Jul 27, 2017|
JD.com on how AI is Driving the Future of Ecommerce
At the Rise Conference in Hong Kong in July, Eric Zhao, Vice President of JD.com, outlined how emerging technologies such as AI and automation are creating an entirely new shopping experience for consumers in China.
Zhao, who leads JD.com’s big data and search initiatives, told an audience of more than 200 tech and internet industry experts from around the world that JD.com is tapping into a vast trove of potential insights on consumer behavior. It now has more than 236 million active customers and processed over 700 million orders during its June sales event.
That means the team processes up to 15 petabytes of new information every single day – and they are now using these insights to generate unique new offerings for consumers and brands.
For example, every consumer who shops on JD sees a unique homepage showing an automatically curated selection of products tailored to their taste. Building on this, JD.com’s predictive logistics initiative can produce sophisticated portraits of consumer shopping habits down to the level of individual communities and local neighborhoods. This allows the team to anticipate demand before consumers even place their order and dispatch goods to local distribution centres in advance so that delivery can be made to consumers within minutes after they place their orders.
Zhao noted that when the iPhone 7 went on sale on JD.com, using predictive logistics the company was able to deliver the first phone to a consumer’s doorstep just 10 minutes after the order was placed – making ecommerce even faster than buying from a traditional retail store.
Brands are also benefiting from these insights – JD.com’s dynamic pricing initiative is using AI algorithms to optimize the pricing for more than 4 million SKUs stored in JD warehouse in real time, helping to maximize sales and profits– and significantly increasing the efficiency of the pricing process. Whereas in the past, the job would take up to 5,000 people – this can now be done by a small team of data scientists using sophisticated algorithms.
In the next phase of JD.com’s growth, JD.com aims to make more of these technologies available to more companies – not just those who sell their wares on JD.com.
The company is also using its AI and big data insights to develop innovative applications for automation technology. JD.com was the first company in the world to use drones to make commercial deliveries, and its fixed route drone delivery program for rural areas is rapidly expanding to more remote areas of China. It is also now planning heavy-load drones capable of carrying up to a ton.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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