JD.com reported a record-breaking Singles Day Grand Promotion on November 12, 2023, with transaction volume, order volume, and user engagement reaching all-time highs.
JD.com’s “JD Procurement and Sales Manager Livestreaming” initiative went viral among Chinese consumers, captivating more than 380 million visitors. Transaction volume for over 60 brands surpassed RMB 1 billion, and nearly 20,000 brands witnessed a threefold increase in transaction volume compared to the previous year. Notably, new merchants experienced a fivefold surge in order volume compared to the same period last month.
The event marked a historic moment for JD.com, with several innovative initiatives propelling its success.
Innovative Livestreaming Strategy
This year’s Singles Day saw the “JD Procurement and Sales Manager Livestreaming” attracted widespread attention from both industry insiders and consumers alike. The innovative model waived booth and commission fees for brands, focusing instead on delivering unparalleled value to consumers. This approach enabled the offering of a diverse array of popular branded products at discounts as steep as 50%.
Transitioning from strategic behind-the-scenes roles, JD’s procurement and sales managers embraced the limelight. Serving as a bridge between brands and consumers, these managers brought a unique blend of deep consumer insight and extensive product knowledge. Their understanding of evolving industry trends enabled them to adeptly recommend a range of affordable, high-quality products to customers. Through this livestreaming venture, JD.com’s managers leveraged their expertise to guide consumer choices, effectively bridging the gap between brand offerings and consumer needs.
Low-Price Initiatives and Phenomenal Growth
Throughout the year, JD.com has been at the forefront of introducing a series of ambitious low-price initiatives. Key among these have been the “10-billion-yuan Discount” program, the “9.9-yuan Items with Free Shipping” offer, and various dynamic “Flash-sales” channels. These initiatives have not only been well-received but have also experienced a meteoric rise in popularity, particularly during the grand promotion period.
The launch of the “10-billion-yuan Discount Day” on October 31st at 8 P.M. was a landmark moment. In less than four minutes, the campaign had already generated over 100 million RMB in transactions. Additionally, the “9.9-yuan Items with Free Shipping” day, held on November 2nd, marked another significant achievement. The entire day saw a staggering 35-fold increase in order volumes and a 28-fold rise in user engagement compared to the figures from the 618 Grand Promotion.
Enhanced Customer Services and Expanded Trade-In Program
Throughout the promotional period, JD.com offered more 200 customer services, giving customers an even greater peace of mind when making purchases. In the past three years, JD’s “trade-in” service has been expanded to 200 product categories, directly benefiting over 20 million users. Furthermore, JD’s “price-guarantee” service, introduced in 2008, has delivering substantial savings to consumers, amounting to nearly RMB 9 billion to date. During this year’s Singles Day alone, it has saved users RMB 564 million.
Merchant Growth and Support Initiatives
This Singles Day marked a significant milestone for JD.com in terms of merchant growth and support. The platform witnessed a 3.4-fold increase in new shop registrations during this Singles Day, and the number of established merchants participating in the grand promotion increased by 1.5 times compared to last year’s grand promotion. A key driver of this growth was the “Spring Dawn Plan,” an innovative initiative by JD.com that distributed over RMB 100 million in subsidies to newly opened stores during this Singles Day, which attracted a wave of new merchants, thereby expanding product offerings for consumers. JD also launched a “RMB 1-yuan” package for merchants to access JD.com’s operational data open platform. The platform grants merchants comprehensive, real-time insights into store operations, enabling them to make data-driven decisions and optimize their business strategies effectively.
Brand Performance and On-Demand Retail Expansion
Numerous brands achieved explosive sales growth. During the first week of promotion, starting October 23rd, nearly 30 brands reached sales of over RMB 1 billion, and the transaction volume of nearly 15,000 brands increased more than fivefold YoY, with nearly 9,000 brands experiencing over tenfold growth in transaction volume.
Within 10 minutes of the sales period commencing on October 31st, major mobile phone brands like iPhone, Xiaomi, Honor, Huawei, OPPO, and vivo experienced a 100% increase in transaction volume YoY. This trend was not limited to technology; premium luxury brands such as Louis Vuitton, GUCCI, and DIOR also saw their transaction volumes more than triple within the first 30 minutes compared to the previous year.
The surge of on-demand retail, featuring one-hour delivery, continues to gain momentum. This year’s Singles Day saw the integration of more than 400,000 brick-and-mortar stores into JD’s on-demand retail business, JDDJ, doubling the store network from the previous year. Consumers in over 2,200 counties and districts across China enjoyed the convenience of instant shopping, with products delivered to their doorstep within minutes. The ShopNow business saw a 60% YoY increase in the number of users placing orders, underscoring the growing consumer preference for quick and efficient shopping experiences.
Industrial Belt Collaborations
JD Super, the supermarket business under JD Retail, collaborated with over 2,000 industrial belts nationwide, showcasing hundreds of thousands of high-quality agricultural products that resulted in sales peaks. Fujian province’s dried yellow croaker and Yunnan province’s corn experienced YoY growth of 300% and 237%, respectively. The impact of the initiatives was further amplified through the “9.9-yuan Items with Free Shipping” program.
Additionally, sectors such as apparel, home appliances and furniture, and fittings and hardware within these industrial belts witnessed substantial growth. The number of merchants in these sectors expanded dramatically, with increases of 248%, 141%, and 150% respectively. JD’s private label brands, JZao and Huixun, were instrumental in enhancing this dynamic ecosystem, forging partnerships with over 70% of key industrial belts.
Logistics Supply Chain and Technology Excellence and International Expansion
On the logistics front, a Bosideng down jacket dispatched from JD Logistics’ flagship Qingdao industrial park on October 23rd marked China’s 100 billionth express delivery parcel in 2023. JD Logistics’ industry-leading logistics infrastructure ensures that 95% of JD’s retail orders can be delivered within 24 hours, with over 10 million products eligible for same-day delivery.
JD Cloud, the cornerstone of JD’s technology, saw peak user visits per second increase by 170% compared with the same period last year, and its intelligent customer service handled more than 1.4 billion inquires.
Additionally, JD’s omnichannel retail brand in Europe, ochama, marked another milestone this Singles Day by extending its doorstep delivery service to 24 European countries. In the Netherlands, Germany, and Belgium, selected pick-up points extended their operating hours until 22:00, providing consumers with a wide range of quality products at low prices and flexible fulfillment and delivery services.
At the core of these advancements is JD.com’s commitment to leveraging cutting-edge technology and its deep expertise in streamlining supply chain operations. This strategic focus has significantly enhanced the efficiency of JD.com’s supply chain, enabling the company to offer substantial price reductions on its products. JD’s approach not only delivers cost benefits to a wide consumer base but also fosters robust, sustainable growth for businesses and partners throughout the supply chain.
(yuchuan.wang@jd.com; vivian.yang@jd.com; )
