by Mengyang He

On August 23, JD.com released its unaudited financial results for the three and six month periods ending June 30, 2022, showing a continued build-up in its omni-channel business.

According to the results, JD Super, JD.com’s omni-channel supermarket, collaborated with more than 27,000 brands and over 34,000 brick-and-mortar stores through JD’s “one-hour delivery” service during the 618 Grand Promotion this year, and provided consumers with on-demand shopping options in nearly 400 cities across China.

Additionally, more than 30,000 partner stores saw increases in transaction volume of over 500 percent YOY. In particular, the omni-channel businesses of retail chains including Walmart, China Resources Vanguard (CR Vanguard), and Yonghui increased transaction volume by over 660 percent YOY.

“Our omni-channel business maintained healthy momentum in Q2, and our intra-city retail business continued to deliver triple-digit year-on-year growth. JD is driving the retail industry’s optimization in cost, efficiency and user experience,” said Lei Xu, CEO of JD.com in the earnings conference call. “With our existing core capabilities, JD will further explore new business models, improve technologies, and expand in omni-channel.”

As of now, JD.com has opened a variety of physical stores with the omni-channel retail model, such as JD Mall, E-Space, JD Home Appliance Store, JD Pharmacy, SEVEN FRESH Supermarket, JD Convenience Store, JD Auto Service, and more, further enriching shopping experiences for its over 580 million customers.

 

(hemengyang5@jd.com)

by Doris Liu

JD PLUS, a premium membership program offered by JD.com, saw a record high growth rate, with the number of members growing from 25 million at the end of 2021 to over 30 million by July this year, continuing to be among the largest paid membership programs in the industry.

As the first program of its kind in China’s e-commerce sector, JD PLUS joined hands with more than 1,200 well-known brands to create a full-scenario ecosystem covering both online and offline businesses, becoming an entry way to the good life for consumers, said Chen Lin, vice president of JD.com and head of platform business for JD Retail.

The rapid growth of JD PLUS indicates a positive win-win-win for consumers, brands and JD.com. The participation of more and more brands stimulates the offering of membership benefits, which further attracts more customers to take part, thus driving the high-quality growth of both JD.com and brand merchants, as well as creating value for the platform’s refined user operations.

1. Robust and Sustained Momentum for JD’s Growth

According to JD’s data, the JD PLUS program has demonstrated its members’ characteristics of high consumption, high activity and high loyalty. For instance, the consumption amount and frequency of the newly joined JD PLUS members rose more than 150 percent and 120 percent respectively in the first year of the membership. Meanwhile, such members were more inclined to try new products across more categories.

JD PLUS members lead high-end consumption, accounting for nearly 50 percent of the total new product sales during this year’s 618 Grand Promotion. On Samsung PLUS Member Day in March this year, the members also showed an obvious preference for high-end products and new launches, with the transaction amount reaching 50-90 percent in most of the single products priced above RMB 5,000 yuan.

Furthermore, the members are more willing to proactively participate in JD’s business with a higher level of activity in JD Health, JD Fresh and more. Lin believes that the membership program has become a sustained momentum for JD’s high-quality development.

2. One-stop Solution for Better Life

About 80 percent of JD PLUS members are family-oriented users, meaning that daily necessities are crucial for their shopping. So far, delivery vouchers offered by JD PLUS program have helped save nearly RMB 1.8 billion yuan in shipping costs; co-branded bank cards have saved RMB 1.18 billion yuan; and the 24-hour “exclusive customer service for PLUS members” has been provided for more than 30 million times. A JD PLUS member in Shanghai had saved RMB 300,000 yuan during this year’s 618 promotion.

The average number of online benefits available for JD PLUS members every day exceeds 130, which has become the largest number in terms of paid membership programs in the industry.

“Saving money is not the only purpose,” Lin said. “Our original intention is to let more people enjoy a high-quality life conveniently.” JD continues to expand new industries, new benefits and new cards through opening up benefits internally with the broader external ecosystem, so that JD PLUS members get exclusive benefits and services as well as full-scenario benefits.

3. Certain Growth for Partners amid Uncertainties

“Affected by the uncertain market environment, major brands are no longer simply pursuing traffic growth, but focusing more on the refined operation of users,” noted Chunhui Meng, general manager of JD PLUS. As the largest membership system with the highest stickiness in the industry, JD PLUS supports both JD’s high-quality development and growth with external partners, Meng said.

To date, 1,200 established brands including P&G, Dyson, Apple, McDonald’s and KFC, among others, have collaborated with JD PLUS to offer high-value services. Earlier this year, the system also opened to third-party merchants for the first time, so that the merchants can now access PLUS marketing tools with traffic support to select products based on the “PLUS Preference Index”, set special prices for PLUS members and accurately reach target consumers.

JD PLUS was first introduced in 2015, and officially came online in March 2016. From the perspective of brands and merchants, JD PLUS helps achieve higher return-on-investment results, and will leverage JD’s capabilities in digital intelligence and supply chain to explore more needs under different consumption scenarios, said Meng, who is confident that JD PLUS will continue to bring more value to partners and customers.

 

(liujun215@jd.com)

by Xinyi Guan

On August 22, the J Shop, which was upgraded from JD Fashion and Lifestyle business, led many fashion brands at home and abroad to open the 2022 new arrival of J Shop’s autumn selections, bringing consumers plenty of new seasonal products and goodies in all categories.

JD has seen double the growth in the entry of brands and new products since last year. In 2022 the J Shop has registered 20,000 new merchants, with the number of new products reaching an unprecedented number, which has contributed to the 2022 fall promotion featuring the most brands, the most complete categories and the richest new products, including many customized brands and categories.

During this promotion, JD Luxury included more than 300 official flagship stores of luxury brands with exciting new products and hot items, including LOEWE, GIVENCHY, MaxMara and TOD’S. In addition, the J Shop has also planned a series of activities, such as special cooperation with MCM to launch the “MCM Fashion Tasting Salon,” inviting JD’s VIP customers to experience brand introductions, coffee tasting, nail art and so on.

In addition, the J Shop has upgraded its quality certification standards, with some requirements being higher than industry standards. All products that meet the quality of the preferred standards will be marked with the “quality certification” label, so consumers can refer to the label for extra peace of mind. For example, under the background of upgrading the national standard for down jackets, the J Shop will upgrade and issue the “Down Clothing Quality Certification Standard” to standardize the internal quality and appearance quality of pile filling, fluffiness, anti-drill down and so on.

In the past year, with the help of JD’s supply chain basic capabilities and digital technology capabilities, the J Shop has continued to create stable growth for many merchants in an uncertain environment. With the opening of the fall promotion in 2022, the J Shop will bring even more brands and commodities, worry-free and efficient purchase services, and online and offline integration scenarios, bringing consumers a different fall clothing quality consumption experience while expanding a new incremental space for clothing brand merchants.

 

(guanxinyi3@jd.com)