May 31, 2021|
JDT Chief Economist: 2B and 2G as the Next Wave of China’s Digitalization
by Vivian Yang
A new wave of digital economy development is taking place in China in the post-COVID era with digital transformation services expanding from “to customer” to “to business” such as shops and factories, as well as “to government”, noted Dr. Jianguang Shen, chief economist of JD Technology during the OECD’s Emerging Market Network (EMnet)’s virtual meeting under the topic of “the challenge of digital transformation in emerging markets” on May 26.
Dr. Shen was invited as a guest speaker at the opening session of the organization’s working group discussion to share his thoughts on the progress of digital transformation in China.
Dr. Jianguang Shen, chief economist of JD Technology speaks at the opening session of OECD EMnet’s working group meeting
China’s decade-long investments in digital infrastructure such as the internet and 5G are paying off as these have allowed most companies to still engage in business during the pandemic, and the government has used digital infrastructure as an important tool to control the spread of COVID-19 in one quarter’s time, enabling the country’s economy to quickly pick up speed in the following quarters and achieve positive growth in 2020.
Shen shared his observation that most cities in China now offer free WiFi access in public areas, such as on the streets, on subways, in railway stations and more. He cited the mobile banking case to demonstrate the power of digital technology in supporting the government, business and households to deal with the difficult situation. Thanks to the wide application of fintech by banks, securities, insurance companies and more, “China’s financial sector achieved 8% growth in the first quarter of 2020 while overall economic activity fell 6.8%”.
With this experience, “from shops to manufacturers now, everyone knows that they have to embrace digitalization to be successful, using the internet to provide services online and maintaining reachable to their customers.” Shen also attributed this as a primary reason for the growing number of unicorn companies emerging in China.
Shen noted that the Chinese government is stepping up its effort in digital infrastructure investment after the pandemic outbreak by building data service centers, encouraging studies and applications of artificial intelligence, and supporting the development of companies and labs in relevant areas.
“The digital economy has been put at the center of China’s future development,” said Shen while stressing that “the government needs to strike a balance between using data as a productivity driver and protecting privacy.”
Juan Carlos Mora, president of Bancolombia, François Candelon, managing director & senior partner, global director of BCG Henderson Institute, and Maryleana Mendez, general secretary, ASIET also joined the panel discussion and shared their insights on the topic from their respective regional perspectives in Latin America, Europe and Africa.
All the speakers emphasized that public-private partnership is important to foster an ecosystem that can promote inclusive digitalization. In response to this point, Dr. Shen added that it’s important for the government to set up the principles and enable the proper use of data, then the private sector can contribute a lot in offering virus prevention services and beyond.
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.
JD Worldwide Enters Partnership with Ping An Bank
