- Jun 01, 2021
- Business Update
First JD 618 Order Delivered by JD Robot in 4 Minutes
by Ella Kidron
JD.com’s 618 Grand Promotion (Jun. 1-18) officially began at midnight on Jun 1. Four minutes after paying the remaining balance on her pre-sale order, Ms. Wang, a resident of Changshu, Jiangsu province, received the skin care set she ordered, delivered by none other than JD’s autonomous delivery robot.
In Baiyin, a prefecture-level city in Gansu province, Ms. Fang received the face masks she ordered only five minutes after completing the payment, emphasizing the extent of JD Logistics’ network. With omni-channel across a bunch of categories such as fresh, FMCG, mobile phones, digital products, maternal and child, pharmaceutical, personal care, makeup and more, JD’s 618 covers 1,400 districts and counties this year with “delivery-in-minutes” service covering over 200 cities. This type of delivery speed is possible thanks to JD’s optimization of the logistics network over the pre-sale period to put products closest to customers before they’ve even completed payments.
JD Retail CEO Lei Xu said: “JD is in its 18th year of establishment this year, and this 618 we welcome the company’s 18th birthday. In 18 years, we have created a unique business model, with its core philosophy being the continuous pursuit of the optimal solution to efficiency, cost and experience.” According to Xu, this is JD’s core competitive advantage and what has allowed JD to stay tenacious all of this time.
In the first five minutes after midnight, JD Super, JD’s online supermarket, saw sales of coffee beverages, oat milk, fruit wine and other new products increase over 15 times. The transaction volume of food, baby and maternal, and alcohol surpassed RMB 500 million yuan in the first two minutes of the sale. Popular milk tea brand Yuanqisenlin (元气森林) was up ten times in the first 5 minutes on Jun. 1 while oat milk brand Oatly and meal replacement brand Wonderlab among others were up 15 times. Sales of products from industrial belts increased 300% YOY and nearly 100,000 kg of fresh agricultural products were sold on the Jingxi platform.
This 618 also demonstrates the importance of service in the context of the customer experience. In only 15 minutes on Jun. 1, JD’s “one hour” delivery service transactions increased eight times and the number of users of the service increased 6 times. Home and living products with the “hassle-free renovation” label saw sales up 260%.
In the first 15 minutes, health services such as medical checkups, cosmetic medicine, hair transplants, dental services, vaccines and hereditary tests increased 6 times; cosmetic medicine alone increased 15 times. Products eligible for JD’s service where pet food can be returned if the pet doesn’t like it increased over 200%. Sales of smart pet products increased 300 times and pet snacks and treats increased 28 times.
JD Auto Shops car maintenance packages increased 165% compared to the previous period while limited RMB 9.9 yuan car washing packages sold out in only five minutes. From May 24 to Jun. 1, the number of people buying cars on JD increased 127%. Within 10 minutes on June 1, motorcycle sales increased 103% YOY and helmets increased 150% YOY.
Domestic mobile phones are in high demand. In just 15 minutes, Huawei phone sales increased 120% YOY, vivo sales doubled and the number of One Plus phones sold increased five times. Sales of gaming phones (smart phones dedicated for gaming with specifications that suit mobile phone games) increased 300% YOY. Gaming PCs from the Asus Tianxuan series doubled. Partition washing machines increased 20 times.
International products are still in high demand. In only 10 minutes, products from 900 international brands from over 100 different countries more than doubled. In the first five minutes, health and nutrition products from brands such as BY HEALTH and Swisse as well as medical products from brands like Omron achieved transaction volume of over RMB 1 million. In the first 15 minutes, the turnover of nutrition and health care products intended to relieve fatigue increased by 500% YOY while probiotics increased more than 300%.
Technology also plays a critical role. JD Cloud provides an essential guarantee of the customer experience during the sale. In the early morning of June 1, the peak number of user visits per second increased by 223% compared with the same period last year. JD’s smart customer service already covers over 160,000 merchants participating in 618.
Xu said that JD Retail’s philosophy is to “sell all goods of the world” and “to sell goods all over the world”. He emphasized the importance of a supply chain intermediate platform in this effort including 1) connecting different scenarios and obtaining consumer insights through partnerships in different scenarios, 2) highly efficient supply and demand matching capability, 3) order and supply chain dispatch management, and 4) product and logistics management capability. Without the supply chain intermediary capabilities, it is impossible to realize this mission, according to Xu.