China’s largest retailer JD.com has developed a Consumer-to-Manufacturer (C2M) model which is helping fast-moving consumer goods (FMCG) business brands to significantly increase their sales. With access to more than 300 million customers, the company utilizes its vast customer feedback database to analyze customer capabilities and hence offer valuable information to brands on how best to optimize their products. This, therefore, helps these business brands to understand how best to cater to Chinese customers and hence penetrate the huge Chinese market of FMCG.
JD.com, being an online retailer, identifies the most common search keywords in its platform and uses this information to advise brands on the desires of most customers. Brands which utilize this information provided by JD.com to customize their products have reported a significant increase in sales in the Chinese market. The valuable information provided by JD.com is arrived t after sophisticated trend analyses and keyword searches.
Huggies diapers are one of the brands which have benefited from the C2M model by JD.com. From JD.com’s analysis, there was a significant rise in the popularity of Chinese diaper brands. These diaper brands were those that used a composite material in place of wood pulp, traditionally used by Huggies. Huggies utilized this information and released a diaper brand, having replaced the wood pulp with composite material. JD.com and Huggies also came up with a 104-diaper package after analysis of customer shopping trips and babies’ diaper needs. These new products have seen a significant increase in Huggies sales in China.
Another brand which has benefitted from the C2M model by JD.com is Head & Shoulders, an anti-dandruff and scalp-care expert. JD.com’s data analysis revealed that Chinese customers were getting increasingly concerned about the environmental friendliness of the products they use. The popularity of natural hair products was on the rise. JD.com hence helped Head & Shoulders to develop a collection of natural shampoo which is free of silicon. The sales of this new shampoo collection were amazing.
JD.com has since leveraged its C2M model to other brands other than FMCG. These include electronic brands such as HP and Logitech. For HP, they jointly launched a gamers’ exclusive PC which was specifically developed to cater for gaming needs. For Logitech, they utilized the popular search words ‘silent’ and ‘slim’ to develop a modern design quiet wireless mouse. This was made possible by data obtained from JD.com’s analyzes.
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