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by Kelly Dawson

In a new report released by China-focused digital marketing agency Alarice, corporate innovation coach Nishtha Mehta pointed to JD’s healthcare arm JD Health, which listed on the Hong Kong Stock Exchange in Dec. 2020, as a “great example of both speed and a variety of customized products and services. Demand for online healthcare services has boomed over the pandemic, as people avoided outpatient clinics and pharmacies.”

Post-COVID-19, Chinese consumers are increasingly driven by a desire to enhance well-being, not only for themselves through the purchase of health and self-care products but also for the greater good, as evidenced by a spike in interest toward environmentally sustainable brands, according to this report.

“Personal care will be more and more important and Chinese consumers will continue to spend more time and money purchasing safe, eco-friendly products and eating more healthily after the [COVID-19] crisis,” said Alberto Antinucci, a digital innovation strategist and China expert, in the report. In fact, recent analysis by McKinsey found that 70% of respondents signal willingness to spend more to buy environmentally conscious products, and three fourths plan to continue a healthier diet after the pandemic.

Indeed, as fears around the virus have led to more diligence among customers toward personal hygiene and health, JD Health has seen massive growth with both health products and services. As of that month, JD Health’s daily online consultation interactions averaged 100,000, making it the largest online medical consultation platform in China; and during the first 30 minutes of JD’s 2020 Singles Day Grand Promotion, JD’s nutrition and health products category saw sales increase by over five times YOY.

“I believe JD has and will continue to offer a compelling alternative to Alibaba’s mass offering by focusing on niche and personal services,” said Jerry Clode, founder of China-focused brand strategy agency The Solution, in the report. Clode raised the example of JD’s fresh produce business, which as of October 2020 leads China’s online fresh produce sales with a market share of 25.8%, according to the China Association of Market Information and Research.

“JD has successfully created a perception amongst consumers that they are more dedicated to delivering products fresh and in optimal condition,” he said.

Although there has been a rise in health-consciousness among all categories, consumers born after 1990-1995 (segments deemed “post-90s” and “post-95s”) are driving the consumption of health-related products, according to the report.

Post-95s, referred to as Gen Z in the US, were the main purchasers of traditional-style health foods during the 2020 Singles Day Grand Promotion, for products including bird’s nest soup and thermal underwear. Many purchased these items not only for themselves but also for family members, as remote orders increased during a period when many families remained separate for longer than usual due to anxieties around travel.

As Chinese consumers became more health-conscious, environmentally sustainable brands and products also saw a boost because they were associated with healthy and clean characteristics. “Many Chinese saw COVID-19 as a sign from Mother Nature to stay in line,” theorized Mark Tanner, founder and managing director of marketing strategy firm China Skinny, in the report.

JD’s commitment to developing a sustainable, ethical approach is firmly rooted in the core identity of the business, as evidenced by its extensive poverty alleviation efforts and ongoing projects including the JD Green Stream Initiative.

Younger consumers are also driving the market trend of “Guo chao” (which translates to “national fashion”), in which products feature traditional Chinese motifs. One example is JD’s cooperation with the Forbidden City Cultural Products flagship store on a traditional almanac calendar and other products ahead of Chinese New Year.

“They’re seeking customized and limited edition products as opposed to mainstream products that feature flashy logos or brand names,” said Beverly Law, a senior digital marketing executive for Alarice, in the report. “Guochao isn’t just a fashion trend. It also reflects a strong appreciation and recognition of Chinese culture.”

This trend is also motivated by a growing desire among post-95s toward customization and personal expression, a demand that JD’s ongoing C2M initiative aims to address with tailored products reflecting consumers’ evolving tastes.

Analysts interviewed for the report were largely optimistic, and for good reason: As China’s economy has largely recovered from the upheaval of COVID-19 in 2020, revenue in China’s e-commerce market is projected to reach US $1,250,539 million in 2021.

 

(kellydawson@jd.com)

by Rachel Liu

People may like to buy calendars ahead of Chinese New Year, as the beginning of a new year brings a fresh start and good luck. JD’s big data shows that themed calendars launched by museums and art organizations have enjoyed great popularity at the turn of the year. On December 30^th, sales of a Forbidden City themed calendar increased 450% YOY.

Designed by the Forbidden City Cultural Products flagship store, the Forbidden City calendar follows China’s traditional Almanac, which is based on the lunar calendar and provides guidance on what to do on each day. The cover of the calendar features the classic “Forbidden City red” color and is decorated with the Shen Wu Gate, the north entrance of the Forbidden City, auspicious clouds, and a crane, which stands for longevity and luck in Chinese culture. This calendar also introduces 24 seasonal division points in lunar calendar. According to JD’s Big Data Research Institute, these traditional almanac and other calendars that introduce Chinese traditional culture are the highest-selling ones on JD.

Calendars designed by the Chinese National Museum and the British Museum also received great popularity. The Chinese National Museum calendar introduces 365 different relics from Chinese history, while the British Museum calendar designed 12 themes, one for each month based on historical relics, providing knowledge and fun for customers. JD data shows that female customers like to gift calendars related to art and culture to their friends, and sales of these two kinds of calendars both increased over 270% YOY.

Some calendars aim to capture the hearts of niche customer groups. For example, there is a special “cloud calendar” for sale on JD designed for customers who love the sky. Each page of the calendar contains a photo of clouds collected from netizens living all over the world since 2016. Sales of book calendars, which introduce one book on each page, increased 3.4 times YOY. Customers can scan the QR codes on each page for audio introductions on each book.

“Calendars are not only a tool for checking dates for Chinese customers, but have become a way to express their tastes and personalities. We noticed that more and more customers like to buy themed calendars or specially designed calendars to add some colors to their desks or send to their friends as gifts,” said a sales representative from JD Fashion and Lifestyle.

 

(liuchang61@jd.com)

by Kelly Dawson

Echoing a rapid spike in online consumption in 2020 by elderly shoppers in China, a new report released by retail analysis firm NPD Group indicates a 49% increase in online spending and 40% increase in frequency of online purchasing by American shoppers 65 and older.  The report, which gathers data from both online and offline consumer receipts, confirms JD’s previous analysis that elderly shoppers are the fastest-growing segment of online shoppers.

Much of this growth has been spurred by the pandemic, forcing elderly consumers to break long-held habits in the name of safety. In China, droves of elderly shoppers went online for the first time, primarily purchasing daily essentials like vegetables, fruit and meat but gradually expanding their purchases to include non-essentials.

Speaking with the Washington Post, Jackie Pardini Hartzell, a spokeswoman for the home improvement chain Lowes, said of the explosion in online consumption by elderly shoppers, “The past year has demonstrated just how quickly shopping behaviors can change.”

In fact, even as the pandemic has calmed in China, many elderly consumers are continuing to take advantage of the convenience and ease of shopping online, helped by JD’s various initiatives to narrow the digital gap for the elderly: including in-store app training for digital payments, booking appointments and more; tailor-made smartphones featuring remote assistance and fast medical consultation services; expanded voice-activated devices and services especially for elderly consumers, and more.

For Chinese retailers like JD, the growth of what many are calling the “silver economy” is no surprise. Already totaling 3.7 trillion yuan in 2018, China’s “silver economy” is expected to reach 5.7 trillion yuan by the end of 2021, according to iiMedia Research group.

As China’s e-commerce industry has expanded, so too has its population of plugged in seniors. According to China’s National Bureau of Statistics, Internet users above 60 rose from 4 percent of the country’s roughly 940 million netizens in 2016 to 10.3 percent in June of 2020. Additionally, JD’s Big Data Research Institute found that in 2020, Internet users aged 56 and above spent 2.3 times as much as the average user in 2017.

 

(kellydawson@jd.com)

 

by Ling Cao

With Chinese New Year (CNY) around the corner, SEVEN FRESH is providing a wide range of meals for customers, including ready-to-cook meal gift boxes and meal packages.

The selections include ready-to-cook local specialties from all around China, such as steamed “eight treasure rice” from Zhejiang, sausage from Guangdong and lamb chops from Beijing.

Ready-to-cook food increased in popularity last year under the COVID-19 situation. Yu Feng, sales manager of seafood at JD Fresh shared, “During the pandemic, we have seen that ready-to-cook products are popular, which can soften customers’ concerns for buying fresh seafood, as well as release them from complex cooking processes.”

SEVEN FRESH is also offering self-developed delicious dishes including baked chicken, curry shrimp, and fried mushroom.

In addition, SEVEN FRESH launched four kinds of meal packages, meeting different needs of customers. These packages include Boston lobsters, steamed fish, as well as crabs cooked by SEVEN FRESH. According to JD’s data, the package which suits three to four people is particularly popular. Customers can either enjoy the meal in-store, or have it delivered to their doorsteps.

Lixia Duan, head of SEVEN FRESH supermarkets shared that SEVEN FRESH stores will continue to operate during CNY, working to ensure people’s livelihood through both online and offline channels.

 

(ling.cao@jd.com)

by Kelly Dawson

With a recent uptick in COVID-19 cases, many Chinese are preparing to stay in the cities where they work during the upcoming Chinese New Year holiday. For residents of cities in the northeast of China, Henan, Shandong and Sichuan, JD’s ongoing expansion into lower-tier markets has made it possible to express their affection for loved ones via “remote orders” of special treats and gifts sent to other cities.

Across all regions, remote orders such as rice, noodles and cooking oil increased by 30-50% YOY, which may be attributed to a desire to ensure loved ones are well fed and safe during a time when many families are separated.

Additionally, remote orders tended to demonstrate a nostalgia for the specialty snacks and treats of people’s places of origin, with families sending such treats to their loved ones living in bigger cities, and those living apart from family also choosing to send similar gifts to their hometowns.

As is to be expected, those gifts varied depending on the region. Read on for a breakdown from the JD Big Data Research Institute that reveals much about what Chinese consumers hold close to their hearts (and stomachs) ahead of Chinese New Year.

 

Northeast China

Remote orders placed in Shenyang since Jan. 1 increased by an astounding 94% YOY; while remote orders from Harbin and Changchun increased by more than 50%, with top destinations including Shandong, Hebei and Guangdong provinces.

Among the most popular products purchased for remote order to these cities were Chagan Lake fish, which doubled in sales, along with Harbin red sausage, ginseng from the region, and abalone slices.

Family members also demonstrated their love, with remote orders of products purchased to be sent to Liaoning increasing by 85%, with most originating in Inner Mongolia, Shandong, Hubei, Liaoning and Fujian. Popular products included fruits, seafood, convenience foods and snacks, red heart pomelo, handmade fish balls, dried oysters and more.

Remote orders sent to Harbin originated in Hubei, Shandong, Liaoning, Fujian and Sichuan, with popular food and snacks including mountain-raised pork, Arctic shrimp, fresh sea cucumber, Dezhou braised chicken and Zhoucun sesame seed cakes.

Customers in Hubei, Liaoning, Fujian, Shandong and Sichuan were responsible for the majority of remote orders sent to Changchun, with popular products including oranges, Sichuan-style sausages, hot pot ingredients and more.

 

Henan province 

Residents of Zhengzhou city placed about 30% more remote orders YOY since Jan. 1, with an increase of 1-3 times for sales of wine, meat and milk. Most remote orders were sent to Guangdong, Henan, Shandong, Sichuan and Hubei, with the most popular products including sweet potato vermicelli and braised chicken.

On the other hand, remote orders sent to Zhengzhou increased by 60%, originating in Hubei, Beijing, Fujian, Shandong and Liaoning. The most popular products sent from Hubei included duck neck, brown sugar dumplings and preserved eggs; while remote orders placed in Liaoning favored food and snacks like sea cucumber, abalone slices, dumplings, the traditional dish Buddha-Jumping-Over-the-Wall, and more.

 

Shandong province

Remote orders from Jinan, the capital of eastern China’s Shandong province, increased by 38%, with beverages, seafood, meat and condiments increasing by 2-4 times YOY for the period since Jan. 1. Other popular products included dried abalone, fresh sea cucumber, and sesame seed cakes; and the most popular destinations for these orders were Beijing, Guangdong, Henan, Sichuan and Northeast China.

Meanwhile, remote orders sent to Shandong province increased by 70%, originating in Beijing, Shanghai, Hubei, Fujian and Liaoning, with top product categories including meat, eggs, lower-temperature dairy products and more. For example, the popular products sent from Beijing were mutton,  and the Daoxiangcun Bakery gift box; while from Fujian, the most popular products were Hong Kong-style dried squid and shellfish. Among the most popular items from Hubei were duck neck and preserved thousand-year-old duck egg.

 

Sichuan province

Finally, remote orders placed since Jan. 1 from Chengdu, capital of southwestern China’s Sichuan province, also spiked with an increase of 75% YOY. Among the most popular products were dried meat, snacks, hot pot meat balls, eggs and candied fruits.

Residents of Chengdu placed remote orders to Yunnan, Chongqing, Guizhou, Gansu and Hebei, with the most popular products including Sichuan-style sausages, hot pot ingredients, oranges, and more.

On the other hand, remote orders sent to Chengdu originated in Inner Mongolia, Fujian, Shandong, Liaoning and Henan, with the most popular categories including meat products, seafood and snacks like sesame seeds, sweet potato noodles, Dezhou braised chicken and more.

 

Uninterrupted delivery

Fortunately, customers can rest assured that their remote order gifts will arrive in time. JD Logistics announced that it will ensure delivery during the Chinese New Year period, for the ninth consecutive year. As the first logistics company in the country to offer this service, JD is now also expanding its delivery policy to include the first three days following New Year’s Eve, during which customers in 30 provinces, municipalities and autonomous regions, nearly 300 cities and 1,500 counties and districts can receive orders as fast as usual.

 

 

(kellydawson@jd.com)