Jun 8, 2020|
A Portrait of Lijun Xin, CEO of JD Health
by Tracy Yang
JD Health has been the focus of the internet industry since it was spun off from JD.com last year. According to Crunchbase, the world’s leading platform for business information of private and public companies, it is the second largest unicorn after Uber in 2019. The outbreak of COVID-19 has made more Chinese people aware of JD Health. Many people might be curious about Lijun Xin, CEO of JD Health. Let’s look at Lijun Xin’s personal experience and healthy world closely.
From IT business to Internet health services
Lijun Xin is full of curiosity and a quick learner. After graduating from Shanghai Jiaotong University in 1995, Xin worked as a teacher for four years and then entered the IT industry for seven years. After that, he started his own business for eight years until he joined JD.com in 2012. At that time, JD.com only had its retail business, and the burden of developing a third-party platform business fell to Xin.
Eight years later, he successfully developed the business logic of JD.com’s third-party platform business, and constantly expanded its business categories, from apparel to cars, real estate, art, health, and so on. Xin has served as the person in charge of these businesses. In July 2019, he officially became CEO of JD Health.
Taking over the role to lead JD Health
Before becoming CEO of JD Health, Lijun Xin was invited by Richard Liu, Chairman and CEO of JD.com, to the suburbs of Beijing for a chat. Liu had two requests. The first was to provide healthcare services for JD’s staff, and the other is to focus on necessary investment of health industry at the initial stage, rather than on profits. Liu’s requirement for JD Health’s KPIs was not performance figures, but rather the level of customer satisfaction. For Internet services and products, it has always been difficult to objectively quantify user satisfaction, so this presented a great challenge for Xin.
In the more than eight years he has worked at JD.com, Xin has remained relatively low profile. But after taking over the business of JD Health, both he and the business have come into the spotlight. JD Health has achieved the most complete Internet + medical and health layout in the industry, and its products and services cover not only the entire pharmaceutical industry chain, but the entire user life cycle for health management. JD Health’s retail business currently accounts for more than 15% of China’s national pharmaceutical retail market. Coupled with the previously disclosed A-round financing of more than US$1 billion, JD Health has become JD’s third unicorn after JD Digits and JD Logistics.
Internet hospital
JD.com first tried non-pharmaceutical health e-commerce in 2013, and began to expand its pharmaceutical business in 2015. The company later discovered that when consumers buy drugs, there is a need to consult with doctors for guidance. So in 2017, JD began to focus on Internet hospitals, which is a closed-loop and relatively complete business, and continued to further expand its business categories.
Xin explains that just as the Internet experienced explosive growth in 2000, and the outbreak of COVID-19 this year is likely to promote the development of the entire Internet medical industry. The development of Internet medical consulting and treatment in China has been full of twists and turns in terms of policy and promotion in the past decade. For example, it may not easy for most public hospitals to build their Internet hospitals on their own, nor do they have the operations capability to provide services directly to patients.
In Xin’s view, it works better for hospitals to embrace cooperation with internet companies with an open mind. Take the Internet hospital jointly built with JD.com as an example. Doctors in the hospital can do medical consulting online. JD’s 387 million active users can consult with the doctors online, thus directly expanding the “doctor’s office” from one region to the whole country.
Due to the epidemic, national policies towards Internet medical consulting and treatment, Internet hospital, and medical insurance payment are becoming more and more open. This means that for many things that would have taken another three to five years to realize are now possible in three months. From a historical point of view, this is great progress.
On January 26th, JD Health launched a free online consultation platform to prevent COVID-19 and took the lead in expanding the scope of free consultation to all disease areas in all departments in the Internet field, with more than 30, 000 doctors to provide free professional online-consultation to all users throughout the country.
From the beginning of the epidemic to early May, JD Health online consultation platform served a total of more than 11 million users, with an average daily consultation volume of more than 120,000. Before the epidemic, the average daily consultation volume reached about 60, 000, even if the epidemic has been basically under control now, the average daily consultation volume remained close to 100,000.
To support chronic disease patients, JD launched the “Chronic Disease Care Program,” which allows chronic patients to renew prescriptions through the company’s online consultation platform. It has also partnered with 70 Chinese and foreign pharmaceutical companies to jointly ensure the supply of drugs for chronic disease groups. Drugs can be delivered by JD Logistics directly to users.
In addition, JD Health launched a “Global Free Health consultation platform” at the end of March, providing free online consultation services to people all over the world. Hundreds of doctors, including 38 doctors who participated in the treatment of the epidemic in Hubei, and more than 30 Chinese medicine experts, share anti-epidemic experience and prevention knowledge for overseas people on this platform. As of April 12th, the platform has received a total of more than 170,000 inquiries from overseas, including more than 10, 000 English inquiries and more than 6.7 million visits.
The tip of the iceberg
JD Health’s current business can be divided into four parts: online pharmacy, online healthcare, health services and intelligent healthcare solutions, of which the most matured one is the online pharmacy business. However, Xin believes that the future development direction of JD Health will put health management as the core. “I hope that in about three years, my team will build JD Health into the most reliable platform for chronic disease management and healthcare services for users.”
“In the past, the business model of JD Health was more like a pharmaceutical e-commerce business, but if we can’t guide and manage the whole life cycle of users, we can’t become a real healthcare-service company,” Xin explains. In his eyes, JD Health will open up the whole industry chain, integrate medical resources of all parties, and provide users with products and services that run through the whole life cycle and cover all health scenarios.
Xin plans to take two steps to achieve that objective. First, JD Health will try to make the connection between users and JD Health with high frequency, enable the users to have the awareness of JD Health’s services, trust JD Health and rely on JD Health’s services eventually. Secondly, JD Health will provide full-process services, whether it is pharmaceutical services in the supply chain or long-term management of chronic diseases. JD Health will combine the advantageous specialties of major public hospitals across the country to carry out specialized disease management for chronic diseases, such as cardio-cerebrovascular, diabetes, and mental diseases.
On the whole, the health management status of most Chinese people is still in its infancy. Xin is also aware of this reality. “The health sector is worth more than RMB 10 trillion in China, and now we have touched only the tip of the iceberg.” He hopes to work with competitors to make this market bigger and better, so that Chinese consumers can develop the new format and habit of health management.
As CEO of JD Health, Xin is mindful of the relationship between his busy work schedule and his physical health. He loves sports and takes part in the football activities of JD.com’s football club every Wednesday. When organizing a team building event, he will often propose athletic activities such as skiing. According to his team members, Xin calmly and confidently tackles double black diamonds on the ski slopes.
Talking about JD Health’s mission for users, Xin said, “In fact, it is very simple. When users download the JD Health app, they will give their lives to us. Normally users will not think of us, they will only think of us when they are sick. But we are worthy of users’ trust and can solve their pain points. At that time, I think we will succeed.”
Sep 27, 2024|
Leveraging AI to Drive Innovation, Reduce Costs, and Create Jobs: Insights from JD.com’s Chief Economist
At the 2024 FORTUNE Global 500 Summit in Guangzhou on September 26th, Dr. Shen Jianguang, Chief Economist of JD.com, shared how the company utilizes AI to transform its operations across retail, logistics, and more, while driving significant workforce expansion. “By integrating advanced technologies throughout our business, JD.com has more than tripled its workforce in the past six years from 180,000 to 620,000, all while increasing salaries,” Dr. Shen explained during the panel discussion titled “‘Changes and Opportunities’—Chief Economists’ Perspectives.”
AI tools have enabled JD.com to boost efficiency and elevate the customer experience. For example, JD’s AI-driven digital human livestream hosts have helped over 5,000 brands increase off-peak hours’ sales conversion rates by 30%. Additionally, AI-powered customer service representatives offer more personalized support, and logistics couriers use AI to deliver packages faster and with greater sustainability.
JD.com’s customer service representatives
“The competition in China is so fierce, and that’s what drives innovation—you have to innovate to survive,” said Dr. Shen, underscoring the role of innovation in reducing costs and increasing productivity. This is especially crucial in China’s e-commerce landscape, where consumers are becoming more price-conscious. “Consumers are looking for the ‘extreme quality-to-price ratio,’ meaning they want high-quality products at lower prices,” he added. At the same time, Dr. Shen noted a growing trend in rural and lower-tier markets, where significant growth opportunities are emerging.
Dr. Shen also discussed China’s recent economic stimulus packages. “Policy initiatives are important. When people perceive a shift in policy, the market responds,” he said, referring to the government’s subsidies for home appliance trade-ins introduced earlier this year. This program has stimulated demand for affordable, high-quality products, as reflected in the increased sales of subsidized items.
Guangzhou, the host city for the summit, launched a new round of consumer goods trade-in subsidies on September 1st, positioning online platforms like JD.com as essential providers of seamless trade-in services. Over 800 home appliance brands have partnered with JD.com in Guangzhou, offering more than 8,500 products. Additionally, JD.com is working with its brand partners on a Customer-to-Manufacturer (C2M) model, leveraging consumer insights to drive innovation for more tailored products.
JD.com provides one-stop trade-in services for home appliances and home goods
The panel discussion featured Dr. Shen alongside Minggao Shen, Global Chief Economist at GF Securities, and Robin Xing, Chief China Economist at Morgan Stanley, with FORTUNE Editor-in-Chief Alyson Shontell moderating. The panelists agreed that while AI is still in its early stages, its potential is vast. With China’s stimulus policies and a functioning capital market, the private sector is well-positioned to unlock considerable industrial and social value.
JD.com ranked #47 on the 2024 Fortune Global 500, moving up five spots from the previous year. Guided by its mission to “Make Lives Better through Technology,” the company remains committed to cost management, operational efficiency, and enhancing user experiences, while continuing to invest in employee development and upskilling to foster both business growth and workforce advancement.
(vivian.yang@jd.com)
Apr 1, 2024|
JD Chief Economist: Tech-Driven Supply Chain Revolutionizes Gen-Z Consumer Engagement in China
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.
In-depth Report: How JD Dominates the Home Appliances Sales in China?
