For Richard Liu's JD.com 618 Results to Date Demonstrate Promotion's Ability to Boost Consumption in Short-Term, Boost Recovery in Long-Term
BEIJING, June 12, 2020 /PRNewswire/ -- JD.com, China's largest retailer, is hosting its 17(th) 618 Grand Promotion this year. Data thus far indicates an economic recovery post-COVID lockdown in China. On June 1(st) (as of 2:00 pm), JD saw an increase in transaction volume of 74% year on year, which demonstrates 618's important role in driving consumption.
Established by Richard Liu (Liu Qiangdong), JD.com's founder, chairman, and CEO, 618 was originally a celebration of the founding of JD on June 18th. Today, 618 has turned into China's largest nationwide mid-year shopping event that lasts from June 1st to June 18th, celebrated not only by online e-commerce players but countless offline stores as well.
Chenkai Ling, Vice President of JD.com and Head of Strategy of JD Retail, said: "JD has the responsibility and obligation to both restore consumer confidence and unlock their desire to shop at the same time."
International Brands a Bright Spot on JD,
This year, JD.com will offer products from 20,000 international and overseas brands from more than 100 countries. On June 8(th), transaction volume on JD's platform for imported brands, JD Worldwide, increased over 150% year-on-year on JD PLUS Day, the designated promotion day for premium membership (JD PLUS) users.
On the day, brands from 22 countries achieved transaction volume growth of over 100% year-on-year on the day, among which brands from Chile, Poland, Israel, and other niche markets saw growth of over 500%, demonstrating the robust growth opportunity that JD's 618 Grand Promotion gives to international brands of all sizes.
In addition, on June 1st, HP launched its latest C2M product laptop OMEN 6 Plus collaborated with JD. Within just 30 minutes, the new laptop was sold out. On the same day, transaction volume of HP's Zhan 66 slim business laptops powered by JD's C2M project increased 21 times in the first 30 minutes on a monthly basis. On June 3(rd), Lang Guo, President of Dyson Greater China attended a live streaming on the JD Live platform. He is one of the hundreds of executives from top brands that are joining JD's live streaming room this 618. According to Guo, in the seven years that Dyson and JD have partnered together, sales have increased more than 300 times. In 2019, JD jumped from 33(rd) to Dyson's second-largest retailer globally and is expected to become Dyson's largest channel partner in 2020.
Minimal Impact from COVID-19 on Luxury Consumption; Strong Performance during 618
For the most part, JD's luxury consumers continued to make purchases as usual throughout the COVID-19 lockdown period. JD has launched over 40 luxury brands since January. Brands who launched during the period saw strong sales performance.
For example, By Far sold out of 65% of its products after just four days; 90% of its products sold out after one month. Furthermore, luxury consumers who might have usually made purchases overseas while on holidays turned to online even more when the virus broke out, and JD's non-stop logistics and white glove delivery, JD Luxury Express, enabled customers to get the products they want quickly.
The trend has continued through 618. On June 1(st), sales of 60 brands increased over 500%, sales of 139 brands increased over 200% and sales of 201 brands increased over 100%. In addition, JD Luxury has seen the fastest customer increase in third-tier and below cities where many brands do not have physical stores, and JD's presence supplements their coverage.
Lower-tier Cities Customers Growing Rapidly
On June 1(st), order distribution in sixth tier cities increased by as 1.36 times as much as in first-tier cities, indicating that the lower the city-tier, the fast consumption grows. This year, JD Logistics has expanded its lower-tier markets infrastructure program to reach more counties and towns with 24-hour delivery service. In addition, from June 1-4, transaction volume of agricultural products on JD increased 117% as compared with the same period last year, and 53% of the local specialty/poverty alleviation malls saw transaction volume increase by more than 100% year-over-year. The transaction volume of agricultural products in the fourth tier market increased the fastest, reaching 169% while sixth tier cities saw growth of 152% YOY.
Zhao Ping, Director of International Trade Research Department at the Research Institute of the China Council for the Promotion of International Trade said at a forum in Beijing to discuss how to motivate consumption: "In the short term, 618 will promote the rapid recovery of consumption, build consumer confidence and strengthen consumption habits." She added, "In the long run, 618 actually promotes the rapid recovery of various industries, which will lead to employment, meaning that income will be guaranteed and consumption will not decline."
About JD
JD.com is China's largest online retailer, its biggest overall retailer, and the country's biggest Internet company by revenue. JD's focus on technology and its own controlled logistics and supply networks position the retailer to be a valuable asset for the Chinese population in this uncertain time.
Contact: press@jd.com, +86 10 8911-6155
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SOURCE JD.com
