Aug 9, 2021|
JD Auction to Open Bidding on Gas Station in Shanxi Province at RMB 27 Million Yuan
by Kelly Dawson
JD Auction has announced today that it will auction off a gas station in Yunchen City, Shanxi province on August 13—and the bidding price will start at RMB 27 million yuan, which has already drawn 1,500 onlookers, with some already signed up to participate.
The announcement comes only one month after JD Auction successfully auctioned a gas station in Shijiazhuang at a price of RMB 2,351,500 yuan.
Some may ask: Why RMB 27 million yuan? The answer is that in China, gas stations are good business. Statistics show that in the ten years from 2010 to 2020, the number of motor vehicles increased from 90.86 million to 372 million, with the total mileage of highways nationwide increasing from 4 million kilometers to nearly 5.2 million kilometers. Additionally, the total number of gas stations has reached 119,000, with about 50% privately owned.
Beyond the investment value, the effort, cost and time saved by buying such a gas station via auction has also boosted its value. For example, in order to open a gas station, one must apply to the local bureau of commerce for an “Approval Certificate for Refined Oil Retail Operations”—of which there are a limited number in any given city. Generally, ownership is transferred from person to person, as the opportunity to receive a new approval certificate is rare. Additionally, the right to use land for a gas station is very tightly restricted, with the necessary land requirement totaling an average area of more than 5 acres.
In the rare case when someone is able to obtain the necessary land usage rights and certificate of approval, the cost of building a gas station is 1-2 million yuan at minimum; plus the costs of a wide range of hardware including oil storage tanks, fuel dispensers, and more.
JD Auction’s listed gas station offering will include the right to operate refined oil, land usage rights, and a complete set of facilities including above-ground buildings, underground oil storage tanks, and oil pipelines.
Considering that the average urban gas station in China sells about 5 to 6 tons of gasoline per day and the net profit per ton of gasoline is about RMB 1,000 yuan, the average annual profit is about 1.5-2 million yuan (deducting labor, operation, transportation and storage costs). Those who have already signed up are surely factoring in these calculations.
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 Raises Inventory of Daily Necessities by Three Times in Coping with Delta Variant Outbreak in China
