How a JD.com-Backed Hit Product Was Made: Insights from the China-U.S. Dialogue Forum Series

On October 31, at the “China-U.S. Dialogue” Special Forum of the 2nd China International Telemedicine Summit, Long Ruqian, CEO of Chongqing Xiaoai Technology, delivered a keynote speech that not only amused representatives from U.S. companies but also captured the attention of many attendees.

The image shows Long Ruqian, CEO of Xiaoai Technology, delivering a keynote speech at the China-U.S. Dialogue Forum.

After the conference, Long Ruqian added more than 30 new contacts on WeChat, including investment firms interested in her project and companies seeking collaboration opportunities.

In her speech, Long Ruqian mentioned that Xiaoi Technology’s product philosophy is to always create blockbuster hits.

For Xiao Ai Technology,A blockbuster product implies the following: First, its sales generate significant economies of scale, with substantial sales volume that captures the majority of users in the relevant field. Second, the product must be effective, enabling users to transform and optimize their respective usage scenarios after purchase. Third, it must offer high cost-performance ratio, ensuring low acquisition costs for users. Fourth, it must achieve high user retention, characterized by high engagement levels and sustained long-term usage.

How to Create a Hit Product?

Long Ruqian told VCBeat,Xiaoai Technology’s products follow a female-centric strategy.. Centered on this, Xiaoai Technology has developed products for women during pregnancy, such as aiShoes smart maternity shoes; products for use by children during infancy and growth stages after childbirth, such as aiBag smart schoolbags and aiMilk smart baby bottles; and even products for postpartum skincare, such as aiFace Smart CC Cream.

Xiaoai Technology's Product Logic

Long Ruqian explained, “Our products are more user-centric and can be seamlessly integrated into everyday life, meeting consumers’ daily needs. By incorporating internet-enabled features and implementing micro-innovations, we have made them the most distinctive offerings in their category.”

The company’s first independently developed smart product, aiShoes smart maternity shoes designed for pregnant women, has gone live and become a hit campaign on JD.com’s crowdfunding platform. At 11:00 a.m. on October 10, 2015, Xiao Ai Technology officially launched the crowdfunding campaign for its aiShoes smart maternity shoes on JD.com. The initial goal was to raise RMB 1 million within 1.5 months. In reality, Xiao Ai Technology reached the RMB 1 million target in just six hours. As of November 3, within 21 days of launch, the aiShoes smart maternity shoes had raised RMB 2,438,705 through crowdfunding.It is reported that Xiaoai Technology has been selected for JD.com’s crowdfunding “Fledgling Eagle Program.” In addition to receiving investment from the JD Finance ecosystem, participating companies in the program will also benefit from entrepreneurial guidance and customized business plans developed by JD’s professional team.

In addition to being comfortable, lightweight, retractable, non-slip, and shock-absorbing, aiShoes smart maternity shoes feature a smart embedded chip installed under the tongue or insole. By connecting to a dedicated app, the shoe reads maternal walking data such as distance and location. Combined with entered basic information, it customizes a scientific walking plan for each pregnant woman and delivers real-time reminders regarding optimal exercise duration and intensity. Pregnant users can thereby monitor whether their daily activity level is excessive, assess suitability for travel, and even track calorie expenditure. (For more details on the smart maternity shoes, please refer to the VCBeat article “JD.com Crowdfunding Star Project aiShoes: The Product Logic Behind a Pair of Smart Maternity Shoes.”)

For beauty-conscious women, postpartum skincare is particularly important. Xiaoai Technology’s aiFace Smart CC Cream, developed specifically for this user segment, will soon launch its crowdfunding campaign on JD.com.

The aiFace Smart CC Cream features a high-precision body temperature sensor on its packaging for temperature monitoring, while a pyroelectric infrared sensor detects heart rate and pulse. Additionally, the product monitors ambient temperature, humidity, and skin moisture levels. Equipped with a built-in HD mini embedded camera, it also assists with makeup application and selfies. Long Ruqian believes that the aiFace Smart CC Cream will become another hit product for Xiaoai Technology.

Long Ruqian stated that Xiaoai Technology’s products are all developed by addressing essential needs within users’ daily life scenarios. “We do not conceive products out of thin air; our products are those that all users need in their daily lives and work.” The company’s product model basically combines smart hardware with cloud computing or data services provided through a mobile app.

In terms of promotion, Xiaoai Technology primarily adopts crowdsourcing and crowdfunding strategies. On one hand, Xiaoai Technology sells its products on JD.com, Tmall, Vipshop, and the BabyTree community. On the other hand, Xiaoai Technology plans to open 1,000 Xiaoai Smart Experience Stores across China in 2016. This represents a new Industry 4.0 chain store model, where all stores operate as shop-in-shop concepts in partnership with existing maternal and infant product retailers. The Xiaoai Smart Experience Stores carry no inventory. Taking smart maternity shoes as an example, customers undergo foot scanning and modeling analysis using 3D foot scanners at the experience stores; orders are then generated instantly, and Xiaoai Technology produces the items on demand, shipping them directly to customers’ homes.

Long Ruqian told VCBeat that Chongqing is expected to take the lead in establishing 15 Xiaoai Smart Experience Stores by the end of 2015.