(Yicai Global) Oct. 18 -- JD.com Inc. [NASDAQ:JD], known as Jingdong, has formally kicked off its annual 1020 Shopping Festival, China's largest online-to-offline (O2O) sales promotions. It offers consumers high-quality products at discounted prices in 22 Chinese cities including Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou.
The festival will reach its climax on Oct. 20. The event attracted an unprecedented number of participants -- some 70,000 offline retail brands including Wal-Mart, Yonghui, C.P. Lotus, Auchan, Pagoda, PepsiCo and Yili. Products are divided into several sections such as groceries, fruits and vegetables, snacks, health products and flowers. JD.com's 3 million couriers will deliver goods to customers' homes within one hour of order placement.
During the festival, JD Daojia will offer discounts on groceries and '50 yuan off 100 yuan' coupons, and PepsiCo will roll out 'one yuan flash deals,' '50 percent mark-downs on best-selling items' and '10 yuan off 19 yuan' promotions covering some of the company's most popular Chinese products such as Lay's Chips, Cheetos and Quaker Oatmeal. Jingdong will market the event through boot screen and homepage banner advertising, and the festival is expected to generate more than 100 million hits.
This year's 1020 Shopping Festival will combine offline and online resources, creating synergies between the e-commerce marketplace, supermarkets and retail brands, with each party tapping into their respective strengths to ensure the success of the event. Online platform JD Daojia's 'retail empowerment' strategy supports offline stores in traffic generation, efficiency improvement and customer service operations. On the offline front, consumers can access the event's webpage and collect discount coupons by scanning QR codes printed on 1020 Shopping Festival publicity materials in stores.
"Our cooperation with JD Daojia opens up new sales and branding channels," a manager at Yili Industrial Group Co. said. "This will translate into more sales, and new channels can be leveraged to enhance our brand image. In future, Yili will effectively utilize the JD Daojia platform and big data support that it offers to improve online consumer experience. It'll enable us to stay ahead of the curve in the consumer market and provide better services for Chinese consumers."
"The 1020 Shopping Festival integrates the best resources from both sides [the e-commerce marketplace and offline stores] through effective online-offline fusion," opined Jordan Berke, senior director of Walmart China's Hypermarket E-commerce. "It allows both parties to focus on what they are best at and provide more professional and high-precision services, and ultimately create for customers a truly seamless offline-to-online shopping experience."
The internet is reshaping China's grocery market, and JD Daojia can help sellers build their own domains in cyberspace, enabling traditional retail businesses to transcend time and spatial barriers and optimize the utilization of traditional retail stores, supply chain and brand resources, said JD Daojia Chief Executive Kuai Jiaqi.
"The 1020 Shopping Festival is an important part of our retail empowerment strategy," said Kuai. "In the future, we'll continue to improve our efficiency and design more innovative practices, benefiting more people with our high-quality and convenient services."
JD Daojia delivered strong sales results in the first half on the successful introduction of its retail empowerment strategy. It posted 7.5-fold revenue growth over the same period last year, with an average monthly increase in gross merchandise volume of more than 30 percent. Registered sellers achieved 10 percent to 30 percent sales growth. The positive feedback rate for orders placed on the platform rose to 99.5 percent from 97.6 percent last year.