Apr 29, 2021|
White Paper: Chinese Home Appliance Market May Usher in Sales Boom During Holiday
by Hui Zhang
An increasing number of Chinese consumers are considering replacing their home appliances during the upcoming 5-day May Day Holiday (May 1-5), as reflected in a white paper by JD.com and China Market Monitor, a research organization focusing on retail research in the Chinese consumption market. The white paper predicts that the large home appliance market size will reach up to RMB 52.3 billion yuan during the holiday with “high-end,” “intelligent,” and “innovative” being among the key words to describe consumers’ preferences.
These new preferences and the continuous market growth during the upcoming holiday can be traced back to sales performance of home appliances in 2020.
As Generation Z (people born from 1995 to 2010) are becoming the major consumption forces, their preferences for home appliances with intelligent and healthy features are driving a new trend. The white paper shows that in 2020, the market size of intelligent home appliances reached RMB 272.7 billion yuan, accounting for 43% of the total proportion of the home appliances market.
Various innovative home appliances are emerging in the market, and have become the new favorites for many Chinese consumers. According to the white paper, sales of floor cleaner have maintained a YOY growth rate of more than 20 times; and washing machines with dual washing and drying functions, 8K TV sets and sterilization and purification air conditioners have maintained a YOY growth rate of 395%, 268% and 171% respectively.
In addition to young consumers, Chinese families are also becoming smaller with only 1 or 2 members accounting for nearly 50%; and the number of small families is almost 2 times the amount in 2017. Home appliances targeting small families are also experiencing major growth. For example, the market shares of electronic rice cookers under 3L accounted for 15% of the whole market in 2020, with a YOY growth rate of nearly 54%.
Regarding the potential home appliance market share growth, the white paper predicted that TV, refrigerators, washing machines, and air conditioners will reach RMB 8.8 billion yuan, 11.2 billion yuan, 7.2 billion yuan, and 25.1 billion yuan respectively, with a YOY growth rate of 34%, 12%, 6%, and 21% respectively during the May Day holiday.
“As one of the major players in the home appliance market, JD is willing to work with brands to continuously promote the structural upgrade of the industry and lead the home appliance industry to renew in the direction of technology, intelligent products and innovation,” said Fan Xie, president of JD Home Appliance.
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.
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JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns
JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.
Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.
JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.
Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.
As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.
The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.
JD Brings Ripened-on-the-Tree Durian to Chinese Markets from Thailand
