Aug 26, 2022|
The J Shop Sees A Flying Start in Q2 2022
by Yiming Yan
In its unaudited financial results for the second quarter of 2022, JD.com reported a record net service revenue of US$6.2 billion, up 21.9 percent year over year (YOY). The J Shop had experienced impressive growth in the second quarter, as part of JD’s upgrading of its Fashion and Lifestyle business.
Q2 coincided with two major promotions, the 520 Festival (Chinese Valentine’s Day) and the 618 Grand Promotion, during which The J Shop also saw a concentrated soaring sales after the upgrade.
In this year’s 618 Grand Promotion, the number of participating merchants in The J shop surged by more than 50 percent YoY, and there were up to twice as many products available. The sales of 9707 brands and 531 J-shop categories had 100 percent year-over-year growth during the 618 Grand Promotion, while the sales of its omni-channel business saw an 83 percent year-over-year growth.
In addition, The J shop also saw a flurry of international brands on board during the quarter, including CELINE, Maison Margiela, Maison Kitsuné, Moose Knuckles, etc., while almost 300 premium brands launched official flagship stores with The J Shop. The array of cosmetic brands in The J Shop has been enhanced by the opening of official flagship stores such as LA MER, ARMANI, Jo Malone London, Shiseido, M.A.C., and so on.
Faced with sporadic COVID shutdowns during the quarter, The J Shop has played to its strengths to help merchants overcome supply chain challenges and support the industry’s high-quality growth, by using digital technology to help merchants shorten production cycle time and ease inventory strain. In order to assist the brands in clearing out their inventory during the 618 Grand Promotion, The J Shop offered a sell-out rate of over 90 percent for clearance items from brands including HLA.
In May of this year, in order to further strengthen the omni-channel layout, JD Fashion and Lifestyle business was officially upgraded to The J Shop by launching a new online channel on the JD app and opening offline physical stores in Xi’an, Shenzhen, Chengdu, Beijing and other cities. The J Shop integrates JD’s digital intelligence supply chain advantages and omni-channel capabilities to improve user experiences. Online orders for store delivery can be made in as fast as one hour.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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