Apr 29, 2020|
JD.ID COO: In-house Logistics Can Deliver a Better Customer Experience
by Martin Li
In-house logistics can deliver better customer experience in Southeast Asia, Dr. Kevin Lv, Chief Operating Officer of JD.ID, said in a recent media interview.
JD.ID is JD.com’s e-commerce joint venture in Indonesia. This year marks the company’s fourth anniversary.
Dr. Kevin Lv, COO of JD.ID.
“Although it takes longer to build logistics infrastructure, compared with using an integrated logistics, in-house logistics can deliver a better customer experience. Logistics is the fundamental service in the e-commerce industry, and it’s a must for players to provide the best customer experience,” said Lv.
Logistics is the biggest pain point in the development of e-commerce in SEA. Customers’ demand for fast delivery service aren’t met, according to Lv.
In Indonesia, JD.ID has extended its delivery service to over 90 percent of the country’s 34 provinces via its logistics network, which is composed of over 69,000 square meters of warehouses and over 16,000 square meters of sorting facilities.
“The massive network reduces the distance between products and customers, which consequently increases delivery speed,” said Lv.
JD.ID also sought to improve its delivery service via strategic partnerships in the region. The company has partnered with Gojek on J-Express(JX), a last-mile delivery logistics joint venture.
JD.ID has achieved same-or-next-day delivery for over 85 percent of its orders throughout the country – an impressive achievement in a country of over 17,000 scattered islands.
Customer satisfaction rate with delivery timeliness for products sold on the company’s direct-to-consumer platform has reached almost 99%.
Lv also mentioned that e-commerce logistics in SEA still faces many problems like lack of standard logistics warehousing and logistics talent, difficulty in logistics management and cultural differences.
Logistics costs account for over 20% of the GDP in SEA countries. In contrast, the proportion is between 5 to 6%in the United States, 7 to 8% in Japan, and 13 to 15% in China, according to statistics cited by Chinese media.
(bjlihao3@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 CENTRAL in Thailand Supports Donation Campaign for Hospitals
