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In China and Abroad, ‘Silver Economy’ Booms

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)

 

SEVEN FRESH Prepares CNY Meals for Customers

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)

JD Health’s Relief Supplies Arrived in Shijiazhuang

by Hui Zhang

JD Health’s new batch of relief supplies, namely 240,000 medical masks and 1,000 bottles of vitamin C, arrived in Shijiazhuang, Hebei province, at 11:30 pm on Jan. 20. The supplies will be distributed to designated medical institutions that are treating COVID-19 patients.

The supplies come from more than 10 merchants on JD Health’s B2B platform known as JD Medicine Procurement and will be provided to people in need for free.

The supplies come from more than 10 merchants on JD Health’s B2B platform known as JD Medicine Procurement and will be provided to people in need for free.

In addition to supplies donation, JD Medicine Procurement has set up a dedicated online portal for the procurement of anti-virus supplies. At the same time, the platform works closely with pharmaceutical manufacturers to ensure the increasing demand for medical supplies can be sufficiently met.

Leveraging its supply chain advantages, JD Logistics launched a special channel for the transportation of the aid to Hebei. Moreover, JD Health has also opened online medical consultation service platform for free during the outbreak.

“Led by JD Health, merchants at JD Medicine Procurement have actively assisted Hebei in the fight against the epidemic, including guaranteeing priority delivery to pharmacies in the province, promising not to increase price, and more. All parties are devoting themselves to making a contribution,” said a spokesperson from JD Medicine Procurement.

 

(zhanghui36@jd.com)

Posted in ESG

Remote Orders Spike Ahead of Chinese New Year: Customers in Lower-Tier Cities Show Love From Afar

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)

 

Forbidden City Launches New Products on JD to Celebrate Chinese New Year

by Hui Zhang

The Forbidden City, also known as the Palace Museum in Beijing, has launched a series of Chinese New Year-themed decorations and products featuring traditional Chinese design style on JD.com to welcome the upcoming Year of the Ox in 2021.

JD.com to welcome the upcoming Year of the Ox in 2021.

The traditional red colored decorations include banners with Spring Festival couplets imitating the calligraphy of Emperor Qianlong of the Qing dynasty (1636-1911), and a meaningful blessing, Wufulinmen (五福临门), which refers to “five blessings that have arrived at the door.” The blessing appears in variations imitating the calligraphy of Emperors Kangxi, Yongzheng, Qianlong, Jiaqing, and Daoguang of the same dynasty. In addition, door god couplets, paper cuttings, and red envelopes are also packaged in a gift set for the Chinese New Year grand promotion.

The traditional red colored decorations include banners with Spring Festival

New products such as a lipstick with Chinese traditional design, a red scarf, aromatherapy in a Qing dynasty featured bottle and tea set with traditional figure design are also part of the new products to mark the coming of the Chinese New Year.

The Forbidden City launched a store on JD.com in 2019 to further expand its consumer base taking advantages of the ecommerce platform. Through a partnership with JD, the age-old brand has been able to more precisely target consumers and expand reach for its own stylish products that feature a twist on traditional Chinese cultural elements, resulting in 186% sales growth in 2020 year-on-year following the store’s opening.

The Forbidden City launched a store on JD.com in 2019 to further expand its consumer base taking advantages of the ecommerce platform

During the holiday seasons, many consumers buy Forbidden City products as gifts, due to their unique cultural designs and premium quality. JD makes it possible for consumers to receive products the same day or next day, leveraging the overall strength of its nationwide logistics network.

“JD’s culture business department is working with established cultural brands by using their IP to help spread traditional Chinese culture. The Forbidden City is an important IP brand and more than 60% of its consumers are born after the 1990s. Through working with the Forbidden City and following the consumption trend on Chinese traditional products, both sides are working together to bring various products to more and more young consumers,” said a department manager in charge of the Forbidden City business operation from JD.

 

(zhanghui36@jd.com)

Photo Gallery: This Week at JD (January 16 – January 22)

JD adds a provisional air cargo route from Inner Mongolia to Tianjin, started from Jan. 19, to meet the increasing demand for meat products and secure in-time delivery during the Chinese New Year period.

JD Worldwide launched the Sri Lanka National Pavilion on Jan. 21. The pavilion focuses on providing the most iconic and high-quality products from the country, including gems, black tea and spicy products. Dr. Palitha T. B Kohona, Ambassador of Sri Lanka to China, joined the opening ceremony held in JD’s headquarters in Beijing.

 

Nick Coyle, CEO and Executive Director of the China-Australia Chamber of Commerce joined a livestream show on JD Worldwide on Jan. 20 to support the trade and ecommerce development between China and Australia, and to introduce Australian products to JD customers ahead of Chinese New Year. The livestream show, which lasted for 12 hours, was held on Jan 20, the first day of JD’s Chinese New Year Grand Promotion, aiming to introduce high-quality imported products for JD customers.

 

A JD logistics van loaded with 200 protective gowns arrived in Shijiazhuang, Hebei province (300 km south of Beijing) at 11 am on Jan. 16. Donated by the Xujiapeng sub-district of Wuhan. The donation is the first to be transported to Shijiazhuang after JD’s launch of a special transportation channel for the aid to Hebei province.

 

Italian fashion brand Marni launched a flagship store on JD’s e-commerce platform on Jan 20. The online store is bringing to Chinese consumers the brand’s early spring collections for women including long dresses.

 

Customized Facemasks Become Hot Items on JD.com ahead of Chinese New Year

by Vivian Yang

Sales of Chinese New Year-themed facemasks are surging on JD.com. Relevant product keywords have been searched more than 1.26 million times on the platform since Jan. 20, which is the date marking the beginning of the New Year celebration on the lunar calendar.

Among the trendiest items are limited-edition facemasks of red and golden colors, imprinted with “2021”and featuring ox elements (as 2021 is the lunar year of the ox).

Sales of Chinese New Year-themed facemasks are surging on JD.com.

“Facemasks have now become a necessity in our life and many Chinese people wish to wear something to showcase an auspicious beginning of the new year,” said a spokesperson of JD Health. “These facemask products with customized designs nicely address customers’ desires.”

“I’m bored of wearing the blue and white facemasks every day,” commented a JD customer on a shopping page for a customized facemask. “The New Year edition comes right in time, and makes me feel happy and hopeful that the pandemic will be over soon.”

Other facemask products with customized and personalized patterns on JD.com range from animals and plants to known cartoon characters that are also widely welcomed by kids and their parents.

JD.com range from animals and plants to known cartoon characters that are also widely welcomed by kids and their parents.

To ensure the safety of these customized mask products, merchants must submit all relevant quality control and certification documentations for JD’s review before the items are listed for online sales.

 

(vivian.yang@jd.com)

JD Launches Apple Big Day during Chinese New Year Grand Promotion

by Ling Cao

JD launched “Apple Big Day” on Jan. 21, providing Chinese customers with benefits and subsidies to prepare for the upcoming Chinese New Year.

On Jan. 20 and 21, JD customers have the opportunity to get RMB 200 yuan coupons to purchase iPhones,  and to receive up to RMB 3,000 yuan from the trade-in service, as well as coupons to purchase AirPods.

JD’s joint venture Dada Group will also hold a campaign Jan 24-25 for Apple’s products. JD Daojia, a local on-demand retail platform under Dada Group, will cooperate with over 600 Apple’s authorized offline stores, enabling customers to buy AirPods at 50% off when they buy an iPhone 12. Customers can also search Apple on JD’s platform, and enjoy the same promotions at cooperated offline stores. Customers will also enjoy one-hour delivery service.

During the Chinese New Year Grand Promotion, JD Mobile is providing other benefits, including worry-free refund within 30 days, a buy-now-pay-later policy, RMB 99 yuan for a battery replacement, and more.

Daniel Tan, president of JD Mobile Devices said, “Dada group is an important omnichannel partner of JD Retail. We want to leverage our advantages in logistics and supply chain to directly reach customers.”

 

(ling.cao@jd.com)