Chinese consumers are quickly adapting to buying groceries online for immediate delivery from local offline stores – everything from fresh seafood, to craft beer and fresh cut flowers, according to a new joint study conducted by JD, Walmart, Tencent and JD Daojia.

In China, where over 15% of consumption takes place online, compared to just 9% in the US, consumers have been faster to embrace online grocery shopping. The new study found that over 67% of those interviewed out of a sample of 1,774 Chinese consumers actively use services like JD Daojia, which can deliver goods from local offline shops, including Walmart, to customers in under an hour.

The report shows that an increasing number of online shoppers in China view a guarantee of product authenticity as the most important factor when buying goods, with price often viewed as secondary in importance to considerations like product variety, speed of delivery and after-sales service. Consumers carefully consider purchases that can improve their lifestyle, reflect their individuality and be delivered in a convenient way that fits in with their busy modern lives.

The new research underscores the importance of JD’s Boundaryless Retail vision, to enable consumers to buy whatever they want, whenever and wherever they want it. The report identifies omnichannel integration in the Chinese supermarket industry as a major trend going forward, as online and offline players in the industry are increasingly combining resources to meet the diverse needs of modern-day shoppers: bringing together the convenience and diversity of online shopping with offline retail’s immediacy of service and superior user experience.

“In the minds of many shoppers, there is already little distinction between online and offline retail, and this is why JD’s work with offline partners to make ‘Boundaryless Retail’ a reality is so important,” said Kenny Li, VP of JD.com.

“The increasingly diverse needs of consumers require a correspondingly dynamic approach, and partnerships with leading offline retailers like Walmart, are redefining what shopping can be in the age of e-commerce.”

“China is at the forefront of retail innovation and Walmart is moving ever-faster to innovate and meld the offline and online retail services for our customers,” said Jordan Berke, Vice President of Hypermarket E-commerce, Walmart China.

 “Through our strong partnership with JD, JD Daojia and Tencent, we will continue to provide the leading omnichannel shopping experience to our customers in China.”

JD’s partnership with Walmart began in 2016, and last year blossomed into a wide-ranging strategic cooperation in terms of inventory integration, customer integration and store and platform integration. Currently, around 180 Walmart offline stores in 29 cities have been connected with JD’s inventory management system, meaning that when shopping on JD, consumers will get the products delivered from Walmart’s store rather than JD’s warehouse if consumers are closer to the Walmart offline store.

JD offers its technology and infrastructure to other retailers and industries as well, under its “Retail as a Service” or RaaS, strategy.

JD.com, China’s largest retailer, will purchase nearly RMB 100 billion worth of products from overseas brands. The company announced its plans at the first ever China International Import Expo (CIIE) in Shanghai.

As disposable incomes in China rise, consumers increasingly demand high-quality products, especially imported products. JD’s data from more than 300 million customers on its e-commerce platform shows that e-commerce has rapidly emerged as one of China’s most preferred channels for buying overseas brands. Last year, the number of users purchasing products from overseas brands grew by 37.1% compared to 2016. The volume of imported goods in 2018 to date has already skyrocketed 150% as compared with two years ago.

JD is the top gateway for overseas brands into the China market, providing comprehensive support from technology and marketing to logistics. The company’s “Retail as a Service” strategy, in which JD uses its strengths to empower its partners, has proved enormously appealing to household names from all over the world. The growing family of leading international brands partnering with JD to facilitate their e-commerce strategy now includes the likes of Saint Laurent, Alexander McQueen, Dell, Nestle, Avène and many more.

As China’s e-commerce transformation continues to unfold, consumers have gravitated especially towards premium, smart, and green products. According to JD’s data, the highest performing categories among its customers this year have been mobile phones, computer and office suppliers, home appliances, maternal and childcare, and digital products. Advanced economies such as the U.S., Japan, South Korea, Germany, and the Netherlands remain the most popular sources of imported goods.

Chinese consumers buying online are mostly younger (26-45 years old), white-collar workers with middle-to-high incomes. China’s most developed regions, particularly the coastal cities, account for the largest uptake of imported goods. The growth rate for purchases of overseas brands, however, is now highest in fourth- and third-tier cities, where these brands are often not available in brick and mortar stores.

“This commitment is an extension of our promise to provide the best customer experience no matter where are consumers shop,” said Ye Lan, Chief Public Affairs Officer at JD.com. “Our consumers are demanding more high-quality products from around the world, and JD’s unmatched capabilities in e-commerce, logistics, and marketing offer a one-stop solution to bring top imported brands to China. We look forward to partnering with more brands in the years ahead.”

JD already has a strong track record of connecting Chinese consumers with international brands. JD Worldwide, the company’s cross-border e-commerce platform, has attracted more than 20,000 brands from over 70 countries. It has also unveiled dozens of dedicated country malls showcasing the very best brands from countries such as Ireland, Thailand, Japan, and South Korea. Furthermore, JD has launched numerous one-day sales events for specific countries, including Canada, France and Britain, offering special promotions and discounts on high-quality imported products from many countries around the world.

FAW Toyota, a joint venture between Toyota Motor Company and First Automobile Works, has launched a flagship store on JD.com, China’s largest retailer, allowing customers in China to purchase and schedule maintenance services online and then bring their vehicles to FAW Toyota’s offline service centers at their convenience.

In addition to auto services, customers can easily purchase a variety of automobile parts and related products. After making their online purchases, customers will receive a verification code on their phones, which they can use at FAW Toyota’s offline ‘4S’ stores to redeem their parts, supplies, installation or repair services. Auto parts and supplies can also be delivered directly to customers’ homes.

Apart from the new levels of convenience customers will enjoy, both companies also will benefit from major synergies created by the new partnership. FAW Toyota will receive invaluable insights from JD provided by the e-commerce platform’s big data on auto consumers, such as the age, gender, and purchasing behavior of shoppers among its more than 300 million active customers. For JD, the strategic cooperation strengthens its position as the go-to e-commerce destination for an ever-expanding range of products and services.

“In addition to making it easier for more Toyota owners to find and do business with us, JD offers us unmatched access and insights into the Chinese market,” said Zhenguo Liu, VP of FAW-TOYOTA Motor Sale Co., Ltd.

“We’re excited to work with them to deliver a seamless and convenient experience to FAW Toyota consumers. We look forward to growing our partnership and to bringing more unique services to Chinese car owners in the future.”

As one of the latest applications of its “Boundaryless Retail” strategy, last month JD launched a new offline automotive initiative called JD Auto Service, known in Chinese as Jingdong Jingche Hui. The initiative already includes nearly 200 third-party offline car repair stores. Through JD Auto Service, customers can buy auto parts or maintenance services on JD.com, and then go to a JD Auto Service location for installation. To ensure high-quality service, each of the offline stores is screened to meet JD’s strict standards before joining the network.

“We are delighted to expand the choices for China’s vehicle owners by welcoming FAW Toyota to JD.com,” said Yishen Tang, General Manager of JD’s auto accessories department.

“China’s rapidly growing market for car parts and services offers a logical extension to our ‘Boundaryless Retail’ vision and a great way to provide increased convenience to our auto customers through this partnership.”

JD has been leveraging its advanced e-commerce capabilities and offline resources to expand into China’s booming automotive aftermarket business. The company’s omnichannel model now covers the entire purchasing process for car parts and services. JD currently has partnerships with over 30,000 authorized offline auto stores for complementary service.  Chinese car owners have responded enthusiastically to JD’s omnichannel network, recognizing the convenience and peace of mind that its seamless solutions offer.