August 3, 2020

JD, BABA, Beijing Kuaishou Technology Co. Ltd., ByteDance Ltd., Xingyin Information Technology Co. Ltd.

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34 vendors in China of electronics (8), furniture and home goods (5), food/beverage (4), household products (4), athletic apparel/shoes/equipment (3), accessories/jewelry (3), cosmetics (3), non-athletic apparel/shoes (2), auto accessories (1) and baby products (1), representing 5.836 billion yuan in overall 2019 sales

29 from OTR Global’s May report

July 3–26


2Q20 Sales, Ad Spending Increase

Vendors’ yy sales growth on accelerated during 2Q20, driven by 6.18 promos, deeper discounts, higher marketing budgets and, for some, higher-priced products.

  • Vendors’ 2Q20 JD sales up 9%–14% yy (vs. up 1%–6% in 1Q20), boosted by 6.18 promos, deeper discounts yy amid more cautious retail environment; 20 of 34 vendors at least met plan (similar to 1Q20)
  • Vendors’ 2Q20 overall cost paid to JD at 18%–23% of sales (vs. 15%–20% of sales in 1Q20), driven by more spending on 6.18 promos, competition among vendors
  • ROI on JD’s ads higher qq for 14 of 32 vendors (vs. 13 of 34 in 1Q20); 17 of 34 tried live streaming on JD during 2Q20 (vs. 9 of 37 in 1Q20), but only 5 satisfied with results
  • Areas to Watch: 19 of 34 vendors expect 2020 sales to increase yy, but 11 expect yy decreases because of caution on overall economy; 17 of 34 plan to increase advertising budgets for 2H20
by Meredith Sun