Chinese e-commerce company JD has expanded its strategic partnership with The a2 Milk Company, providing a welcome boost to the ANZ dairy giant in the wake of China’s plans to increase local formula output and reduce reliance on imports.
JD Worldwide said it will help a2 Milk to bring more high-quality dairy products to the Chinese market through tailored marketing campaigns both online and offline.
China is a top priority market for a2 Milk, with many Chinese parents turning to the company’s milk formula, which is designed to be easier for children to digest.
In June, the Chinese government revealed plans to exceed 60 per cent self-sufficiency for baby formula and improve the quality of domestic brands, a move which could harm Australian formula companies in the market.
The a2 Milk Company introduced its products to Chinese consumers through JD Worldwide in 2015, and has had an impressive track record with the e-commerce giant to date.
During this year’s “6.18” sales festival, a2 Milk was the top-selling brand on JD Worldwide on peak day, June 18, and its platinum baby milk powder was the best-selling product. Sales of a2 products on this day increased 210 per cent compared to the previous year.
As a participant in JD.com’s “Brand Competitiveness Plan,” a2 Milk was provided marketing solutions to increase sales performance and build up brand recognition.
The milk company received guidance on marketing campaign timing, choice of promotional channels, and help in identifying the target audience for a campaign.
JD helped identify customers who had indicated interest in a2 products but had not yet made a purchase and sent coupons to this high potential group.
The ROI of coupons during the month of the campaign was 3.6 times higher than the typical average, according to JD.com and fans of the a2 Milk online store on JD Worldwide surpassed 1 million users.
“China is the top growth market for The a2 Milk Company, and JD.com’s expertise in innovative marketing has consistently allowed us to make the most of this exciting opportunity,” said Xiao Li, CEO of a2 Greater China.
“Last year, we launched blockchain partnership with JD, using a QR code on a2 Milk products to show logistics information at every stage of delivery. This is just one of the ways we are working together to give customers more peace of mind and confidence in their purchases.”
Products from Australia and New Zealand have a reputation for safety and quality, and consistently sell well on the site, according to JD.com. Health supplements, maternal and baby products, wine, milk and cosmetics are among the best-selling categories.
“The a2 Milk Company’s premium dairy products are an increasingly popular choice for Chinese parents across the country,” said Chris Cui, Head of JD Worldwide.
“As China’s largest retailer, JD has unique capabilities to offer a2 Milk assistance in terms of marketing solutions, logistics and technology, helping a2 continue to grow their market share.”
In addition to a2 Milk, popular brands including Swisse, Blackmores, Devondale, Penfolds and Jacob’s Creek have also seen impressive growth in sales on the JD platform, with sales of Penfolds products increasing by more than 200 per cent year-on-year during first 30 minutes on June 18.