by Vivian Yang

JD.com, China’s largest retailer, has announced it will launch Brazilian E-Commerce Week to coincide with Brazilian President Luiz Inácio Lula da Silva’s visit to China. The week-long promotion will take place from April 14 to 20 and will showcase more than 80 featured products from JD’s Latin American Pavilion, an online flagship store of its supermarket platform, JD Super.

Products such as wines, liquors, maté tea, coffee beans, and Acai berry powder from countries including Brazil, Argentina, Uruguay, and Colombia are offered at promotional prices to attract consumers throughout the themed sales week, with sales growth rising by 5 times compared with the previous week. 

Since its launch in December 2022, JD Super’s Latin American Pavilion has showcased 170 product SKUs, each handpicked to represent the unique delicacies of various Latin American countries. The Pavilion’s offerings have consistently garnered positive reception during previous sales events. In fact, sales during this year’s Chinese New Year shopping festival soared by 150% compared to the previous year.

JD.com is committed to introducing a world of flavors and experiences to its nearly 600 million consumers. To that end, the company has established nearly 100 national pavilions spanning multiple categories, continually expanding its collaborations with embassies, international organizations, and overseas brands.

By leveraging its expertise in digital technology, omnichannel marketing, logistics, and supply chain management, JD.com aims to foster growth and market opportunities for specialty products from around the world within China.

 

(vivian.yang@jd.com)

by Vivian Yang

Over the past three years (2020-2022), JD Worldwide, JD.com’s cross-border e-commerce platform, saw a 64% increase in sales of cross-border products, with user numbers nearly tripling and product volume growing by 43%. This growth reflects strong demand and supply, as highlighted in the “2023 Cross-Border Imported Products Consumption Report” released by JD’s Consumption and Industry Development Research Institute on April 12 in Beijing.

The report identifies five key consumption trends for cross-border imported products in China, providing valuable insights for international brands looking to establish themselves in the Chinese market, particularly those offering premium and niche products.

1. Prioritizing Scalp Care

According to a 2019 survey conducted by China’s National Health Commission, approximately 250 million Chinese individuals experience hair loss, with 84% encountering this issue before turning 30. An increasing number of people are seeking to enhance their personal care routines, viewing their bathrooms as sanctuaries for relaxation and self-indulgence. This trend presents the immense market potential for innovative products across various related categories.

2. Embracing Harm-Free Skincare

An increasing number of middle-to-high-end JD users aged 20-45 are willing to pay more for skincare products that align with their values, prioritizing natural, eco-friendly ingredients.

3. Choosing Sustainable Makeup

Echoing the trend for safer skincare, environmentally sustainable cosmetics sales on JD Worldwide outpaced the category’s sales by three times during last year’s 618 Grand Promotion event.

4. Opting for Premium Low-Lactose Infant Formula

This category has seen remarkable growth in China, outperforming ordinary formula products in transaction volume by 4.5 times in 2022. Brands like Nestle, Aptamil, and Friso are favored by Chinese parents who are increasingly discerning when it comes to their children’s nutrition.

5. Savoring Relaxing Beverages

JD’s consumer survey indicates that many Chinese people have adopted the habit of drinking alcohol for relaxation and better sleep at home. With a wide range of imported alcohol options available online, preferences vary among different age groups, with Gen-Z favoring brandy/cognac, middle-aged users opting for imported beers, and older consumers preferring wines.

According to the report, the top five imported products by transaction volume on JD Worldwide in 2022 were healthcare, baby and maternal, cosmetics and skincare, consumer electronics, and pharmaceutical products. The fastest-growing imported categories included consumer electronics, personal care, home appliances, alcohol, and cosmetics.

Female users (55%) continue to be the primary shoppers for cross-border products, focusing on family needs and personal well-being. Popular categories on JD Worldwide include skin and hair care, baby care, perfume, and cosmetics.

The 26-35 age group accounts for nearly 50% of all cross-border imported product shoppers. Consumers in this demographic often seek distinctive goods to express their individuality and tastes.

While first-tier market consumers remain the primary purchasers of imported products, there is a growing interest in lower-tier markets, driven by China’s advanced e-commerce logistics and improved supply chain efficiency.

 

(vivian.yang@jd.com)

by Vivian Yang

JD Fresh, the fresh food division of JD.com, recently welcomed the season’s first sea shipment of Zespri kiwifruits from New Zealand to China, commencing JD’s kiwi promotional season on April 7. Through a direct procurement e-commerce model, JD Fresh has become Zespri’s largest online retailer in China. For the 2023 season, JD is aiming to sell over two million standard trays (3.3 kg/tray) of the succulent fruits exported to China.

The first charter vessel’s arrival in Shanghai from Port of Tauranga marks the start of JD Fresh’s highly anticipated kiwi sales season, and with more shipments to come, JD Fresh will bring an extensive selection of fresh and healthy produce options to Chinese consumers, including Zespri’s yellow, green, and red varieties.

JD.com’s sales of the newly arrived fruit since April 8 have increased by 55% compared to the same period last year. Quick customs clearance in China following the lifting of COVID restrictions has contributed to the strong start to this year’s fruit season.

“China’s fruit market is experiencing significant growth recovery this year, driven by increasing demand for high-end and imported fruits,” said Nuo Xiao, General Manager of JD Fresh’s procurement and sales department. “Our collaboration with Zespri underscores our commitment to providing Chinese consumers with the freshest, authentic and high quality produce from around the world.”

“We are delighted to partner with JD.com to bring Zespri kiwifruit to more Chinese consumers,” said Carol Ward，Chief Grower, Industry & Sustainability Officer. “JD.com is a leader in the e-commerce and supply chain industry in China, and we are confident that this partnership will help us to further expand our presence in the Chinese market.”

After China reopened its borders for international travel, New Zealand was the first destination for JD Fresh buyers to visit in early March. JD’s team visited Zespri’s headquarters in New Zealand, and had the opportunity to explore Zespri’s orchards, nursery, laboratory, and packaging plant to better understand the kiwi growing journey from its roots.

JD.com and Zespri forged a strategic partnership in 2016, and four years later, JD.com became Zespri’s first direct e-commerce retailer worldwide. In 2022, despite external headwinds, Zespri’s kiwifruit sales on JD.com reached an all-time high in China in 2022, a testament to JD.com’s effective distribution, marketing, omnichannel sales, and after-sale guarantee service.

The ongoing partnership between JD.com and Zespri is set to continue bolstering kiwifruit sales in China in 2023. Recent data from JD Fresh reveals that Zespri’s SunGold product in the extra-large size, with 25 to 27 fruits per tray, took the top position on the platform’s best-selling kiwifruit list during this month’s pre-sales period.

JD’s robust nationwide cold-chain delivery system ensures fresh and quality produce. This system comprises an extensive network of cold-chain warehouses and delivery vehicles, as well as cutting-edge temperature and humidity monitoring technology, ensuring optimal conditions throughout the entire delivery process.

In addition to JD Logistics’ standard same or next-day delivery service across China, JD’s on-demand retail business connects over 200,000 offline stores in more than 1,800 counties, which facilitates one-hour delivery to an ever greater range of consumers, providing a fresher shopping experience and allowing them to enjoy the best tastes from around the globe.

(vivian.yang@jd.com)

by Vivian Yang

JD Fresh, JD.com’s online fresh food division, recently announced it will purchase RMB 1 billion (US$ 0.15 billion) worth of Thai fruits over the next two years. With a focus on direct sourcing and leveraging its supply chain capabilities, JD Fresh aims to meet to the surging demand for high-quality fruits among Chinese consumers.

Earlier this month, JD Fresh’s veteran fruit buyers visited major fruit-producing regions in Thailand and signed procurement orders of durians, coconuts, and longans, among other popular fruits.

As the durian season begins in May, JD Fresh will join hands with local suppliers to explore ways to offer more tree-ripened durians in China. This approach allows the fruit to reach 85 percent or greater ripeness before harvesting, as opposed to the traditional practice of pre-ripe picking, which sacrifices flavor for a longer import journey.

To further ensure the quality of the fruits, JD Fresh is implementing liquid nitrogen freezing technology immediately after the tree-ripened durians are harvested and sorted. which locks in their freshness right after being picked and sorted at the farms. The fruit will then be imported to China using cold-chain logistics throughout the entire journey, ensuring widespread availability to consumers across the nation through JD Logistics’ extensive cold-chain network.

The Thai durian season runs from April to October, with peak availability in China during May. Chinese consumers’ insatiable appetite for the “king of fruits” continues to drive market growth, even during the winter months. In fact, during the first day of the 2022 Singles Day Grand Promotion last November, sales of frozen durians on JD Fresh grew more than 900 percent YoY.

During the trip, JD Fresh buyers also reached agreements with leading fruit brands like Joyvio and Goodfarmer to co-develop C2M (Consumer-to-Manufacturer) products. Utilizing JD’s market insights and sales capabilities within China, C2M products such as coconut water and frozen durian meat will be created based on customers’ feedback to cater to evolving tastes.

Importing durians involves a complex, multi-step process, and any missteps can result in decay. JD Fresh is revolutionizing this process by directly sourcing from the origin and utilizing its supply chain expertise, transforming durians into a standardized, readily available fresh product for consumers to enjoy at their convenience.

Additionally, through JD’s omni-channel on-demand shopping service, Chinese consumers can easily order fruits online and have them delivered from nearby offline stores to their doorsteps within an hour.

China represents the largest overseas market for Thai durians. In 2022, China imported 825,000 tons of durians, valued at US$4.03 billion, 780,000 tons originating from Thailand.

(vivian.yang@jd.com)