Mar 28, 2023|
JD Announces “One-Stop Shopping for Home Products and Appliances”
by Yuchuan Wang
On March 21, JD Retail announced “one-stop shopping for home products and appliances” and relevant plans for home appliances. It also announced that JD Home Appliance will stock RMB 100 billion worth of goods for the 20th 618 Grand Promotion this year, with bulky order purchase target of 5 million units.
From 2012 to 2022, with the transition of sales channels, from offline to online to omni-channel, China’s home appliance industry developed new business models while maintaining healthy and rapid development. The industry continued to grow in 2022 and generated revenue of RMB 1.75 trillion, with a year-on-year growth rate of 19.9%. Additionally, Chinese home appliance brands also achieved great success in international markets, while creating new jobs and making innovations in brand and technology.
Despite this growth, the industry continues to face challenges, as well, including rising real estate costs, global supply chain issues, and product and innovation homogenization.
To continue to build momentum and address these challenges, JD Home Appliance is unveiling a new approach of “persistence and change”. It includes being persistent in putting customers first and upgrading services, retail-driven, healthy and sustainable development, upgrading product offerings, making structural breakthroughs, developing omni-channel and establishing an industry ecosystem, enhancing cost and efficiency, and achieving win-win outcomes with partners.
The approach also includes changes in promoting a product stratification initiative for both structural and low-priced products, accelerating sales and growth of new and trending products, improving pricing capabilities to ensure fair prices, upgrading the trade-in service to fully stimulate user demand, accelerating omni-channel layout, and expanding the marketplace business (POP platform) to create an open platform for businesses to achieve sustained profits and steady growth.
JD Home Appliance is working with partners to enhance customer experience and boost sales of new products through innovative actions such as the launch of JD Mall and trade-in services. It is also expanding to new areas, such as the lower-tier market, which offers significant potential for growth of home appliance brands. According to Yi Xiao, president of washing machine business unit of Midea, China has approximately 490 million families and daily consumption of home appliance mainly comes from 200 million of them. That means there is an untapped market of nearly 300 million to be served.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
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JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns
JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.
Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.
JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.
Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.
As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.
The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.
JD.com Unveils Canada National Pavilion, an Online Showcase of Premium Canadian Imports to Chinese Consumers
