Dec 9, 2020|
Report Shows Encouraging Findings about C2M
by Ella Kidron
The newly released McKinsey China Consumer Special Issue 2020 further confirmed Gen Z’s (defined as post-1995 for the purpose of this piece) pursuit of “unique” products and services.
According to the findings, 51% of Gen Z consumers prefer brands that provide personalized products and 53% choose brands that provide customized services. This is good news for JD.com’s Consumer-to-Manufacturer (C2M) initiative, which helps brands and manufacturers bring customized products to market based on real consumer feedback and demand. Consumer preferences are becoming increasingly fragmented and specific, and having the capability to precisely understand and target consumers with the right products and services is key to winning their loyalty. This is especially true as consumers have more and more choices of platforms to shop on.
One area of custom products that draws attention from Gen Z is gaming phones. According to the China Industrial Research Institute, the number of mobile game players in China has reached 630 million. Screen size, battery capacity, heat dissipation capacity and more all affect the experience of mobile gamers. JD has worked with major brand manufacturers to create gaming phones through C2M. Red Magic, Nubia’s gaming phone brand and Black Shark’s 5G gaming phone are just a few examples of some of the products which have sold well on JD. In 2018, Black Shark launched the first gaming phone in China based on JD’s big data analysis. That same year, the first Red Magic gaming phone was also launched, with sales surpassing 10,000 in just 37 seconds.
The C2M model for product development not only improves customers’ experience, but also helps brands gain a deeper understanding of consumer trends and improves sales performance. The initiative also showcases JD’s supply chain strength. Over half of C2M phones sold on JD are gaming phones.
Customized services are another draw for Gen Z, which is less price sensitive as a generation than older generations and pays more attention to the holistic shopping experience. Providing services such as flexible broken screen insurance, full price trade in and more, go a long way in gaining loyalty from younger consumers.