Aug 21, 2020|
JDD Leaders Series: Cao Peng: Witness of JD Digits’ Development
by Yuchuan Wang
Cao Peng is vice president and head of AI technology and robotics at JD Digits. His team is committed to promoting the full integration of a range of cutting-edge technologies including AI, big data, and blockchain with finance, retail and other businesses.
With the effects of demographic and data dividends gradually waning, internet giants are rushing to the “2B” service battlefield, also known as the “Industrial Internet.”. Internet companies have sought to increase their market share by providing business-to-business technology solutions. At the same time, under the influence of COVID-19, companies in traditional industries have increased urgency for digitized solutions.
JD Digits has been at the forefront of this trend toward digitization for almost a decade. Established under JD.com in 2013, JD Digits has moved from focusing exclusively on consumer services to delivering business solutions—allowing it to become one of the world’s leading digital technology providers. Currently, the company is focused on core businesses, including AI technology, intelligent robotics, intelligent cities, digital marketing, and Fintech solutions.
Cao Peng, vice president and head of AI technology and robotics at JD Digits
From multinational corporation to Richard’s little shop
Cao Peng met Richard Liu, Founder and CEO of JD.com in the early 2000s. At the time, Liu ran an offline store in Zhongguancun (known as the “Silicon Valley of China”) that sold authentic-only laser technology products such as compact discs and CD burners. He happened to meet Richard on an internet forum when he was browsing information regarding how to identify fake CDs.
“Twenty years ago, there was significant fraudulent business activity in Zhongguancun. It was quite rare that Richard chose to sell only authentic ones.” Said Cao.
After graduating from college with a degree in computer science, Cao went to work for a leading multinational consulting firm. Not long after, Liu sought Cao’s help to build website for his Zhongguancun store. In January 2004, Cao successfully helped launch the website “jdlaser.com”, the predecessor of JD.com, in his spare time. Liu gave him two CD burners as a reward for his effort. “I still have one of them under my bed,” said Cao.
Pioneering a new journey
In 2007, JD received over $10 million in its first round of funding. The fast-growing e-commerce company urgently needed professional managers. Again, Liu went to Cao—this time to recruit him for technology research.
There is a Chinese saying: “A man should be independent by the age of 30.” That year, Cao was 29.
“I wanted to be a programmer who impresses others.” Cao remembered. Although enjoying a successful and stable career, he was tired of the same routine. A doorstep away from 30, he wanted to challenge himself.
“Richard is a reliable man. He keeps his promises and never disappoints his customers.” Cao said. What surprised him the most was that he had never seen a company that could survive in Zhongguancun for five years—most go bankrupt in just one year. Even former employees who handled Cao’s disc orders continued to follow Liu. “‘He must treat his employees very well,’ I thought.”
Since then, JD.com has gradually become China’s largest retailer by revenue, while Cao has fulfilled his dream of becoming a leading technology professional. From transactions and supply chain to accounting and human resources, Cao has been heavily involved in all phases of JD’s technical infrastructure. He has spearheaded countless technological innovations to help build the company into a giant up from the ground.
When JD.com was preparing for its initial public offering on Nasdaq in 2013, Shengqiang Chen, the company’s former CFO, established JD Finance, the predecessor of JD Digits.
Cao, who had planned to retire, soon decided to join Chen to establish the new financial empire.
“I really enjoy starting new businesses from scratch. The process is a lot of fun, and seeing something built through my own efforts is deeply fulfilling.” Leveraging his expertise in technology, Cao first helped Chen build the JD Finance website and then helped JD Digits build the fundamental technology system.
From financial to digital
“We decided to move towards fintech in 2015 because we realized that focusing exclusively on financial products wouldn’t maximize our market share considering the number of players from both traditional and internet industries,” Cao said, “By expanding into fintech, we discovered that not only can we empower the financial sector, but our AI and big data capabilities were advanced enough to be replicated in other industries. That’s why we further adjusted our strategy in 2018 to become a digital technology company.”
JD Digits is determined to become the partner of industrial digitization.
Companies that focus exclusively on technology typically invest a significant amount when entering new spaces, not to mention the high cognitive barriers traditional sectors face with new technologies. Compared to tech-only providers who have no application scenarios, JD Digits has its clear strengths. “Take computer vision technology as an example, in both JD’s retail and payment businesses, there is a great demand to ensure the technology can be verified through reliable applications.”
By opening up its technologies, JD Digits hopes to help traditional sectors become digitized and intelligent, ultimately reducing costs and improving efficiency.
This vision has been repeatedly verified in Cao Peng’s business lines.
Taking his blockchain business as an example. As of June this year, it has collaborated with over 1,000 brand owners and helped track more than 90,000 SKUs (stock-keeping units) on JD ranging from fresh produce, baby and maternal products, liquors, beauty products, medicine, and luxury and cross-border products. The system has had more than 7 million inquiries by consumers.
The blockchain technology, which was originally designed to ensure a transparent supply chain of authentic products to online consumers, now also serves clients for purposes well beyond retail, such as guaranteeing e-contract signing and trade secret protection.
Robotics
Unlike other departments, intelligent robotics is the only first-level department of Cao’s team. He and his team believe the development of IoT, cloud computing, and AI technology will accelerate the application of robotics in various scenarios and help upgrade traditional industries.
Starting from serving the financial industry, Cao’s team spent nearly a year researching their first robot, the “Intelligent Inspection Robot,” for bank data centers (IDCs). Powered by AI technology and multiple sensors, the robot is designed for environment and equipment checks in IDC. It has the ability to check a single server’s status in 30 seconds and help banks reduce IDC operating costs by up to 50%.
Cao’s robotics business has expanded beyond the banking industry to other industries such as medical and railways.
To help medical staff on the frontlines fighting COVID-19, Cao and his team helped launch the “Indoor Delivery Robot” earlier this year in a Shanghai hospital treating coronavirus patients. The robot helps transport medical supplies to contaminated areas, thereby reducing the risk for medical personnel from being exposed to the highly contagious virus.
Inspection robots are also used to inspect railways. According to JD Digits, the technology has helped reduce the human resource and time costs by 50%. Data collected by the robot may also be useful for future railway planning.
“We don’t plan on manufacturing robots. Our strategy is to establish the technology infrastructure and platform so third parties can build their own robots as quickly as possible.” Cao explains, “An IT company looking for robotics solutions for bank clients should be able to quickly create robots on our platform that fully meet the demand.”
The versatility of technology allows JD Digits to expand its offerings in everything from financial technology to digital technology, just like computer vision technology can be used to identify tea and also inspect data centers.
“Like most people who explore in the dark, we have encountered numerous challenges. Our ideals convince us to persevere, and the results are proving strong. AI is indeed helping people in their work and personal lives.”
Jan 16, 2024|
Harbin’s Rising Popularity as a Winter Destination in China Sparks Surge in Travel and Retail Sales
This winter, the “ice city” Harbin, capital of northeast China’s Heilongjiang province, has emerged as a magnet for tourists from all corners of the country. Harbin’s hospitality has warmed the hearts of these visitors. Their shared online experiences have further fueled the city’s tourism and consumption growth.
According to data from JD.com, searches for Harbin travel have skyrocketed, with a year-on-year growth exceeding 100 times in the past week alone. Harbin’s specialties have also been favored by tourists. JD.com’s data also reveals a substantial rise in the volume of Harbin specialty shipments since December. The Harbin Red Sausage, a beloved local delicacy, has emerged as the top souvenir choice for out-of-towners, seeing an average daily shipment volume in early January that is nearly fourfold higher than in December.
To support this influx of tourists, JD Logistics has strategically established service points at key locations, including Harbin Airport. These hubs ensure comprehensive delivery services, enhancing the overall visitor experience.
This Harbin tourism boom has also spurred a surge in sales of winter apparel. JD.com’s data indicates a rapid growth in the sales of warm clothing items such as down jackets, snow boots, and thermal underwear between January 1st and 7th. The sales growth is especially pronounced in southern provinces and cities such as Jiangsu, Zhejiang, Guangdong, Sichuan, and Shanghai. Notably, tall snow boots registered a 206% year-on-year increase in transactions, while padded cotton caps and thickened long down jackets soared by 158% and 134%, respectively. Beyond clothing, travel gear has also seen a considerable uptick, with a 98% year-on-year growth in transactions for large suitcases and travel backpacks in these southern regions.
To further cater to the needs of consumers gearing up for their Harbin adventures, JD.com launched a “Northbound Warmth Guide” on January 10th, offering a curated selection of warm clothing, shoes, children’s wear, and accessories, and enabling more consumers to purchase thermal equipment in a one-stop shop.
Jun 1, 2023|
JD.com’s 618 Grand Promotion Kicks Off, Record Number of Brands Reach 100 Million Yuan in Sales within the First Ten Minutes
by Yuchuan Wang and Vivian Yang
On the evening of May 31, 2023, JD.com officially launched the 618 Grand Promotion, the largest mid-year shopping festival in China. In a phenomenal display of consumer enthusiasm, over 23% more brands achieved the RMB 100-million-yuan sales milestone within the first ten minutes compared to the previous year. Additionally, an impressive 60% of newly onboarded merchants soared past their daily average sales volume for May, and 50% of small and medium-sized enterprises (SMEs) reported their sales skyrocketing by more than 200%.
This year’s JD 618 Grand Promotion marks the 20th birthday for JD.com and offers more than ten times the number of items as those featured during the 10-billion-yuan discount program, which launched in March. The vast selection comprises over 200 of the most in-demand items and nearly ten thousand best-selling products spanning a diverse range of categories.
Upon the event’s opening, consumers in over 300 cities across the country received their pre-ordered parcels within a matter of minutes. JD.com’s dedication to excellent service, through its proprietary logistics network built since 2007, ensures the delivery of the same or next-day orders nationwide, affirming its “place an order in the morning and receive it in the afternoon” commitment. Today, the unmatched service covers 10 million products and to consumers nationwide.
JD’s on-demand retail service also showcased its advantages immediately. Within the first ten minutes of the promotion’s launch, customers in over 700 counties and cities throughout the country received their orders. The first on-demand delivery through JD Shop Now arrived at a customer’s doorstep in Changsha city within just nine minutes.
Data highlights from the shopping festival collected between 8:00 PM and 8:10 PM on May 31, 2023 include the following:
- A 23% year-on-year increase of brands surpassing a transaction volume of over RMB 100 million within the first ten minutes of the 618 promotion
- Apple’s transaction volume surpassed RMB 100 million in just one second
- Nearly 50% of small and medium-sized merchants have seen their transaction volume increase by over 200% year-on-year
- Transaction volume for home appliances and home furnishings exceeded RMB 5 billion
- Transaction volume for durian increased by more than three times year-on-year
- Transaction volume for men’s and women’s apparel increased by over 120% year-on-year
- Transaction volume for road bikes and cycling apparel increased by over 100% year-on-year
- Transaction volume for new energy vehicle tires increased by nine times year-on-year
- Within five minutes, transaction volume of JD’s cross-border platform JD Worldwide exceeded the total sales of the first two hours from last year
- A near 400% year-on-year increase in merchant usage of JD Cloud’s Yanxi Digital Human livestreaming service compared with the same period from last year’s Single’s Day promotion
- A 100% year-on-year increase in transaction volumes for 150 skincare and beauty brands, including prestigious names like YSL, Helena Rubinstein, Shu Uemura, Proya, and Lancome
- Transaction volume of luxury brands including Bulgari, Tiffany & Co., Bottega Veneta, and Givenchy increased threefold year-on-year.
- Fifteen watch brands, including Longines, Tissot, and Mido, doubled their sales year-on-year
- Entrepreneur and internet celebrity Luo Yonghao joined JD Livestreaming and sold an apartment at 61.8% of the full price, saving over RMB 1.2 million for the consumer
- Electronic product services saw a transaction volume boost of 160% year-on-year
- Trade-in services for home appliances and home furnishing products experienced a transaction volume surge of over 120% year-on-year
JD Tells You Why It’s Good to Shop Furniture Online
