Global measurement and data analytics company Nielsen will sign a strategic co-operation and data sharing agreement with e-commerce giant JD.com.
Per the terms of the agreement, both sides officially launched an innovative big data product – the Online Pricing Optimizer (OPO). The OPO will help brands evaluate their pricing on the JD platform and optimize their promotion, and assist them in customizing year-round promotions and designing plans for certain e-commerce festivals. In this way, brands can increase their sales and profit margins on the JD platform.
The OPO can analyze all the factors influencing consumer decision-making at different levels of pricing and promotion strategies. It can restore consumers’ shopping decisions, find the key factors that drive sales through pricing and promotion, as well as give professional suggestions that can be executed, thus enhance the brands’ promotional efficiency on the JD platform.
“Nielsen is a global leader in retail data research. The company has gained rich experience in pricing and promotion based on multi-channel retail data, as it has conducted relevant research in the world including China for more than ten years,” Andy Zhao, President of Nielsen China, said. “OPO is designed based on Nielsen’s traditional pricing and analysis product. It also combines individual order data provided by JD platform. By creating OPO, Nielsen pioneered the way that using consumer order data to provide pricing and promotion analysis for brand owners.”
“Nielsen found the accuracy of e-commerce analysis and predictions made based on store-level data stands at only about 25 percent. In contrast, the forecast accuracy by Nielsen’s OPO, which using data on individual order level, can exceed 75 percent. This is a huge breakthrough,” he added.
Yan Weipeng, Vice-president of JD said: “Retail has no boundary, neither the development of the retail industry. Win-win cooperation will always be a trend in the retail sector. JD is very pleased to work with Nielsen and brand owners to find out growth engines, promote GMV growth among JD and brand owners, and create a multi-win situation. Our partnership with Nielsen has a long history. Whether it is MTA (Multi-Touch Attribution) or OPO, the Nielsen team’s professionalism made a profound impression on us. We believe OPO will bring tremendous value to JD and the entire industry.”
