Mar 15, 2021|
Two Thirds of Customers Prefer Omnichannel Approach for Electric Appliances
by Kelly Dawson
Two thirds of consumers prefer a combination of online and offline methods when purchasing electric appliances, according to the 2021 Electric Appliance Consumption Satisfaction Report released on Mar. 13 by market research firm Digital 100. Among customers who purchase electric appliances, JD.com leads the field based on its commitment to 100% authentic products and an advanced omnichannel approach, both essential for consumer satisfaction when it comes to big-ticket purchases like electric appliances.
According to the report, 17% of customers prefer to first view and test the product in an offline store, before eventually purchasing online—which allows for further research and comparison before making a final decision; and 22% do online research first to select potential products of interest, and then visit an offline store to test the product in person, before eventually purchasing the product online. Customers can also choose whether they prefer to pick up a purchase at an offline store, or have it delivered directly to their homes, providing additional options for convenience and peace of mind.
As customers’ needs evolve, JD’s recognition of the need for online-offline integration will be the key to future success, said David Roth, chairman of BrandZ and CEO of The Store WPP EMEA and Asia. “JD is one of the leaders in understanding this strategic challenge.”
JD’s omnichannel approach extends across multiple categories and industries, with its over 12,000 offline home appliance experience stores across China serving as a clear example of how offline stores can add value for consumers.
Visitors to JD E-Space, JD’s 50,000 square-meter experience store in Chongqing, have free rein to try anything in the store. Customers debating between washing machines are encouraged to take them for a ‘spin’; participate in baking tutorials, and more.
The company plans to open 20 JD E-Space experience stores in first-tier cities across China by 2025. These offline stores play an important role in the company’s expansion into lower-tier markets, where customers are still acclimating to online shopping. Customers can also access post-sales services at the offline stores.
JD’s omnichannel strategy has also been a key factor in ensuring ever faster delivery. While the traditional retail model (still prevalent in many countries including the US) relies on a few major warehouses, JD’s extensive network of offline stores combined with advanced logistics have drastically shortened delivery time to consumers.
JD Retail CEO Lei Xu has said that omnichannel will remain a key strategy for the company.
“The significance of JD’s omnichannel strategy is to improve overall retail efficiency in a wider range of new formats and scenarios, meet consumers’ diversified and instant purchases of goods and services, and create value for merchants and consumers. We believe that the penetration rate of omnichannel and instant consumption models in different industries will continue to increase in the future. The industry space is huge.”
Apr 20, 2024|
JD.com Unveils Ambitious Plans for 618 Grand Promotion: Aiming to More Than Double High-Performing Merchants
JD.com is gearing up for this year’s 618 Grand Promotion with an ambitious goal: to more than double the number of merchants achieving sales over one million yuan on its platform. At the recent Conference of Merchants and Ecosystem Partners on April 18, JD.com introduced a range of supportive initiatives aimed at achieving this ambitious target.
Sandy Xu, CEO of JD.com, noted at the conference that the company will dedicate significant resources to bolster traffic support, incorporate advanced AI technology, and enhance service capabilities. These efforts are particularly focused on empowering third-party merchants, including small and medium-sized enterprises in its marketplace.
Key initiatives include optimizing the platform’s traffic distribution ecosystem to prioritize highly-rated stores and products and competitively priced products through enhanced search and recommendation mechanisms. Additionally, JD.com will continue to offer merchants free access to high-traffic channels, which include significant incentives such as the popular 10-billion-yuan discount and free shipping programs.
To engage more content creators, JD.com recently announced that it will allocate over one billion yuan in cash incentives and traffic resources. This investment aims to cultivate a vibrant ecosystem that supports merchants’ traffic, business growth, and innovation.
At the core of JD.com’s strategy is technological innovation, which involves integrating AI-driven solutions into merchant operations. This includes the deployment of JD’s proprietary large language model, ChatRhino, and an AI-empowered merchant operation platform that offers are variety of free AI applications, and more. These technologies streamline various operations scenarios, enhance efficiency, and reduce costs for merchants.
For instance, On April 16th, JD.com unveiled an AI digital avatar of its founder, Richard Liu, as a sales host on its livestreaming platform. This event attracted 20 million viewers in just one hour and generated sales exceeding RMB 50 million ($6.9 million). This AI-driven virtual host technology, developed by JD Technology, is now supporting over 4,000 brands on the platform. Additionally, merchants such as a sashimi knife seller can utilize JD.com’s AIGC content generation tool to quickly produce high-quality demonstration images, bypassing traditional costs associated with product photography.
JD.com also continues to enhance its service capabilities, particularly for small and medium-sized merchants. This includes personalized business guidance, comprehensive training programs, and upgraded after-sales services, ensuring a seamless shopping experience for customers.
As of March 2024, JD.com has seen a significant increase in active third-party merchants on its platform, surpassing one million. This growth is a testament to the platform’s effectiveness and its appeal to both new and established merchants.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
Photo Gallery: This Week at JD (Mar. 8 – Mar. 12)
