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.