May 29, 2020|
JD Retail CEO Lei Xu: It Won’t Last Long if Only One Party Wins
by Ling Cao and Ella Kidron
In a rally to energize teams before the launching of JD’s 17th 618 Grand Promotion, JD Retail CEO Lei Xu emphasized the company’s commitment to long-term and sustainable growth with partners. He said, “We encourage all enterprises to join 618, expanding it from one company’s anniversary to a big industry promotion.” Xu added, “JD Retail will uphold its ‘open’ strategy and work with partners to develop together. This is the most important mission for this year’s 618.”
Xu sees JD’s first-quarter financial report as a touchstone that verifies JD Retail’s management strategy of quality growth. Rather than pursuing rapid growth according to a single benchmark, JD instead strives for balanced development, and is able to make dynamic adjustments according to market factors such as changes in the competitive landscape or regional development.
As a testament to JD’s long-term approach, as reported in Q1 earnings, from January to April, 572 brands on JD achieved transaction volume of RMB 100 million yuan each, and over 180 brands achieved year-on-year growth rate of over 50%.
Xu also pointed out that COVID-19 had raised new requirements for JD Retail’s future development. “China’s retail industry has already undergone huge changes which have accelerated development by between one-to-three years. He emphasized the importance of forward thinking, saying, “If we can’t see further, we can’t go further.” JD will maintain its commitment to a long-term strategy of valuable and sustainable innovation and operations.
According to Xu, the epidemic has had three important impacts on China’s business landscape. First, it has influenced how businesses manage their cash flow. “The number of traditional enterprises who have three-months of cash flow on hand is very small, to have six-months on hand is rare” Xu added.
Second is that community–based economy and commerce scenarios will significantly increase. “There is great opportunity in this sector, even in Beijing. There is not enough of this type of business,” he said.
Third is digitization. “We ourselves are a digitized company, so we have a natural advantage,” he commented.
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.
Photo Gallery: This Week at JD (May 25-29)
