Nielsen Helps China’s JD.com Launch Price Optimization Tool
Nielsen has signed a “strategic cooperation and data sharing agreement with China-based e-commerce giant JD.com.
As part of the agreement, the partners launched a “big data” product called the Online Pricing Optimizer that is designed to help brands evaluate their pricing on the JD platform to optimize their promotional activity, including the customization of year-round programs and plans for specific e-commerce “festivals.” The ultimate goal is to increase sales and profit margins on the JD platform.
The optimizer was built to help brands better understand online consumers, such as what products they compare before making purchase decisions, the proportion of different promotions in an overall discount and the impact of each on the ultimate decision. Based on in-depth analysis of pricing and discounts, it can provide reasonable suggestions for long-term and short-term pricing.
Nielsen's analytical consulting department and JD's business development and cloud platform units developed the product jointly. It leverages the order and browsing data generated by more than 300 million active online consumers on JD.com, as well as Nielsen's monitoring data on omnichannel retail.
Nielsen research finds that Chinese consumers have become increasingly sensitive to pricing in recent years.
"Win-win cooperation will always be the trend of the retail sector,” said JD vice president Yan Weipeng. “JD is very pleased to work with Nielsen and brand owners to [identify] growth engines, promote growth … and create a multi-win situation.”