With about more than 90% of China’s families having used at least 1 smart appliance in their daily life in 2022 and the continuous rise of AI in society, it is rather easy to understand why this market is extremely promising. The smart small appliances market is expected to experience significant growth in the coming years. The market size is projected to increase from 62 billion RMB in 2016 to 192.4 billion RMB in 2023.
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
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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, also known as Jingdong, is one of the largest e-commerce companies in China. In recent years, the company has been focusing on expanding its business beyond e-commerce by investing heavily in logistics and technology.
Overview of China’s Smart Home Appliance Market
China’s dominance in global e-commerce is undeniable, with $3.33 trillion in e-commerce sales in 2023 making it the largest online shopping market worldwide, and JD.com is undoubtedly one of the key players in China’s thriving e-commerce market.
Electronics and home appliances are one of the strongest product segments for JD and the company even has 10,000 retail stores selling these items. JD is also well-known for acquiring large electronic store chains in China.
For example, it bought 46% of the large appliance retail chain, Five Star, valued at USD 190 million in 2019. Examples of specific products that are in high demand include vacuum cleaners, shavers, mixers, vacuum sealers, and more.
JD topped online sales of home appliances in 2019, according to a report on China’s Home Appliances Market released by the China Electronics and Information Industry Development Research Institute.
China’s home appliance retail sales market reached RMB 486.1 billion in 2022 with the penetration of online sales reaching 41.17%, the first time to surpass 40%.
Why Chose JD to Sell your Smart Home Appliances Brand in China
JD is one of the most popular 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: more than 8.5 million items are available in stock, and over 18400 foreign brands are selected to retain Chinese consumers.
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 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.
To sell Smart Appliance Devices on JD work on your Brand Awareness & Reputation
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 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 11 am).
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 operating models
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 partnerships 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 identical products. 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.
In 2018, Haier, a Chinese multinational home appliances and consumer electronics company, partnered with JD.com, one of the largest e-commerce platforms in China, to sell its smart home appliances. The goal was to increase sales and improve the customer experience by leveraging JD.com’s extensive reach and advanced technology.
To achieve this, Haier and JD.com worked together to create a dedicated online store for Haier’s smart home appliances on JD.com’s platform. The store featured a wide range of products, including refrigerators, washing machines, air conditioners, and more, all equipped with Haier’s latest smart technology.
To attract customers, the store offered various promotions and discounts, such as free installation and extended warranties. Additionally, JD.com’s advanced logistics and delivery network ensured that customers received their orders quickly and efficiently.
The partnership was a success, with Haier’s sales on JD.com’s platform increasing significantly. The dedicated online store allowed Haier to showcase its products in a more engaging and interactive way, while JD.com’s technology and logistics capabilities ensured a seamless customer experience.
Overall, the partnership between Haier and JD.com demonstrated the power of e-commerce platforms in driving sales and improving the customer experience for smart home appliances.
We are your local partner in China!
JD.com is a major retailer of smart appliances in China. The company has a wide range of products available, including smart refrigerators, washing machines, and air conditioners.
JD.com has also invested heavily in developing its own smart home ecosystem, which includes a range of connected devices that can be controlled through a single app.
Overall, it seems that JD.com is well-positioned to capitalize on the growing demand for smart appliances in China, and is likely to continue to be a major player in this market in the years to come.
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