JD.com: Home appliances sales increase in China during pandemic

 

The COVID-19 pandemic has greatly impacted the economy worldwide and people’s spending habits. In China, consumers have been looking for health-related products to enhance their wellbeing. JD.com’s data has shown an increased interest in air conditioners, refrigerators and washing machines during the 618 Grand Promotion. 

The 618 Grand Promotion kicked-off on 1 June. Data from JD.com showed that sales of purification and sterilisation air conditioners had increased by 10 times year-over-year during 1 to 2 June; refrigerators and washing machines increased by 550% year-over-year during the same period as well.

Chinese consumers’ spending habits have changed significantly. The company said according to industry data in Q1 2020, online home appliance sales accounted for 55.8% of the total home appliance retail sales, surpassing the 50% benchmark for the first time.

At the same time, JD.com’s home appliances accounted for 29.1% of total sales nationwide, making it the top home appliance retailer online or offline in China.

“To some degree, the pandemic has made customers care more about their health,” said Kening Wu, head of the air conditioner sales department at JD.com.

“Our data shows that keywords searching for sterilisation air conditioners in March was over 26 times than that of February. Sales of all health-related home appliances from late January to now are three times more than that of the same period of last year.”

JD.com has also leveraged big data to better meet customers’ needs. By analysing comments, the company is offering air conditioners with different designs. 

“These types of C2M products are currently in the works. You always need to think one step ahead to strengthen your position in the industry,” Wu commented. 

Industry data has shown that apart from cooling capabilities, appearance was the second priority, accounting for 33.7% of concerns.

As for other C2M products, JD.com co-operated with 63 home appliance brands last year, such as TCL, Midea, and Little Swan, covering 200 types of products. 

Wu Shuangxi, head of the refrigerators and washing machines sales department at JD.com, said: “The capabilities to utilise feedback from our user profiles and help them design requirement-based products are our key advantages. Thus, C2M will be our core strategy going forward. Besides, we have different measures to target different customers.”

Last, as it has more than 12,000 home appliances experience stores in China, JD.com has positioned these stores as offline experience and after-sales service centres in lower-tier markets. 

“Ecommerce penetration in these markets still needs to be cultivated. The experience stores help JD.com provide our rich home appliances products to these customers, and is the best way to combine our products with an omni-channel sales strategy,” Shuangxi said.


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