JD.com’s Kevin Jiang On Luxury Going Omnichannel

Key Takeaways : JD.com, the largest online retailer in China, is now offering omnichannel solutions to more than 200 luxury brands. Kevin Jiang, JD’s President of International Business, said many brands are expressing interest and that Prada and Miu Miu were the first brands to sign on. Through its advanced logistics network, JD can reach luxury customers in lower-tier cities where there is a reduced physical store footprint but a growing appetite for luxury. JD.com became China's largest online retailer by pioneering omnichannel strategies. Now, it is going to make those omnichannel solutions available to luxury brands. With over 1,000 luxury brands selling via JD.com, Jing Daily wanted to know more about the working relationship between the Chinese e-commerce giant and international brands, as well as the collaborations that promise to ensure seamless omnichannel experiences for customers in China. Kevin Jiang, the president of international business at JD, was gracious enough to answer some questions for Jing Daily. Before joining JD, Mr. Jiang held executive positions at Sasseur Group, PCD Stores Limited, Grosvenor Vega China Retail Fund and Bain & Company. He also holds an MBA degree from Northwestern University-Kellogg School of Management. Mr. Jiang's transformational leadership has created change within the company, helping it acquire multiple strategic partnerships with luxury power players. In turn, these partnerships helped luxury brands boost their sales volumes and profit margins. Jing Daily: Over 1,000 fashion and luxury brands are selling via JD.com. How do you help them optimize their omnichannel solutions? Kevin Jiang: JD supports luxury brands in offering an omnichannel experience for customers from two perspectives: inventory integration by sharing and synchronizing online and offline inventory and integrated brand campaign promotion, which fosters customer loyalty. Who is taking part in the initiative? Many brands have expressed significant interest in this model and have laid out plans to introduce this solution as early as possible. Prada and Miu Miu were the first brands to benefit from our omnichannel solution after we successfully launched the model with them on August 1, 2020. In the period July 29-August 13, the cooperation model launched in Prada’s official flagship store brought additional sales of more than 30% to Prada and Miu Miu. How does JD assist luxury brands in their digital marketing efforts? Leveraging JD’s big data, we share insights with our brand partners, helping them achieve a better understanding of their target consumer base. Furthermore, JD.com can help luxury brands design and decorate their online stores. And in addition to store design, JD has leveraged its big data to recommend luxury products in accordance with consumer preferences. Pre-COVID-19, JD.com’s omnichannel solutions were only available to fast-moving consumer goods clients. What pushed JD to branch out and include luxury players? Luxury products have sold well on JD during the epidemic. That is because more Chinese consumers are turning to domestic channels when they make luxury purchases, and they want to choose a platform they trust. What benefits can luxury brands get from JD.com’s omnichannel solutions? Some major benefits are stronger brand image, improved product offerings, enhanced offline stock efficiency, and maximized selling opportunities. If most luxury shoppers still select physical stores for their luxury purchases, why does omnichannel retail matter? JD’s luxury customers are located throughout China, with many residing in lower-tier cities where there is a reduced physical store footprint. JD.com can reach these customers through its advanced logistics network. Moreover, JD offers customers interest-free finance services and a 7-day, “no questions asked” return and exchange policy, which is not offered by offline luxury stores. And the JD Luxury Express adds a highly-personalized, intimate, and innovative offline element to the e-commerce experience.

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JD.com’s Kevin Jiang On Luxury Going Omnichannel