J.D.com Becomes A Trendsetter in New Zealand’s Agribusiness Sector
When it comes to diversification, JD.com is perhaps the perfect example of this trend. Although the company never sold agricultural products on JD official website before, they have currently tapped onto the market. Their zeal to succeed in the agricultural sector was driven by the unmet needs that they saw in the Chinese market. Eventually, their efforts have culminated in them delivering apple and kiwifruit harvest to China from New Zealand.
Sales Driven by Dynamic Consumer Preference
JD.com’s market entrance has strengthened their ties with other critical players such as Rockit Global Limited and Zespri. One of the main factors that has contributed to the success of JD.com’s retail in fruits is the change in consumer tastes. Over the years, the majority of JD.com’s customers have preferred to consume imported high quality products as opposed to locally available produce. Data available form their database proves that a large portion of JD.com’s sales emanated from fruits imported from overseas. The 20% increase in imports was due to the need by their middle class and younger customers’ inclination to keenly watch on their nutrition and health. Available data reveals that exports from New Zealand to China have increased exponentially by over 80%. The sales currently stand at NZ$ 606 million.
Market Growth Spurred by Fruit Exports
New Zealand’s most famous export to China is Kiwifruit. Such positive indications point out that horticulture is a vital part of New Zealand. For instance, the industry currently employs more than 18,000 people in New Zealand alone, with over 2,600 growers of Kiwifruit in New Zealand. Another factor that has led to an increase in sales is the setting up of a flagship store on JD.com by Zespri. Such moves have enabled Zespri to tap into different consumer groups and increase their market share. Additionally, they have also expanded their footprint to include sales through Jingdong’s offline store, 7Fresh. Doing so has enabled Zespri to utilize the services of the top largest e-retailer in China.
The entry of Rockit in Jingdong
Not to be left behind, Rockit Global also realized the importance of setting up shop on JD.com. Subsequently, they have managed to tap into the Chinese market by launching their a flagship store, Rockit Apples on Jingdong.
Read more: https://ir.jd.com/liu-qiangdong-jd-ceo-about