12/05/17 12:10 GMT
by Hot Pot Digital

Know China Now: China Southern Airlines and JD Expands Into Offline Retail

With more than 846 million daily active users, China boasts more smartphone users than the USA, Brazil and Indonesia combined, with an unprecedented rate of adoption and change in the digital sphere.

Each week Hot Pot Digital’s Know China Now blog keeps brand marketers informed on digital, social, mobile and ecommerce trends in the most exciting consumer market in the world.

China Southern Profits Climb

What is it?

  • Asia’s biggest carrier – China Southern Airlines – experienced a 35% leap in profit in 2016
  • The airline turned a profit of $731 million due to a soar in domestic and international travel
  • Each of China’s “big three” airlines – China Southern, China Eastern and Air China – saw increased revenue as they expanded domestic and international route networks

Why do I need to know?

JD.com Plans to Shift Into Offline Retail

What is it?

  • E-commerce giant JD.com plans to open more than 1 million JD convenience stores across China in the next five years
  • Interestingly, they plan for half of the stores to be located in rural areas
  • This is JD’s third offline cooperation project after launching 10,000 JD home appliance stores

 

Why do I need to know?

  • Although the penetration rate of e-commerce is high in small cities, convenience stores will play a vital role in providing the necessary infrastructure for JD products to reach consumers
  • Alibaba Group Holding Ltd has also made steps towards a combination of offline-online retail channels
  • It is expected that the network of stores will help JD to improve its O2O presence in the fast-moving consumer goods sector