Apr 14, 2022|
Eight Consumption Trends of Staple Foods in China
by Vivian Yang
In the past three years, JD’s omni-channel supermarket JD Super has seen robust sales growth of staple foods including the categories of rice, flour, and other grains by 52%, cooking oil by 29%, dry food by 65%, and condiments by 49% (CAGR 2019-2021), according to a report released by JD Super on April 8th in conjunction with its annual promotion of staple foods that will last from April 8 to 21.
The report, based on JD Super’s shopping data from 2019 to 2021, identified Chinese consumers’ eight consumption trends of these product categories as the following:
- Sales of staple foods with low fat, low sugar and of grain variety increased significantly on JD Super in 2021, with corn, brown rice, low/zero fat sauce and zero-calorie sweetener growing by 184%, 120%, 92%, and 85% respectively year on year.
- Organic foods rise in popularity. The volume of certified organic products on JD Super increased 110% and sales grew by 78% YoY in 2021.
- Agricultural products with the national geographical indication(GI) are favored by Chinese consumers. For example, Wuchang rice, Ningxia wolfberries, Gutian mushrooms, and Shanxi aged vinegar have seen sales growth by 105%, 78%, 60%, and 56% year on year.
- New instant food categories such as dried mushrooms soup packs, freeze-dried white fungus, wolfberry syrup, and vacuum-sealed fresh corns are becoming trendy. Sales of dried mushrooms soup packs surged by 18 times in the past year.
- New types of cooking oil are gaining traction. Avocado oil grew at a GAGR rate of 302%, making it the fastest-growing oil product on JD Super; safflower seed oil increased by 70%, and rice oil by 61% year on year.
- In terms of consumption trends geographically, people from China’s Guangdong, Jiangsu, and Liaoning provinces consumed the most cooking oil in the year 2021, with Liaoning being the fastest-growing province in spending on this category. Additionally, Guangdong, Beijing, and Jiangsu are the top three provincial-level regions that showed the highest demand of staple foods.
- There’s the great market potential for these categories in the lower-tier cities (third to fifth-tier cities) in China as the report data revealed strong demand momentum in both staple foods and condiments in these areas.
- Household users are the main spenders on staple foods, for those living in cities and in smaller towns, their consumption of staple foods accounts for 22% and 19% respectively of their overall yearly expenditures. It is also noteworthy that the percentage of consumers over the age of 46 in the category has grown to 12%, indicating that online shopping has become a main channel for them to buy daily necessities.
Thanks to the quality and healthy product varieties that JD Super consistently offers to Chinese consumers, it has become China’s leading omni-channel supermarket and the go-to place for more and more people to buy staple foods and other groceries. According to Nuo Xiao, general manager of the department of staple foods, oil and condiments of JD Super, the company plays an active role in stabilizing China’s food market and acts as an effective promoter and incubator for brands and products.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
|
JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns
JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.
Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.
JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.
Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.
As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.
The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.
JD.com Sent 100+ Robots to Shanghai for Last-Mile Delivery
