JD+ and HWTrek have partnered together to launch Program Spice to assist hardware startups – as well as small and medium-sized enterprises (SME / SMB) – with the knowledge, expertise, and tools necessary to successfully enter the Chinese consumer market for smart, connected devices. You can think of Program Spice as your Gateway to China’s market.
The program introduces early-stage projects to the JD+ incubation system. This lays the foundation to launch products on the JD+ platform. The goal of Program Spice is to bring promising hardware projects from overseas into China and to champion these innovations among China’s consumers.
For Program Spice, HWTrek and JD+ are looking for products in the following categories: Smart Home, Health, Wearable, and Automotive Applications. Ideally, your project has already been crowdfunded and you’ve shipped your first batch or your project is already on the market and you want to enter the Chinese consumer market.
Why care about China’s consumer market for smart, connected devices?
China’s consumer market for smart, connected devices is expanding quickly. At US$6.9 billion, the Chinese smart home market currently accounts for approximately ten percent of the global market in 2015. The smart wearable devices market in China is experiencing one hundred seventy percent growth reaching a market size of US$1.7 billion this year. By 2017, it will hit US$4.8 billion annually. As a whole, the Internet of Things (IoT) market in China will reach US$121 billion with a growth rate of twenty-two percent.
Just like their Western counterparts, Chinese consumers want the latest and coolest gadgets on the market. Most importantly, the Chinese consumer is willing to spend on smart wearable devices. In fact, this product category is characterized as having low price sensitivity. Nearly fifty percent of Chinese consumers are willing to spend between US$80 to 320 on a wearable device. Thirty percent is willing to spend between US$32 to 80 with an additional seven percent willing to spend more than US$320. The most in-demand wearable functionalities include health indicator monitor tracking, calling and life reminders, and GPS.
JD+ has a track record of bringing success to overseas products in the Chinese market. Fitness tracker and Silicon Valley startup Misfit sells its products through the JD+ platform. Currently, the Chinese market accounts for 30-40% of total global sales for Misfit.
Misfit Shine. Photo courtesy of misfit.com
Learn more about how Program Spice works and how to apply here. Join the discussion and connect with Ken Liu from JD.com on the HWTrek platform.
What’s JD.com?
Just in case you were wondering, JD.com, or Jingdong Mall, is the largest B2C online retailer in China. JD.com continues to capture market share and this year is nearing fifty percent of China’s e-commerce market. With 105 million annual active customer accounts as of March 31, 2015, the marketplace has grown ninety percent year-over-year. The number of products offered through their online marketplace was approximately 25.7 million as of the end of 2013. 689 million orders were made in 2014 for year-over-year growth of one hundred thirteen percent.
JD Smart Group, a division of JD.com, launched JD+ in 2014 and introduced its programs in March 2015 that include the JD+ incubator, JD+ accelerator, and JD+ smart solution. Depending on the different stages of company development, JD+ provides incubation, acceleration, or smart solution services. Click here to find out more about JD+ Solutions on the HWTrek platform.
