Nov 12, 2021|
JD.com Posts over RMB 349.1 Billion Yuan Transaction Volume for Singles Day Grand Promotion 2021
by Yuchuan Wang
JD.com reported a record-breaking Singles Day Grand Promotion on November 12, 2021, with transaction volume totaling RMB 349.1 billion yuan at the midnight of November 11, ending the 11-day promotion that started from 8pm on October 31. Transaction volume of 31 brands surpassed RMB 1 billion yuan with Apple surpassed RMB 10 billion yuan.
Compared with previous years when the Singles Day promotion started at midnight on November 1, this year JD kicked off the 2021 sales 4 hours ahead of time at 8 pm on October 31, allowing consumers to place orders without having to pull an all-nighter.
Despite strong sales and continued growth, JD is also prioritizing other areas of growth.
For example, on Nov. 11, Japanese retailer MUJI and JD.com’s SEVEN FRESH jointly launched a fresh food complex in Shanghai. Featuring a MUJI store and a fresh food supermarket, it spans an area of over 4,000 square meters, and will offer a wide range of meal solutions to consumers. The complex marks the first appearance of JD.com’s innovative fresh food supermarket chain SEVEN FRESH in Shanghai.
Lijun Xin, CEO of JD Retail, says that, “While the external audience may be more concerned about the sales figures, we are paying more attention to the stronger and upward force of the industry.”
SEVEN FRESH and MUJI’s fresh food complex is located in Ruihongtiandi shopping mall in Hongkou district, Shanghai
High-quality consumption
This Singles Day has been joined by the most merchants and brands in JD’s history, especially in the fashion category. Over 6,000 new apparel brands joined JD’s Singles Day this year, such as Victoria’s Secret, Peace Bird and Bosideng. In the first 10 minutes after the final sales spike started at 8 pm on Nov. 10, sales of 600 apparel brands increased 8 times YOY. Among the consumers of apparel products, the number of Gen-Z consumers was 3 times that of last year. Transaction volume of luxury products in the first 10 minutes increased 180% YOY. RIMOWA, the luxury luggage brand, saw a YOY increase of 3 times in terms of transaction volume in the first two hours.
Sales of beauty brands also surged on JD. In the first 4 hours, the transaction volume of over 20 brands including Helena Rubinstein and L’OCCITANE increased 100% on a year-on-year basis.
In the first 4 hours, transaction volume of 100 brands in the home appliances category, including Haier, LG and more, exceeded those of the whole day of November 11 last year. In the first 10 minutes, transaction volume of Xiaomi, Huawei, Samsung and many other mobile phone brands increased 4 times YOY. Transaction volume of iPhones surpassed RMB 100 million yuan in 2 seconds.
Pet consumption continues to boom. Transaction volume of nutrition products for pets increased 12 times in the first 10 minutes. Additionally, since the launch of JD Health Pet Hospital, a total of 3,000 veterinarians have joined the service team. As of 10:00am on Nov. 11, the online consultation service for cats increased 230% on a monthly basis and consultation for dogs increased 200%.
Growth from lower-tier markets
Users from lower-tier markets accounts for 77% of all users for JD’s Singles Day Grand Promotion this year. The company has seen rapid growth of consumption from these markets in the categories of home appliances, medicine and home decoration. For example, transaction volume of dishwashers and sweeping robots increased 2 to 3 times, with some smart home appliances even increasing 5 to 10 times.
The 15,000 JD Home Appliance stores nationwide that mainly target lower-tier markets saw their 2-hour transaction volume across all stores surpass that of the whole day on November 10 last year.
During this Singles Day, JD also officially launched a smart supply chain center in Wugong county in Shaanxi province, covering an area of 36,000 square meters. Integrating functions of procurement, cold-chain warehousing, processing, sorting, packaging and fulfillment, it connects the agricultural industry belts in northwestern China. On the night of November 10, the center processed total 1 millionth order.
JD smart supply chain center in Wugong county
Technology and logistics drive efficiency
This Singles Day, JD provided e-CNY(“数字人民币” in Chinese) red envelopes for users in 11 cities including Beijing, Shanghai, Shenzhen, Dalian, Xi’an, Chengdu and more, in collaboration with China Construction Bank (CCB). Users located in these cities who have never opened an e-CNY account, can search “e-CNY” on JD’s app to get access to the activity page. The red envelopes can be used on JD’s e-commerce app to purchase first-party products. According to JD Technology, over 100,000 customers used e-CNY on JD’s app during the promotion period.
JD Logistics ensures that remote areas can enjoy the same standard of service as in big cities. Since the beginning of 2021, JD Logistics has newly opened nine Asia No.1 logistics parks, which are among its 1,200+ warehouse network nationwide. The addition of logistics parks powered by automation technologies further expands JD’s rapid delivery service to more locations, enabling the company to deliver JD’s retail orders within 24 hours in 93% counties and 84% villages in China.
Autonomous delivery vehicles guarantee contactless delivery during COVID-19 breakouts. During this Singles Day, JD Logistics applied nearly 400 autonomous delivery vehicles in more than 25 cities in China, delivering 200% more orders comparing with the same period last year.
JD’s autonomous deliver vehicle
The 2021 Singles Day is also a green one. Through the usage of new energy vehicles, solar power system, recyclable packages and more, JD also reduced carbon emissions by 26,000 tons during this Singles Day period compared with last year. For example, recyclable packages were used 11.35 million times during the promotion this year.
Apr 20, 2024|
JD.com Unveils Ambitious Plans for 618 Grand Promotion: Aiming to More Than Double High-Performing Merchants
JD.com is gearing up for this year’s 618 Grand Promotion with an ambitious goal: to more than double the number of merchants achieving sales over one million yuan on its platform. At the recent Conference of Merchants and Ecosystem Partners on April 18, JD.com introduced a range of supportive initiatives aimed at achieving this ambitious target.
Sandy Xu, CEO of JD.com, noted at the conference that the company will dedicate significant resources to bolster traffic support, incorporate advanced AI technology, and enhance service capabilities. These efforts are particularly focused on empowering third-party merchants, including small and medium-sized enterprises in its marketplace.
Key initiatives include optimizing the platform’s traffic distribution ecosystem to prioritize highly-rated stores and products and competitively priced products through enhanced search and recommendation mechanisms. Additionally, JD.com will continue to offer merchants free access to high-traffic channels, which include significant incentives such as the popular 10-billion-yuan discount and free shipping programs.
To engage more content creators, JD.com recently announced that it will allocate over one billion yuan in cash incentives and traffic resources. This investment aims to cultivate a vibrant ecosystem that supports merchants’ traffic, business growth, and innovation.
At the core of JD.com’s strategy is technological innovation, which involves integrating AI-driven solutions into merchant operations. This includes the deployment of JD’s proprietary large language model, ChatRhino, and an AI-empowered merchant operation platform that offers are variety of free AI applications, and more. These technologies streamline various operations scenarios, enhance efficiency, and reduce costs for merchants.
For instance, On April 16th, JD.com unveiled an AI digital avatar of its founder, Richard Liu, as a sales host on its livestreaming platform. This event attracted 20 million viewers in just one hour and generated sales exceeding RMB 50 million ($6.9 million). This AI-driven virtual host technology, developed by JD Technology, is now supporting over 4,000 brands on the platform. Additionally, merchants such as a sashimi knife seller can utilize JD.com’s AIGC content generation tool to quickly produce high-quality demonstration images, bypassing traditional costs associated with product photography.
JD.com also continues to enhance its service capabilities, particularly for small and medium-sized merchants. This includes personalized business guidance, comprehensive training programs, and upgraded after-sales services, ensuring a seamless shopping experience for customers.
As of March 2024, JD.com has seen a significant increase in active third-party merchants on its platform, surpassing one million. This growth is a testament to the platform’s effectiveness and its appeal to both new and established merchants.
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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