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.