Mar 28, 2023| JD Retail
JD Announces “One-Stop Shopping for Home Products and Appliances”
by Yuchuan Wang
On March 21, JD Retail announced “one-stop shopping for home products and appliances” and relevant plans for home appliances. It also announced that JD Home Appliance will stock RMB 100 billion worth of goods for the 20th 618 Grand Promotion this year, with bulky order purchase target of 5 million units.
From 2012 to 2022, with the transition of sales channels, from offline to online to omni-channel, China’s home appliance industry developed new business models while maintaining healthy and rapid development. The industry continued to grow in 2022 and generated revenue of RMB 1.75 trillion, with a year-on-year growth rate of 19.9%. Additionally, Chinese home appliance brands also achieved great success in international markets, while creating new jobs and making innovations in brand and technology.
Despite this growth, the industry continues to face challenges, as well, including rising real estate costs, global supply chain issues, and product and innovation homogenization.
To continue to build momentum and address these challenges, JD Home Appliance is unveiling a new approach of “persistence and change”. It includes being persistent in putting customers first and upgrading services, retail-driven, healthy and sustainable development, upgrading product offerings, making structural breakthroughs, developing omni-channel and establishing an industry ecosystem, enhancing cost and efficiency, and achieving win-win outcomes with partners.
The approach also includes changes in promoting a product stratification initiative for both structural and low-priced products, accelerating sales and growth of new and trending products, improving pricing capabilities to ensure fair prices, upgrading the trade-in service to fully stimulate user demand, accelerating omni-channel layout, and expanding the marketplace business (POP platform) to create an open platform for businesses to achieve sustained profits and steady growth.
JD Home Appliance is working with partners to enhance customer experience and boost sales of new products through innovative actions such as the launch of JD Mall and trade-in services. It is also expanding to new areas, such as the lower-tier market, which offers significant potential for growth of home appliance brands. According to Yi Xiao, president of washing machine business unit of Midea, China has approximately 490 million families and daily consumption of home appliance mainly comes from 200 million of them. That means there is an untapped market of nearly 300 million to be served.
Mar 27, 2023| Global Partners/ Brands, JD Retail
JD.com Unveils Canada National Pavilion, an Online Showcase of Premium Canadian Imports to Chinese Consumers
The Pavilion of Canada on JD Worldwide is supported by the Canadian Embassy to China, featuring the country’s distinctive culture and premium imported products
To date, nearly 50 countries have opened national pavilion online stores on JD.com
Cross-border e-commerce with JD’s supply chain solutions presents vast opportunities for brands across the globe to explore the Chinese market
On March 25, JD Worldwide, the cross-border e-commerce arm of JD.com, introduced the “Pavilion of Canada“, an online flagship store on its platform supported by the Embassy of Canada in Beijing. The Pavilion presents a selection of premium Canadian imports to Chinese consumers, all with the convenience of JD’s unparalleled delivery and customer services.
This Pavilion features a lineup of renowned brands, such as INNISKILLIN, Natural Factors, Nova Sea Atlantic, PURNATUR, SunRype, and Zoie&Zane, offering a curated collection of signature products including ice wine, maple syrup, honey, snacks, nutrition, and beauty and wellness products.
“With this new Pavilion for cross-border e-commerce, I hope that we can bring more and more Canadian brands to China, and share more of what Canada has to offer,” said Jean-Christian Brillant, Minister (Commercial), Embassy of Canada to China.
“We are delighted to join hands with exceptional Canadian brands and introduce their top products to Chinese consumers as their consumption demand continues to evolve. The Pavilion will serve as an accelerator for emerging brands, providing them with a platform to establish visibility and earn the trust of local consumers,” said Luke Liu, General Manager of business development department, JD Worldwide.
JD.com pioneered the “National Pavilion” concept in 2014, envisioning a world-expo-inspired online shopping platform that grants Chinese consumers access to authentic and premium products from around the globe, sorted by country and region. To date, the program has successfully attracted 46 countries to open flagship stores on JD.com, backed by endorsements from their respective embassies or trade associations. This unique model offers customers a one-of-a-kind shopping experience, enabling them to discover each country’s local specialties and distinctive cultures through a diverse range of products, from electronics and fashion to beauty, food, pet goods, and more.
The Canada Pavilion will operate through cross-border e-commerce, allowing merchants to enter the Chinese market without a local presence and enjoy tax benefits and streamlined customs procedures.
JD’s integrated cross-border supply chain enables brands to minimize product hand-changes in the sales process, and utilize JD’s nationwide logistics infrastructure, including cold chain delivery, to ensure that imported products reach consumers’ doorsteps fresh and at competitive prices. For example, live lobsters harvested from Halifax, Nova Scotia can be delivered to Chinese shoppers within just 17 hours via JD’s cross-border e-commerce platform.
According to China’s 2022 Customs’ data, the country’s import and export cross-border e-commerce activity surged nearly tenfold over the past five years, with imports increasing by 4.9 percent YoY to RMB 560 million yuan. This growth highlighted cross-border e-commerce’s pivotal role in trade development, and in meeting the increasingly diverse demands of Chinese consumers.
JD’s sales data reveals that consumers living in first and second-tier cities remain the primary purchasers of imported products, while a growing appetite in lower-tier markets is emerging, fueled by the convenience offered by China’s sophisticated e-commerce logistics and increasing supply chain efficiency. These factors create a wealth of growth opportunities for brands across the globe to explore and capitalize on.
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