or sourced via Wuhan, reducing bottlenecks in getting emergency goods to Hubei province.

At the same time, JD launched “Mobile Fresh Basket” to provide a convenient and reliable way for people in Hubei province to get fresh produce that was already around them instead of it having to come from elsewhere. Mobile Fresh Basket sources from three channels for the produce: JD’s Friends Shop Program – a group buying mini program for communities, B2C inner city distribution of fresh products directly from wholesale markets to housing compounds, and government partnerships with agricultural enterprises. JD Logistics picks up the produce and delivers it directly to residential compounds. Following an initial launch in Hubei, Mobile Fresh Basket has expanded to over 50 cities.

(ella@jd.com)

by Rachel Liu

JD has teamed up with Taihe Music Group and multiple international liquor brands to bring entertainment online and drive liquor sales.

Budweiser, Rémy Martin, Carlsberg and Pernod Ricard have joined the program. It is the first time for these brands to join such a promotion, and they have seen great sales performance thus far. During one of the live shows, sales of imported liquor from a single partner brand increased 70%, and sales of its whiskey products increased 8 times compared with the same period on the day before. During another show, sales of beer increased 40% compared with the same period of the day before.

Every week, JD invites musicians and DJs from Taihe to hold a three-hour live show through JD Live, and introduce liquor products which viewers can buy with a single click. COVID-19 outbreak has caused many clubs and bars to shut down, which limits people’s choices of entertainment. As a result, “online clubbing” and “online gathering” have become popular choices for fun-seeking people, especially among youngsters at their 20s. Online versions of other traditionally offline activities such as online travel, museum visits and theater performances have also emerged.

Seeing the trend, JD decided to move the entertainment online and leverage these sessions to promote liquor products. By combining online shopping experience and entertainment, JD not only provides customers a new way to shop, but also drives sales for liquor brands which are impacted by the shutdown of offline channels.

JD will continue to leverage live broadcasts of music performance in clubs, live houses and even music festivals for products marketing, making it a long-term program to enrich customers’ shopping experience. It will also open to other categories besides liquor.

(liuchang61@jd.com)