Jingdong Focus on New Products Drives Record Sales

The results are in for JD.Com’s annual 6.18 Festival sale which kicks off every June 18. The numbers are spectacular. Sales transactions during the 6.18 Festival topped $29 billion. The event encompasses 18 days. JD.Com (also known as Jingdong) said the healthy sales numbers were driven by two factors. One was a large volume of new products made available to Jingdong’s 300 million active users. Another significant sales driver was consumer pursuit of products they perceived as “high quality.” In terms of new products, JD.Com has been making more available by leveraging historic deals with international brands. A recent example is a partnership formed with the Italian fashion giant Prada.

It opened a new flagship store on the JD platform in 2018. Another example is the Hungarian sweet wine producer Grand Tokaj. It also opened a Jingdong flagship store and very quickly began selling thousands of bottles of wine per day. Yet another brand that has opted for a JD flagship store is Farfetch, a British high-fashion brand. JD officials said they focused on new products like “a “laser beam.” It’s a strategy that has paid off in record sales. Another key driver of huge sales increases is a marketing technique Jingdong calls C2M, or Consumer-to-Manufacturer marketing. It leverages Jingdong’s superb command over “big data” which can be mined for powerful insights into the minds of consumers.

Through data analysis, Jingdong’s selling partners can find out exactly what customers are looking for, what they want to buy and even the reason why they want to make the purchases they do. Transactions for products employing C2M increased by 289% when compared with the same time frame of the previous year. It helps that Jingdong has mastered and perfected its logistics and distribution systems. The company can now make same-day or next-day delivery in 300 cities across China. This has been especially helpful for selling food products, such as kiwi fruit and fresh apples imported from New Zealand. Jingdong sold more than 350 million boxes of fresh milk during the 18 days of the 6.18 Festival. More than 90% of all orders are successfully delivered on a same-day or next-day basis.