JD.com transaction volume exceeds CNY204.4bn for the 11-day sales event, held from 1st to 11th November.
Achieving 27.9%YoY growth rate
The total transaction volume reached CNY204.4bn, a 27.9%YoY growth rate when compared with last year’s result.
Here is a selection of categories that delivered great performance:
- Beauty (11-day period):
- Overall category sales 79%YoY
- Skin care products sales 86%YoY
- Perfume and makeup products sales 80%YoY
- Consumer goods (11-day period):
- Laundry pods sales 259%YoY
- Wine sales 200%YoY
- Fresh food (00:00am – 01:00am on 11th November):
- 900,000 eggs sold
- 600,000 kiwis sold
- Pork sales 350%YoY
- Chicken sales 210%YoY
- Beef sales 170%YoY
Logistics played an important role
- 90% of areas achieved same- or next day delivery
- 108%YoY increase in number of orders fulfilled by automated warehouses
- 40,000 tons of delivery waste prevented via recyclable packaging, slimmer tape and going paperless
Growth driven by lower-tier cities and omnichannel innovations
According to JD.com’s press release, the growth was driven by “performance in lower-tier cities (defined as 3-6 tier cities), continued focus from Chinese consumers on quality products and deeper omnichannel integration across the business”:
- Reaching lower tier cities: it is JD.com’s first Singles Day since the announcement of expanding logistics network in 3-6 tier cities. Customers from these areas increased by more than 60%YoY. 90% of these areas achieved same- or next-day delivery.
- Omnichannel integration (E-space): JD.com kicks off Singles Day with opening of JD E-Space, a 50,000 sq m electronics experience store in Chongqing, Southwest China and possibly the largest electronics experience store in the world. With 55 immersion zones, the store redefines offline shopping by providing a fun, convenient and educational experience that is completely integrated with online. Sales totally more than CNY10m in just the first hour.
- Use of big data and AI: JD.com proactively push coupons and promotions to users, which are tailored based on user’s shopping history, behaviour and locations. For example, for bargain-hunting customers, only promotions with the lowest prices will be shown. JD.com’s system can also predict sales, enabling efficient inventory planning and timely delivery.
- Trading up consumption: the record breaking sales is also driven by the continued pursuit for high quality products and services. During the festival, the average consumption volume of JD PLUS members was ten times of non-PLUS members. PLUS is a premium membership program currently has more than 15 million members, up from 5 million in 2018.
- Jingxi makes a strong debut: the app is a big driver of new customer growth. Jingxi is part of the company’s ongoing strategy to better engage with customers in lower tier cities. It uses social ecommerce to delight customers and encourage online shopping. Between 18th October and 10th November, nearly 40% of new JD.com shoppers come from Jingxi.
In our view, the above new solutions and strategies that JD.com employed during this year’s 11.11 festival reflect the company’s capabilities of meeting different shopping needs at a large scale in an efficient and effective way, which is achieved by harnessing its strengths in logistics, technology and omnichannel.