JD.com’s Record-Breaking 6.18 Campaign as More Consumers “Trade-Up”

 

JD.com is the largest online retailer in China in terms of revenue. The company commits to quality, authenticity, and a wide variety of customers.

A record-breaking achievement in 2019 marked the JD.com’s June 16 Anniversary Sale (“6.18”). This breakthrough of $29.2 billion was due to the escalating demand for high-quality in China as well as the introduction of new products. The company used a new channel to socialize and introduce new products to customers. Also, the lower-tier city shoppers are “trading up,” depicting interest in brands that are identical to consumers of higher-tier cities.

JD surpassed the collective growth by the growth volume in lower-tier cities. Also, there were more new customers of lower-tier towns than new users on the platform. The company launched two campaigns, such as “birthday red envelope,” which created traffic sharing on social media. The other one allowed shoppers to win shared rewards for their cities after voting and sharing.

The Consumer-to-Manufacturer (C2M) marketing strategy in the Chinese market has worked exceptionally. This powerful method uses consumer insights and big data, which helps the manufacturer to produce the exact products demanded by customers. An increase of 289% from the last year’s period shows the effectiveness of this year’s 6.18 campaign. The C2M products such as Zhan 66 laptop made HP record 100% sales increase.

Various new brands have been introduced on JD.com during the campaign. Some of them include Car Shoe, MiuMiu, which are under Prada –an Italian designer brand. They all launched official flagship stores on the JD website. Additionally, customers will have over 3,000 brands to choose from since Farfetch also launched a flagship store. The premium membership of JD.com is gaining popularity as the company is working with the world’s top hotel brands. During this 6.18, JD Plus membership sold were over 2.8 million.

In addition to that, technology has played a significant role of JD in improving the customer experience. About 91% of orders were delivered within a few hours. The customer service robots independently solved 90% of about 32 million inquiries during the 6.18. This innovation has freed human customer service for relatively complex consumer issues.

On a different light, an article entitled “JD Launches New Green Initiatives in Partnership with WWF Earth Hour Movement”, discusses JD’s partnership with the World Wide Fund for Nature (WWF) this year in the ongoing support of the Earth Hour environmental movement, launching a range of initiatives that include country-wide recycling programs and sustainable green packaging.

 

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