Page 2: Product
The ‘product’ is concerned with the function and features offered by a good or service. Product also encompasses factors such as quality, design, after-sales service and branding.
JD sells lifestyle products. These are sportswear ranges worn in everyday life. JD targets different groups of consumers who desire trainers and sports fashion as casual day wear. Many of the products that it sells are from the global ‘power brands’. These are long established, popular brands such as Nike and adidas.
These brands appeal to large groups of consumers and are easily recognised by JD customers. They are backed by large marketing budgets which help to boost sales and sustain demand by consumers.
Usually it is manufacturers who decide what products to produce and retailers have no say in this. However, JD is different. The company has so much buying power and knowledge of the market that manufacturers are happy to take its ideas. These are then used to produce exclusive products for JD. For example, the adidas Forest Hills and adidas Training PT footwear ranges were developed exclusively for the JD Group and cannot be found in any other retailer.
Working with suppliers
JD works with suppliers across the world to develop and deliver own-brand products. Prior to any orders being placed, all new suppliers must complete the Group’s risk assessment form to ensure that their activities are in line with the Ethical Trade Initiative Base Code.
This code covers areas such as health and safety, working hours, wages, fire procedures and maternity pay provisions. This ensures that the people employed to make JD’s own brand products have good working conditions and that products are sourced ethically.
Other social and environmental factors are also taken into account. For example, last year 423.3 tonnes of cardboard, used in packaging, was returned to the Group’s distribution centre for recycling.