Embassy of UAE in China Discusses Bilateral Trade with JD.com

by Yuchuan Wang

Saleh Altheeb Alhemeri, Counselor and Head of Economic Affairs of the Embassy of the United Arab Emirates (UAE) in China visited JD.com on Apr. 27 and had a discussion with JD Worldwide, the company’s international business, on bilateral trade, cross-border e-commerce, international logistics and supply chain opening up.

Mr. Saleh Altheeb Alhemeri said that bilateral trade between China and UAE is developing vigorously. Enterprises like JD.com will not only contribute to the growth of the cross-border e-commerce, but also serve to promote in-depth business collaboration between the two countries.

From left to right: Chris Wu, director of public affairs at JD Worldwide; Eihab Abdelaziz Ibrahim Omer, Economic Researcher of the Embassy of the UAE in China; Andy Zhang, head of the Go-to-Market business in MENA at JD Worldwide; Fiona Qi, director of imports business development at JD Worldwide; Christine Wong, vice president of public affairs at JD Worldwide; Saleh Altheeb Alhemeri, Counselor and Head of Economic Affairs of the Embassy of the UAE in China; Harry Ying, head of JD’s international logistics key account business for the MENA region; Bashir Modanov, Economic Researcher of the Embassy of the UAE in China; and Yue Huo, head of import business development for the MENA region at JD Worldwide

From left to right: Chris Wu, director of public affairs at JD Worldwide; Eihab Abdelaziz Ibrahim Omer, Economic Researcher of the Embassy of the UAE in China; Andy Zhang, head of the Go-to-Market business in MENA at JD Worldwide; Fiona Qi, director of imports business development at JD Worldwide; Christine Wong, vice president of public affairs at JD Worldwide; Saleh Altheeb Alhemeri, Counselor and Head of Economic Affairs of the Embassy of the UAE in China; Harry Ying, head of JD’s international logistics key account business for the MENA region; Bashir Modanov, Economic Researcher of the Embassy of the UAE in China; and Yue Huo, head of import business development for the MENA region at JD Worldwide

The counsellor hopes JD will continue its communications with enterprises in UAE, and bring its advanced international logistics and supply chain technology to the region to achieve win-win cooperation.

“JD will open up our integrated supply chain services to enable more quality Chinese products to be accessible overseas and to bring more premium UAE products to consumers in China,” said Andy Zhang, head of the Go-to-Market business in the MENA (Middle East and North Africa) region at JD Worldwide.

Earlier this month, JD Worldwide announced a partnership with Tradeling, a Dubai-based B2B e-commerce platform. Through the partnership, Tradeling will be able to provide business customers in the MENA region with high quality Chinese products leveraging JD’s unparalleled merchandise and logistics advantages.

 

(yuchuan.wang@jd.com)

JD Partners with TJ Sports to Explore “E-commerce + E-Sports”

by Rachel Liu

JD.com and leading Chinese E-sports operating company TJ Sports formed a partnership on Apr. 26, to jointly explore the “e-commerce + e-sports” model.

Tao Ren, president of JD Computer and Digital Products and Song Lin, Co-CEO of TJ Sports and Vice President of Riot Games joined the signing ceremony.

TJ Sports is founded by Tencent Interactive Entertainment and Riot Games and focuses on making League of Legends (英雄联盟) e-sports, the most professional, influential and commercially valuable e-sport in China.

The two sides announced that JD will be the official partner of the League of Legends Mid-Season Invitational 2021 in China. In the next two years, the cooperation will also cover activities promotion, brand establishment, new user recruitment, content development and more. JD and TJ Sports also hope to work together on cultivating e-sports talent to build a healthy industry ecosystem.

JD’s influence as leading e-commerce company in China and strong marketing capabilities will bring more innovation to the e-sports industry. Partnering with the e-sports industry will also help JD attract more young customers with significant consumption power.

According to the 2021 China E-Sports Industry Report released by iResearch, e-sports market is expected to reach RMB 55.3 billion yuan in 2021. Nearly 50% of e-sports players are under 22 years old. JD built its own e-sports team JDG back 2017, and holds a highly influential e-sports competition in China every year that gathers both professional players and gaming enthusiasts.

JD is e-sports players’ first-stop to buy gaming products, and the platform’s customer insights support brands to develop more products that better meet customer demand. For example, JD was the first company to create the concept of a “gaming phone” and has jointly developed successful gaming phones with brands including Red Magic, Black Shark and more. JD also promoted the development and launching of gaming computers.

 

(Banner photo: Tao Ren, president of JD Computer and Digital Products (Left), Song Lin, Co-CEO of TJ Sports and Vice President of Riot Games (Right)

 

(liuchang61@jd.com)

WRC Connected 2021: Chenkai Ling: More Players are Becoming JD’s Partners as its Business Develops

by Ella Kidron

JD’s evolution from retailer to supply chain-based company means that it has an even bigger pool of partners to work with. Mr. Chenkai Ling, Vice President of JD.com, and Head of Strategy, JD Retail, shared his views on this during the World Retail Congress’ WRC Connected 2021 virtual event on Apr. 26. The discussion was moderated by Benjamin Zheng, lead partner of global strategy consulting firm EY-Parthenon.

Ling reiterated the importance of JD’s positioning as a supply-chain based technology and services company. “With this definition, which means we are not only a retailer, the boundary [of who can be our partners] has been significantly widened.” Players who might have previously been perceived as competitors from a pure retail standpoint, are partners. Ling identified two key growth priorities for JD. “One is we will continue to expand our retail business, which can help us stay closer to the customer…the other is that we will continue accumulating and strengthening capabilities that we use to allow our business to run smoothly and use these capabilities to empower our partners.”

As an example of how JD intimately collaborates with partners, JD uses its logistics, AI and advanced data analytics capabilities to help brick and mortar retailers to increase their efficiency and better understand their customers.

The company is also pursuing partnerships in some of the hottest spaces and industries. “In China, there are a lot of new retail formats popping up – short videos, livestreaming commerce and content commerce,” explained Ling. JD’s partnership with Kuaishou, a leading e-commerce livestreaming platform, provides a good example. “Last year we formed a strategic partnership with Kuaishou,” said Ling. JD became Kuaishou’s merchandise mid-tier platform, which means JD provides the products and merchandise capabilities to Kuaishou.

A final perspective concerns partnership with brands. “Previously brands and retailers played a zero-sum game; we earn one more dollar, they would lose one dollar,” said Ling. Right now, however, using JD’s capabilities, the company works directly with the brands to identify opportunities, which ultimately “increases the pie” for all.

Watch the whole session by registering for Retail Connected 2021 here.

 

 

 

 

Chenkai Ling, JD.com speaks with Benjamin Zheng, EY at Retail Connected 2021

 

(ella@jd.com)

Jingxi Announces Its Mascot

by Ling Cao

Jingxi, a business group under JD.com focusing on lower tier markets, announced its mascot Niu Fangfang on Apr. 27.

Niu Fangfang (牛方方 in Chinese, which is literally translated as “Square Ox” and is mean to symbolize a “Straightforward Ox”) is an ox. It represents Jingxi’s philosophy of staying true to its original intention, being down-to-earth and reliable, and being honest and straightforward. It also reflects every ordinary person striving to make a living.

The choice of such a mascot is in line with Jingxi’s long-term objective to provide customers with high-quality and cost-effective products. During the Spring Festival in February of this year, Jingxi cooperated with over 1,000 brands and merchants online and offline to ensure livelihoods, as well as to provide non-stop delivery services.

Jingxi also helps its partners lower operation costs and improve efficiency. It has worked with several hundreds of industry chains across the country to help small and micro merchants expand beyond local markets and make a digital transformation.

In April, Jingxi opened its first store for baby and maternal products. By integrating omni-channel supply chain, logistics, marketing and technology capabilities, Jingxi  empowers the store with standardized decoration, pricing and inventory management, and provides training courses, helping merchants to make their businesses more sustainable.

A representative from Jingxi said, “In the future, Jingxi will continue to build a business model which seamlessly combines merchandise, traffic flow and operations, consistently to provide customers with products that has optimized cost and quality, as well as creates more value for partners, promoting the lower-tier market economy as a whole.”

 

(ling.cao@jd.com)

JD Courier Awarded the Highest Honor for Chinese Workers

by Yuchuan Wang

Ming Luo, a JD courier aged 31, was conferred the “medal of model worker” by the All-China Federation of Trade Unions on Apr. 27. He is one of the 1,197 individuals awarded the highest honor for Chinese workers ahead of International Labor Day on May 1. Luo is second recipient of this medal in JD. Mr. Xuewen Song, a JD courier in Beijing, won same honor in 2017.

“As an ordinary courier, I’m excited to receive such a high honor,” said Luo. “It’s a valuable experience for me to be recognized.”

Ming Luo, JD courier

Luo has delivered and collected over 200,000 parcels since he joined JD in 2016. He now works in a JD delivery station in Hanzhong, Shaanxi province, and is responsible for delivery to a few shopping malls and residential compounds in the area.

Luo is a man of few words, but a master of various skills. In 2019, he won first place in the Shaanxi Post Industry Skill Competition, in which he competed with over 60 of his peers on skills involving speed and dexterity. One of Luo’s skills is that glass goblets packed by him stay intact even after falling from a height of two meters.

His ability to ensure that parcels arrive undamaged has been described by clients as being “like magic,” with clients often requesting that he be assigned to deliver special packages. In 2020, he was named one of the “Most Beautiful Couriers” of Hangzhong, a title meant to honor couriers for beauty in spirit.

Luo knows every corner of Hanzhong, and is familiar with his many customers’ working hours so that he can arrange delivery tailored to their needs. Even during the height of COVID-19, he ensured the timely delivery of daily necessities to numerous customers. His earnest attitude and professionalism have earned trust and consideration from customers. One customer showed their appreciation for him: “She gave me a package of masks when COVID-19 was serious in China last year and I was deeply moved,” Luo recalled.

According to the State Post Bureau, China has over 4 million couriers. As a representative of this essential group, Luo has proved that even the most common job can generate great value to people and society.

 

(yuchuan.wang@jd.com)

JD Health Partners with UCB in Medicine Distribution

by Hui Zhang

Leading global biopharmaceutical company Union Chimique Belge (UCB) signed an agreement on Apr. 21 with JD Health and Keyuan Trade, a subsidiary of Shanghai Pharma, which is the second largest pharmaceutical group in China.

The agreement authorizes the two companies to become exclusive agents in China for UCB’s Cetirizine Dihydrochloride tablets for the treatment of allergic disorders, with JD Health serving the pharmaceutical end of the business, and Keyuan Trade mainly serving the company’s in-hospital market.

Cetirizine Dihydrochloride Tablets

Cetirizine Dihydrochloride Tablets

The agreement marks the first time JD Health will be working as an exclusive agent for a pharmaceutical company to undertake all the company’s online pharmaceutical distribution business and its offline pharmaceutical distribution business; and represents a recognition of JD Health’s pharmaceutical distribution capabilities from the whole industry.

From left to right: Enlin Jin, vice president of JD Health and general manager of the company’s medicine business; Xin Wu, general manager of UCB China; Chenxi Chu, general manager of Keyuan Xinhai (Beijing) Medical Products Trade Company.

From left to right: Enlin Jin, vice president of JD Health and general manager of the company’s medicine business; Xin Wu, general manager of UCB China; Chenxi Chu, general manager of Keyuan Xinhai (Beijing) Medical Products Trade Company.

According to official data last released in 2019, sales of anti-allergy drugs in the Chinese market have exceeded RMB 6.5 billion yuan, with a year-on-year growth rate of 5%, of which public hospitals (i.e., in-hospital channel), and pharmacies together with other retail terminals (i.e., out-of-hospital channel) each accounted for 50%. Therefore, UCB has been looking forward to finding a partner to assist its sales across all channels.

Through the cooperation, JD Health will rely on its omni-channel resources, including its online pharmaceutical business, JD Pharmacy, and its offline medicine procurement platform, JD Medicine Procurement, to facilitate UCB medicine distribution both online and offline. As of the end of 2020, JD Medicine Procurement has cooperation with more than 230,000 retail outlets across China.

In addition, leveraging JD’s technology and big data, JD Health will help the brand to target a broader consumer base and effectively match consumers with products. Thanks to JD Health’s telemedicine services and a professional team of physicians, JD Health will help the brand to provide one-stop services, including online consultation, follow-up prescriptions and delivery services.

“We will take our cooperation with UCB as a starting point to continue strengthening our service capability in the pharmaceutical distribution field and join hands with more pharmaceutical companies to enhance the accessibility of quality drugs,” said Enlin Jin, vice president of JD Health and general manager of the company’s medicine business.

 

(zhanghui36@jd.com)

JD Tests DC/EP Payroll Payment

by Ling Cao

At the ongoing fourth Digital China Summit held in Fuzhou, Fujian province during Apr. 25 to 26, JD Technology is participating in the DC/EP (Digital Currency/Electronic Payment) achievements show, and announced that it is expanding the application of DC/EP to payroll payment to some of its employees.

In a test run that started in January, JD used the solution for payroll payment for some of its employees who are based in Shanghai, Shenzhen, Chengdu, Changsha and Xi’an. Employees can transfer the digital RMB to their regular personal bank accounts, or use it directly to make purchases via selected offline stores or JD’s online platform. The program is the result of cooperation between JD Technology, which provides technology services to the trial, and Industrial and Commercial Bank of China (ICBC), which is one of the operation institutions for DC/EP programs.

This payroll program improves efficiency for the payment process, especially when there is a need to pay multiple entities or transferring to other banks.

A representative from the payroll department at JD Technology said, “The process is similar to paying by cash, and employees will receive the fund immediately, helping us to improve the process.”

A representative from ICBC shared, “We have upgraded our previous payroll payment system to build the DC/EP wallet system for enterprises and individuals, making the cross-institution payroll payment solutions possible. Going forward, we will continue to work as operation institutions, and connect with other players including JD Technology, to help the Digital Currency Institute under The People’s Bank of China complete the service and circulation system for DC/EP.”

Since cooperating with the Digital Currency Institute under The People’s Bank of China, China’s central bank, in Sep. 2020, JD has provided technology and service support for DC/EP trial programs in Suzhou, Beijing and Chengdu.

 

(ling.cao@jd.com)

Sales of Child Safety Seats Rise on JD

by Rachel Liu

International child safety seat brands and high-end products are getting more popular on JD, said a sales manager from JD today.

In China, concern for children’s safety on the roads is rising. JD Super, JD’s online supermarket will work with brand partners to increase the market penetration of child safety seats especially in lower tier cities in China, providing more diversified products to better protect children’s safety.

The China Child Safety Seats Industry White Paper released by JD Super, China Certification Center for Automotive Products, and Hubei Daily Media Group on Apr. 16 shows that the market size of Child Safety Seats will reach hundreds of billions of RMB. The current penetration rate of child safety seats in China is far below that of developed countries. According to the white paper, the child safety seats industry in China will increase 10-20 times in the next five to 10 years.

Sales of the safety seats category on JD grew 86.6% YOY during 2019 and 91.6% during Q1 2021, with a slight dip in 2020 due to COVID-19. The most important factors that impact customers’ shopping decisions when buying safety seats are safety, price and easy installation, according to the white paper. Most of the customers prefer to choose well-known brands.

“British brand Britax is the best-selling brand among child safety seat brands on JD. Cybes and osann from Germany, and Maxi Cosi from Holland are also among Top 10 brands,” said the JD sales manager. “Another interesting trend that we saw is that demand from customers from lower-tier markets is increasing. Sales of child safety seats by customers in sixth-tier cities ranked No.3 on JD.”

JD is continuously introducing more child safety seat brands to the platform, and sales of the products have seen double digit increases every year.

 

(liuchang61@jd.com)