JD.com Enters South Korea with Opening of Seoul Office

Posted on by Hui Zhang

JD.com, China’s largest retailer, is expanding its international footprint with a new office in the center of Seoul’s central business district.

The new office will help JD with outreach to South Korean brands that are highly sought-after in China. It will significantly increase the company’s procurement power in the region, reducing the threshold for Korean brands to enter the Chinese market and tap JD’s more than 300 million customers.

South Korea is one of the most popular countries for cross-border shopping among JD shoppers, particularly for categories like skincare and cosmetics, baby and maternity, food and beverage and health supplements. Order volume for brands including Orion, one of the three largest food companies in South Korea, and beauty and health brands Ryo, AHC and Cheong Kwan Jang, doubled in the first half of 2018 from the same period a year earlier, according to JD.com data.

“More and more Chinese consumers are demanding high-quality products from Korea. Establishing an office in South Korea is a strategic step toward meeting the demand,” said Xiaosong Wang, President of JD.com’s fast-moving consumer goods and foods division. “The office will be an easier point of contact for Korean brands and retailers, and will help local companies leverage the trust JD has built in China to tap this massive market.”

“I am very pleased that JD.com, the largest retailer in China, now has a solid presence in Korea,” said Mr. Heo Duck Jin, Executive Managing Director of Korea International Trade Association (KITA). “KITA will continue to promote the business cooperation between Kmall24, our online shopping mall, and JD.com to further assist Korean companies to develop their business in China.”

As the first step of expanding its presence in Korea, JD.com organized the largest ever brand recruitment fair in Korea at COEX this week. Over 500 participants from all parts of the local business community participated, while JD.com signed MoUs with Cheong Kwan Jang, 11 Street and Orion to continue building on the scope of their partnerships.

The opening of the Seoul office is the latest step in JD.com’s international expansion. The company has established a presence in regions including New York, Silicon Valley, Paris, Melbourne, and Tokyo.

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French Skin Care Brand L’Occitane Opens Official Flagship Store on JD.com

Posted on by Hui Zhang

French beauty care brand L’Occitane de Provence is bringing more of its popular products to China through an official flagship store on JD.com, the country’s largest retailer.

The flagship store will feature a full range of the company’s diverse skincare and beauty products, including organic hand cream, body milk, olive oil soap, shower cream and more. To mark its opening, L’Occitane will offer an exclusive cosmetic gift package on JD.com.

The introduction of L’Occitane’s all-natural products to JD.com’s over 300 million customers coincides with a rapid increase of interest in the category in China, where customers are increasingly meticulous about analyzing product ingredients in the wake of multiple product safety scandals.

According to research from marketing consultancy Clear, growth in sales of natural cosmetics has far outpaced synthetic alternatives, with almost 75% of Chinese consumers citing the ingredients of a product as a main factor when purchasing more natural cosmetics, and 69% of buyers willing to pay more for a completely natural product within the last 12 months.

Founded in 1976, L’Occitane got its start selling rosemary oil products in the open-air markets of Provence, France. Today, the company has amassed a global fanbase who admire the brand for its commitment to using natural essential oils and ingredients while respecting both mankind and the environment. A tube of the brand’s iconic Shea Butter Hand Cream is sold every three seconds.

Read: https://jdcorporateblog.com/jds-jdesigner-boutique-brings-british-fashion-to-china/

JD’s JDesigner Boutique Brings British Fashion to China

Posted on by Ling Cao

JD.com, China’s largest retailer, is bridging the gap between the UK fashion industry and Chinese fashionistas again this year as the company sponsors three Chinese London-based designers, Huishan Zhang, Xuzhi Chen and Xiao Li, allowing them to launch sales of their forward-thinking designs.

Selected designs from their highly anticipated collections, will be available on JD’s JDesigner Boutique platform. Launched in June this year, JDesigner Boutique provides the latest designers’ creations directly to China’s fashion savvy consumers.

JDesigner Boutique provides the latest designers' creations directly to China’s fashion savvy consumers.

“With JDesigner Boutique, JD has once again brought fashion and technology together. It allows our brand a level of direct access to fans in China that would never have been possible in the past,” said designer Xuzhi Chen, who is quickly building a strong international profile through his own brand XU ZHI. Chen combines a thoroughly cosmopolitan aesthetic taking inspiration from his Chinese roots, putting a strong emphasis on craftsmanship and creativity. His show in London this year draws influence from the work of 19th Century U.S. poet Emily Dickinson.

Award-winning designer Huishan Zhang has chosen to partner with JD for the second year running. “JD is a retail partner that understands the fashion industry, caring about the needs of both the designers and customers,” he said. “This a rare thing, which is why my team and I have chosen to partner with JD.com again. It’s great to see more and more Chinese people caring about fashion – and initiatives like JD’s JDesigner Boutique show that fashion has a much broader appeal than just people who attend exclusive events.”

Items from JD-sponsored designer Xiao Li’s collection will also be available to users of the JDesigner Boutique platform for the first time. A rising star on the global fashion stage, Xiao Li is best known for her witty commentary on the fashion scene, using colorful, voluminous shapes, and innovative yarns and textures to push the boundaries of knitwear.

“All of us at JD.com are extremely excited for another year of celebrating the international fashion community in London,”

“All of us at JD.com are extremely excited for another year of celebrating the international fashion community in London,” said Xia Ding, President of JD International Fashion. “As China is increasingly recognized as a new global fashion power player, our unique initiatives, such as the JDesigner Boutique, combined with our unrivaled logistics network in China, continue to make JD.com the top choice for international luxury brands seeking to enter this exciting market.”

This year marks the second year of partnership between JD and the BFC/Vogue Designer Fashion Fund

This year marks the second year of partnership between JD and the BFC/Vogue Designer Fashion Fund. JD will work closely with the BFC to help British designers expand their presence in China and will introduce selected designs through JDesigner Boutique while exploring joint programs including collaborations between shortlisted BFC/Vogue Designer Fashion Fund designers and brands on JD, as well as mentorship programs.

Caroline Rush CBE, Chief Executive British Fashion Council said: “We are delighted that JD.com are extending their support of the British Fashion Council Vogue Designer Fashion fund into 2019. This collaboration takes us into the second year of our valued partnership with JD.com which allows our British designer businesses to engage with over 300 million Chinese consumers, enabling them the vital opportunity of increasing their global footprint in China.”

Over the course of 2018, JD has added or deepened partnerships with brands including Chopard, Salvatore Ferragamo, Buccellati, Balenciaga, Missoni, Alexander McQueen, Saint Laurent and others, as the company’s dedicated TOPLIFE platform continues to gain the attention of the major names in global fashion.

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Sales Soar in China for Cameras, OLED TVs and Gamer Gear

Posted on by Rachel Liu

China’s growing appetite for full-frame cameras and OLED TVs was on full display last month as consumer favorites Sony, Logitech and Dell launched Super Brand Day sales via JD.com, China’s largest retailer.

JD Super Brand Days are special campaigns designed for brands looking to gain consumer attention, significantly raise brand awareness, and increase sales in China. The campaigns include special discounts, promotions and shopping experiences, and often lead to sales that are many times brands’ average sales in an entire month.

Sony held its Super Brand Day on August 26 with outstanding results, including the largest increase of new followers of the brand on JD.com in a single day. Full-frame camera sales increased 750% compared to the average of the previous 30 days, and OLED TV sales increased 20 times the average of the previous 30 days. Of TV consumers making purchases of over RMB 10,000, over 80% chose Sony on the brand’s Super Brand Day.

Logitech held its Super Brand Day on August 29. Featuring Line Friends characters, eSports teams, and the popular actor Li Yifeng, Logitech hit a new record for a single day of sales. The “RNG Champion Set”, which includes the G502 gaming mouse and G610 gaming mechanical keyboard, was a big hit, reaching over RMB 10 million in sales on the day. In addition, overall purchases by female customers during the sales period increased by nearly 30%.

And Dell’s Super Brand Day was held on August 30. The sales of Dell products reached over RMB 100 million in just 27 minutes. The full day sales were 2.57 times higher than last Singles’ day, including over 40,000 laptops sold during the sales event.

The success of the sales show that, as consumers look to trade up for quality and premium brands, consumption upgrades have become the core driving force for the growth of the consumer electronics segment in China. According to research by GfK, the proportion of China’s retail sales of high-end products continues to increase, from 21% in 2012 to 23% in 2018. Research by Nielsen finds that 56% of Chinese consumers say they buy premium products to feel or demonstrate success, with 48% of Chinese consumers say they’re willing to pay a premium for electronics, compared to 38% for clothing and cosmetics.

In particular, premium electronics brands thrive on JD.com, thanks in part for the company’s authenticity guarantee and consumer trust in the JD platform. Last month, Bose launched its new noise-masking sleepbuds in China, with pre-orders taken through JD.com and over 10 JD offline retail experience shops in Beijing, Shanghai, Guangzhou, and Shenzhen providing special Bose product displays for customers to experience the product.

More: https://jdcorporateblog.com/how-jd-uses-big-data-to-take-offline-partners-retail-businesses-to-the-next-level/

Since JD.com launched the first Super Brand Day in January 2016, the sales events have supported well-known brands and products, including fresh foods, fashion and apparel, and a broad range of household items and electronics.

“These campaigns have become an integral part of how JD leverages its unique big data and marketing capabilities to help brand partners build awareness and loyalty among its more than 300 million Chinese customers,” said Yanzhong Yao, president of JD Computers and Digital Products.

How JD Uses Big Data to Take Offline Partners’ Retail Businesses to the Next Level

Posted on by Yuchuan Wang

As part of its effort to revolutionize global commerce, JD.com is sharing its big data analysis capabilities with offline retailers through a new “Retail as a Service” platform.

The platform, called Zu Chongzhi, named after an ancient Chinese mathematician, can help offline retailers with every step of the retail process, from choosing optimal locations for new stores, to deciding on the assortment of merchandise to sell, as well as other store operations and marketing efforts.

A cornerstone of JD’s Retail as a Service strategy, the ‘Zu Chongzhi’ platform leverages big data from both JD’s platforms and the partner’s offline data assisted by multi-strategic partners’ data sources to offer comprehensive visualized solutions to assist offline retail decision making.

The Zu Chongzhi platform takes the same technology as JD’s own offline stores – JD Retail Experience Shop and 7FRESH – and shares it with others to better enable the healthy and sustainable evolution of the entire industry, while creating a “Boundaryless Retail” experience that is better for modern-day shoppers. It presents suggestions in an easy-to-understand format, so retailers of any size, including those without the resources to hire thousands of engineers, can benefit from the technology.

Suggestions for store locations, for example, are based on factors as diverse as surrounding businesses and amenities, transport links, and local consumption trends, as well as detailed demographics for the surrounding area and accurate profiles of target customer groups. In-store IoT devices provide information such as heat maps showing where customers spend the most time. The platform can also help improve product placement and shelving solutions, resulting in increased sales.

The Zu Chongzhi platform is already being used by five brands, bringing fantastic results to more than ten different stores across China. JD’s offline partner QM, a high-end Chinese furniture retailer, saw particular success when it used JD’s big data to understand customer demographics in the area surrounding one of its outlets in Beijing. The surrounding population was found to have a larger than average proportion of highly-educated female professionals with the need for high-end lifestyle products. In order to boost the store’s customer entries, JD recommended the addition of 3,000 high-frequency, non-furniture SKUs to QM’s store, including electronics, FMCG, small appliances, household supplies and even LEGOs.

Read: https://jdcorporateblog.com/carl-f-bucherer-opens-exclusive-flagship-store-on-jd-com-chinese-customers-to-enjoy-expanded-choice-of-swiss-luxury-watches/

The addition of these products – not necessarily in line with QM’s main business but aligned with the needs of consumers – helped the QM store increase traffic with 30% more customers entering the store than was the case before QM began using JD’s Zu Chongzhi platform. Over 80% of the new products generated sales in the store. The implementation of the big data tool has brought the furniture shop new and energetic customers by placing high frequency products in low frequency shops.

“The Zu Chongzhi platform shows the value JD can bring to offline retail partners through our leading technology,” said Jian Pei, President of JD Big Data and Smart Supply Chain. “JD is well-known as a leader in online retail, while its rich big data pool has already begun to transform the offline retail business. In the future, we look forward to working with more leading brands across China, and the world, to build out the future of retail.”

Carl F. Bucherer Opens Exclusive Flagship Store on JD.com, Chinese Customers to Enjoy Expanded Choice of Swiss Luxury Watches

Posted on by Ling Cao

As the market for luxury goods in China continues to grow, more and more international brands are finding a partnership with China’s largest retailer, JD.com, to be the best way of tapping into this lucrative opportunity.

Luxury Swiss watchmaker Carl F. Bucherer this week became the latest in a string of international brands to open an official flagship store on JD. The move marks the iconic haute horlogerie – roughly translated as the “high-art of watchmaking” – company’s first entry into the Chinese market.

“As part of Carl F. Bucherer’s expansion into China, it is important for us to have a strong e-commerce presence in addition to opening brick-and-mortar retail stores across the country,” Sascha Moeri, CEO of Carl F. Bucherer said. “Our new official online store on the JD platform will help us to make this a reality.”

“JD’s commitment to innovative and high-quality products has allowed them to build a dedicated user base of discerning consumers who care passionately about authenticity and quality, which is perfectly aligned with our values and target customer base,” Moeri said. “We are delighted at this opportunity to provide our elegant timepieces to the vast numbers of high-end consumers on JD.com and we are looking forward to a very fruitful partnership in the coming years.”

As part of the cooperation, Carl F. Bucherer will also produce a special edition ScubaTec watch exclusively available on JD.com.

“JD is honored to be Carl F. Bucherer’s e-commerce platform of choice for its first entry into the Chinese e-commerce market,” said Belinda Chen, General Manager of JD Watch. “JD’s customers care most about the quality and authenticity of the goods on our platform, which makes this partnership such a good match. I am confident our users will greatly appreciate the access to Carl F. Bucherer’s catalogue, which marks a significant expansion of the fine Swiss timepieces available on JD.”

JD’s selection of Swiss luxury watches have proved to be a hit among high net worth users on the JD.com platform. Carl F. Bucherer watches will be available on the platform in addition to offerings from other leading Swiss watchmakers including Chopard and H. Moser & Cie.

READ: https://jdcorporateblog.com/jd-coms-premium-membership-program-surpasses-10-million-users/

JD.com’s Premium Membership Program Surpasses 10 Million Users

Posted on by Yuchuan Wang

Over 10 million customers of JD.com, China’s largest retailer, have joined the company’s premium membership program, making the pioneering initiative China’s most well-received loyalty program.

Launched in 2016, JD Plus enables faster accrual of JD’s “JingDou” loyalty points, which can be exchanged for products on JD, exclusive discounts on purchases and shipping, and 24-hour customer service. Members also receive benefits from JD’s partners, including complimentary VIP membership on iQIYI, China’s leading online streaming video platform, bundled memberships between JD Plus and Walmart’s Sam’s Club and VIP treatment at Narada Hotels.

The growth of JD Plus illustrates rising demand in China for authentic, high-quality products and services. A report released today by Nielsen shows that JD Plus users tend to be fiercely loyal to the JD platform, saying the company outperforms other e-commerce platforms in terms of product quality, fast delivery and reliable after-sales and returns policies. According to JD, the renewal rate of JD Plus members is near 80%.

JD Plus users spend much more money on the JD platform than non-plus members, with many users regularly spending 1,000 RMB monthly or well over this amount.

JD Plus members tend to be young, highly-educated professionals who mostly live in first or second tier cities, relying on the convenience of e-commerce to help manage their busy schedules, Nielsen’s report shows. And the main reason members choose to pay for JD Plus is the value for money offered by the program, as well as enhanced user experience and exclusive benefits.

Read: https://jdcorporateblog.com/jd-com-and-loreal-expand-inclusive-beauty-program-for-employees-with-disabilities/

To mark the program’s latest milestone, JD has announced a raft of new benefits for members, including coupons or memberships for restaurant meals and takeaway, entertainment services, travel bookings, wealth management products and more.

“JD was the first company to introduce the paying membership model to the Chinese e-commerce market, and we’re delighted to see millions of users enjoying the convenience and exclusive benefits offered by JD Plus,” said Chunhui Meng, head of JD Plus.

“As offerings available to JD Plus members expand to areas beyond traditional e-commerce, such as lifestyle and financial services, we will continue to create a retail membership experience that is unmatched in the industry,” she said.

JD.com and L’Oréal Expand “Inclusive Beauty” Program for Employees with Disabilities

Posted on by Hui Zhang

JD.com and L’Oréal China are launching a new activity center for employees with disabilities, part of the companies’ joint “Inclusive Beauty” training and employment program, launched last year.

Since announcing the three-year program, JD has worked with L’Oréal and the China Foundation for Disabled Persons (CFDP) to offer dozens of jobs and professional training to people with disabilities in China, where they commonly face workplace discrimination. The goal for the program is to create at least 300 job opportunities for people with disabilities at JD Customer Service Centers in Suqian and Chengdu, and to offer e-commerce training courses to 1,000 people with disabilities by 2020.

The new JD-L’Oréal Activity Center for Disabled Employees in Suqian will be fully equipped with physical and emotional support to employees with disabilities, ensuring a smooth transition as they take up their new responsibilities.

“To be honest, when I first joined the program I was worried that people would ‘look after’ me too much – that people would expect less of me because of my disability,” said Xiao Min. “But after working at JD for a year, I’ve found that everyone here is equal: nobody here expects less of you because you are different physically. If other people can give 100%, then so can I.”

“Here, my identity is an employee, which makes me feel like I’ve really adapted to this environment. I am finally treated as a professional in the workplace,” she said.

Over 50% of people with disabilities in China work physically challenging jobs in industries like agriculture, and many face discrimination in the workplace. The “Inclusive Beauty” program seeks to solve these problems by providing a clear career path within the e-commerce industry that is truly inclusive and integrated.

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