JD Super, the supermarket division of JD.com, has announced an investment of $1.41b (RMB10b) as it marks its tenth anniversary. The investment supports brand partners, particularly agricultural producers, and new product launches.
Nearly 500 executives from leading fast-moving consumer goods (FMCG) companies attended the event, including Procter & Gamble, L’Oréal, Moutai, and Yili Group. JD Super reported a 20% increase in new users, a 30% rise in order volume, and double-digit revenue growth for the first half of 2024. By the end of 2023, over 50 brands had exceeded $140.65m (RMB1b) in annual sales, more than 100 brands reached $70.32m (RMB500m), and over 500 brands achieved $14.06m(RMB100m).
Sandy Xu, CEO of JD.com, highlighted the strategic importance of JD Super, noting that future growth will be driven by JD’s efficient supply chain, omni-channel capabilities, and a supportive open ecosystem for all partners.
Yao Yanzhong, Vice President of JD.com and President of JD Retail FMCG, detailed the company’s strategy to enhance supply chain efficiency, product competitiveness, and cost-effectiveness. He also highlighted the need to avoid ‘involuntary competition’ that could harm consumer interests.
The company product safety monitoring labs in JD Logistics’ 45 Asia No.1 intelligent warehouses will offer improved quality assurance, as part of the investment, JD Super introduced a new ‘arm-flinging’ operation model designed to decrease the operational burden on brand partners. This model allows brands to focus on product development while JD’s teams handle marketing and sales. The direct procurement method aims to lower costs and improve efficiency. Brand partners will benefit from access to over 30% of JD’s extensive marketing resources across JD.com and public channels.