Nov 9, 2020|
Third Party Report: JD Leadership in Key Consumer Trends during Singles Day
by Ella Kidron
A recent report released by O&O Consulting has captured some of the consumer trends for this years’ Singles Day Grand Promotion (November 1st to 11th ) based on performance of key platforms during the first half of the sale. Among the findings, the data reveals JD’s leadership in some of those trends, and indicates how the company is contributing to the recovery and upgrade of consumption in core categories. Here are four highlights from the report:
- Increasing demand for smart products
In home appliances, JD accounts for more than 50% of sales for televisions, refrigerators and washing machines, considered the three traditional “must-have” pieces. The upgrade of these products to make them more intelligent covers the entire category. In particular, with a newfound increased attention to health and cleanliness, disinfectant and sterilization features have become a dominant trend in the washing machine space.
JD also continues to excel in sales of telecommunications. According to a report released by the China Market Information Research Association, JD accounted for 58% of category sales during the first half of the 11-day Singles Day shopping period, higher than all of the participating platforms combined.
- More specific demands contribute to popularity of C2M, Health and Wellness, etc.
JD’s Consumer-to-Manufacturer home appliances and other strategic C2M products have continued to grow immensely during the shopping festival period. JD has maintained a substantial lead in sweeping robots, speakers, headphones, smart locks and other smart products which meet consumers’ highly specific needs, and also bring new growth avenues to the industry.
Increased consumer attention to health has become a dominant trend. JD accounts for 58.6% of online mask sales and 53.6% for steam foot bath basins. JD is also the largest online source of health and nutrition products. JD previously announced it would offer 300 million items of new products during the 22-day Singles Day sales period, which is the shopping period plus an 11-day pre-sale period from October 21st to 31st, and that C2M would be a big focus.
- Buying fresh online is here to stay
As consumption habits have shifted online in the pandemic period, consumers have become accustomed to buying routine grocery needs, such as rice, noodles, grain, cooking oil and more, via e-commerce. JD has become the channel with the highest market share of consumption of rice, flour, cooking oil, and other essentials. The willingness to buy these items, which are heavy, have high requirements for safety and reliability and yet have a lower unit price than say, home appliances, reflects consumers’ trust in JD Logistics’ ability, especially in a category like fresh.
JD Super has already seen consumers rushing to the platform for all grocery essentials. In the first 10 minutes of Nov. 1st, sales on JD Super, JD’s online supermarket, increased 700% YOY. In the first minute, sales of packaged foods, maternal & baby products and liquors surpassed RMB 100 million yuan. Sales of personal care and cleansing products increased 10 times YOY in the first five minutes; and sales of pet products increased over 15 times YOY in the same period.
- Rising expectations for logistics speed
According to a user satisfaction survey conducted by Southern Metropolis Daily, a Guangzhou-based newspaper, during Singles Day period, 97.18% of consumers said that delivery time exceeding five days is unacceptable. Within this, 79.1% of respondents said that receipt within three days is acceptable while only 2.82% of respondents were accepting of delivery in five days or more. In most timely platform for delivery, JD is the clear leader at 38.5%. Last year during Singles Day period JD was able to deliver 92% of first party orders same or next day.
JD has not only won the trust of consumers by its lifelong commitment to authenticity and quality, but also because of the company’s ability to meet the precise needs of consumers contributing to a combined consumption recovery and post-pandemic upgrade.
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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