JD.com Invests RMB 1 bln to Incentivize Video Content Creation
JD.com, 4/11/24
Chinese B2C e-commerce platform operator and retail infrastructure service provider JD.com (Nasdaq: JD; 9618.HK) announced yesterday an investment of RMB 1 bln in cash incentives aimed at attracting a wider pool of video content creators and institutions to its platform. The initiative ais to leverage the power of short videos and live streams in innovating the online shopping journey for JD.com's users and providing brand merchants with novel avenues for growth.
According to the "China Internet Audiovisual Development Research Report (2024)," 71.2% of surveyed users engage in online shopping through watching short videos and live streams, with over 40% identifying them as their primary channels of consumption. This trend underscores the growing influence of video content on consumer purchasing behavior.
JD's approach to cultivating a vibrant content ecosystem is multifaceted. For individual content creators, the platform offers generous cash subsidies across more than 20 product categories, including electronics, home appliances, fashion, and health, and others. Creators who meet the platform's recruitment criteria can receive weekly bonuses of up to RMB 30,000, alongside additional incentives such as video playback subsidies and sales commissions.
On the institutional front, JD has established a separate RMB-5-million incentive program. Institutions that successfully onboard a significant number of influencers will receive generous monthly cash subsidies. JD will also provide one-on-one guidance and support to enhance these institutions' operational effectiveness on the platform.
A key element is the prioritization of high-quality, original content. The platform intends to amplify the reach of such content through algorithms, traffic coupons, and other means, thereby ensuring a richer and more engaging shopping experience for its users.
In a bid to further elevate its content offerings, JD is also in the process of incubating top-tier influencers, with plans to cultivate 100 star influencers by year-end. This initiative builds on the substantial growth witnessed in JD's content ecosystem over the past year, marked by a 300% increase for "trial + review" videos in key metrics such as orders, user base, and viewing duration. Notably, during the Singles' Day Grand Promotion in 2023, JD's video challenges initiative generated nearly RMB 100 mln in transactions, showcasing the immense potential of content-driven e-commerce.
Keywords: video commerce e-commerce Internet B2C JD.com JD 9618.HK content production marketing
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