JD Luxury Links with High-end Brands to Boost Digital Profile

Posted on by Doris Liu

by Doris Liu

JD Luxury has attracted more than 300 big brands to cater to the appetite of Chinese consumers for all things luxury. As JD’s annual Luxury Shopping Festival kicked off on July 25, some 50,000 new products went on sale with a full range of categories from the world’s top brands.

The pandemic has accelerated China’s digitalization as the stay-at-home economy thrives. The luxury market in China was forecasted to grow by 36 percent year-on-year (YOY) in 2021, with some brands seeing a 70 percent surge, according to the China Luxury Report 2021 released by Bain & Company, a global management consulting firm. In addition, luxury brands have become more open-minded in terms of digital engagement, leading to a growth of online and offline personal luxury goods sales in China to 56 and 30 percent respectively, according to the report.

According to Bain & Company, China is expected to become the world’s largest luxury market by 2025.

To be more flexible to adapt to the uncertainties brought by the pandemic, while also connecting with millennials and Gen Z consumers, brands have to act in an open and inclusive manner. JD, with its robust supply chain capabilities and omni-channel advantages, has been chosen by more and more key brands to help accelerate their own digital transformation.

Brand Matrix

With over 300 official flagship stores of luxury and premium brands, JD is now the first company to collaborate comprehensively with nine top-tier fashion brands under the French luxury conglomerate LVMH, after Fendi joined JD Luxury recently following Louis Vuitton, Dior, Bvlgari, Celine, Loewe, Givenchy, Berluti and Rimowa.

The Kering-owned jewelry house Qeelin, Swiss luxury watch and jewelry brand Chopard, and Hermès’ shoe brand John Lobb have launched their flagship stores on JD.com. Other sought-after luxury brands such as Burberry, Salvatore Ferragamo, Delvaux, Prada, Zegna, Tod’s and Bally are also featured on JD Luxury, a luxury fashion-dedicated platform under the J Shop, JD’s upgrade of its Fashion and Lifestyle business.

To match consumers’ demand of refined lifestyle in all aspects, JD also introduced a roster of flagship stores for high-end products like Tom Dixon homeware, Christofle silverware, collectible luxury piece BE@RBRICK, the Canadian luxury outerwear brand Moose Knuckles and so on.

The growing number of luxury brands on JD indicates that JD’s healthy ecosystem has won trust from the industry; meanwhile, JD’s strong reputation for offering an authenticity guarantee is also deeply rooted among over 580 million active users.

Innovative Modes

As a global gathering place for the world’s premier brands, JD Luxury has rolled out diversified and innovative models for the digital layout and customized operation of these brands, which enhances consumers’ shopping experience down to the details, while ensuring a full and unified expression of each brand image.

Luxury brands on JD are able to access multiple options for efficient on-demand operation solutions. The DTC (Direct to Consumer) model of JD’s mini program scheme through JD’s App, adopted by brands such as Louis Vuitton and Fendi, customize and optimize functions to make product suggestions more relevant with recommended outfits to inspire everyday fashion.

JD’s self-operation of the omni-channel retail model enables Prada, Zegna, Maison Margiela and more to seamlessly manage the inventory of online and offline stores – customers can select products that are available in physical stores through JD’s official flagship store, and opt to place orders online and then pick up in the brick-and-mortar store, which enhances a more hybrid customer experience.

Other models are also open for brands with a wider selection of merchandise and scenarios, including JD’s self-operation with brands’ official authorization; the marketplace model; and the newly launched vendor-managed inventory (VMI) model, which allows luxury brand to run the store with independent operation, while also enjoying the warehousing and logistics services offered by JD Logistics.

Additionally, the J Shop offers physical stores. To date, three of them have been jointly developed by JD and Italian luxury retailer COSCIA, located in Chengdu, Shenzhen and Yinchuan. Featuring the themes of luxury, designer brands, light luxury and lifestyle, the stores offer nearly 2,000 selected products covering bags, apparel, footwear, watches, etc.

Customer First

Luxury brands sell more than products; they also focus on creating highly personalized and multi-dimensional experiences for luxury consumers, with supreme customer service, accessibility and convenience across all touch points.

JD Luxury recently launched a Plus Luxury membership program, in which members can receive coupons for top brands as well as premium services such as high-end laundry and exclusive VIP offline events.

Furthermore, services that are markedly specialized and tailored to individual clients smoothly replicate and enrich the in-store shopping experience such as one-on-one online customer service, engraving service, the self-operated same-day delivery, and JD Luxury Express, which offers a white-glove delivery service by specially-trained JD employees.

Creative marketing strategies are also important to appeal to more luxury buyers. For instance, the 3D shopping solution supported by VR technology is sometimes adopted in JD’s stores. Moreover, Tory Burch’s first digital collectible will be released jointly with JD during the Luxury Shopping Festival this year, which will be concluded on July 31, while MCM will launch an in-store interactive game.

Tory Burch to launch its digital collectible on JD.com
MCM’s in-store interactive game

With Chinese Valentine’s Day “Qi Xi” (July 7 on Chinese lunar calendar, which falls on August 4 this year) around the corner, JD is joining hands with top brands to organize a crossover campaign, featuring Hennessy X Emporio Armani, Boss X Xiaomi, Alienware X Stone Island, etc.

 

(liujun215@jd.com)

JD Joins China International Consumer Products Expo in Haikou

Posted on by Xiaoqian Han

by Mengyang He

With the engagement of various business lines, JD.com joined the second China International Consumer Products Expo (CICPE) in Haikou, Hainan province on July 25 under the theme of “Share open opportunities, Co-create a better life”. As the largest expo of its kind in the Asia Pacific region, CICPE provided domestic and international brands and merchants with abundant business opportunities.

“Through the CICPE, JD.com looks forward to working with global partners to achieve high-quality growth, facilitate the integration of digital technology and real economy, ensure the supply chain and operation, and enhance consumption experience,” noted Lijun Xin, CEO of JD Retail.

The J Shop, a recent upgrade of JD.com’s Fashion and Lifestyle business, brought over 40 domestic and international brands together to the expo, including beauty and skincare brands such as SK-II, Shiseido, L’Occitane, jewelry and accessory brands such as Philippe Ferrandis, fashion and clothing brands like havaianas, and many international brands including Tissot, Emile Chouriet, Anessa, L’Oréal and more.

JD Retail also brought an array of digital products, such as Nintendo Switch, GoPro, XGimi, Pico, as well as numerous FMCG products, including Ferrero Rocher, Kinder Chocolate, Nongfu Spring, Coca-Cola, Pepsi, Nestlé, Fonterra, etc.

According to the “2022 Import Consumption Trend Report” released by JD.com’s Consumption and Industry Development Research Institute on July 25, the number of SKUs for international products grew by 51 percent YOY in the first half of 2022. During JD’s 618 Grand Promotion, over 400 brands from JD Worldwide, JD.com’s cross-border marketplace, topped a YOY increase of 100 percent.

 

(hemengyang5@jd.com)

JD Worldwide Upgrades Duty-free Business to Unleash Demand for Imported Goods

Posted on by Doris Liu

by Doris Liu

JD Worldwide, JD’s cross-border e-commerce arm, upgraded its collaboration with Hainan Tourism Investment Duty Free (HTDF) and China National Service Corporation (CNSC) to jointly lead the duty-free industry’s growth. The announcement was made on July 26 at the second China International Consumer Products Expo (CICPE) in Haikou, capital of Hainan province.

JD Worldwide is working closely with HTDF, an affiliate of Hainan Tourism Investment Development, and CNSC, a subsidiary of Sinopharm; both are among China’s dominant duty-free license holders. As a result, JD Worldwide continues to promote a global duty-free supply chain system with low cost, high efficiency and an excellent experience. The upgrade further assists the traditional companies to transform digitally around strengthening omni-channel capabilities, fostering a duty-free business ecosystem and marketing operation plans supported by digital intelligence.

After kicking off the duty-free business in 2021, JD Worldwide has partnered with several license holders to launch online duty-free stores, as well as Lagardere Travel Retail, the Joy City shopping mall in Xi’an and local governments to open physical duty-free stores and experience centers.

So far, JD Worldwide has been authorized for duty-free business by 72 international brands, ranging from baby care, cosmetics, food and beverage, home appliances, pets to other categories.

On the Super Day of JD Worldwide during the 618 Grand Promotion last month, the sales volume of duty-free products went up by 10 times year-on-year. The two mini programs of HTDF saw an increase of 95.9 percent in the average transaction value in the first quarter of 2022, compared with that of the fourth quarter in 2021.

The average volume per order in the first quarter of 2022 increased by a significant 95.9 percent sequentially compared to the fourth quarter of 2021.

The duty-free business layout is in line with the master plan of the Hainan Free Trade Port. Based on JD’s “responsible supply chain”, the duty-free retail integrated with cross-border and general trade models can be complementary to each other, bringing more growth momentum for overseas brands.

JD Worldwide also reached cooperation agreements with a series of brands such as French fashion house Balmain and emerging backpack brand Dr.Wilds at the expo in Haikou. In addition, the National Pavilion of Australia was announced, and will be available on JD.com soon to introduce a wide swathe of Aussie products.

 

(liujun215@jd.com)

JD Releases “2022 Import Consumption Trend Report”

Posted on by Mengyang He

by Mengyang He

JD.com’s Consumption and Industry Development Research Institute released the “2022 Import Consumption Trend Report” on July 25 ahead of the second China International Consumer Products Expo.

 

Key takeaways:

  1. Consumers are seeking more exquisite and high-end products.
  2. Young people are the major consumers for international products.
  3. Most sales of international products come from first- and second-tier cities.

China’s import business is now more diversified and toward high-end. According to the report, mobile phones, computers, mother and baby products, beauty and skincare products, and home appliances are the most favored by Chinese consumers among all international products. For instance, the sales of mobile phones from overseas brands accounted for over 30 percent of all imported products in 2022.

According to the data from JD’s 618 Grand Promotion ended last month, the presales volume of first-party imported healthcare products mounted by 140 percent YOY, and cross-border food and beverages grew by 100 percent. Many international big names, such as Apple, Dell, HP, Aptamil and Siemens are also well received by consumers.

Sales of H1 2022 (by percentage)

The report also reveals that the top 5 countries for imported products are the US, Japan, France, Germany and Switzerland. Because of international travel restrictions due to Covid, many consumers are now purchasing more products from JD’s national pavilions to stay close to an international experience.

JD has opened 65 national pavilions as of now. The national pavilions of Finland, Singapore, and Cuba were the top 3 in sales during JD’s 618 Grand Promotion this year, during which the French, Hungarian, and Singaporean national pavilions recorded a YOY increase of 194 percent, 147 percent, and 141 percent, respectively.

Young people between 26 and 35 are the major consumers for imported products, accounting for nearly half among all age groups. In addition, consumers between 46 to 55 are seen to have great potential in purchasing power, as their spending on international products increased by 283 percent in 2021 compared with that in 2019.

As for Gen Z consumers, they are more willing to buy watches, glasses, jewelry, and digital products from international brands, whereas senior shoppers favor food, beverages, clothes, and alcoholic products.

Sales Growth Rate (by city size)

In the first half of 2022, consumers from first- and second-tier cities contributed to 55 percent of the sales of international products. However, a rising interest is also seen in rural areas. According to JD’s sales data, the transaction volume of international products generated from rural areas grew by 174 percent in 2021 compared with that in 2019.

By region, the report shows that consumers from Guangdong province, Beijing, Jiangsu province, Shanghai, and Zhejiang province purchased the most international brands, and 20 percent of the sales come from Guangdong province alone.

 

(hemengyang5@jd.com)

MICHAEL KORS Makes Debut on JD.com

Posted on by Doris Liu

by Doris Liu

The flagship store of U.S. fashion brand MICHAEL KORS made its debut on JD.com on July 24, presenting a wide range of merchandise such as bags, apparel, footwear and accessories.

To celebrate the upcoming Chinese Valentine’s Day “Qi Xi” (July 7 on Chinese lunar calendar, which falls on August 4 this year), MICHAEL KORS has introduced a capsule collection filled with modern charm of romance on JD’s Little Magic Cube, a marketing channel to promote new products.

A small-sized crossbody tote bag from its Sinclair collection, which was available for the first time online, other bags from multiple collections such as Karlie, Hudson and Greenwich as well as Kendrick espadrilles and more were recommended in the capsule collection as the gift choices for JD’s customers.

Michael Kors is an award-winning fashion designer of luxury accessories and ready-to-wear apparel. Founded in 1981, the company that bears his name has more than 770 stores in 85 countries and regions. Products from the company are under the signature MICHAEL KORS COLLECTION, MICHAEL Michael Kors and MICHAEL KORS Men’s labels.

With over 300 premium brands, JD Luxury, JD’s dedicated luxury platform, makes its brand matrix grow rapidly to keep up with the needs of customers, while also providing an excellent strategy for the world’s top brands to expand in the Chinese market.

 

(liujun215@jd.com)

 

JD Applies AR Technology in Beijing Metro’s O&M

Posted on by Vivian Yang

by Vivian Yang

JD Industrial Technology recently joined hands with Beijing MTR Corporation (BJMTR) to explore the use of intelligent technology in the metro’s operation and maintenance (O&M) for better personnel and cost management, further enhancing the rail transportation’s safety level, which already stands at over 99.99 percent.

During the JD Discovery Global Conference in Beijing on July 13, Xinming Shao, general manager of BJMTR, noted that digitally intelligent technology has enormous potential to be applied to a variety of metro use cases, especially in the O&M area to maximize safety performance,

Due to the complexity of the equipment, procedures, and circumstances along the rails, O&M personnel on the ground frequently find themselves unable to finish a problem investigation or make repairs by themselves. Now thanks to the assistance of AR glasses implanted with JD’s intelligent solutions that can activate image recognition and algorithms to rank potential root causes and give operation guidance, workers are in good hands to handle the troubleshooting. For more challenging situations, the AR glasses can even connect them with experts for video conferences to solve problems in a much easier way.

While this is going on, information from the inspection work collected from the AR glasses will be used in monitoring and analyzing the status of equipment, providing support for making more precise O&M and spare parts inventory plans.

Fengwei Ji, general manager of IoT products department of JD Industry, stressed that because of the highly complex nature of industrial production, it is essential for JD Industry to enter into real industrial scenarios and push the fusion of technologies and industries, so as to truly create value for businesses and beyond.

 

(vivian.yang@jd.com)

JD Property Makes UK Debut by Purchasing Warehouse

Posted on by Xiaoqian Han

by Xiaoqian Han

JD Property Group Corporation, a subsidiary of JD.com, a leading supply chain-based technology and service provider, that focuses on providing infrastructure asset management and solutions for integrated service platforms, has made its first UK transaction with the purchase of a 361,000 square feet warehouse in Milton Keynes from the client of Abrdn.

With a Gross Floor Area (GFA) of over 200 million square feet under management , JD Property Group Corporation’s modern warehouse network covers China, Southeast Asia, and Europe as of now. Collaborating with local partners, JD Property is developing logistics and industrial infrastructure to support enterprises expanding their businesses.

Milton Keynes Warehouse

Cen Shen, Head of European Business at JD Property Group Corporation, said: “This investment offers strong rental growth and value creation potential. It also demonstrates our execution capability, as we completed the transaction within 4 weeks even though it is our first investment in the UK. We will continue to invest in prime locations in the UK and Europe over the next few years.”

JD Property Group Corporation was advised by Lambert Smith Hampton (LSH) and Cromwell, while the vendor, a client of Abrdn, was represented by CBRE.

 

Notes:

JD Property Group Corporation is a subsidiary of JD.com, a Fortune Global 500 company and China’s leading e-commerce platform. JD Property provides integrated solutions for modernized high-specification warehouses, intelligent industrial parks, intelligent data centers, photovoltaic new energy parks and more for partners from various industries. It leverages a broad range of logistics funds with world-leading capital partners, contributing to a fund platform with over 20 billion RMB in assets under management.

 

(hanxiaoqian3@jd.com)

JD.com Supports FLUKE Double Production against COVID impacts in China

Posted on by Vivian Yang

by Vivian Yang

Despite COVID disruptions in the supply chain in the first half of the year, the Shi Fu (世福) factory of FLUKE, the world leader in the manufacturing, distribution, and service of electronic test tools and software, based in Wuhu of Anhui province in China, said its production plan this June doubled that of May and was even higher than the same period last year.

FLUKE’s cooperation with JD Industrial Supply has enabled its production surge, in which JD helped its Shi Fu factory to leverage online channels to catch the sales opportunities while the offline market remains lukewarm due to the resurgence of COVID-19.

“JD Industrial Supply has strong client resources such as Global 500 companies, lighthouse factories, China’s top 100 machinery enterprises, and more, which are precisely FLUKE’s target clients,” said a spokesperson of FLUKE. “Our sales to big Chinese enterprises and KA customers via online channels have increased significantly since we collaborated with JD.”

Through JD Industrial Supply, products are presented via multiple channels, and as a result, FLUKE is able to engage with big enterprises from energy, manufacturing, engineering building, and other industrial sectors that are active on JD Industrial Procurement Management platform (京东工采), and also widely interact with small and medium-sized enterprises on JD MRO (京东工品购). JD Industrial Supply is a valuable partner to help Fluke “find different baskets to put the eggs in”.

The supply chain of Shi Fu factory was affected by the uncertainties caused by the pandemic this April. “We have adopted various countermeasures to minimize the COVID impact. In view of the inflow of goods from our suppliers, the industrial chain is recovering; despite the recovery, the high sensitivity to the supply chain remains part of our work habit,” said Ming Wang, operation manager of Shi Fu factory.

Wang noted that instead of only stocking materials on demand for the purposes of cost efficiency and lean production, as the factory used to do, it is more common now to have alternative suppliers’ resources at hand to enhance the supply chain resilience.

During this year’s JD 618 Grand Promotion, enterprises from more than 70 industrial segments made procurement orders via JD Industrial Supply, as the whole industry rethinks the value of the supply chain and accelerates their pace of digital transformation to be more agile in meeting production demand in the face of uncertainty.

The purchase of industrial instruments on JD Industrial Supply including FLUKE increased 608 percent compared with the same period last year during the shopping festival.

 

(vivian.yang@jd.com)