May 31, 2021|
JD Logistics’ CEO on Its Advantages, Market Competition and Overseas Plans
by Vivian Yang
Rui Yu, CEO of JD Logistics met with international and Hong Kong media on May 28 in Beijing and online immediately after the company’s ceremony to celebrate its successful listing on HKEx.
Over 40 media organizations participated the press conference in person or through live webcast. International media including AP, Bloomberg, CNBC, Reuters, Kyodo News attended the IPO gong-ringing ceremony and press conference at JD’s headquarters. Hong Kong Economic Daily, Hong Kong Economic Journal, AA Stocks, RTHK, SCMP, BBC, Fortune magazine and other media joined the press conference online from Hong Kong and other regions.
Rui Yu, CEO of JD Logistics at the IPO press conference
“Providing integrated supply chain solutions based on clients’ demand and JD’s technological capabilities” is the key advantage of JD Logistics, said Yu when answering the question about how the company differentiates itself from other players in the highly competitive market.
According to Yu, unlike most logistics companies which provide standard delivery service products, JD Logistics aims at offering flexible and customized supply chain services that can best support its clients’ business development in a fast-changing market environment.
“Changing business models and technologies (such as social and livestreaming e-commerce) will bring serious implications to supply chains,” said Yu. “We continuously iterate our supply chain services, dive deep into supply chain processes and study timely feedback, so that we can help our clients to shorten their distance to customers, and create more sales opportunities with less inventory.”
Yu pointed out that by the end of 2020, external clients accounted for nearly 47% of JD logistics’ revenues, with the majority using its integrated services which involve supply chain solutions, systems management, warehousing and more. Yu said that the number of external clients will continue to grow at a fast rate in the coming year, lessening JD Logistics’ reliance on its parent company and making positive contributions for its overall profits.
In responding to media’s questions related to the industry’s tighter regulatory scrutiny, Yu noted that there is sufficient market competition in the logistics market in China. With over 10-years of experience in serving customers and business clients in all products and categories, he believes that the recent regulations will bring JD Logistics more open opportunities and help it reach more platforms and enterprises that were previously not easy to access.
On overseas operation plans, the company will continue to build its global logistics network, infrastructure and supply chain solutions to better serve cross-border sellers to China, mainly from North America and Europe, and explore new markets in line with Chinese brands’ globalization destinations, such as Southeast Asia, South America and other regions. Additionally, Yu eyes some business breakthroughs in cargo flights in the foreseeable future.
Click here to watch the replay of the press conference.
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 Logistics CEO Eyes External Business Growth: Financial Times
