Aug 13, 2020| JD Retail

JD’s Omnichannel Fulfillment Program Wins National Award

Rachel Liu

by Rachel Liu

On August 12^th, JD’s Omnichannel Fulfillment program won the “2020 Best Practice of Retail Digitalization in China” award during the 2020 China International Retail Innovation Summit held at the Shanghai International Convention Center.

The Omnichannel Fulfillment program was launched in 2019 based on JD’s inventory integration project with Walmart. It integrates multiple types of offline channels, including supermarkets, convenience stores and brands’ offline stores, enabling them to deliver orders that originate from JD directly. This improves the efficiency of the supply chain, shortens delivery time and increases the order for offline stores. The delivery time varies from 30 minutes to next-day, but customers can receive the orders in as few as 15 minutes.

Now the project covers over 200 cities, of which over 160 cities can achieve 1-hour delivery. This April, JD worked with Dada Group (JD’s joint venture for local on-demand retail and delivery) to launch around 100,000 stores from JDDJ (JD Daojia, Dada’s local on-demand retail platform) on JD.com, and provide customers with one-hour delivery for daily necessities. Supermarket chains such as Walmart, Better Life and Yonghui, and vertical offline stores such as maternal & baby stores, pet stores, grocery stores have joined the program. Brand partners include Unilever, Coca-Cola, Nongfu Spring, P&G, and more.

After over one year in operation, the program welcomes several updates. The first is the development of digital products. The program integrates consumption data in cities and stores, both online and offline, and share the insights with brands to help them improve their understanding of customers and interact with customers more precisely. Brands can also develop new products based on the data insights.

What’s more, the data can help JD analyze the consumption habits in different cities, and use LBS (location based services) to recommend products that are popular in the area to customers. A good example is Huaguan Supermarket, a chain supermarket brand in Beijing. To improve the sales of the supermarket online, JD analyzed the characteristics of the customers around the supermarket and launched targeted marketing campaigns, including sending coupons and text messages to potential customers. Sales of the Huaguan supermarkets climbed to top 10 among all supermarkets that joined the Omnichannel Fulfillment program.

“Now we are able to do marketing programs using LBS to target customers in certain areas where the offline stores are located. Combining online and offline, we do see that the ROI is higher than just doing online marketing,” said Changming Li, head of Omnichannel Fulfillment Program, JD FMCG Omnichannel.

With offline stores getting more orders, the Omnichannel Fulfillment team can provide smart replenishment tools to help stores better manage their inventories to optimize the efficiency of the operations of offline stores.

During the 2020 China International Retail Innovation Summit, Changming Li shared his insights on China’s local services market. Unlike food-delivery, which focuses on daily needs, traditional ecommerce, which is based on monthly needs, the local services business targets weekly needs. JD’s Omnichannel Fulfillment program is focused on the optimization of supply chain, which is a strong point for the e-commerce giant. The cooperation with Dada also expanded the ecosystem.

This year, the key for the business is to build the infrastructure, including a more customer-friendly shopping route, and a smoother fulfillment process from order distribution to last-mile delivery. In the future, the Omnichannel Fulfillment program will be expanded to categories including electronics, fashion, auto products and books.

(liuchang61@jd.com)

Dec 25, 2024| JD Health, JD Retail

JD Report: Five Health Consumption Trends for 2024

Vivian Yang

On December 24th, JD.com’s Consumption and Industry Development Research Institute, in collaboration with HealthInsight, a media think tank specializing in the health sector, released an insightful analysis of China’s 2024 health consumption landscape. The report outlines five key trends in the health industry, highlighting the increasing consumer demand for proactive health management and the industry’s evolving dynamics.

The Rise of Weight Management Solutions

Modern lifestyles have contributed to rising obesity rates with 34.3% of Chinese adults classified as overweight and 16.4% as obese. Obesity is associated with over 200 diseases, posing significant health risks. The introduction of semaglutide, a GLP-1 receptor agonist for long-term weight management, in China marks a promising development. The market for GLP-1 weight loss drugs in China is projected to exceed 37.852 billion RMB by 2030. On JD.com, searches related to “weight management” have increased more than 3.8 times year-on-year, with growing demand for diet products and home fitness equipment such as kettlebells and leg trainers.

Addressing the Growing Mental Health Concerns
With 95 million people in China affected by depression, mental health is an increasing concern. Consumers are turning to books, stress-relief toys, online consultations, and meditation to manage stress. On JD.com, searches for “mental health” have doubled, with significant interest in emotional release tools and psychological books. JD Health’s Internet Hospital now offers specialized clinics with over 2,300 counselors addressing issues like anxiety, depression, and sleep disorders.

The Booming Sleep Economy
Over 300 million Chinese experience sleep disorders, often due to irregular schedules. The sleep economy is booming with the market size reaching 495.58 billion RMB in 2023 and expected to surpass 600 billion RMB by 2027. JD.com has seen a 210% increase in searches for sleep aids, with high demand for sleep headphones, eye masks, and nutritional supplements. Sales of sleep-enhancing pillows and mattresses have also grown significantly.

Everyday Integration of Medical Devices

The home medical device market is expanding as consumers increasingly monitor their health independently. Products like heart rate-monitoring smartwatches and glucose meters are becoming household staples. This year, JD.com data shows that purchases of vision care devices and smart health monitoring equipment have tripled. The market for home medical devices is expected to reach 380 billion RMB by 2025.

Shifting Focus to Preventive Health Management

Emphasizing early screening and intervention, JD.com has seen a significant rise in orders for health services such as genetic testing and early cancer screening. These trends highlight a shift from treatment to prevention, driven by technological advancements and policy support. As consumer awareness grows, health consumption is becoming a major force in economic development, presenting opportunities for rapid growth in the health industry.

In conclusion, the 2024 health consumption landscape is characterized by a strong shift towards proactive health management and the integration of technology into everyday health practices. These trends not only reflect changing consumer priorities but also indicate significant growth opportunities for businesses in the health sector. JD.com remains committed to supporting these developments by providing innovative products and services tailored to the evolving needs of consumers across the dynamic health sector.

(vivian.yang@jd.com)

Dec 20, 2024| JD Retail

Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference

Vivian Yang

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)

JD’s Asia No.1 in Ningxia will Start Operations Next March