May 7, 2020|
JD CENTRAL CMO: Authenticity Creates Trust with Consumers
by Martin Li
JD CENTRAL’s （JDC）perseverance in providing 100% authentic products has led to greater recognition for the company amongst consumers in Thailand.
“If you ask people in Thailand what JD CENTRAL stands for, I believe most people who knows us would say ‘100 percent authentic’. Product quality, fast delivery… these are key words we’ve heard from consumer feedback,” said K. Rvisra Chirathivat, CMO of JDC.
K. Rvisra Chirathivat, CMO of JDC.
JDC is the e-commerce joint venture between China’s largest retailer, JD.com, and Thailand’s retail conglomerate, Central Group.
“We are the first in the market claiming to provide a 100 percent authentic online shopping platform,” said Chirathivat. “A lot of competitors are trying to copy us, but I believe that because we are the first to own it, people will remember and equate us with it.”
In Thailand’s highly competitive e-commerce market, burning cash in marketing and increased traffic is common, which may result in short-term market share. However, it’s better to build a foundation forged in trust by adhering to authentic products reliably delivered. Though requiring a long-term approach, Chirathivat said it will create trust between consumers over time.
“Our mission is to become the most trusted customer-centric shopping experience where customers can access the best product selection available and sellers are empowered by our technology and services,” she said.
She added that JDC inherited the value of putting customers first from its parent companies.
“When we say customers, what we mean includes buyers, sellers and partners,” she clarified.
She also said that the trusted reputation of JDC’s parent companies provided the younger company with an “umbrella of trust”. This is especially with brands since its founding less than two years ago.
“JD.com is big, and Central is big here in Thailand. This already provided us with trust from our brand partners,” she shared. “We didn’t even have traffic on day one, but we already had brands on board.”
She continues to share that in Thailand, the main pain point for online shoppers is that they are afraid they will be unable to receive what they order online.
“There is still a trust issue in the e-commerce landscape in Thailand,” she affirms. “However, more and more people will become familiar with online shopping due to COVID-19.”
Chirathivat said e-commerce platforms can play an active role in connecting everything that is needed.
“There is no limit to what we can do and how we can help. Besides ensuring supply and delivery of daily necessities, JDC is also actively involved in other virus-fighting efforts, like providing donation channels for doctors in Thailand,” she said.
JDC has been inviting customers to donate via its #JDCENTRALJoyJarkJai (Joy from the Heart) campaign to support hospital staff in the region.
Additionally, JDC has joined the Thai Fruit Golden Months initiative to support Thai farmers who have been struggling with exporting their agricultural products during the COVID-19 lockdown.
Sep 27, 2024|
Leveraging AI to Drive Innovation, Reduce Costs, and Create Jobs: Insights from JD.com’s Chief Economist
At the 2024 FORTUNE Global 500 Summit in Guangzhou on September 26th, Dr. Shen Jianguang, Chief Economist of JD.com, shared how the company utilizes AI to transform its operations across retail, logistics, and more, while driving significant workforce expansion. “By integrating advanced technologies throughout our business, JD.com has more than tripled its workforce in the past six years from 180,000 to 620,000, all while increasing salaries,” Dr. Shen explained during the panel discussion titled “‘Changes and Opportunities’—Chief Economists’ Perspectives.”
AI tools have enabled JD.com to boost efficiency and elevate the customer experience. For example, JD’s AI-driven digital human livestream hosts have helped over 5,000 brands increase off-peak hours’ sales conversion rates by 30%. Additionally, AI-powered customer service representatives offer more personalized support, and logistics couriers use AI to deliver packages faster and with greater sustainability.
JD.com’s customer service representatives
“The competition in China is so fierce, and that’s what drives innovation—you have to innovate to survive,” said Dr. Shen, underscoring the role of innovation in reducing costs and increasing productivity. This is especially crucial in China’s e-commerce landscape, where consumers are becoming more price-conscious. “Consumers are looking for the ‘extreme quality-to-price ratio,’ meaning they want high-quality products at lower prices,” he added. At the same time, Dr. Shen noted a growing trend in rural and lower-tier markets, where significant growth opportunities are emerging.
Dr. Shen also discussed China’s recent economic stimulus packages. “Policy initiatives are important. When people perceive a shift in policy, the market responds,” he said, referring to the government’s subsidies for home appliance trade-ins introduced earlier this year. This program has stimulated demand for affordable, high-quality products, as reflected in the increased sales of subsidized items.
Guangzhou, the host city for the summit, launched a new round of consumer goods trade-in subsidies on September 1st, positioning online platforms like JD.com as essential providers of seamless trade-in services. Over 800 home appliance brands have partnered with JD.com in Guangzhou, offering more than 8,500 products. Additionally, JD.com is working with its brand partners on a Customer-to-Manufacturer (C2M) model, leveraging consumer insights to drive innovation for more tailored products.
JD.com provides one-stop trade-in services for home appliances and home goods
The panel discussion featured Dr. Shen alongside Minggao Shen, Global Chief Economist at GF Securities, and Robin Xing, Chief China Economist at Morgan Stanley, with FORTUNE Editor-in-Chief Alyson Shontell moderating. The panelists agreed that while AI is still in its early stages, its potential is vast. With China’s stimulus policies and a functioning capital market, the private sector is well-positioned to unlock considerable industrial and social value.
JD.com ranked #47 on the 2024 Fortune Global 500, moving up five spots from the previous year. Guided by its mission to “Make Lives Better through Technology,” the company remains committed to cost management, operational efficiency, and enhancing user experiences, while continuing to invest in employee development and upskilling to foster both business growth and workforce advancement.
(vivian.yang@jd.com)
Apr 1, 2024|
JD Chief Economist: Tech-Driven Supply Chain Revolutionizes Gen-Z Consumer Engagement in China
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.
JD Report: Post-1995 Consumers Spend More on Entertainment than Post 1985
