Jan 12, 2020|
JD Retail: Eyes on High Quality, Consistent Growth in 2020
At its annual conference held on Sunday, January 12, JD Retail, the retail powerhouse of JD.com, announced its business target for accelerated quality growth in terms of transaction volume, revenue, user base and profit in 2020. This year, JD Retail will focus on strategy, business breakthroughs, organizational restructuring, culture cultivation and talent management to achieve its targets.
“Having earned the trust of Chinese consumers as their first choice in many categories – home appliances, digital products, fast-moving consumer goods, fresh food, healthcare, baby and maternal products, and more – JD Retail had a successful 2019,” said Lei Xu, CEO of JD Retail. “Never straying from our trust-based, customer-centric mission, JD Retail will continue to carry out the value proposition of trust to work with brands and merchants to achieve quality growth in 2020.”
In addition, JD Retail will continue to focus on various business initiatives in 2020, such as omnichannel integration projects, further penetrating into lower-tier markets and building up a healthy and powerful retail ecosystem.
- The core of omnichannel management lies in supply chain management, digitalized operation and capabilities in integrated marketing. JD Retail launched several key online and offline integration initiatives in 2019, such as opening new brick and mortar outlets like JD E-Space, a 50,000 square meter mega-experience store in Chongqing, and its 7FRESH Life and SEVEN FUN concepts under the 7FRESH brand. JD’s supply chain innovation program launched last year enables consumers to make an order online, and then JD’s system will use AI algorithms to identify the most effective way to deliver the product. The program can reduce the cost of operations by over 50%,and consumers can get the products within 2 hours – within just 15 minutes at the fastest.
- JD Retail took several measures to better meet the demand from consumers in the lower-tier markets and made great achievements. JD’s reaccelerated net revenue growth in the third quarter of 2019 was driven by its lower tier market penetration strategies. In particular, the growth rate for electronics and home appliances categories in lower-tier cities was more than double that of tier 1 and tier 2 cities. Over 70% of new customers in Q3 came from lower-tier cities, which is a new record.
- With supply chain capabilities as the core, JD Retail will further empower brands and merchants in big data, marketing and operations. With insights about Chinese consumer behavior, this year JD Retail put increased emphasis on its Consumer to Manufacturing (C2M) program, in which JD’s specialized data analytics tool can help brands understand how to maximize performance, modify their brand offering in China to better suit local tastes, and boost customer satisfaction. JD’s C2M initiative started with projects in the IT products category a few years ago, and has achieved amazing success. Today, over 70% of IT products sold on JD are C2M products – solidifying the influence JD has in China’s IT industry, online and offline. JD’s C2M program has been extended to broader categories, such as home appliances, fast moving consumer goods and more.
Let’s look back at JD Retail’s other highlights in 2019.
Dec 20, 2024|
Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference
On December 19, Dada NOW, China’s leading local on-demand delivery platform under Dada Group, was awarded the “Leading Restaurant Empowerment Platform” accolade at the 10th China Catering Innovation Conference in Shanghai. Celebrated for its innovative 4D Service Standards, Dada NOW delivers professional, flexible, intelligent, and customizable services to top food and beverage brands including CHAGEE, KFC, Luckin Coffee, McDonald’s, and Pizza Hut, garnering extensive acclaim within the catering industry.
4D Service Standards
The “Leading Restaurant Empowerment Platform” award honors platforms that provide comprehensive and professional services to restaurant businesses. Leveraging years of experience with leading restaurant brands, Dada NOW has crafted its 4D Service Standards to effectively address delivery challenges and enhance service quality. These standards include:
- Dedicated: Integrated solutions for warehousing, picking, and delivery.
- Dynamic: Tailored delivery solutions for diverse vendor scenarios, including store-stationed and crowdsourced rider options.
- Data-driven: Efficient data management systems utilizing AI technology for order dispatching, fulfillment timeliness, and quality inspection.
- Designable: Customized services for large supermarkets and restaurant merchants to bolster brand value.
Fast and Accurate Delivery
In the fast-paced food delivery sector, Dada NOW’s survey data indicates that 63% of brand merchants and consumers expect timely delivery, 21% prioritize location accuracy, and 9% value punctual pickup. Dada NOW completes delivery in as quickly as 9 minutes, with a 99.5% on-time completion rate and a 98% accuracy delivery rate. Real-time order matching is achieved in as fast as 0.3 seconds, ensuring fast and accurate service.
Unlike delivery providers that only focus on a single merchant type, Dada NOW provides both supermarket and restaurant deliveries. The differing peak times between these sectors allow for capacity complementation, enhancing efficiency and reducing costs. With a nationwide network of over a million riders and an industry-leading on-demand delivery model, Dada NOW has executed over 900 million route plans, swiftly allocating resources during peak periods such as lunch and dinner rushes, new product launches, and promotional events.
Customized Solutions for Merchants
To meet the strong customization needs of brand merchants, Dada NOW can offer bespoke services for each store, integrating its delivery capacity, products, and technological solutions. A notable example is the partnership with Sam’s Club, for which since 2017 Dada NOW has developed customized solutions in delivery capacity models, co-branded equipment, rider training, and system integration. This collaboration has achieved nearly 100% coverage of customized rider equipment such as helmets, uniform and delivery containers, and provides excellent customer service experiences. This highly effective collaboration demonstrates Dada NOW capabilities that are also transferrable to the restaurant sector.
Luckin Coffee, a long-standing partner of Dada NOW, exemplifies the high standards in the coffee and tea beverage sector, achieving a “30-minute delivery rate of 99.9%” to maintain peak freshness delivered to customers’ doorsteps. Dada NOW’s flexible rider network effectively manages peak demands and large order volumes during product launches and promotions through an intelligent order dispatching system, ensuring optimized delivery routes and careful handling to prevent issues like coffee spillage. Since 2023, this partnership has earned Dada Now several accolades from Luckin Coffee, including the “Best Strategic Cooperation Award” and “2023 Outstanding Delivery Partner,” with rider Tu Yanping being recognized as one of four “Annual Gold Riders” nationwide.
Dada Group operates two core businesses: JD NOW, formerly known as JDDJ, an instant retail platform, and Dada NOW, a local on-demand delivery service. Leveraging its extensive crowdsourced delivery network of millions of riders, Dada NOW provides a comprehensive service system open to merchants and individual senders across various industries and product categories. The company’s two platforms operate independently and collaboratively.
(vivian.yang@jd.com)
Dec 13, 2024|
JD.com Targets 5 Billion RMB with Chilean Product Partnership as 2024/25 Season Cherry Sales Launch
On December 12, JD Super, the supermarket division of JD.com (also known as JINGDONG), launched the Chilean Specialties Festival and kicked off 2024/25 Chilean cherry sales with the recent arrival of the first “Cherry Express” ship in China. In a ceremony attended by the Chilean Ambassador to China, H.E. Mr. Mauricio Hurtado, JD Super signed a strategic cooperation agreement with Chilean brands, aiming to achieve 5 billion RMB in sales of Chilean products, including cherries, wine, and salmon, over the next three years.
The sea-freight Chilean cherry sales launch event was officiated by Ambassador Hurtado, Chao Junwen, Secretary-General of the China Chamber of Commerce for Foodstuffs and Native Produce, and Juan Latife, General Manager of Garces Fruit China, Chile’s leading cherry exporter.
Through large-scale direct sourcing, JD’s procurement team has reduced the import costs of Chilean cherries, offering consumers prices that are approximately 15% lower than those on other e-commerce platforms for the same grade and size.
To ensure quality and proper grading, JD Super has introduced a caliper offering this season. Each box of cherries comes with a caliper that allows consumers to accurately grade the fruit and ensure they have received high-quality Chilean cherries.
Since late October, JD’s online channels and its 7Fresh omnichannel supermarket chain have been selling the season’s air-freight Chilean cherries. This product offering, which has been met with enthusiasm from Chinese consumers, is supported by JD’s extensive national cold-chain logistics network and instant delivery services that can deliver orders within 30 minutes, making it easy and affordable for users to enjoy the early batch of Chilean cherries.
“This large-scale procurement cooperation will allow JD Super to continue leveraging our strong supply chain capabilities and work closely with Chilean partners to offer a wider variety of Chilean products at competitive prices and services to Chinese consumers,” said a spokesperson of JD Super.
(vivian.yang@jd.com)
JD Logistics: Record Year with More to Come in 2020
