Oct 23, 2020| Executive Spotlights

GSSC Series: JD’s Qi Kong: Scenario in Wuhan Accelerated the Development of Autonomous Driving Tech

Ella Kidron

by Ella Kidron

“The commercial deployment of autonomous delivery robots has a lot of potential,” said Qi Kong, chief scientist of automation at JD Logistics. Kong was speaking at a roundtable attended by top-tier international media in Changshu, Jiangsu province, on October 22^nd, the day of JD’s Global Smart Supply Chain summit, where the deployment of its autonomous delivery robots for commercial use in Changshu was first announced. Going forward, JD will work with Changshu to jointly develop an autonomous delivery city.

JD’s Qi Kong taking an interview at JD’s office in Changshu

JD’s Qi Kong taking an interview at JD’s office in Changshu

As far as Kong is concerned, autonomous delivery robots can be applied in last mile scenarios far beyond the logistics industry. He explained that there are many demands, such as food delivery, that can be satisfied through an autonomous delivery network. This network is not just about providing value to one company, but rather can benefit society as a whole.

For JD, there are two key pieces of the puzzle. In terms of how autonomous driving technology can create value, Kong explained, “You need an understanding of the technology and an understanding of the business.” This is where future growth potential will come from. One of JD’s advantages is a deep understanding of the real scenario and what is needed to improve its efficiency.

JD’s Qi Kong speaks to international media during roundtable

JD’s Qi Kong speaks to international media during roundtable

The importance of virtual scenarios and countless amounts of testing is also key. Kong explained that the robots are able to digest half a year of traffic scenarios in two hours. “We need to create a virtual world. Any situation that occurs in the virtual world has potential to happen in the real world.”

Earlier this year with COVID-19, JD urgently deployed its L4 autonomous robot in Wuhan – the world’s first deployment of L4 autonomous driving technology for last mile delivery on open roads – to deliver to the hospitals. Kong explained that pedestrians passing by would film videos of the robot and post them on social media. At the time, retrieving the package involved typing a code onto the robots touch screen. The team found a comment on social media suggesting that using the touch screen meant that there was still some contact. Overnight, the team devised a QR code that would make the process entirely contactless. With the pandemic at a management stage in China now, they’ve gone back to the convenience of the touch screen.

According to Kong, the deployment in Wuhan accelerated JD’s original plan by just half a year. “Without the deployment in Wuhan, we probably would’ve started looking for a place after Chinese New Year and deploying in the summer.” He explained the use of the robots in Wuhan has also helped increase the openness for such technology across the board.

JD launched an adoption program in which a courier takes over the management of the robot and can use it in their daily work. Kong said, “(the adoption program”) enables us to realize individualist scenarios. Through this exploration we see really interesting things developing.” The adoption program and the ability for the couriers to experiment with the use of these new technologies is already quite attractive, according to Kong.

As for the future, Kong sees a world of intimate connectivity between car, road and cloud. “People use the traffic lights, whereas robots use network technology,” Kong said. Vehicle-to-Everything (V2X) technology would allow the robots to been given an indication how the light will behave before it even turns to yellow and then red. The city of Changshu is focused on developing such technology, and has in fact already started installation for some traffic lights.

Read more about JD’s deployment of autonomous delivery robots here

Read more about how the deployment fits into JD’s overall strategy here

(ella@jd.com)

Apr 1, 2024| Executive Spotlights, JD Retail

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

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)

Mar 8, 2024| Executive Spotlights, JD Logistics, JD Property, JD Retail

JD.com’s Strategic Advancements in International Business: A Focus on Supply Chain and User Experience

Vivian Yang

During JD.com’s earnings call for Q4 and FY2023 on March 6th, Sandy Xu, CEO of JD.com and JD Retail, provided an update on the company’s strategy for international expansion. Xu emphasized the importance of a robust supply chain as the cornerstone of JD.com’s growth beyond domestic borders.

Xu noted that JD.com is always on the lookout for overseas opportunities and is taking measured steps to advance this process. Given JD’s business model and inherent strengths, the company’s approach to global expansion is uniquely tailored.

“JD’s business model is built on supply chain capabilities and centered around user experience. Based on the development of supply chain infrastructure overseas, JD’s business will continue to expand in areas with our unique competitive strengths in global markets,” Xu said. She also provided an overview of JD.com’s current international businesses:

JD Worldwide, the export and import facet of JD Retail, incorporates JD Global Sales, an emerging outbound e-commerce platform dedicated to helping Chinese companies and brands expand their overseas market. JD’s cross-border inbound business, JD Global Buy, has established three direct procurement centers worldwide to enhance cross-border supply chain efficiency. This allows consumers in China to access a wider range of imported products at lower costs while ensuring product safety.
JD Logistics has developed a robust global supply chain, beginning with warehousing and expanding to encompass comprehensive supply chain services. Currently overseeing nearly 90 bonded, overseas, and direct mail warehouses across almost 900,000 square meters, JD Logistics provides extensive support to a broad spectrum of clients, including international enterprises and Chinese brands expanding overseas.
JD Property is expanding its business in Southeast Asia and Europe, with a focus on markets in Vietnam, Indonesia, Singapore, the United Kingdom, and the Netherlands. Its clientele spans international logistics, FMCG (fast moving consumer goods) giants, as well as emerging Chinese companies venturing abroad.
Ochama is an omni-channel retail platform incubated by JD.com in Europe, which utilizes advanced automated logistics technologies and global supply chain capabilities to provide a superior shopping experience for consumers across 24 European countries.

With a focus on supply chain and enhancing the user experience, JD.com will continue to explore opportunities to expand its global footprint. Learn more about JD.com’s businesses with global reach here.

(vivian.yang@jd.com)