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.