The smart home appliance accessories market in China has increased by 9.8% since 2017, recording about 270 billion dollars. A fast and steady growth, which has not been recorded in other sectors. This is due to the increase in income and import of high-performance products. Previously, the market had grown only 4% in 2 years.
Companies like Panasonic and its smart mirror, or the
From bicycle sharing to moneyless payments, China has evolved impressively over the last few years in a thousand facets. In home appliances, entrepreneurs and engineers
That’s why entering a smart market is a smart choice, but smart must also be the path you want to take.
One of the easiest ways to open a foreign business in China is online, but you also need to choose the right channel and the right platform. One of the most important is JD.com
Why choose JD.com as an
JD is one of the most popular international ecommerce platforms in China: the commercial coverage covers the territory of well over 80 foreign countries, which include America, Canada, South Korea, Japan, Australia, France, Germany. JingDong provides an impressive database: over 8.5 million items available in stock, over 18400 foreign brands selected to retain Chinese consumers.
As of December 23, 2017, on the site it appeared that over 4500 retailers had joined the online sales service on JD.com, offering a vast assortment of products of various kinds. From products for mothers and children, to health and wellness products, through cosmetics, watchmaking, furniture, imported food, car accessories and many others.
At the moment retailers who have a B2C and B2B commercial organization are the most requested commercial partners of JD.com.
JD.com enjoys excellent popularity in China, above all thanks to the very short delivery times, competitive prices and the wide range of products offered. JD.com dominates above all the market for electronic products and fresh food. Delivery times are the fastest in the whole country.
Consumers who need to buy a product with a certain urgency almost always turn to JD.com. They know they are cheap and can take advantage of the same-day delivery service (available for most products purchased by 11am).
JD has a reputation superior to that of Alibaba in the fight against counterfeit products. Thanks to its network, JD is able to better control movements within its inventory. While Alibaba, due to the logistics entrusted to third parties, has some difficulties in controlling the movement of products.
JD offers incredible opportunities for foreign suppliers. His app is often already installed on smartphones purchased by the Chinese and is the most widespread e-commerce in China after Tmall and Taobao. JD.com is stronger in northern China but JD.com recently announced a strategic partnership with Yihaodian to expand more directly to the south and create synergies with Walmart.
JD.com is one of the most competitive Chinese platforms due to the high number of sellers and SKUs (stock keeping units). Sellers who do not invest in promoting sales using digital marketing can’t place their articles through JD.com. To have good visibility and sell thanks to the image of your brand you must try to direct traffic to the pages of the store.
How JD.com works?
JD operates on two basic models:
Pre-purchase of products from the supplier. JD assumes responsibility for aspects such as international logistics, customs aspects, warehousing, product page design, marketing and after-sales services.
Brands can open a store and manage operations. Operations include customer service, landing page and product page design, marketing and after-sales services.
Sellers: JD is interested in the partnership with direct suppliers, but also works with trading companies with the necessary permits to distribute the products on behalf of the supplier.
Logistics: JD offers its international logistics services, including freight transport, compliance with customs duties, warehousing and delivery to the buyer.
Exclusive: JD.com often requests exclusivity on online sales (not valid for offline distribution). So sellers can sell their products only on JD and not on other platforms like Tmall. However, suppliers can get around this obstacle by creating different brands for an identical product. For example, a company that produces milk can create two brands using the same formula giving JD the exclusivity for selling a single brand and selling the other product on another e-commerce site.
Payment services for customers: Payments for products on JD are made via JD Pay and WeChat Wallet.