Can’t sell? JD’s Live Streaming Makes a Big Difference

by Yuchuan Wang

On March 6th, Xian Wang, the deputy director of the Business Expo Bureau of Dongpo district in Meishan City in Sichuan province, joined JD Live to promote local agricultural products to JD’s customers. The three-hour live stream resulted in a transaction volume of RMB 550,000 for 67,500 kilograms of citrus sold.

Dongpo is a place renown for citrus fruit that ripens later in season than others. With COVID-19 significantly impacting existing offline sales channels, Wang is helping farmers identify online platforms to sell the produce. JD Live enabled Wang to interact with fans across China, introducing the history of Dongpo and its delicious fruit. Within only nine minutes, the live stream attracted 100,000 followers, reaching over 1.2 million followers in just one hour.

The Deputy Mayor of Ruichang city in Jiangxi province conducted a live stream on JD in late February.

Similar to Wang, 50 local government officials from around China have already been hosts on JD’s studio as “anchors” selling their local products. The Deputy Mayor of Ruichang city in Jiangxi province conducted a live stream on JD in late February. Within 3.5 hours, 136,000 duck and chicken eggs, as well as other products, were sold.

Apart from assisting the agricultural industry during the epidemic, JD Live has also expanded its live streams to include multiple categories to satisfy consumers’ demands and help brands grow online.

JD’s real estate business has launched live streaming for customers to shop for and purchase apartments. From January 23rd to February 21st, over 100 orders were fulfilled through this initiative. Meanwhile, JD’s home appliance business enables brands to have online product release conferences via JD Live. Haier’s ‘springtime new product’ live stream achieved a transaction volume of over RMB 30 million.

JD Health has also organized several live stream experiences hosted by administrators or medical experts from top Chinese hospitals who have experienced the 2003 SARS epidemic to provide knowledge of COVID-19 prevention and psychological counseling.

JD Health has also organized several live stream experiences hosted by administrators or medical experts

(yuchuan.wang@jd.com)

JD Offers Another 15 Million Masks to Hubei

by Hui Zhang

JD Health and Sinopharm Group Hubei announced to offer a second batch of 15 million masks for sale exclusively to Hubei province on Mar. 6th. This is in addition to the previous 15 million supplied on Mar. 3rd to further ease the mask shortage.

JD Health and Sinopharm Group Hubei announced to offer a second batch of 15 million masks for sale exclusively to Hubei province

After the first batch of 15 million masks went on sale, many consumers in Hubei posted positive comments, highlighting that the masks are of high quality and delivered in a timely manner. Most consumers said they received the masks the next day after placing the order.

JD Health also promised to continue to supplement supplies with its partners.

JD Health also promised to continue to supplement supplies with its partners. JD Health has taken a lot of measures to ensure medical supply to Hubei province since the outbreak of COVID-19. Since mid-January, JD Health has donated 1 million masks and 60,000 items for medical and epidemic prevention, including disinfectant, surgical gloves and other products to major hospitals and related institutions in Hubei province.

On February 29th, JD Health together with Europe’s largest private hospital operator, Fresenius Helios, donated 3 tons of disinfectant, valued at approximately 150,000 RMB in total, to Wuhan’s hospitals and other related institutions.

JD Health has also launched a new online platform to connect chronic disease patients in Hubei with pharmaceutical companies and pharmacies and provides timely information on where they can get the drugs they need, online or offline.

 

(zhanghui36@jd.com)

JD Data: Women Care More about Health and Fitness

by Yuchuan Wang

On March 6th, JD Big Data Research released its Female Consumption Trends Report. According to the data, in 2019, female consumers bought more consumer electronics and home appliances than previously, while health and fitness has become a new shopping focus.

Top 5 Catagories by Transaction VolumeTop 5 Catagories by TRansaction Volume Growth RateThe top five popular exercise products bought by female consumers in 2019 were dumbbells (up 292% YoY), Pilates equipment (278%), waist support belts (258%), Kinesio tape (180%) and badminton shuttlecocks (168%). At the same time, the transaction volume for anti-oxidants, pedometers & body fat monitors, protein powder, fatigue relief products, probiotics, and sculpting products increased by 603%, 460%, 410%, 114%, 103%, and 96% respectively, year-over-year.

Female Customers Portrait for Soprts and Fitness ProductsFemale consumers aged 18 to 25 are the top consumers of beauty products. These consumers are also starting to buy more nutritional foods such as dried wolfberry fruits and red dates. The number of consumers this group buying these types of products in 2019 increased 7.6%, as compared with 2018.

Top 5 Beauty Catagories by Transaction Volume In fresh foods, fruits, seafood and cakes are most popular with female customers, among which the transaction volume of lychees in 2019 was more than 13 times that of the previous year.

The average consumption volume of female customers on pet services including medical care and deworming services increased by 182%, among which transaction volume of pet boarding services increased 33 times as compared with 2018. Female customers care more about the reviews of pet products and services than price when making purchasing decisions.

During the COVID-19 epidemic, transaction volume of protective products across a number of categories, including masks, disposable gloves, antibacterial wipes and more increased sharply, and the growth rate of female consumption in this category was much higher than average.

Transaction volume growth rate of female customers

(yuchuan.wang@jd.com)

JD’s Cold Chain Enables Rapid Sales Growth of Fresh Food

by Ling Cao

JD’s cold chain logistics orders from January 21 to February 28 increased 30% amid COVID-19. The company’s cold chain strength has made a significant contribution to the growth of JD Fresh’s business during the epidemic period. In just 40 days, from January 20 to February 28, JD sold a total of 130,000 tons of fresh food.

One key factor is the use of JD’s warehousing services, as many of JD’s fresh produce merchants have chosen to put their popular products in JD’s warehouses. The number of fresh products from merchants stocked in JD’s warehouses has increased nearly 300% compared with the same period last year, with sales increasing over 900% YoY for merchants who use JD’s integrated warehousing and logistics services.

“Our steaks sold out in just five days, rather than the 30 days we’d planned for. The demand has far exceeded our expectations.” Said Yanghong Xiao, General Manager of the Zhenniuguan beef store on JD. Xiao added, “Stocking products in JD’s warehouses hugely improved our sales. Sales for products in JD’s warehouse were over 150% higher than sales for products that weren’t.”

Zhenniuguan beef store on JD

Meixiangshike, another beef store on JD also found that 60% of customers will inquire if the products will be delivered by JD Logistics, and  75% customers will choose to buy if the answer is yes.

JD provides a range of different cold chain logistics-related subsidies for merchants who use JD’s warehouse service. The company has also established a special transportation channel for unsalable produce. JD’s cold chain network now covers 31 provinces and cities in China, and a total of 20,000 routes. JD is able to monitor the entire logistics process and uses special containers to guarantee product quality.

 

(ling.cao@jd.com)

JD Data Predicts Trends of Short Video

by Yuchuan Wang

JD.com released its “2019 JD.com Short Product Video Report” by JD Retail and JD Big Data Research Institute, the market research arm of JD.com, on March 5th. The report analyzes the full year performance of short product videos, and forecasts five trends for the future development of short videos on e-commerce platforms.

  • Multiple retail scenarios: Short videos are covering more touchpoints with consumers in the retail process – sales, marketing, etc. and is boosting conversion rates
  • Full consumption lifecycle: Short videos have relevance in the entire lifecycle of a sale, from pre-sale to after-sales.
  • Higher conversion rates: Use of short videos in content marketing will further attract consumers’ attention, promote interaction, and lead to high-quality conversion
  • Maximizing copyright value of visual content will become a new track in the development and evolution of the industry.
  • Technology will accelerate short video: New technologies such as 5G and AI will accelerate the innovation of the short video service model

Below are some highlights from the report. (Read the original Chinese report here.)

Short videos are covering more touchpoints with consumers in the retail process – sales, marketing, etc. and is boosting conversion rates

Data shows that during big shopping festivals, the daily playback of short videos on JD can reach 2 billion times. The total number of videos posted by consumers during JD’s June 18 anniversary sales also increased by 60.38% compared with the same period in 2018.

Users in the 16-25 and over 56 age groups have become key groups for new viewer growth. The report also found that male consumers prefer to watch product introduction videos while female consumers prefer to share videos of items they’ve actually purchased.

Viewers of short product videos are mainly from developed regions such as Beijing, Shanghai and Guangdong. The fastest growing viewer groups are from lower tier cities such as Baoding and Langfang in Hebei province, and Weifang in Shandong province.

Right now, short videos on JD are developing across multiple devices and have new applications in the shopping process.

Video and AR instructions are becoming increasingly popular and improving the customer experience.

Right now, short videos on JD are developing across multiple devices and have new applications in the shopping process. Video and AR instructions are becoming increasingly popular and improving the customer experience.

JD continues to enrich its visual content services, including video content marketing, merchant video production, and video quality audit.

JD continues to enrich its visual content services, including video content marketing, merchant video production, and video quality audit. It will continue to expand its applications to help brands and merchants improve conversion.

In recent years, with the increasing awareness of copyright, e-commerce platforms pay more and more attention to the copyright protection of visual content. JD expects there will be a positive impact in promoting the development of original content for the e-commerce industry.

JD expects there will be a positive impact in promoting the development of original content for the e-commerce industry.

(yuchuan.wang@jd.com)

External Services Accounted for 40% of Revenue for JD Logistics

by Ling Cao and Tracy Yang

By the end of 2019, JD Logistics’ revenue from external services accounted for more than 40% of its total revenue, reflecting the success of its open, technology-driven strategy. External services are any logistics and supply chain services outside of JD’s first-party business, including services provided to parties beyond the e-commerce industry. JD’s full-year 2019 earnings released this week revealed this encouraging achievement.

JD Logistics has driven the steady growth of JD.com as a whole, with JD’s FY2019 net service revenues from logistics services and other businesses up significantly from 16.8% and 27.0% in 2017 and 2018 to 35.5% in 2019. In addition, JD’s fulfillment expenses as a percentage of net revenues decreased to 6.4% in 2019, down 0.5% from the same period in 2018, mainly due to economies of scale from enhanced logistics capacity utilization and staff productivity.

Three advantages pointed out by Zhenhui Wang, CEO of JD Logistics during earnings conference call are the driving force behind this. “First, JD Logistics strives to provide the best experience in the industry. Second, it puts products in locations nearest to its customers by leveraging JD’s integrated fulfillment capabilities and e-commerce experience. Third, JD Logistics uses technology to drive efficiency and cost reduction.”

JD Logistics continues to focus on lower tier market penetration, improving service efficiency and quality. In 2019, JD Logistics launched a program to further increase delivery efficiency in lower tier markets. As of the end of 2019, 24-hour delivery covers 88% of China’s districts and counties.

JD Logistics continues to focus on lower tier market penetration, improving service efficiency and quality

Wang said, “Tens of thousands of employees are working to make sure medical supplies and daily necessities will reach areas in need, including Hubei province.” He added, “JD Logistics always puts employees’ health first. We’ve ensured all kinds of protective supplies reach frontline employees from the beginning of the epidemic period.”

JD Logistics is also supporting enterprises resuming operations by offering frontline positions and providing free software to small and micro enterprises.

“Customers trust the service we are able to provide during the epidemic period, and we will continue to improve the experience,” said Wang. Many merchants used or started to use JD’s fulfillment services during the epidemic period, and have reaped substantial benefits as a result.

 

(ling.cao@jd.com; tracy.yang@jd.com)

Photo Gallery: This Week at JD (March 2-6)

On March 5th, the world’s oldest fine leather goods house, Delvaux, launched its first official online flagship store in China in partnership with JD.com.

 

JD Health together with Sinopharm Group Hubei will make 15 million masks exclusively available to customers in Hubei province to help address the mask shortage situation since the outbreak of COVID-19. The first batch of 15 million masks went on sale on March 3.

 

On March 2nd, JD E-Space in Chongqing officially resumed operations. The store has seen steady customer flow and high conversion rates so far. With the COVID-19 outbreak, the store temporarily suspended operations in late January until March 2nd.

 

JD.com topped online sales of home appliances in 2019, according to a report on China’s Home Appliances Market released by the China Electronic and Information Industry Development Research Institute. In the report, JD accounted for 22.39% of the market share, while SUNING and Tmall ranked second and third, respectively.

 

Bo Ye is a JD Logistics driver and his wife Yanping Gao is the head ICU nurse who is volunteering in Wuhan. Since the end of January, Bo and Yanping have been 1,000 kilometers apart from each other. Yet, both of them are working on the frontlines to aid the fight against COVID-19. While Yanping is in the epicenter of Wuhan, Bo is working in logistics at Nanning, capital of Guangxi, to ensure delivery of daily necessities and medical materials.

 

JD’s courier Jun Xu was issued the very first pass to enter apartment compounds of Shanghai Hudong Xincun. Jun is one of at least 14 JD couriers to be issued the pass for Shanghai Hudong Xincun compounds, which covers 58 residential apartment buildings. In general, couriers are not permitted to enter residential compounds during the COVID-19 quarantine, so this marks an exception.

 

JD’s Psychological Consultation to Bring Peace of Mind

by Hui Zhang

JD Health, together with the Chinese Psychiatrist Association, set up a psychological consultation platform within the JD app on March 4th, to provide free services to people across China, empowering people from the comfort of their homes.

The platform brings together China’s top psychiatrists, and psychological counselors from hospitals or related institutions to provide psychological assistance and counseling services to people during the COVID-19 epidemic. Patients simply need to type in ‘psychological assistance’ in JD’s app to access the platform. The services will be offered free for six months.

JD Health, together with the Chinese Psychiatrist Association, set up a psychological consultation platform within the JD app

The platform targets everyone from frontline medical staff, to patients with mental disorders and corporate employees, and will provide customized services in accordance with their needs.

  • The platform will provide frontline medical staff with online psychological assistance and counseling services to help them alleviate anxiety brought by long hours working in a high-stress environment.
  • For patients with mental disorders who require regular services will have access to round-the-clock online counseling, follow-up prescriptions, home medicine delivery and other services to maintain their mental health.
  • The platform will also work with corporate employees to offer live-streams given by psychological counselors, on-site psychological counseling and free consultation to help them get back to work.
  • The general public will also have access to live-streams and online psychological consultations.

As early as January 26th, JD Health launched a free 24/7 online consultation platform within JD’s app for people who suffer from COVID-19 related symptoms. The platform expanded its services to cover all diseases on Feb. 6. So far the online consultation platform has offered over 3.3 million free consultations with the number of daily consultations reaching 100,000. Among all psychological consultations, more than 10% come from frontline medical staff.

 

(zhanghui36@jd.com)