(Yicai Global) Jan. 16 -- Chinese e-commerce titan JD.Com Inc. has quietly rolled out its own label household supplies to target the country’s burgeoning middle class.
The new brand, Jingzao, will focus on high-quality and cost-effectiveness, online news agency 36Kr reported.
Several Chinese retailers have been looking into setting up their own brands. NetEase Inc. was the first online firm to bring an original design manufacturer business to China in April 2016, which cut out the need for agencies. With no middle man, companies could achieve the same quality for a lower cost. Smartphone maker Xiaomi Inc. began a similar service last year.
Consumer spending has risen sharply in China over the past 15 years. The country could even join the ranks of high-income countries in five years if a series of economic assumptions remain valid, former World Bank Chief Economist Justin Yifu Lin wrote in an article appearing in China’s state-run People’s Daily.
The conditions are that per capita national income increase at 6 percent a year, prices gain an annual 1 percent on average, and the yuan remains at CNY6.7 to the US dollar, Lin said. Per capita national income was USD8,260 in 2016, he added, citing World Bank figures.
Some of the 34 Jingzao products already available for purchase include electric toothbrushes, towels, bedding and underwear.Keywords: JD.COM, Jingzao, E-COMMERCE, Online Retail, Consumer Spending