Tag: Retail Innovation

Retail Retale: The E-commerce Growth of JD.com

JD.com is one of the top ten companies in the world that dominates the global e-commerce market. The company is an e-commerce giant based in China that offers a myriad of products such as electronics, consumer goods, books, and multimedia content. It also provides a number of vendors a selling platform to its website and mobile apps.

Boasting Immense E-commerce Growth

The company serves 260 million users and employs 140,000 people. One of the key turnarounds for JD.com is when it joined forces with Tencent Holdings Limited. This propelled the e-commerce platform to reach more than 900 million potential customers, and it’s growing even more. JD.com became so successful due to its distribution network and method of direct sales. The great magnitude of the company is seen through its 335 warehouses all over China and staff serving 50,000 towns.

In 2016, JD.com sales rose to 15.8 trillion yen. What’s more impressive is that the company leaped to a 94% claim to the title of fastest grower over the last year. It raised its value from $10.7 billion in 2017 to $20.9 billion in 2018. Furthermore, its 6.18 shopping festival gained record breaking sales of $17.6 billion – a 50% increase in transaction volumes.

Redefining Retail

One of JD.com’s major initiatives is to offer sales promotion proposals which are based on integrated data. They make the most out of employing big data coming from the e-commerce market and social networking services. The company is also forging partnerships with Walmart and supermarket chain Yonghui to obtain large amounts of consumer data. These efforts also further establish its physical retail expansion.

JD is pushing the redefinition of retail by allowing customers to purchase online and pick up the products in nearby stores. Take for example their average delivery time of 11 minutes when iPhone 7 launched in the market. Their inventory turnover period can be as short as 17 days. Thus, it is able to keep costs low due to a shorter inventory cycle compared to offline stores. What’s more, the company contributes to the elimination of counterfeit products by developing positive cooperation with manufacturers.

We Have a Retail Giant Winner

And what makes JD.com create an edge in the industry over other e-commerce giants? It is in the focus on quality of products and providing the best experience for their customers. The market in China is still plagued with counterfeit products. JD.com’s initiatives in delivering quality and value that people can count on makes it a winner that keeps on winning over the years.

“JD.com’s business model is competitive due to a combination of brand recognition and reputation, product quality and selection, pricing, fulfilment capabilities, and customer service.”

Jason Lee, Senior Analyst, CMR

The company also continually innovates the retail landscape by incorporating technologies to push the industry forward. It opened several high-tech stores over the past year. It’s also pushing plans forward on building a network of drones to reduce the cost of making deliveries. The drone network initiative is targeted for a more convenient and efficient delivery in rural areas.

 

Here’s a glimpse on the efficient innovation happening in this e-commerce giant’s warehouse.

Retail Analytics is Crucial in the Age of New Retail

Retail Analytics helps businesses streamline their operations and understand customer behavior. It focuses on providing insights to sales, inventory, customers and other significant aspects in business. It can also help a retailer decide what’s best for business. Retail analytics helps business owners make better choices, run a business more efficiently, and improve customer service.

Take for example the goal to understand your market. If you want to determine customer behavior in your target demographics, you can use retail analytics to identify ideal customers according to certain factors. These include age, location, preferences, buying patterns and many more.

As a result, retail analysis goes beyond superficial data analysis. It uses data mining and discovery to create strategies that can be applied in the short-term. It’s about going beyond what the numbers are saying. It defines what information you need, how to gather it, and how you’ll be able to use it.

The Benefits of Retail Analytics

According to an IDC infographic by SAP, 40% of digital transformation initiatives will be supported by AI capabilities. It will provide critical on-time insights for new operating and monetisation models. In the next 2 years, 30% of major retailers will adopt a retail omnichannel platform. This will integrate data analytics to orchestrate omnichannel capabilities. Innovations in Artificial Intelligence will be the name of the game when it comes to bringing your business to the next level in the following years.

 

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How You Can Incorporate Retail Analytics to Your Business

The best way you can take advantage of Retail Analytics is to know which one is highly applicable for your needs. There are retail analytics tools which are relevant to a specific to type of company. Take for example a software that helps companies optimise their inventory and procurement. Predictive tools can also help businesses use data to determine which products they should order more or which strategies to implement. Many other tools can help streamline operations and create maximum ROI. It can also revolutionise the retail experience, as seen on how they use data collected from virtual fitting rooms.

Equip Your Business with Retail Analytics

Large and small businesses are already using retail analytics to improve customer analysis and create new revenue-generating services. Successful examples of companies using analytics include Adidas, Burra Foods, Costco and Zalando when they incorporated SAP tech innovations in their operations.

Analytics are a foundation for retail profits as it can help you refine your fulfilment models, implement omnichannel strategies, and drive improvements in the supply chain. To sum up, using retail analytics will put you a step further in making your business thrive in this digital age.

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