JD Data Indicates Chinese Consumers’ Renewed Confidence in Travel

by Ella Kidron

This weekend many Chinese consumers will travel for the Qingming Festival (Tomb Sweeping) holiday (Apr. 3-5), as indicated by a new report released by JD Big Data Research Institute on Mar. 31. The festival is traditionally associated with families reuniting and traveling to their loved ones’ gravesites to pay their respects, andd it is a time for people to take mini vacations as well.

The data indicates that after spending the Chinese New Year locally, consumers have opted to get on the road for the quick three day weekend. According to the report, starting Mar. 1 sales of plane tickets bought to be used Apr. 1-5 have clearly increased. From the first to the third week of March sales volume of plane tickets has increased 4 times. One of the contributing factors is that on Mar. 16, Beijing announced a relaxation of travel rules, noting that people coming from low risk areas could travel freely without having to show a record of a nucleic acid COVID-19 test – taking some of the hassle out of travel that was present during the Chinese New Year holiday.

The hottest destinations in terms of province-level municipalities are Hainan, Hebei, Sichuan, Hubei and Tianjin. The most popular destination cities are Sanya, Hainan province, Macau, Guangzhou, Guangdong province, Xishuangbanna, Yunnan province and Guilin, Guangxi Zhuang Autonomous Region.

Top 5 province-level municipalities and destination cities

Top 5 province-level municipalities and destination cities (Source: JD Big Data Research Institute)

Fei Lu, senior analyst at the JD Big Data Research Institute, said: “The mini-peak in travel this Qingming Festival is apparent. It not only represents people’s renewed confidence in travel but also puts in motion a May Day and summer travel surge.”

 

 

(ella@jd.com)

JD Books Sees the Rise of Literature Reading

by Vivian Yang

A rising percentage of JD users bought literature books on JD.com in 2020 compared with one year ago and over 70% of buyers are between age 26 to 45, according to JD Books’ consumption big data report released on Mar. 30.

COVID-19 in 2020 provided a chance for more people to have more reading. Literature can help them to find peace of mind and do more thinking, explained Tao Xue, head of popular books of JD Books.

Novels, prose, and comic books are the most popular literature choices among JD customers, and under the novel section, world classics, detective, and science fiction are the best-selling categories, according to the big data.

In terms of comic books, sales of books from Chinese mainland were more than twice that of Japanese comics in 2020, proving the rise of “China-Chic“ which describes the trend of young people’s increasing favor towards China-centric designs.

The report is released in conjunction with JD Books’ first Literature Reading Month from Mar. 22 to Apr. 22. With close collaboration with the literature and art committee under the Publisher Association of China, the event gathers nearly 50 publishing houses.

During the Literature Reading Month, JD Books will carry out several activities online, including interactions with authors via livestreams, inviting publishers to make book recommendations, introducing customized reading lists for readers with different interests and more.

Min Lei, general manager of JD Books, Culture and Education said that the role of JD Books is to make connections among readers, publishers, and authors, by continuously understanding and bridging their needs, the platform can do a better job of promoting reading culture in society.

 

(vivian.yang@jd.com)

Head of JDL AI: Taking the leap from academia to industry

by Kelly Dawson

As head of JD Logistics AI and Data Science, Dr. He Tian is driven by the knowledge that his work has the potential to impact millions on a daily basis.

Head of JD Logistics AI and Data Science, Dr. He Tian

In his previous work as a professor pioneering research in the areas of AI, IoT, wireless networks and more, a published paper that received 3,000 citations would be considered a “phenomenon,” he recalled in a recent interview at JD headquarters in Beijing. “In the past, I explored innovative ideas and tried to dig into the unknown, but those things didn’t necessarily create value in the practical real world,” he said. “Now that has changed completely.”

“At JD, when I write a piece of valuable code that shaves off one minute of delivery time for couriers carrying packages to customers, that one small line of code may save all of JD’s couriers 400,000 miles of distance over the course of a year and make millions in profits over time. Considering the large scope of all the work our team does, you can imagine how much change we can make on a countrywide scale. That’s a different kind of influence.”

Dr. He is a veteran in IoT, an ACM (Association of Computing Machinery) fellow, and has the prestigious designation of being an IEEE fellow for development and optimization of networked sensing systems. He is also the recipient of the National Science Foundation (NSF) CAREER Award and named as China NSF Outstanding Overseas Young Researcher.

In his new role at JD, Dr. He is in charge of smart logistics algorithms, data products and map services, leading the team to explore the research and application of AI, focusing on the core technological breakthroughs in the fields of product digitalization, algorithm operation, time-series forecasting, large-scale scheduling, low-cost measuring, intelligent positioning, and more. This work will also be part of JD’s aim to open commercial applications for more external clients.

JD’s business model and the reach of its massive logistics network was a significant factor in his decision to join the company, he said. Covering almost all districts and counties in China, JD’s logistics network includes more than 900 warehouses with an aggregate gross floor area of more than 21 million square meters, and more than 190,000 delivery personnel. The company is entitled to over 4,400 patents and computer software copyrights, of which those related to AI span from warehousing to sorting and delivery.

JD’s resources also mean that Dr. He will have the ability to explore cutting-edge technologies with a team of truly talented people. “When I was a professor, I worked with 9 or 10 PhDs. Here I work with 400.”

 

Academic theory meets industry

In the past ten years, China’s express delivery business’ volume has surged from 3.67 billion units to 83 billion units, a volume so massive that the world’s brightest minds are now tackling the intricately detailed mathematical formulas required to keep the business running smoothly. Here is where abstract AI theory meets industry—and where Dr. He’s work is absolutely essential.

AI is now transforming logistics by leveraging the power of Big Data, of which JD has a massive volume, thanks to its more than 471 million active users and associated logistics needs. As a result, JD is able to ease labor conditions for couriers and warehouse workers, significantly improve efficiency and cut costs. For example, as a result of JD’s AI-powered unmanned warehouse, the company has been able to lower the inventory turnover days to 33.3, and has decreased its fulfillment expense ratio to 6.5%, an industry-leading level of operations efficiency, according to JD’s latest earnings report.

“The unmanned warehouse of JD Logistics is undoubtedly a model of integrating industries and research that requires both theory and domain know-how,

Dr. He is excited by the potential of these kinds of projects to transform the industry. “The unmanned warehouse of JD Logistics is undoubtedly a model of integrating industries and research that requires both theory and domain know-how,” he said.

This intersection between theory and the real world is where he believes he can add value. “I motivate algorithm engineers to dig into the actual work, to more deeply understand the operation rules of the business, and then examine the problems we should solve. Our engineers can now apply theoretical models to solve problems with a good business sense.”

The work of blending theory and real-world scenarios requires both IQ and EQ, a balance he is trying to apply as he learns the ropes at JD, he said. For example, since joining the team in February 2021, Dr. He has made conversation a central part of his learning process. While some executives may have relied on written reports or spoken accounts delivered by representatives of various teams, Dr. He believes that first-hand accounts are essential to understanding the business and how he can make a difference. Among the people he has spoken to or will speak with in the coming months are warehouse workers, couriers, truck drivers, operations managers, technicians, researchers, and more.

“Before I joined the industry, I thought of technology as ‘super.’ But after I joined the industry, I now know that technology alone cannot solve everything,” he said. “You need to have the right balance between technology and the business, and the people.”

Dr. He is a newcomer to the business world, and also a relatively new returnee to China. In fact, his journey to JD has straddled various industries and continents, a background that has been shaped by a life-long sense of avid curiosity.

 

Curiosity as a Driving Force

Born in Changsha, a middle-sized city in southern China, He originally stumbled into science because he was good at it, he recalled with a laugh. “The truth is back then I liked playing video games more than school.” At the time, playing games and exploring the world felt more exciting. It wasn’t until later that he realized that “school” might actually be an avenue for exploration and a means to not only see the world, but even change it.

He later studied pile computing at the Institute of Computing Technology of the Chinese Academy of Sciences, and received a master’s degree that then propelled him to apply to study abroad at the University of Virginia, where he received a PhD.

“By nature, I am curious about a lot of things,” he said of his desire to go to the US. “I wanted to see how everything worked in another country. I always want to know everything, not just in my own domain.”

In the US, He was fortunate to have a good mentor at the university, an experience that then shaped his desire to inspire his own students when he later became a professor at the University of Minnesota. During his time in academia, he published more than 300 research papers, and won seven best paper awards at international academic conferences.

“I always encouraged my students to keep up the cutting-edge research,” he said. “I told my group, ‘Never follow.’ In academia, there’s only ‘first,’ never ‘second’… unlike in the business industry, where the first company to take a risk is often in danger, while the second can rely on the experience of the first.”

 

Transitioning to Industry

In fact, Dr. He never expected to take the leap to business. But when he realized that working for a major Chinese tech company would mean that his innovative ideas could be applied to real-life scenarios to create enormous influence and impact, his thinking changed. Additionally, he was driven by that old companion: curiosity, he said with a laugh. “I wanted to learn how it all works,” he said.

Taking that leap meant relocating back to China, a transition that also excited him.

“Being here is faster, more exciting, and there are bigger opportunities,” he said. “In the US, the life pace is slow. It might take ten years to build a bridge. Here in China, it might take one night.”

As China’s leading integrated logistics service provider, JD has far more reach than comparable companies in the US, Dr. He said. “In China we have more reach scenarios, and a wider range of cities and lifestyles that influence how logistics work. That means that here in China, we have a bigger problem to solve.”

China now leads the world in terms of on-demand delivery services within a city, supported by higher density and population, he said. This makes his work both challenging and exciting.

He still plays video games, he admits with a laugh, and in recent years has taken up weight-training

Forever learning

Although his work with JD is fascinating, the world itself remains a source of enormous inspiration. He still plays video games, he admits with a laugh, and in recent years has taken up weight-training. He reads all the time, not limiting his choices to AI and technology, but also exploring finance, economics, the arts and more. Exposing himself to new ideas and experiences will only help him do his job better, he believes.

“Once you learn a lot of things together, then you can link the and see how they interact—and you might find out new things that help push you forward to new ideas and ways of thinking,” Dr. He said. “It’s important to change the pace, go to different environments and learn new things.”

 

(kellydawson@jd.com)

JD Health FY 2020: Prioritizing Patients

People remain a core driving motivation for how JD Health is shaping its plans for the future, according to CEO Xin Lijun, in a statement accompanying the release of JD Health’s 2020 financial results on Mar. 29.

“We are conscious that our work can make a significant and long-standing impact on improving people’s health,” Xin writes.

As of Dec. 31, 2020, annual active user accounts reached 89.9 million, an increase of 33.7 million YOY; and average daily consultations exceeded 100,000, which is more than 5 times of that in 2019, according to the financial results, which are the first since the company’s listing on the Hong Kong Stock Exchange on Dec. 8, 2020.

In the results, the company lays out its goal to service a user’s full life span for all healthcare needs. To this end, JD Health is providing users with online consultations for a variety of medical concerns including psychological counseling; integration with offline hospitals to ensure access and convenience when offline consultations are necessary; and a wide selection of pharmaceutical and healthcare products of more than 20 million SKUs at competitive prices, with next-day, same-day and 30-minute delivery services, Xin notes in his statement. Additionally, JD Health’s telemedicine services are now enabling people in rural areas to receive high-quality care that was previously unavailable to them without long-distance travel.

Xin also reflects on the tumultuous events of 2020, and how JD Health responded to COVID-19 during the early days of the crisis. He recalls an anecdote that he believes is representative of JD Health’s commitment to fighting the pandemic:  In an email calling all full-time online doctors to return to work during Chinese New Year 2020, the head of JD Health’s doctors team wrote, “If we do more, it will be easier for our colleagues on the frontlines.”

As the crisis accelerated, JD Health leveraged its strength in supply chain and medical and health services to rapidly donate much-needed medical supplies to the frontlines, launched China’s first online booking platform for COVID-19 nucleic acid testing services in China, and set up free online medical consultation services that proved essential during a time when most were stuck at home—many with health concerns and anxieties.

Many industry experts now credit the pandemic with spurring the growth of China’s telemedicine industry, but even as life has gradually normalized, JD Health’s annual results reveal that the rapid growth of China’s telemedicine industry will likely continue. The company is well positioned to meet that growth head on, and will ensure that customers and patients remain the priority.

“We will strive to pursue our long-term vision of making Chinese people healthier,” Xin writes.

 

(kellydawson@jd.com)

JD Technology Chief Economist: Chinese monetary policy should also look outward

by Kelly Dawson

In a column posted today on the Chinese website of Financial Times,  Dr. Jianguang Shen, JD Technology’s chief economist,  argues that China’s domestic monetary policy should not only carefully consider the balance between risk prevention and stable growth, but also be conscious of the need to balance China’s economy against the United States’ recent economic upturn, encouraging two-way flow and the further internationalization of the RMB.

In 2020 China took the lead in containing the pandemic at home and restored its global economic lead, with strong exports and robust supply chain networks fortifying the Chinese economy during a difficult time, Shen writes.

In contrast, the US faced enormous societal and economic upheaval in 2020, with the dollar index losing 6.7% over the course of the year. However, in 2021, anti-epidemic measures and a rapid vaccination rate have largely brought the pandemic under control, with the US expected to achieve herd immunity in the second half of the year. Additionally, favorable economic data driven by large-scale stimulus policies and a significant upward trend of the US Treasury bond yield driven by rising inflation projections have contributed to the rebound of the dollar index, and may support the sustained strengthening of the dollar in the remainder of 2021.

Now, mainstream US investment banks are forecasting that US economic growth could overtake the official forecast of 6.5%, with some even saying the US could grow as fast as China this year.

In response, China should be conscious that the RMB exchange rate may appreciate in 2021, and should pay close attention to imported inflationary pressure as well as internal and external balance of monetary policy, Shen writes.

(Shen is also an adjunct professor at Fudan University. Before joining JD, Shen was managing director and chief Asia economist of Mizuho Securities. Previously he served as senior economist at the European Central Bank in Frankfurt, where he monitored and analyzed the Chinese and other Asian economies. Shen also held economist and senior economist positions at the IMF, OECD, CICC and Central Bank of Finland. )

 

(Kellydawson@jd.com)

Black Coffee is a New Trend among Chinese Consumers

by Rachel Liu

Black coffee is trending among Chinese consumers, especially those who peruse healthy lifestyles in first and second tier cities.

Since the beginning of this year, sales of black coffee on JD increased 130% YOY. Beijing, Shenzhen, Guangzhou, Shanghai and Chengdu are the Top 5 cities for black coffee consumption.

Black coffee is one of the most common drinks in western countries, but only began to rise its popularity in China in recent years,” said a sales manager from JD. The Baidu Index shows that, searches of “black coffee” started to increase quickly from the beginning of 2020. “When coffee was first introduced to China, people were not used to the taste of black coffee, so instant coffee and coffee-flavored drinks were most popular at that time. Now, more consumers have begun to enjoy the taste of black coffee.”

The trend of keeping fit and living healthier lifestyles in China also contributed to the rise of black coffee. With no sugar or milk, 100g of black coffee has only 2.55 calories. Black coffee is also helpful for burning fat and improving metabolism. JD data shows that customers from 25 to 35 years-old living in first and second tier cities, especially office workers and young mothers, are the key customers for black coffee, as they usually attach great importance on keeping body shape and pursing a premium lifestyle.

The trend has encouraged many brands to develop black coffee products in all kinds of forms which suit Chinese customers’ demands, such as drip coffee, freeze-dried coffee and concentrated coffee, all of which are easy to carry and prepare. As coffee machines are not as common in China as in western countries, these products are especially suitable for drinking in offices or for customers who do not have coffee machines.

TASOGAREDE is one of the brands that saw rapid growth on JD since 2018. The brand mainly develops sugar-free black coffee that is convenient to drink. In 2020, the 24-bag package of drip coffee generated over RMB 10 million yuan in sales on JD.

sugar-free black coffee

“We believe Chinese consumers are looking for a better drinking experience, and black coffee has great potential. With no sugar or creamer, our products are healthy and can reflect the original flavor of coffee,” said Jiahao Yu, director of channels at TASOGAREDE. “JD has played an important role in the growth of TASOGAREDE in the past few years. Since joining JD in 2018, the brand has seen a 300% sales increase each year. We also worked together to develop C2M products based on consumption trends and big data collected from JD’s online and offline channels.”

Other popular coffee brands on JD include Italian brands illy, Lavazza, and Segafredo Zanetti, Swiss brand Nestlé, as well as Starbucks, which began to sell coffee beans and instant drinking coffee on JD in 2019.

 

(liuchang61@jd.com)

JD White Paper: Customers Increasingly Focused on Hair Care

by Ling Cao

More than half of anti-hair loss products on JD.com are purchased by people between 26 and 35 years old, with women making up more than half of this group, according to a new white paper breaking down hair care consumption trends released by JD last week.

Hair loss is an increasing concern for Chinese customers. Data from China’s National Health Commission shows that over 250 million people in China suffer from hair loss; in other words, one in six people on average.

Regarding purchasing time, most customers will make orders in the evening hours before midnight, according to the report.

Customers also care about finding the most suitable and professional hair shampoos. For example, among the anti-dandruff shampoo products, “professional anti-dandruff” now accounts for 53% for all the anti-dandruff searches.

Daisy Niu, a Shenzhen-based young female customer shared, “I always purchase shampoos with strong functions, as in southern China, my hair is too dry. In addition, I want to prevent hair loss.”

JD’s data also shows that female office-workers prefer scented shampoos, as well as scalp sprays or hair care essential oils to protect hair. Popular products on JD include those from AUSSIE, Schwarzkopf and PANTENE. Some customers commented on JD asking which shampoos had the most long-lasting scents, while others commented that their hair had become smoother after using a certain essential oil product.

People between 46-55 years old have the strongest demand for hair dyes. Ms. Zhang, a 53-year-old household wife shared, “Permanent dyes can hide my grey hairs, and make me look younger.”

 

(ling.cao@jd.com)

JD Health Opens Specialized Medical Center for Seniors

by Ling Cao and Vivian Yang

JD Health announced the establishment of a specialized medical center for seniors on Mar. 26, aiming to create a full-process and closed-loop healthcare service for China’s growing population of elderly people.

The center will focus on integrating online and offline medical resources in the geriatric area, and building digitalized and intelligent health management services that start from health knowledge popularization, disease prevention, online medical consultation, treatment, rehabilitation and long-term health management.

The center was announced at a ceremony held at JD’s headquarters in Beijing, and is the result of cooperation between JD Health and Beijing Hospital, China’s top institution in senior care with over one hundred years of expertise in this area.

The center was announced at a ceremony held at JD’s headquarters in Beijing, and is the result of cooperation between JD Health and Beijing Hospital

From left to right: Yi Yuan, vice president of JD Health; Zhixiang Zhu, head of nutrition business unit of NUTRICIA ; Jianye Wang, director of the China Geriatric Medicine Center; Qingshen Zhu, former Vice Minister of Health; Huan Xi, Chairman of the Geriatrics Branch of the Chinese Medical Association; Haimei Qi, chief physician of the health medicine department of Beijing Hospital; Jianbo Xiao, general manager of JD Internet healthcare division, JD Health

Dr. Jianye Wang, director of the China Geriatric Medicine Center and Dr. Haimei Qi, chief physician of the health medicine department of Beijing Hospital, have been invited to serve as the center’s director and executive director, respectively. At the same time, nearly 60 geriatrics experts in the areas of cardiovascular and cerebrovascular diseases, orthopaedics, urinary diseases and other chronic diseases formed the core team of the specialized medical center for seniors.

“As of the end of 2020, China has over 260 million people aged above 60, and the imbalance between demand and supply of medical care for seniors is more prominent than ever, as both the total number and growth rate of the senior population are staggering,” Dr. Wang commented at the ceremony, applauding JD Health’s efforts on using internet technologies to explore more convenient and smart solutions to improve healthcare for elderly people.

Dr. Qi noted that the center will not only be the place to gather top resources to benefit more senior people with more personalized services that take care of their entire life cycle, but will also work towards the direction to develop standardized trainings for more medical specialists across the country via the platform.

“China is fast-forwarding into an aged society, and JD Health is paying close attention on the health management, care services and medical treatment of this growing population,” said Lijun Xin, CEO of JD Health. “We will leverage our strength in medical services and supply chain capacities to bring comprehensive, convenient and trustworthy healthcare services to senior people, letting them enjoy healthier and happier lives.”

According to Jianbo Xiao, general manager of the Internet Healthcare division of JD Health, the center will offer distinguished doctors, online consultations, drugs and devices purchase, as well as convenient omni-channel fulfillment services down to the last mile, aiming to provide one-stop healthcare services for seniors. Customers will be able to easily access the platform and have different kinds of health related queries be dealt with in one place. More importantly, the center will also regularly promote educational information to improve seniors’ healthcare knowledge.

Landing page of JD Health’s specialized medical center for seniors
Landing page of JD Health’s specialized medical center for seniors

As some seniors may face the “digital gap” when using online services, JD Health has been working together with partners to help them enjoy services more easily. For example, in Dec. 2020, JD and ZTE released a 5G smart phone tailored for seniors, equipped with services such as remote assistance, detailed instructions, fast medical consultancy access and more. Specifically, family members of seniors (such as their children) can download the app called “Family Time” developed by JD, and connect to their parents’ smart phones. Then they can remind their parents remotely to take medicine, share family photos with them and more. Parents can also easily make emergency calls and share their locations with their children. According to JD Health, access to the senior center’s services are expected to be included in such smart devices.

Additionally, by connecting JD’s IoT capabilities with specific Family Doctor services for seniors, customers can easily speak aloud to a JD Whale smart speaker, with requests such as “I need a video consultation.” The speaker will then help them connect with the right doctors, making it hassle-free for seniors to learn and use.

JD Health’s “Family Doctor” telemedicine service with AI speaker

JD Health’s “Family Doctor” telemedicine service with AI speaker

Xiao said, “The Internet can make healthcare services more accessible and inclusive for everyone, expanding doctor resources for those in need, no matter where they are based. Our senior care is comprehensive, as people may have multiple disease care requirements, such as chronic disease, heart disease and more. By opening the Senior Center, we hope to provide a closed-loop service covering alerts, consultation, monitoring and services, as well as providing tailored solutions for each individual.”

Since JD Health’s first specialized medical center for heart disease was launched in late 2019, the company has opened 18 specialized medical centers online, including a Respiratory Center, a Diabetes Center, a Hepatology Center, an Oral Care Center, a Spine Care Center, a Foot and Ankle Center, a Traditional Chinese Medicine Consultation Center and more. The newly opened Senior Center is an important component of how JD Health can make broader efforts and provide value for society as a whole.

(ling.cao@jd.com and vivian.yang@jd.com)