Mar 19, 2021|
JD’s Paul Yan: Future will See More Integration of Online and Offline Consumers
by Ella Kidron
“We can’t distinguish from online and offline users anymore because now it is a highly integrated experience.” Dr. Paul Yan, Vice President of JD.com, Chairman of JD Retail Technology Committee, and President of Technology and Data Center, shared his insights during an online roundtable discussion, “Innovation-X”, jointly hosted by UC Berkeley’s Hass School of Business and Cheung Kong Graduate School of Business (CKGSB) on Mar. 18.
Dr. Paul Yan
Yan was joined by Baohong Sun, professor of marketing at CKGSB, Rui Ma, founder and host of Tech Buzz China, Michael ChenWang, founder at Cider and Joy Tang, CEO of Mai.
The phenomenon of blurred lines between online and offline retail will be even more pronounced in the future, according to Yan. “Online users like JD want to go offline, and offline users want to go online.”
He also emphasized the importance of logistics in ensuring a superior e-commerce experience. JD’s same- and next-day delivery promise, which can be achieved for 90% of first party orders, set the global standard for e-commerce delivery. “There is a lot of technical innovation and service required to put everything together”.
Yan added: “The innovation I’m seeing now is making things even faster.” This has enabled JD to achieve two-hour, one-hour and even as fast as 30-minute delivery. “We are narrowing the difference between online and offline. It’s a huge challenge, but we are making progress – even for bulky goods such as a big case of mineral water.
The integration of online and offline is not only limited to physical goods, but also services. Yan mentioned how Internet + Healthcare companies such as JD Health are a game changer, helping to resolve the issue of limited medical resources and improve the allocation of top notch doctors throughout the country.
According to Baohong Sun, professor of CKGSB, one of the key features of innovation in China is helping people find products, and helping long tail products find people. “Most innovation is very customer-centric.” Sun further articulated the concept of “frictionless” e-commerce, from the search process through the purchase, regardless of whether it happens online or offline. Another important aspect is “making every channel shop-able” – especially content channels such as short video platforms. “Only 20% of time is spent on selling hard content,” according to Joy Tang, while the remaining 80% is spent on soft content.
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 (Mar. 13 – Mar. 19)
