Jul 17, 2020|
Dr. Shen Participates in WEF Issue Briefing on Global COVID-19 Recovery
by Vivian Yang
On July 16th, Dr. Jianguang Shen, Chief Economist of JD Digits was invited by the World Economic Forum for an online issue briefing session open to global media. He was joined by another four chief economists from across sectors to share their views on the global economic outlook.
Speakers:
- Paul Donovan, Chief Economist, UBS
- Beata Javorcik, Chief Economist, European Bank for Reconstruction and Development (EBRD)
- Jianguang Shen, Chief Economist, JD.com
- Ludovic Subran, Chief Economist, Allianz
- Saadia Zahidi, Managing Director, World Economic Forum
Moderated by
- Adrian Monck, Managing Director, World Economic Forum
China in many ways has been months ahead of the rest of the world in its experience of the pandemic. China’s economic recovery was a focal topic of the one-hour discussion. In his opening remarks, Shen shared two positive signals regarding the rebound of China’s economy: The just-released GDP growth of 3.2% in Q2 which is above expectations, and a surge in the Chinese stock market. The The New York Times cited Shen’s comments from an interview, “The economy is definitely on the mend,” to attest that a cautious optimism is emerging in China’s economy. However, he also pointed out during the briefing that there is an imbalance existing in the growth between a quick bounce back of production and a sluggish return of demand.
On the topic of COVID-19’s impact on global supply chain, Shen noted that the production chain relocation is already happening with growing investment and trades pivoting to Southeast Asia. By this June, ASEAN has jumped to be China’s largest trading partner, followed by the EU and the US.
In terms of the distribution of the pandemic’s impact on Chinese people’s lives, Shen pointed out that big data shows low-income people have been impacted the most as their income is growing slower than higher-income groups. Consumption recovery is currently stronger in major cities, which is “a departure from the past consumption pattern in which stronger consumption growth is more often seen in lower-tier cities”.
Ludovic Subran, Chief Economist of Allianz also addressed the concern as to the behaviors of the consumers, noting that because of strict lockdowns across the world, people are forced to save and it is hard to know when they are going to consume.
Beata Javorcik, Chief Economist of EBRD, expressed concerns about the recession of globalization, as governments are spending a lot of money to help firms in their countries and setting tariffs for imports without a free-trade commitment from G20 that was in place early on during the financial crisis, there is a worry that “the world will sleep walk into protectionism.”
When asked what lessons others can learn from China in economic recovery from the pandemic, Shen said that it’s essential for the government to continue to open up, to further liberate the financial market, and to welcome foreign companies and foreign direct investment.
Paul Donovan, Chief Economist of UBS has noticed that some governments are using the current economic halt to reflect and built more sustainable projects. More importantly, Donovan said the pandemic has accelerated the structural change of the Fourth Industrial Revolution as work and life activities are all localized such as working from home and remote learning.
“As we emerge from the crisis, the quality and direction of economic growth must take primacy over its speed. In this new paradigm, we need metrics beyond GDP and an updated policy toolkit to ensure that future growth is inclusive and sustainable, and provides opportunity for all,” said Saadia Zahidi, Managing Director, World Economic Forum.
On this front, JD.com put immense resources towards supporting the economy and society throughout the pandemic, such as helping farmers and small business to sell their products online or offline, offering job opportunities for new graduates and giving temporary positions to staff from offline stores, restaurants, cinemas through employee-sharing initiative, providing free online medical consultation around the clock, sourcing and transporting medical supplies to other countries in need, promoting the circular economy by strengthening partnership on environmentally friendly packaging and more. (Click here to watch the replay of the session.)
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.
Photo Gallery: This Week at JD (July 13-July 17)
