Topic

JD Chief Economist: Tech-Driven Supply Chain Revolutionizes Gen-Z Consumer Engagement in China

Posted on by Vivian Yang

At the inaugural FORTUNE Innovation Forum in Hong Kong on March 28th, Dr. Jianguang Shen, chief economist of JD.com, highlighted the transformative impact of tech-driven supply chain solutions in meeting the dynamic needs of Gen-Z consumers in China.

“Gen-Z consumers are very discerning and pragmatic,” said Dr. Shen. “They don’t care if the brand is local or global.” Dr. Shen began by discussing the increasing sophistication of younger Chinese consumers. “The rising popularity of local products can be attributed to China’s supply-side reform, which has enabled brands to provide lower-cost products with higher quality,” he said. Shen also emphasized the strategic advantage that brands can achieve by leveraging advanced digital supply chains, which offer deep insights into consumer behavior, thereby tapping into substantial market opportunities.

Joining Dr. Shen were industry leaders including Angela Wei Dong, Global Vice President China at Nike; Pontus Erntell, President and Chief Sustainability Officer at IKEA China; and Doreen Wang, CEO of Kantar China and Global Head of BrandZ. Together, they shed light on the shifting preferences of China’s youth towards quality, sustainability, and enhanced social engagement in their retail experiences, especially amid economic headwinds, prompting brands to adapt swiftly.

Drawing examples from JD.com’s platform, Dr. Shen discussed the rising popularity of eco-friendly mini refrigerators among Gen-Z consumers. These products, aligning with Gen Z’s penchant for tech-savvy and environmentally conscious offerings, underscore the necessity for brands to evolve and align with consumer preferences.

Furthermore, Dr. Shen discussed the positive impact of a new government policy encouraging trade-in of consumer goods, which is expected to boost consumption. Leveraging JD.com’s robust supply chain capabilities, customers not only can easily trade in old appliances for more modern and eco-friendly goods but also benefit from a suite of JD’s attentive services such as doorstep pickup, installation, and recycling.

The conversation also touched upon the strategic collaborations under the Consumer-to-Manufacturer (C2M) model between JD.com and numerous brands, aiming to streamline the journey from product ideation to distribution. This collaboration has welcomed over 4,000 brands to JD.com’s C2M platform, drastically reducing product research and market introduction times by 80% and 70%, respectively, thereby fostering a mutually beneficial ecosystem for brands, retailers, and consumers.

Dr. Shen concluded by emphasizing JD.com’s commitment to technological innovation, with its deployment of AI-driven chatbot customer service, highly automated warehouses, autonomous delivery vehicles, and integrated retail solutions that bridge both online and offline domains.  These innovations are designed to meet the dynamic preferences of consumers, enhancing the overall shopping experience and setting a new standard in consumer engagement.

 

(vivian.yang@jd.com)

JD Super Partners with Quinta do Noval to Bring Premium Portuguese Wines to China

Posted on by Vivian Yang

On March 22nd, JD Super, the online supermarket division of JD.com, and Quinta do Noval, a renowned Portuguese port wine producer, formalized a strategic cooperation agreement at the Portuguese Embassy in Beijing. The partnership is set to enrich the Chinese market with premium Portuguese port wines, marking a significant milestone in wine retail through direct procurement.

The Portuguese Ambassador to China, H.E. Paulo Jorge Nascimento, hailed the partnership as a gateway for Chinese consumers to explore Portugal’s culture through its wines. Quinta do Noval, known for its vintage port wines sourced from the Douro River region, is poised to captivate Chinese wine enthusiasts with its unique flavors.

Xavier Sanchez, marketing and sales director of AXA Millésimes, which includes Quinta do Noval in its portfolio, highlighted the winery’s rich history dating back to 1715. Renowned for its single-vineyard grapes, Quinta do Noval promises an authentic Portuguese wine experience.

JD Super, observing the heightened demand for premium wines among Chinese consumers, pledged to meet their evolving preferences through this direct procurement partnership. This collaboration broadens the diverse selection of Portuguese wines on JD Super’s platform, making high-quality wines more accessible to Chinese consumers.

The ceremony showcased Quinta do Noval’s flagship wines, including Fine Ruby Port, Late Bottled Vintage Port 2016, and 10 Year Old Tawny Port, all of which received acclaim from attending sommeliers. Edward Ragg, a China-based Master of Wine, and Mr. Lv Yang, the world’s first and only Chinese Master Sommelier, were present at the event to offer professional insights on the wines. The full range of Quinta do Noval wines will soon be available on JD Super.

JD Super’s overseas procurement team, known for its meticulous selection process, sources directly from key production regions to ensure the highest quality for consumers. Leveraging JD’s advanced digital and supply chain capabilities, JD Super and Quinta do Noval are set to enhance operational and marketing strategies, aiming to deliver an unmatched wine purchasing experience in China.

Looking ahead, JD Super is committed to expanding its presence in major wine-producing regions, leveraging its platform to maximize cost-efficiency, and delighting consumers with its commitment to quality and service.

 

(vivian.yang@jd.com)

JD Super Collaborates with Leading Industry Associations and Brands to Establish Healthy Food Industry Alliance

Posted on by Vivian Yang

On March 19th, ahead of China’s National Sugar and Wine Trade Fair, JD Super, the online supermarket division of JD.com, joined hands with leading industry organizations including the China Light Industry Federation, China Association of Baked Food and Confectionery Industry, China Food Industry Association, Dairy Association of China, along with over a hundred renowned brands in the snack and beverage sector, to launch the Healthy Food Industry Alliance. This initiative aims to introduce more health-conscious food and beverage products into the market, encourage the industry’s high-quality growth, and safeguard consumer well-being.

The alliance underscores JD Super’s pivotal role in the healthy food sector. As a driving force behind the initiative, JD Super has committed to investing RMB 1 billion in resources to bolster the growth of twelve key categories of trending healthy food and beverage products. This investment will focus on product innovation, traffic support, conducting marketing activities, and providing consumer guidance.

JD Super was recently featured in JD.com’s “ 2024 White Paper on Trending Healthy Food and Beverage”, which delved into twelve trending consumer trends shaping today’s food market. These trends encompass medicinal and food homology, dietary fiber, high nutrient density, precise nutrition, diverse plant-based options, natural ingredients, low sugar or zero sugar alternatives, low GI options, hypoallergenic care, authentic ingredients, clean labeling, and children’s health. These insights not only reflect consumer preferences for healthier diets but also chart a course for the industry to adapt.

Over the past year, JD Super has seen a significant rise in the availability of healthy food SKUs, exceeding 10,000, with a 60 percent increase in transaction volume year-on-year. Through its partnerships with brands, JD Super has been instrumental in establishing health food recommendation standards, creating exclusive health food labels, and providing targeted support for new health-oriented products.

The formation of the Healthy Food Industry Alliance represents a significant step in JD Super’s mission to foster an ecosystem that brings together demand insights, product innovation, and consumer education. With the support of the Alliance, JD Super aims to develop custom support strategies for various product categories to address changing consumer needs and discover new opportunities for brands.

In line with consumer preferences, the alliance will focus on six key categories within the beverage and instant drink segment, including those that are low in sugar, GI, and fat, as well as those that are high in protein, calcium, and organic. For snack foods, priorities include high nutrient density, low sugar, low GI, zero trans fatty acids, connections between medicine and food, green and additive-free alternatives, and low-fat, low-calorie options.

Notably, JD.com’s white paper revealed that over eighty percent of consumers pay close attention to ingredient lists when evaluating the healthiness of products. In response, JD Super is dedicated to improving the transparency of product information, starting with detailed displays of ingredients, nutritional facts, quality standards, and certifications, enabling consumers to make well-informed decisions easily.

 

(vivian.yang@jd.com)

Sportano and JD Logistics Collaboration Boosts Operational Efficiency by 200%

Posted on by Yuchuan Wang

Sportano, the fast-growing Poland-based multi-brand sports retailer, and JD Logistics (also known as JINGDONG Logistics), a global leader in logistics and supply chain solutions, announced a significant 200% increase in Sportano’s warehouse operational efficiency since their collaboration began in 2023.

Sportano stands out as a comprehensive destination for sports enthusiasts, offering an extensive range of sporting equipment, apparel, and accessories from leading brands. As a digital-first retailer, Sportano has expanded its reach across Europe with its robust online platform, complemented by its inaugural brick-and-mortal location in Warsaw, Poland, launched in 2022. The retailer’s rapid growth underscored its need for omnichannel logistics support so it could continue providing exceptional customer service to sports enthusiasts across Europe.

The collaboration between Sportano and JD Logistics has effectively addressed Sportano’s logistical challenges, including managing a vast and varied inventory of over 100,000 product types, ranging from small items like fishhooks to larger items such as skis and tents. The seasonal nature of sporting goods and the need for omnichannel fulfillment further complicated the logistics process.

JD Logistics introduced a suite of advanced technological solutions, including the deployment of Automated Guided Vehicles (AGV) equipped with flexible and interchangeable storage receptacles. This innovative approach, coupled with an independently developed intelligent Warehousing Control System (WCS), has enabled efficient management of Sportano’s inventory, accommodating seasonal fluctuations and streamlining both direct-to-consumer and business-to-business orders.

The partnership between JD Logistics and Sportano has not only boosted Sportano’s operational efficiency by 200% but also set new standards for logistics excellence in the sports retail sector. The integration of cutting-edge technology and intelligent systems has transformed Sportano’s warehouse operations, ensuring more vigorous, flexible, and efficient order fulfillment.

Mengyao Chen, director of international business development at JD Logistics’ innovation lab JDL-X, said, “We are proud to partner with Sportano and apply our logistics expertise to tackle the unique challenges of the sports retail industry. This collaboration underscores our commitment to innovation and our ability to enhance operational efficiency for our clients.”

Tomasz Kupidura, Chief Logistics Officer at Sportano, said, “Working with JD Logistics has revolutionized our logistics operations, enabling us to meet our customers’ needs more effectively and efficiently. This partnership has been instrumental in our growth and success across the European market.”

JD Logistics’ technology products and solutions have garnered significant acclaim among external clients across diverse industries, including electronics, industrials, apparel, medicine, and automobiles, with logistics technology projects launched in over ten countries and regions globally, spanning Asia, Europe, Oceania, and North America. By bringing its expertise to international markets, JD Logistics aims to redefine global logistics standards, advancing intelligent supply chain capabilities and driving innovation in the industry.

 

(yuchuan.wang@jd.com)

 

JD Logistics Announces Major Expansion of International Express Delivery Service

Posted on by Yuchuan Wang

JD Logistics, the logistics arm of JD.com (also known as Jingdong), today announced a significant expansion of its international express delivery service. This expansion extends the service’s reach from initial hubs in Guangzhou and Shenzhen to nearly every district within China, offering an express delivery experience from China to global destinations for both individuals and businesses.

First launched in December 2023, JD’s international express delivery service has been utilized for sending a variety of products including documents, apparel and more, with the United States, United Kingdom, and Germany emerging as the top three destinations. The service not only processes individual orders but also caters to the needs of overseas consumers and merchants, ensuring a seamless and efficient logistics solution that spans continents.

JD Logistics is committed to leveraging our extensive network and logistics expertise to provide fast, reliable, and high-quality logistics services. Leveraging JD’s in-house couriers and logistics transportation network, the international express delivery service offers one-hour doorstep pick-up. Additionally, through JD’s air and land transportation network, international express shipments are prioritized and trackable throughout the journey.

JD.com is actively expanding its international supply chain and logistics capabilities. A recent collaboration with Geopost has enabled JD to develop comprehensive shipping solutions between China and Europe, setting a new benchmark in logistics excellence. Further amplifying its international footprint, JD’s partnership with Evri, the U.K.’s largest dedicated parcel delivery company,  will facilitates the process for European businesses to access JD.com’s marketplace and connect with a broad Chinese consumer base.

Additionally, JD is adapting its highly efficient warehousing model, proven successful in China, to meet industry demands throughout Europe, North America, the Middle East, Southeast Asia, and Australia. Notably, JD Logistics’ overseas warehousing operations already offer same-day fulfillment services in key European markets, including Germany, the Netherlands, France, the U.K., Spain, and Poland, while ensuring rapid two-to-three-day delivery across 90% of regions in the United States.

JD Logistics’ venture into international express delivery is a natural extension of its existing capabilities. Over the past decade, the company has transformed the delivery landscape in China by pioneering same- and next-day delivery, setting a new standard of service for nearly 600 million consumers. This unmatched efficiency is achieved through JD Logistics’ six highly synergized logistics networks, encompassing warehousing, line-haul transportation, last-mile delivery, bulky item delivery, cold chain logistics, and cross-border logistics.

 

(yuchuan.wang@jd.com)

JD.com Boosts Trade-In Subsidies and Enhances Service for Household Appliances and Home Goods

Posted on by Vivian Yang

JD.com announced on March 14 at the China Household Appliances and Consumer Electronics Expo (AWE2024) that it will invest RMB 3 billion yuan (USD ~420 million) in 2024, in collaboration with its partners, to further improve subsidies and services for customers trading in used home appliances and goods.

The company anticipates that over 20 million users will participate in JD’s trade-in program in 2024, with more than 30 million old appliances and home goods collected through the initiative.

Since launching its trade-in service for household appliances in 2016, JD.com has expanded to include household goods, covering more than 200 subcategories and reaching over 95% of cities and towns across the country.

To simplify the trade-in process, JD.com has implemented several user-friendly measures, such as complimentary doorstep pickup, dismantling, and recycling of old appliances, without limitations on their type, brand, age, or condition. The platform has also adopted a fixed-price deduction model for trade-ins to alleviate shoppers’ concerns.

Moreover, JD.com has led the way in offering trade-in services for home goods and is one of the first to provide integrated dismantling and delivery services for a wide range of appliances and items, including mattresses and electric locks. This comprehensive service model significantly reduces the hassle for consumers by eliminating the need to deal with multiple service providers.

The continuous improvements to JD.com’s trade-in services have earned increasing appreciation from Chinese consumers. In 2023, the platform collected over 15 million old appliances. Since March 2024, participation in JD’s trade-in program has grown by more than 150% year over year.

This initiative aligns with the action plan issued by the State Council of China on March 13th to promote large-scale equipment renewals and trade-ins of consumer goods. The plan focuses on enhancing convenience and streamlining the appliance update process by fostering collaboration among retailers, manufacturers, and recyclers to promote trade-ins, including the establishment of dedicated zones and incentives for trading in old appliances for energy-efficient models.

JD.com is dedicated to serving as a bridge between consumers and manufacturers, working with partners to promote the appliance industry’s high-quality growth, expedite the development of green supply chains, and provide reliable, cost-effective products. By offering comprehensive services and supporting brands, JD.com aims to encourage consumption renewal in the home appliances and goods sector.

 

(vivian.yang@jd.com)

JD Health Enhances Eldercare Services with Key Partnerships at Beijing Conference

Posted on by Vivian Yang

On March 12th, JD Health held its fourth annual Partner Conference, coinciding with the Eldercare Consumption Summit in Beijing. The event attracted over 400 attendees, including eldercare specialists and industry representatives, and focused on developing a healthcare system that is both inclusive and adaptable, catering specifically to the dynamic needs of China’s aging population.

During the summit, JD Health established partnership agreements with ten industry-leading brands, including 3M, Cofoe, Yuwell, Haier, Innuovo, ITD GmbH, LePu Medical, Mateside, Omron, and Sonova. The partnerships also marked the establishment of the “Eldercare Brand Alliance,” dedicated to propelling innovation in eldercare services and products, ultimately improving the quality of life for senior citizens through collective efforts.

Jin Enlin, CEO of JD Health, highlighted the company’s commitment to leveraging collaborative resources to scale, standardize, and strengthen recognizable brands within the burgeoning silver economy. This strategic approach is poised to deliver unparalleled care and support to the elderly.

As China’s premier online health platform, JD Health offers a diverse range of over 30,000 brands and numerous subcategories in eldercare. Its expansive offerings cover various needs, from mobility aids to in-home care solutions, emphasizing a professional and user-centric ecosystem for eldercare products and services.

In January, JD Health launched a dedicated eldercare channel to provide a wide selection of products and services specifically designed for the elderly. The channel facilitates everything from the installation of nursing beds and at-home hearing aid services to 24/7 specialized online customer support, aiming to close the gap between professional healthcare services and the elderly community.

JD Health has also effectively integrated its online and offline services to establish a comprehensive eldercare service system. This includes setting up hearing centers and offering services such as medical escorting and quick home check-ups, enhancing the overall accessibility of eldercare.

With nearly 300 million people aged 60 and above, China’s silver economy is expanding rapidly. JD Health remains dedicated to serving this demographic, continuously working to improve the quality of life for senior citizens nationwide.

 

(vivian.yang@jd.com)

JD.com Announces Enhanced Spring Dawn Initiative with New AI Service Package

Posted on by Yuchuan Wang

JD.com recently announced the launch of its enhanced Spring Dawn Initiative, a robust suite of solutions for third-party merchants to boost revenues, including new AI services designed to reduce merchants’ operational costs by up to 50%.

Since its initial launch in January 2023, the Spring Dawn Initiative has been a catalyst for growth, increasing the number of third-party merchants on our platform by 4.3 times. As we come closer to welcoming our one-millionth merchant partner, we are excited to launch the next phase of the initiative.

  • Store Launch AI Assistant: Our cutting-edge AI assistant simplifies the store opening process, enabling merchants to launch their online presence in as fast as one minute. This tool acts as an assistant to answer any questions related to launching an online store.
  • AI-Driven Content Creation: With tools like ai.jd.com and ling.jd.com, access to high-quality content production is easier than ever. From generating engaging images and marketing content to creating product recommendations and explanatory videos, these AI solutions save merchants significant costs annually.
  • Digital Presenter Livestreaming Service: Leveraging AIGC technology, our digital presenter service allows for 24-hour uninterrupted live streaming, offering merchants a cost-effective way to engage with customers and drive sales without the hefty price tag associated with traditional live streaming. The digital presenter system can intelligently “read” product features and introductions by importing the product sales link, analyzing the selling points, and creating livestreaming scripts automatically. In early February, JD’s self-operated COACH flagship store adopted this feature, which sustained online traffic and drove conversions during the unstaffed Chinese New Year holiday. JD’s data shows that livestreaming achieved a 10% transaction rate during the holiday, increasing overall conversions by tenfold at just 1/10th the cost of traditionally hosted 24-hour live streaming.

  • Intelligent Customer Service: Our AI customer service robot not only halves the cost of manual customer service operations but also significantly boosts sales conversion rates, ensuring a seamless shopping experience for customers.For instance, when users ask questions about product attributes, leveraging JD’s ChatRhino large language model (LLM), it can lead to a 5% increase in response accuracy by automatically generating replies. Additionally, it sharpens product recommendation accuracy by 27%, providing customers with personalized suggestions and insightful reasons behind them.  We’re also pioneering the development of a merchant-exclusive consultancy feature, which delivers smart, data-driven business analysis reports with just a simple command, paving the way for more informed business decisions.

Our commitment extends beyond technological innovation. We continue to roll out cost-reduction policies, commission rebates, and operational support, including:

  • Zero-cost Trial: A welcoming gesture for new merchants, allowing them to operate on JD.com without any deposits or platform fees, significantly lowering the barrier to entry.
  • Enhanced Traffic and Business Intelligence Tools: From our “Price Star Rating” tool, which automatically enhances product exposure, to the “Business Opportunity Center” that identifies high-demand products for merchants, we provide a variety of tools designed to maximize visibility and sales potential.
  • Operational Efficiency Tools: The Jingmai marketplace service equips merchants with 18 free tools covering product management, advertising, and order evaluation, streamlining daily operations and boosting efficiency.

At JD.com, we believe that an exceptional user experience is the cornerstone of merchant success. That’s why we’re expanding access to premium services like “Price Guarantee,” “Lightning-Fast Refund,” and “Free Returns and Exchanges” to third-party merchants.

 

(yuchuan.wang@jd.com)