China’s first omni-channel agricultural products wholesale trading platform “Yinongpi (亿农批)”, jointly created by JD.com and Dili Group, one of China’s leading operators of agricultural produce wholesale markets, has grossed nearly RMB 200 million yuan of transaction volume in the past nine months since launching in September 2021, according to JD.com.
The platform supports both remote and on-site transactions for agricultural products, a set of digitalized functions such as sales and inventory management, price index monitoring, food safety tracing system and other tools, as well as logistics, insurance and financial services, which are much needed in recent months to ensure timely fresh produce supplies as multiple regions in China face COVID-19 disruptions.
Yinongpi, JD’s omni-channel agricultural products wholesale trading platform
“As a result of the epidemic, we have fewer offline clients this year, but through Yinongpi, many clients reached us online,” said Jinyu Li, from the Jinyuxiangyun vegetable wholesales company, which was an early user of Yinongpi. “Under the help of the platform, our sales for produce in the first quarter achieved 30 percent year-on-year growth, including beans, cabbages, potatoes, onions and other vegetables.”
The first project based on Yinongpi platform was launched in Shouguang of Shangdong province, China’s largest vegetable production base, under a collaboration with Dili Group since last September. Thanks to the transparency the platform provides in the entire trading process, traders’ operating efficiency has been greatly improved, transaction cost lowered, and market regulators are able to carry out more timely supervision work to further safeguard the overall transaction process. Daily average transaction volume in Shouguang exceeded RMB 3 million yuan on the platform in the past nine months.
Yi Zhao, head of the omni-channel ecosystem development department under JD Super said that JD will continue to deepen cooperation with the agricultural products logistics park in Shouguang and to move all of the transactions in the park onto Yinongpi. At the same time, the platform will expand its services in food origin tracing, big data analysis, park management, financial and logistics support.
Meanwhile, Tengzhou, another county of Shangdong province that is famous for its potato production with over 2 million tons of yearly output, is leveraging Yinongpi to upgrade its supply chain and expand sales channels, not only in big Chinese cities but also to foreign markets such as Malaysia, Australia and other countries. This project between Tengzhou and JD.com officially launched in May of this year, is expected to achieve an annual output value of more than RMB 5 billion yuan in the near future.
production base in Tengzhu, Shandong province
“Yinongpi is a meaningful attempt for the agricultural products wholesales sector’s transformation, and will play an active role in exploring new potential in agricultural development,” Zhao added. “Under China’s drive for rural revitalization and digital economy, we hope the growth of the platform will create both industrial and social value.”
JD.com and OPPO announced that they have signed a new annual cooperation agreement on August 17, furthering their cooperation in supply chain and marketing to improve consumers’ shopping experiences.
Through this collaboration, OPPO will be fully settled in JD’s offline stores, while JD’s one-hour delivery service will also empower OPPO showrooms to enhance consumers’ shopping experiences by providing convenient and expeditious one-stop shopping in a variety of scenarios.
JD Cloud will also kick off a partnership with OPPO in technology cost reduction and marketing expansion. Leveraging JD’s supply chain integration tools and digital intelligence infrastructure, OPPO will get a boost in quality and efficiency.
JD and OPPO join hands to explore and innovate a future omni-channel retail model, which will help brands achieve even more tremendous sales growth while generating new incremental value for the mobile phone industry.
JD Communication and OPPO have long maintained close cooperation. In the first half of 2022, OPPO has been stationed in over 600 JD offline stores all around the country, contributing to the rapid sales growth of OPPO brands.
JD Worldwide, JD’s cross-border ecommerce arm, has helped merchants and sellers remove barriers by lowering store fees by half with zero retention money and commission fee at most, with an aim to boost the trade capabilities of businesses amid pandemic-related uncertainties, according to a recent meeting between JD Worldwide and its merchants in the category of cross-border food and beverage.
A healthy ecosystem has been established by JD Worldwide, through developing advantageous categories, approaching high potential categories and jointly incubating exclusive products with merchants.
Since 2022, the number of import beverage stores covering 170 liquor brands on JD Worldwide has grown 154 percent year-on-year (YOY), while the number of food brands has doubled in the marketplace.
Small and medium-sized enterprises (SMEs) are confronted with challenges to acquire customers in a short time. JD Worldwide, besides fee exemptions, has also rolled out plenty of other support tools to help SMEs and brands expand in China.
“The operation team of JD Worldwide, after rounds of in-depth communication and surveys with us, tailored an operation plan based on the store’s situation,” said Hong Jin, operation manager of the Aidougou food store, which saw a growth rate of 10 times after joining the platform for only one year.
Aidougou specializes in imported milk powder, coffee and body cream, which are categories that are not easy to differentiate in the market. In the early stage, JD Worldwide suggested that the store could enrich product quantity and category to reach more customers, and then spotlight the most popular products to further stimulate sales.
During the 618 Grand Promotion this year, after noticing that Nestlé Carnation High Calcium Matrix Low Fat Milk Powder was experiencing high sales, Aidougou, with support from JD Worldwide, decided to set it as a featured product by driving more traffic resources, creating contents for various channels such as JD Livestream; Douyin and the social e-commerce app Xiaohongshu (“Little Red Book”) to interact with consumers with higher conversion rates. Sales for this milk powder rose by 4.3 times in June, hitting the top of the store’s products in 618 sales volume. The conversion rate rose from 3 to 14.5 percent and the transaction volume went up six times in just one year.
However, increasing product quantity and categories means high warehousing and low liquidity. JD Worldwide recommended holistic warehousing management that is part of the company’s digitally intelligent supply chain. As a result, this has enabled Aidougou to share JD’s inventory and delivery, rather than the store utilizing the traditional way of handling self-owned and suppliers’ inventories separately on its own. One important benefit of this system is that stores only need to pay for inventory when orders are made by customers.
Hong said the store will enhance collaboration with JD Worldwide in more categories and actively integrate into the merchant ecosystem to bring more international food brands to the Chinese market.
In addition to refining user operations, JD Worldwide also consolidates brands and merchants’ competitiveness by offering consumers services of authentication and traceability, as well as JD’s deeply rooted image of its commitment to authentic-only products, said Zhao Chunjian, head of 7-Plus liquor store on JD Worldwide. The store was launched in September of 2021 and saw a sales increase of 100 percent in June this year compared with that in May.
From sales to branding, JD Worldwide is always seeking opportunities to help merchants develop on a robust growth path. Imported merchandise is on the rise as consumers are also looking for more diversified consumption upgrade. By leveraging the advantages in supply chain, technology, logistics and marketing approach, JD Worldwide will better empower SMEs, while also serving customers as a bridge between global brands and the Chinese market.
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