Apr 28, 2021|
WRC Connected 2021: Chenkai Ling: Four Things the Pandemic May Have Permanently Changed about Retail
by Ella Kidron
The COVID-19 pandemic has changed many things about retail, some of the changes are likely to remain for the long haul. Mr. Chenkai Ling, Vice President of JD.com, and Head of Strategy, JD Retail, shared his views on this during the World Retail Congress’ WRC Connected 2021 virtual event on Apr. 26. The discussion was moderated by Benjamin Zheng, lead partner of global strategy consulting firm EY-Parthenon.
1. Online grocery retail is here to stay
When COVID-19 just started, a lot of consumers flooded into online grocery. This was a deviation from their previous behavior when the top grocery shopping destinations were wet markets, or local, physical grocery stores. “Grocery shopping online is not only a phenomenon but became a habit for many consumers. This is across all ages.” The trend is true across different city tiers. During last year’s Singles Day (November 11th), new customers for JD Super, JD’s supermarket business, came from lower-tier cities (tier 3-6 cities).
2. New grocery formats are emerging
When it comes to online grocery, many new store formats are popping up, such as the warehouse + physical store format, the front-end warehouse format, the community group purchase format, and the traditional B2B2C format. “We believe that this trend will continue, and online penetration for the grocery category will continue,” said Ling.
3. The rise of the proximity economy
Under the pandemic, many areas were locked down and consumers were relegated to grocery or convenience stores within their apartment compound. “The limitation of movement really helped to promote the proximity economy,” said Ling. This is especially the case in online to offline models. JD has integrated its inventory with a lot of brick and mortar stores closest to the consumers’ apartment compounds, so consumers could place orders and get products within 30 minutes, which is less than a round trip to walk to the store.
4. More individualized consumer demand.
Consumer demands today are even more and more individualized and precise than previously. Ling cited that under the pandemic, consumers’ demand for refrigerators with sterilization capabilities has boomed. “We saw this trend and we worked with the upstream brand owners to personalize this kind of function, and make it marketable. Later on this became a big success.
Watch the whole session by registering for Retail Connected 2021 here.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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