Jun 13, 2017|
How E-Commerce Companies are Shaping the Future of Logistics
The following is a post by Zhenhui Wang, CEO of JD Logistics, a business group within China’s largest retailer JD.com Inc.
Knowing what China’s logistics infrastructure was like 10 years ago, it can be hard to believe that same-day delivery is now the norm, and that an e-commerce company—JD.com—would have the largest nationwide logistics network.
But it’s true. JD.com, China’s largest retailer, online or offline, has more than 236 million active customers and is able to deliver up to 92% of orders same-day or next-day. We use our own fleet for everything from long-haul to last mile. We own our fulfillment centers and delivery stations.
We believe there is more to be done, however, because Chinese consumers are evolving. Whereas they used to care more about price, they now care about quality. And though they used to prize speedy delivery, they want more personalization and better service. That’s why we’re launching two new services: scheduled delivery and white glove delivery.
Scheduled delivery isn’t entirely new to JD.com: since September 2016, we’ve offered it in select cities with two-hour delivery windows. It’s been popular among buyers of maternal and baby products, computer and office products, and for fresh food. Our own customer surveys have shown 98% of customers have a need for scheduled delivery services, and 30% are willing to pay extra fees for it.
With such overwhelming popularity, we got to work on improving our capabilities and I’m now pleased to say that we’re already able to shorten that window to one hour in most areas. We’re also testing 30-minute delivery window in Wuhan, Zhengzhou and Changsha.
As with all JD order fulfillment, execution of scheduled delivery begins further up the supply chain. Our smart logistics capabilities will first use predicitive analytics to ensure inventory is correctly placed in anticipation of orders, making it more possible to have orders ready for delivery within tight, scheduled windows. It also helps calculate the best routes for delivery.
Chinese consumers are evolving. Whereas they used to care more about price, they now care about quality. And though they used to prize speedy delivery, they want more personalization and better service.
Customers who choose JD Scheduled Delivery Service can choose time periods from 9 AM to 10PM in one week, paying less than $1 for the small and medium sized parcels. The exact fee will vary based on time of day; customers will pay less during off-peak hours, helping us further balance delivery volume. Oversize parcels will be charged up to $6.
Scheduled delivery, as many of my colleagues in the global logistics industry know, is not simple to achieve, especially when you’re working on a scale as massive as we have at JD.com, across a country as large as China. As an added layer of assurance deliveries will be on time, we’ll be tracking our scheduled-delivery team in real-time and send them alerts along the way so they can be sure to get to meet their deadlines.
For white glove delivery, we have begun delivering a select number of high-end products with a dedicated delivery team. They drive electric cars instead of tricycles, and are standing by to immediately deliver big ticket items to our luxury customers. They wear special uniforms with actual white gloves. We call this service JD Luxury Express.
JD.com is only able to do this because we have proven that investments in self-operated logistics capabilities are an asset, not a burden, in today’s retail environment. Because we are developing our own technology and mobilizing our own assets, we’re able to execute on concepts like scheduled and white glove delivery faster than any e-commerce company in the world. That’s also the reason why JD Logistics business group doesn’t see itself as a cost center within JD.com, but rather an engine that drives growth for JD.com’s retail and technology operations.
Apr 23, 2020|
JD Mini Program Open Platform Seamlessly Connects WeChat
by Yuchuan Wang
On April 22nd, JD.com announced its own JD Mini Program Open Platform. Thanks to the company’s strategic partnership with Tencent, programs can be seamlessly adapted for the WeChat platform.
As one of the company’s strategic projects, the platform is open not only to brands and merchants on JD’s platforms, but also external partners from various industries, to develop independent mini programs across the various apps in JD’s ecosystem such as the JD.com and the JD Finance apps. It will also be introduced to the 7FRESH and JD Health apps.
Burger King will kick off its JD PLUS Member Center mini program in May, making the fast food giant the first partner in the catering industry to use JD’s mini program to distribute benefits to customers who may use the mini program to make purchases in the restaurants, with full connectivity to their JD account, membership, payment and credits. Additionally, JD’s 360 million active customers base offers big potential for Burger King.
JD Mini Program Open Platform uses JD’s complete chain of marketing, transaction, payment, membership and logistics to enable merchants to build their own scenarios. For example, home appliances companies can launch value-added services such as cleaning services to further extend their engagement with customers, facilitating sales conversion and user operations, with low R&D and maintenance costs.
Partners such as China Telecom, Mehood Hotel and ehi Car Services are also among the companies launching their own mini programs on JD to provide personalized services.
“Opening up technologies has become a trend for the industry,” said Paul Yan, Head of JD Retail Technology and Big Data. “JD Mini Program Open Platform empowers merchants with JD’s technology and services to help them comprehensively enhance the user experience.”
Apr 13, 2020|
JD Introduces Convenience Store + Bakery Offering
by Yuchuan Wang
On April 10th, the first JD Convenience Store offering an in-store bakery opened in Beijing. Products such as doughnuts and bread are baked onsite at the store. The JD Convenience Store brand plans to introduce additional combined store formats in the future to meet the diversified needs of consumers.
Unlike common convenience stores which mainly provide prepacked products and cooked meals, the newly opened JD Convenience Store with a bakery is a solution to respond to the needs of the neighborhood. The store is in an office building, and its meal solutions for breakfast, afternoon tea and dinner are extended with the addition of the bakery. In order to ensure quality and freshness, the store uses only high-quality ingredients and has a strict process to select and train its bakers, who are required to develop new offerings regularly to meet consumers’ changing tastes. The store offers cake customization, which is also expected to attract more consumers.
“JD helped me position and design the store. The team also worked with me to design a product selection that would meet the demands of white collar professionals. I believe the introduction of an in-store bakery will help attract more customers” said Ms. Zhou, the store owner.
“Leveraging JD’s strengths in merchandise, service and technology, we have enabled JD Convenience Store solution to integrate multiple store formats,” said Enlong Ba, general manager of retail business at JD New Markets. “In the future, our partners can freely select appropriate store functions according to neighborhood consumption demands combined with investment and profit considerations, and build diversified convenience store formats.”
JD Convenience Store is the offline innovative store brand under JD New Markets. It provides a one-stop solution to shop owners covering branding, design and management, supporting store location and product selection, operations and value added services, and more.
JD.com Announces Environmental Protection Initiatives
