JD Data: Trends and Needs for Home Consumption

Posted on by Doris Liu

by Doris Liu

Spending related to daily home consumption has become a highlight in Internet retailing in recent years, characterized by quality improvement and habit adjustments, according to a report jointly released by JD and Economic Daily News, a Chinese newspaper.

According to the report, purchase of food, detergent and other necessities requires a high brand trust from customers and indicate characteristics of high purchase frequency and strong user stickiness. Meanwhile, it is observed by JD that a large proportion of customers initially turn to online food shopping for “better diet”, meaning they have clear demands related to health, nutrition, safety, taste and more.

Data shows that health has become the primary consideration for consumers in food selection. Mixed grains, low-fat, and low-sugar products have seen rapid growth, with organic certified products up 110 percent year-over-year (YOY) in variety and 78 percent YOY in sales volume.

Cooking oil is another example to illustrate peoples’ requirements in health under different scenarios. The purchase proportion of refined oils continues to grow, indicating that consumers are more inclined to make their own decisions about different oil use scenarios. Another phenomenon is that large packaging edible oil is more popular with online consumers, due to the convenience brought  to people’s doorsteps by delivery service.

Also stimulating innovation are newly-created scenarios accompanied with life improvement and the focus of different groups of people. For instance, diapers have been more specialized and high-end oriented, with baby swim diapers and adult diapers increasing 561 and 65 percent YOY in sales respectively.

Looking at the sales trends of the tissue paper category geographically, more and more consumers choose to buy products online. Among them, the fifth and six-tier markets have higher percentage of sales, while the third-tier cities are growing fastest.

As the most commonly used commodities in daily life, facial care, body care and other personal care products also hint that people’s consumption is changing from rigid demand to individual preference.

First, the young generation, who are also the main force of online consumption of personal care products, have diversified their personalized needs, which not only affects the development of the traditional market, but is also driving the emergence of lower tier markets.

Furthermore, small and portable packaging is gaining popularity, as it is more flexible in scenarios such as home and outdoor. With more design elements added to personal care products, cutting-edge marketing methods including crossover, customized and limited edition are used to appeal to differentiated market segments.

 

(liujun215@jd.com)

 

JD Report: China’ s Eye-Care Market Has Huge Potential

Posted on by Vivian Yang

by Vivian Yang

China’s eye-care products and services market is predicted to be the next big thing, according to a report issued by JD.com’s Consumption and Industrial Development Research Institute on June 20th.

According to the report, the company’s sales data from this January to May showed that the amount of online ophthalmic consultations on JD Health rose over 90 percent YoY, and transaction volume of relevant products for internal administration and external use increased by 173 percent and 210 percent YoY respectively.

The rapid expansion of consumer groups and their use cases have propelled the boom, said Zhenzhen Chai, senior researcher of the institute, noting that people’s heavy use of digital products has led to rising eye problems such as myopia, eye fatigue and dry eyes among all age groups, who desire new treatments that more effectively treat the conditions.

Not only are elderly people seeking eye health support on JD Health; students (16 percent) and office workers (25 percent) who spend long hours watching screens compose a large part of consumers for eye-care products, also account for a significant portion of customers. They need both long-term and convenient products that can be applied at any time – in homes, offices, schools, for exercising outdoors, and while driving and other scenarios. This is widening the market for product makers to improve and extend their product ecosystem while ensuring their quality and safety given the particularity of eye use, said Zhen.

In terms of product preferences from different age groups, younger people choose more products for external use with steam eye masks, eye massagers and warm eye masks being the top three products, with 501 percent, 111 percent and 109 percent YoY sales increases respectively.

Consumers from China’s fifth-tier cities and below are the largest group of eye-care product shoppers on JD.com, representing 36 percent of all users; and people from the first to fourth-tier cities range from 22 to 9 percent respectively.

At the same time, people of a wider age spectrum are becoming accustomed to asking for an ophthalmologist online before going to the hospital, with 42 percent of users aged from 26 to 35, and 10 percent from 46 to 55. The role of telemedicine with AI technology in triage and assisting the whole process of health management has been further acknowledged on the market.

According to the report, the most popular eye care services booked on JD Health are femtosecond laser surgery for myopia, prescription for Ortho-K lenses, and the examination service before ophthalmic surgery.

 

(vivian.yang@jd.com)

Over 1,500 Nutrition Brands on JD Health Doubled Sales YoY during JD618 Grand Promotion

Posted on by Vivian Yang

by Vivian Yang

Over 1,500 nutrition and nourishment brands doubled their year-on-year transaction volume on JD Health during this year’s 618 shopping festival, and the number of products that achieved sales of over RMB 10 million yuan increased by 200 percent YoY, according to the company’s end-of-campaign report.

This year‘s JD618 Grand Promotion offered a broader range of health product categories tending to different needs of consumers, with remarkable sales performance seen in the categories of bone health, nutrition products for infants, vitamins and mineral products, food for special medical purposes, and bird nests, the report noted.

For example, the 18-day sales data from June 1 to 18 showed that the transaction volume of functional beverage and healthy tea products on JD Health increased 12-fold and 6-fold YoY respectively. The transaction volume of probiotics, infant DHA, lutein, and meal replacement smoothies each increased 300 percent.

NEMANS’ DHA capsules, BY-HEALTH’s protein powder and Harbin Pharmaceutical Group’s calcium, iron and zinc oral liquid became the top three best-sellers under the nutrition product category. By-Health, Swisse and Tong Ren Tang topped the ranks of best-selling brands. Nestle Health Science, Nutricia and Abbott Laboratories are the most popular nutrition-specialized brands.

Driven by JD’s responsible consumption program known as the “Green Impact Initiative”, 700 kinds of nutrition and nourishment products are qualified and green-labeled as environmentally friendly, which is part of a long-term effort to guide consumers to shop for their health as well as the health of the earth.

Additionally, thanks to JD’s online to offline service that is connected with a vast network of physical supermarkets and drug stores, JD Health is able to rapidly respond to consumers’ urgent needs and deliver health products to their doorsteps within hours. During this year’s 618 shopping festival, a Beijing-based mother made an urgent request on JD Health for a bottle of special infant formula, which was delivered to her home within 30 minutes.

 

(vivian.yang@jd.com)

JD618: Three Consumption Trends of China’s Pet Market

Posted on by Vivian Yang

by Vivian Yang

The pet care market in China is growing rapidly despite generally tapered consumer spending amid the COVID resurgence in the first half of 2022. The new generation of pet foods, intelligent gadgets and online vet consultations are three key growth points according to JD Pet’s Consumption Trends Report 2022 released on May 30th, and such trends continue to develop during this year’s 618 Grand Promotion.

Freeze-dried food, raw diet and baked food products that feature better nutrition and tastes have become the most popular pet foods during the shopping festival. JD’s data showed that sales of freeze-dried food in the first 10 minutes of JD Super’s Promotion Day on June 6th exceeded the whole day’s sales on the same day last year.

The shopping frenzy is supported by JD’s assured customer services including a 30-day price guarantee. More than 680,000 pet products from over 550 brands such as Royal, navarch and Pure&Natural, joined the price guarantee program, covering almost all pet product categories.

JD Pet’s data on June 1st, the first day of the shopping festival, revealed that intelligent gadgets for cats including smart self-cleaning litter boxes, automatic feeders and watering supplies achieved 141 percent growth; and searches of automated feeders and watering supplies also increased over 149 percent and 163 percent respectively during the 618 shopping festival.

The report shows that people under 30 accounts for nearly 50 percent of smart pet gadgets. High-tech products help them pamper their furry friends in a more efficient way even while they are away from home. At the same time, people above 50 take up an increasing percentage of smart product buyers, with the transaction volume from them growing at 65 percent rate YoY.

JD Health’s online vet consultation service saw over 60 percent month-over-month increase in terms of the total number of consultations during the 618 shopping festival. By clicking the “ask a vet” button on JD’s App, users can easily access professional guidance on any pet care-related questions. JD users find it convenient and trustworthy to ask doctors via JD Health online before making their pet’s health supply orders. In such a way, minor problems in pets’ digestion, fur, ears, eyes, and noses can be treated and prevented in a timely and tailored way.

To date, JD Health’s online vet hospital is connected with over 5,000 certified vets who provide 24/7 consultation services. This April, it became the first internet pet hospital in China that passed the ISO 9001 quality management systems standard.

 

(vivian.yang@jd.com)

JD’s Cross-border B2B Platform Opens to 110+ Countries and Regions

Posted on by Yiming Yan

by Yiming Yan

JD Worldwide, the international business of JD.com, launched JOYBUY, a cross-border B2B platform on June 18. The platform will link overseas merchants with high-quality Chinese factories through the company’s selected supplier network.

The platform will mainly serve overseas buyers including e-commerce marketplace sellers, DTC sellers and small and medium-sized offline merchants. Transactions can be currently settled with 12 major currencies, including USD, EUR, AUD and more.

Leveraging JD’s high-quality supplier network in China and cross-border e-commerce infrastructure all over the world, buyers can access JD’s efficient and stable cross-border supply chain services while greatly decreasing the cost of product selection while even enjoying certain customization demands.

In the past year, JD Logistics has opened new warehouses in countries including Malaysia, the US, Australia, and the Netherlands, bringing the total number of bonded and overseas warehouses to about 80, and its global supply chain network to nearly 230 countries and regions.

JOYBUY is now open to more than 110 countries and regions with a focus on Southeast Asian(SEA) and North American markets. In SEA, JOYBUY has reached cooperation with Flash Express, a well-established one-stop e-commerce service provider to develop the local market. JOYBUY also has built up a partnership with Ginee, a popular SEA one-stop solution service provider for online business to better serve local buyers.

“JOYBUY is aiming to build a reliable platform for both Chinese and overseas merchants,” said Terry, Vice President of JD.com and Head of JOYBUY at JD Worldwide. “We will help small and medium-sized overseas merchants to access high-quality Chinese products via JD’s logistic systems.”

Official website of JOYBUY: https://www.joybuy.com/

 

(yanyiming1@jd.com)

JD Launches China’s First Online Serbian National Pavilion

Posted on by Mengyang He

By Mengyang He

Ahead of the JD618 Grand Promotion, JD.com’s online supermarket business JD Super inaugurated China’s first online Serbian National Pavilion during an opening ceremony on June 16. The Serbian Ambassador to China, H.E. Maja Stefanović, and Lizhen Liu, Vice President of JD.com, President of JD FMCG Omni-channel attended the ceremony, among others.

Endorsed by the Embassy of Serbia to China and several institutions, the Serbian National Pavilion provides a window of Serbian products and culture. Ambassador Stefanović stated that “the Serbian National Pavilion on JD.com serves as a starting point for more in-depth cooperation in the future.”

Lizhen Liu, Vice President of JD.com, President of JD FMCG Omni-channel

As of now, the Serbian National Pavilion has launched nearly one hundred products, including popular snacks brand Jaffa, and coffee products from Doncafe, wines and beverages from Vino Zupa. “Based on the cooperation on the Serbian National Pavilion, JD.com will give full play to its advantages in supply chain and digital technology, further promoting cooperation in the future,” Liu noted.

“In the coming year, JD Super plans to establish over one hundred National Pavilions, and drive the sales of international specialties,” added Wei Ye, Vice President of JD.com, General Manager of JD Foods of JD FMCG Omni-channel.

 

(hemengyang5@jd.com)

JD Property’s Logistics Network Spans Nationwide in China

Posted on by Xiaoqian Han

by Xiaoqian Han

During the peak 28-hour period of this year’s 618 Grand Promotion, trucks loaded with merchandise left JD.com’s Asia No. 1 Logistics Park in Beijing every 2 seconds on average.

JD Property currently operates 56 intelligent parks with a total area of more than 13 million square meters nationwide. JD Property’s modern warehousing network spans 29 provincial-level administrative regions and includes first- and second-tier cities, transportation hubs, and manufacturing enterprises.

JD.com’s Asia No. 1 Logistics Park

Projects in Guangyang (Hebei province), Xiaohe (Shanxi province), and Jiaozhou (Shandong province) were finished and developed during this year’s 618 Grand Promotion. The JD Property Intelligent Logistics Park projects in Zhangjiagang and Taihu (Jiangsu province), Gu‘an (Hebei province), and Majuqiao (Beijing) were also officially launched at the same time.

JD Property in Dongguan (Guangdong province) provides cold-chain storage services for Fresh Life, a New Hope Group subsidiary that may help fulfill its ice cream and frozen food services throughout Guangdong province. The daily goods of Xingsheng are supplied from the fresh food warehouses in Nanchang (Jiangxi province) to the pre-network warehouses in the city in collaboration with JD Property, and each pre-network warehouse may serve 6 to 10 communities. Yonghui Superstores provide cargo storage and transportation services in Xiamen (Fujian province) with the use of JD property warehousing facilities, supporting its local retail network.

JD Property projects in Jiaozhou, Shandong province

Due to the high-quality site selection and superior transportation accessibility, JD Property have effectively helped enterprises reduce operating costs and greatly improve circulation efficiency, in order to meet the further improvement and upgrading of ecosystem partners’ logistics systems.

In the past ten years, JD.com’s logistics and distribution efficiency have considerably improved, and it has also created the ultimate online consumption experience. At the same time, with the in-depth integration of online and offline, JD property has also combined the warehousing network and the physical store network of partners to realize “dual network synergy”, which further improves the service experience of physical stores by accelerating the timeliness of logistics network experiences.

 

（hanxiaoqian3@jd.com）

Overseas Brands See Sales Surge in JD618 Grand Promotion

Posted on by Doris Liu

by Doris Liu

JD Worldwide, JD’s cross-border e-commerce business that gives Chinese consumers broader access to imported products, saw significant sales growth as well as recognition from overseas brands during this year’s JD618 Grand Promotion.

JD.com reported a total transaction volume of RMB 379.3 billion yuan during this festival, setting a record high by exceeding last year’s JD618 number. Thanks to JD Worldwide, hundreds of brands on JD Worldwide increased by 100 percent in the first 24 hours after the shopping event officially kicked off on May 31; and more than 400 brands and about 100 categories doubled in sales in the last 28 hours of the 18-day campaign ending at 23:59 (BJT) June 18.

In the final 28 hours, JD Worldwide reported a rise in transaction volume in multiple categories and brands. More than 50 cosmetic brands increased by 100 percent year-over-year (YOY), self-operated fashion went up by 98 percent, baby diaper sales and dietary supplements climbed by 243 and 70 percent YOY respectively. In addition, categories of luxury goods and watches grew over 300 percent.

French skincare brand L’Occitane was up 20 times YOY, dandruff shampoo brand Selsun by 165 percent YOY and Japanese cosmetic brand SUQQU by 18 times YOY.

“The growth was predicted, but I didn’t expect it to be so high,” said Pinky Nie, head of the official overseas flagship store of the UK’s Vitabiotics, a vitamins and supplements brand.

Launching on JD Worldwide half a year ago, it was the first JD618 campaign for Vitabiotics. The brand achieved an increase of 249 percent in sales conversion rate and 107.31 percent in GMV (Gross Merchandise Volume) month-over-month during JD618, with repeat purchase rate above the industry’s average level, according to Nie.

As the retail industry is confronted with uncertainties posed by the pandemic, data from JD618 reinforced confidence of overseas brands for entering the Chinese market. With JD Worldwide’s incubation capabilities, the cross-border business is expected to continue its recovery, bringing more quality products from around the world.

 

(liujun215@jd.com)