Nestlé is achieving sales success in China thanks to its partnership with that country’s largest retailer, Jingdong. JD.com carefully analyzes consumer behavior and also provides expert advice on how products should be designed. This has resulted in excellent sales for Nestlé on the JD.com app.
Nestlé Purina FancyFeast was already a top-selling product on JD.com. Jingdong analyzed what the habits were of FancyFeast consumers. What they discovered was that in the variety packs consumers picked certain flavors over other ones. A new variety pack with eight cans was developed that featured the four most popular wet cat food flavors.
JD identified people who would be receptive to purchasing this variety pack. 10,000 two-can trial boxes were created and sent out to these people along with one of their existing orders. The result was that twice as many packages of FancyFeast were sold compared to the same period last year.
Further research by Jingdong revealed more information about Nestlé customers in China. They were, as a group, highly educated, spent a lot of money, and are usually a member of JD Plus, JD.com’s loyalty program. It also spotted a trend of pet owners wanting to buy higher-quality food and other products for their pets. An example of this was that searches on JD.com for “smart pet water fountain” had grown intensely.
Jingdong’s takeaway from this research was that Nestlé customers are fine with spending more money on their pets, including buying premium food. As a result, Nestlé replaced their “tuna” flavor” with “tuna flavor with chicken and bonito flakes”.
JD also helped Nestlé redesign other products such as their wafer bars so they would appeal more to Chinese consumers. JD.com’s customers buy these in bulk. Jingdong’s research showed that they are bought this way because people take them on trips and family outings.
The package Nestlé was selling in China didn’t fit well for these occasions. Chinese consumers wanted each bar to be smaller and have more varieties of flavor. Nestlé is now selling a larger pack with mini-sized bars that come in a bigger selection of flavors.
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For the first time, members of Jingdong’s “JD Plus” premium membership program will be able to get special deals in hotels at locations outside of China. Jingdong also known as JD.Com is China’s largest retailer. The e-commerce giant has more than 300 million active users.
Almost 10 million of those users pay extra to be JD Plus members. This designation affords them an array of perks. That package of perks has just made considerably more attractive thanks to Jingdong’s historic deal made with some 15,000 top tier hotel chains around the world. These include 19 brands. Among them are InterContinental Hotels and Resorts, Ascott and AccorHotels. Also, Wanda Hotels and Resorts partnered with JD.
Jingdong officials announced the new deal during its popular 6.18 Anniversary sales event which kicks off every June 18. Members of JD Plus also already enjoy many other benefits similar to the new hotel perks offering. For example, JD Plus members get bundled memberships with such partners as Sam’s Club, iQIYI, and Zhihu. They also enjoy privileged deals with restaurants, discounts on healthcare services and wealth management products.
Chunhui Meng is the Head of JD Plus. Chunhui Meng said these deals and the new hotel perks have “cemented” the JD’s premium program as the best offered by any retailer in China. He also said Jingdong is happy to reward its most loyal customers with rewards that show company appreciation for their continued support.
Also praising the new hotel add-on benefit is Adeline Yong. She is the Deputy General Manager at Wanda Hotels and Resorts. She said JD’s customers are valuable to the hotel chain because Jingdong JD Plus customers show values that “align” with Wanda Hotels and Resorts. This company will now offer its Gold membership benefits to JD customers who opt to become JD Plus members.
Those members now can take advantage of a variety of hotel benefits in some 5,600 hotels from various IHG hotel brands around the world. Some examples of those benefits are 15% discounts on room rates, 10% additional bonus points, priority check-in, longer check-out times and much more. Click Here to learn more.
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