JD Retail ensures supply during coronavirus
by Rachel Liu
From January 24th to February 2nd, JD.com has sold 18,900 tons of rice, flour & grain; 15,000 tons of fresh food; 5.9 million liters of cooking oil; 1.8 million bottles of disinfectant solution; and 3 million bottles of liquid soap. During the same period, sales of rice on JD.com increased 5.4 times year-on-year, and sales of flour increased 4.7 times year-on-year. The supply of daily staple food necessities cannot be achieved without the joint efforts of JD’s sales and supply chain team.
Like previous years, JD.com has applied its technology and insights to beef up stock inventory prior to the festive celebrations this year. What was unexpected was how very quickly things would change for people in both the epidemic epicenter of Wuhan and around China.
The outbreak has changed the shopping habits of Chinese consumers during the holiday as more and more customers are shopping for daily products online instead of offline. As China’s largest retailer, JD.com is sparing no efforts to ensure supply of Chinese consumers’ daily necessities at this time.
JD’s sales team has worked actively with brand partners to ensure there is enough inventory for much needed daily products in JD warehouses. From January 1st to January 24th, there has been 1.9 million bags of rice and grain (around 10,000 tons in total) from Chinese rice brand Shiyuedaotian delivered to JD warehouses. From January 26th, Shiyuedaotian has delivered 500,000 bags of products to JD in just 4 days. From January 25th to February 1st, Chinese brand Yihaijiali has sent 1 million bottles of Jinlongyu cooking oil to JD. JD also actively worked with Safeguard on the supply of anti-bacterial liquid soap, and from January 20th to February 1st, there were over 270,000 bottles of Safeguard liquid soap in delivery to customers.
Since the coronavirus outbreak occurred during the Chinese New Year period, some brands and suppliers were not able to send their products to JD warehouses. To address this efficiently, JD leveraged JD Logistics to pick up the products directly from brand warehouses to ensure inventory. For example, as of January 31st JD has picked up 350,000 Welch products in two batches from its warehouses in Guangzhou, Kunshan, Tianjin and Chengdu. JD is also using this model to cooperate with brands including Safeguard, SC Johnson Wax, LION, and others.
To protect consumer rights, JD also ensured that the product prices remain stable. Products from JD’s first party business will not experience price increases and JD is also rigorously regulating its third party platform to forbid unfair price hikes, with penalties to third party sellers if unfair price hikes are discovered.
Additionally, to help merchants with the operational challenges caused by the coronavirus, JD Retail announced 11 subsidy support measures to merchants, including expense reduction, finance and logistics support, traffic support, technical support and more, especially to merchants in Hubei province.