JD.com is committed to its efforts to change international commerce. JD Big Data has made it possible for offline merchants to benefit from the Retail as a Service channel known as Zu Chongzhi. This platform gets its name from an old mathematician of Chinese origin. Zu Chongzhi can assist offline traders in managing the retail process, from selecting ideal sites for new shops to selecting the vast array of products to sell. It also aids in marketing strategies and other store activities.
Its adoption of big data has worked in its favor and subsequently become more efficient. It makes the most from offline information about partners and the JD.com platform. It is supported by multi-strategic information sources of the partners. This provides extensive visualized solutions to help offline retailers make informed decisions. The platform used the same tech as the offline stores affiliated with JD.com that is 7FESH and JD Retail Experience Store.
It facilitated the existence of a sustainable and healthy change of the whole sector. Zu Chongzhi achieves this while developing an all-inclusive experience for present-day consumers. It has a user-friendly format that highlights various suggestions. That way, all retailers can profit from the tech used in the platform. Recommendations for store sites, for instance, are dependent on multi-faceted factors.
These include transport links, nearby facilities, demographics, profiles of the intended audience, and domestic consumption trends. In-store Internet of Things gadgets offer data like heat maps indicating where consumers spend a considerable amount of time. Zu Chongzhi can assist in improving product orders and shelving services, leading to larger sales. The platform has been adopted by five brands and brought them impressive outcomes in nearly ten stores throughout China.
QM is a luxurious furniture retailer in China and an offline alliance with JD.com. The retailer achieved tremendous success when using big data. This avenue came in handy and helped QM understand its consumer demographic in the region nearing one of its Beijing stores. The nearby population has a higher-than-average percentage of learned women specialists in need of luxurious lifestyle items. JD.com suggested the incorporation of 3000 SKUs to increase the number of clients at the QM store.
The items included are LEGOs, household products, small appliances, electronics, and FMCG. The inclusion of these items addressed the consumer demand for the product though they were not necessarily a part of the primary business for QM. This move assisted the store in boosting its traffic, which saw a 30% increase in the number of clients.
The JD Big Data implementation has introduced energetic and new clients to the store. Such a move was possible due to the placement of high-frequency items in low-frequency stores. In other news, young people in China have been purchasing old Chinese brands. The Dong Lai Shun eatery and Daoxiangcun Bakery are among the ancient Chinese brands that have experienced an increase in the number of young customers.
JD.com included more traditional Chinese brands in 2020 than in 2019. They have established innovative provisions to cater to the needs of the youth. JD Big Data points to this move as the latest trend in the world of consumer purchase. Those born after 1995 made lots of acquisitions for home-related products such as home appliances and fresh produce. The trend may be caused by the ongoing health crisis that led to a lockdown spell in the nation.
Background Details
When it comes to other popular items, consumers have considerably spent on trademark localities domestic farm products such as rice from the northeast part of China. Among the popular items is Luoshifen, which is a special noodle soup. The sale of Luoshifen on JD.com increased three-fold in 2020.
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