JD.com and Saudi Electricity Company Announce Strategic Partnership to Enhance Logistics and Supply Chain Management

Posted on by Yuchuan Wang

JD.com (also known as Jingdong) announced a strategic partnership with Saudi Electricity Company (SEC), the largest producer, transmitter, and distributor of electrical energy in the Middle East and North Africa. This collaboration aims to transform the logistics and supply chain management across the region through in-depth cooperation in intelligent logistics and digital supply chain solutions.

Signed in Riyadh, the collaboration leverages advanced integrated supply chain services and extensive international logistics capabilities of JD Logistics, JD.com’s logistics arm. This includes the implementation of state-of-the-art automation technologies in dozens of SEC’s warehouses, all designed to meet the stringent demands while enhancing safety, environmental sustainability, and low-carbon standards. JD will assist SEC in digitally and intelligently upgrading its Warehouse Management System (WMS) and Warehouse Control System (WCS). Applying cutting-edge technologies such as AI and IoT, this upgrade will facilitate multi-device collaborative operations and ensure real-time, automated inventory management.

A JD Logistics’ self-operated warehouse in the Middle East

Managing over 10 million SKUs, JD.com maintains a industry-leading 29-day turnover rate. Leveraging its advanced digital supply chain solutions, JD will support SEC in strengthening centralized scheduling and management while enhancing collaboration and resource sharing across a national warehouse network. Utilizing JD’s intelligent supply chain control tower system, the initiative will also explore innovative solutions in logistics intelligent warehousing management systems and intelligent predictive replenishment. These efforts aim to comprehensively improve operational efficiency, enhance cost control, and optimize overall management standards.

Inside a JD Logistics automated warehouse

JD Logistics will also provide SEC and its affiliates with services including warehousing and distribution, based on its local warehouse network and fulfillment capabilities, for raw materials, semi-finished and finished products, documents, daily necessities, and more. Currently, JD.com operates over 120 bonded, international direct mail, and overseas warehouses globally.

Yan Cheng, Head of JD Logistics Technology Business, said, “Partnering with Saudi Electricity Company marks a milestone in setting new benchmarks in logistics and supply chain management. This partnership is a testament to our dedication to using our global logistics expertise to drive significant enhancements in efficiency and sustainability.”

Khalid AlGhamdi, Executive Vice President of Technical Services, said, “JD’s proven track record in delivering exceptional logistics solutions makes them an ideal partner for SEC as we continue to innovate and improve our supply chain operations. This strategic partnership is a key component of our vision to modernize our logistics frameworks and enhance service delivery across the region.”

 

(chaizhenzhen1@jd.com; yuchuan.wang@jd.com)

JD.com Partners with Inditex to Launch Massimo Dutti Flagship Store

Posted on by Yuchuan Wang

New Partnership Brings Exclusive High Fashion Collection to JD.com Ahead of 618 Grand Promotion

JD.com, a global leader in e-commerce and China’s largest retailer, today announced a strategic partnership with Inditex, one of the world’s largest fashion retailer. This partnership will introduce a flagship store for Inditex’s fashion brand, Massimo Dutti, on JD.com’s marketplace on June 3rd, as part of the Inditex’s broader efforts to cater to the needs of China’s vast digital consumer base.

The Massimo Dutti flagship store will offer nearly 1,000 products, including men’s and women’s wear, accessories, and exclusive items specifically for JD customers. These exclusive products will be featured prominently during JD’s upcoming 618 Grand Promotion, China’s largest mid-year shopping festival. JD shoppers will enjoy a variety of Member benefits and premium service.

As the world’s largest e-commerce market, China continues to attract global fashion retailers. With nearly 600 million users, including 36 million JD PLUS paid members who spend on average ten times more annually than regular customers, JD’s platform is uniquely suited to reach Inditex’s target audience for Massimo Dutti.

“JD.com has long been the gateway for international brands to connect with Chinese consumers,” said Xiangying Kong, Vice President of JD.com and Head of JD Fashion. “Our partnership with Inditex highlights our commitment to bringing premium quality products to our customers. We look forward to exploring new ways to engage and interact with our users.”

Eugenio Bregolat Lukashov, President of Inditex Greater China, said: “China is a strategic market for Inditex. The arrival of Massimo Dutti at JD.com represents a notable manifestation to keep deepening the digital transformation of the Group in the Chinese market. As a leading e-commerce platform in China, JD.com is a solid partner for us to continue to build an integrated experience for our customers “, Mr. Bregolat claimed.

Massimo Dutti’s parent group, Inditex, now operates over 5,690 stores worldwide under seven renowned brands, including Zara, Massimo Dutti, Oysho and Zara Home etc. This partnership underscores JD.com’s role as a premier platform for international brands seeking to meet the growing demand for high-end goods among Chinese consumers. With this collaboration, JD.com continues to expand its portfolio of fashion offerings, providing its customers with unparalleled access to global fashion brands.

 

(press@jd.com)

Record Growth on JD.com’s 2024 618 Grand Promotion: 10,000+ Brands See Transaction Volume Increase by Over 500% in First Four Hours

Posted on by Vivian Yang

JD.com officially kicked off its annual 618 Grand Promotion, marking the company’s anniversary and China’s largest mid-year shopping festival, at 8:00 PM on May 31. Brands including Apple, Midea, Haier, Xiaomi, China Gold, Huawei, Little Swan, Gree, Hisense, TCL, and others quickly saw transaction volumes surpass RMB 100 million. By midnight, over 10,000 brands experienced a more than fivefold increase in transaction volume. Additionally, the number of new merchants with transaction volumes exceeding RMB 1 million grew by 45 times compared to the previous month.

In the first hour between 20:00 and 24:00 alone, orders in the “10-Billion-Yuan Discount” channel increased by 50% year-on-year The “9.9-Yuan Items with Free Shipping” channel attracted over 100 times more shoppers, with more than 75% of these consumers coming from third-tier or lower-tier cities.

During the first four hours, the number of viewers for JD’s livestreaming increased by 460% year-on-year, and orders from livestreaming sessions hosted by JD’s professional procurement and sales teams surged by 300% compared to Single’s Day in 2023. JD’s technological infrastructure, particularly the “Digital Representative” solution powered by JD Cloud’s ChatRhino, was utilized in over 5,000 brand livestreaming rooms.

JD.com’s nationwide intelligent logistics centers secures fast delivery for consumers. By midnight, the majority of the orders had been processed and shipped by JD’s automated warehouses. Consumers in multiple cities began receiving their orders within ten minutes, while consumers in hundreds of cities will receive their products on the morning of June 1.

Key Data Highlights from 8:00 PM to Midnight on May 31, 2024: 

  • AI Hardware Products: Transaction volume of AI computers, AI mobile phones, and AI learning devices increased by 260% year-on-year in the first hour year.
  • Emerging Product Categories: Transaction volume of products such as folding screen phones, open-ear headphones, smart health watches, OLED displays, NAS network storage, and high-power charging devices grew by over 100% within the first hour.
  • Home and Home Appliances: Transaction volume of new products from over 700 home and home appliance brands increased by over 100%.
  • Personal Care and Baby&Mother Products: brands like L’OCCITANE and Pampers saw a sixfold increase in transaction volume year-over-year.
  • Fashion and Beauty Brands: Transaction volume for Nike, UR, and other over 2,800 other fashion and beauty brands increased by over 100% year-on-year.
  • Luxury Brands: Transaction volume of LOEWE increased by 250%,, Tiffany & Co. by 100%, and Alexander Wang by 450% year-on-year.
  • Electric Bike Services: Orders for battery installation and recycling services for electric bikes increased by 350% year-on-year.
  • Medical Devices for Seniors: Transaction volume of medical devices designed for seniors increased by 130% year-on-year.
  • Cross-Boarder E-Commerce: More than 180 brands on JD Worldwide, JD.com’s cross-border and import business, saw transaction volume increase by 100% year-on-year.
  • Imported Alcohol: Transaction volume for Penfolds and Remy Martin increased by four times year-on-year.
  • ochama in Europe: JD’s omni-channel retail brand in Europe saw a 276% year-on-year increase in orders in the first hour.
  • Digital Representative: JD Cloud’s LLM, ChatRhino, was applied in over 5,000 brands’ livestreaming rooms.
  • JD Logistics in Hong Kong and Macao: Orders increased by approximately 100% year-on-year.

 

(press@jd.com)

JD.com’s 2024 618 Grand Promotion: Boosting Consumption Through Tech and Service Innovations

Posted on by Vivian Yang

JD.com is set to energize the retail landscape with its 2024 JD618 Grand Promotion. Announced at a press conference on May 28th, this year’s shopping festival will officially kick off on May 31 at 8:00 PM. The event will see immediate sales, bypassing the traditional pre-sale phase and starting four hours early to maximize consumer convenience. With the theme “Affordability and Quality,” JD618 aims to provide a seamless shopping experience that save consumers money, time, and hassle.

Sandy Xu, CEO of JD.com, emphasized at the press conference that delivering the ultimate user experience is JD’s core mission and a key driver of its growth. As consumer demand becomes increasingly personalized, Xu believes that technology and service innovations will stimulate consumer demand, creating a positive development cycle.

Sandy Xu, CEO of JD.com

On the topic of customer service quality, Xu highlighted that JD.com has approximately 600 million active users, supported by over 20,000 customer service representatives and hundreds of thousands of JD delivery personnel. JD’s intelligent customer service system can automate 90% of service inquiries across pre-sale, sale, and post-sale scenarios. This unique business model enables JD.com to maintain real-time communication with users throughout the consumption cycle.

For this year’s JD618, JD.com is enhancing the consumer experience with several key services, including:

  • Price protection on over 85% of products, allowing consumers to claim the price difference within the protection period. This service saved consumers nearly 3 billion RMB over the past year.
  • Free home pick-up for returns on 97% of JD’s self-operated products and 75% of third-party merchant stores.
  • An upgraded instant retail service, “JD NOW,” partnering with over 500,000 physical stores to offer on-demand shopping with delivery as fast as nine minutes.
  • More than 200 basic services addressing common consumer pain points, with over 80 industry-first and unique services.
  • 24/7 customer service from in-house representatives.

Xu also noted that JD’s extensive experience in the retail industry has allowed the company to accumulate high-quality interactive data, substantial industry know-how, and technical capabilities. This alignment of JD’s technology with industry needs enables the adoption of AI and other intelligent technologies to provide smarter services and more affordable shopping experiences at this year’s 618 event.

One notable innovation is the integration of AI digital avatars. Utilizing JD’s advanced language model, ChatRhino (also known as Yanxi), AI avatars of 18 brand leaders will debut in JD’s livestreams, following the recent introduction of JD’s founder Richard Liu’s avatar. These avatars will offer 50% off and numerous other discounts for viewers.

Additional affordability-focused promotions include:

  • Hundreds of brand bosses presenting popular products starting at 1 RMB through JD’s livestream series.
  • JD’s professional procurement and sales managers offering low-priced goods in their livestream channels.
  • Daily 20 RMB subsidies for consumers on JD’s platform.
  • “2 RMB Free Shipping Day,” offering millions of 2 RMB products.
  • Numerous cost-effective goods from various industrial belts are available with free shipping.

JD.com’s customer-first commitment focuses on enhancing the shopping experience by providing a “Diverse Selection, Fast Delivery, High-Quality, and Cost-Effective” range of products and services. In the past year, JD launched the “100 Billion Yuan Discount” program to boost cost-effectiveness and product variety, attracting over 100 million users. The company also launched the “Spring Dawn Initiative” in 2023, which increased the number of third-party sellers to over one million and doubled the SKU count since early last year. To ensure high quality and fast delivery, JD.com has lowered the free shipping threshold, introduced unlimited free shipping for PLUS members, and expanded free home pick-up and refund-only services to third-party merchants. JD Logistics’ “211” same-day and next-day delivery service now covers hundreds of cities across China.

 

(vivian.yang@jd.com)

JD Health Launches AI-Driven Mental Health Services

Posted on by Vivian Yang

JD Health’s Mental Health Service Center unveiled a series of AI-driven service projects during a conference in Beijing on May 25th. The new offerings include “Small Universe for Chatting and Healing (聊愈小宇宙),” an AI-based therapeutic companion designed to support individuals, as well as multimodal diagnostic and digital management tools for doctors. This initiative establishes JD Health as China’s first AI-driven online mental health service platform.

The chatbot, “Small Universe for Chatting and Healing,”  leverages JD Health’s healthcare-specific large language model (LLM). It features a rich, multi-dimensional personality, demonstrating enhanced empathy, language expression, and logical thinking abilities. This product aims to improve user interaction and provide support through more human-like communication.

The Mental Health Service Center currently hosts over 6,000 psychiatrists from renowned hospitals and more than 1,000 professional psychological counselors, offering around-the-clock services. For healthcare professionals, JD Health has introduced a multimodal diagnostic tool to enhance the quality and efficiency of psychological counseling and online diagnosis. Additionally, JD Health’s “Sleep Monitoring Data Processing Software” received the National Class II Medical Device License, enabling comprehensive monitoring of sleep physiological indexes and providing references for medical diagnosis and counseling.

Tian Chenghua, Director of the Institute of Mental Health at Peking University, highlighted the impact of AI on psychological testing at the conference. He noted that AI applications could replace over half of manual tasks, significantly boosting the accessibility and efficiency of mental health services. Moreover, AI assists psychiatrists in developing treatment plans, thereby elevating treatment quality.

JD Health’s innovative “doctor + medicines + psychological counseling” model integrates the convenience of telemedicine with extensive resource capacity, facilitating seamless links or referrals for mental health treatment and psychological counseling. This model enables targeted psychological assessments and personalized treatments for conditions such as depression and bipolar disorder.

During the conference, JD Health also announced the formation of a mental health service quality management committee and released a standardized online mental health diagnosis and treatment pathway to promote industry-standard practices.

JD Health aims to leverage its Internet Hospital’s leading position to integrate psychological services with other health resources, creating a cohesive service network. This includes medical checkups, chronic disease management, nutritional counseling, and medicine delivery. JD Health is committed to enhancing service levels, exploring innovative concepts, and developing a comprehensive, multi-level mental health service platform to promote widespread, high-quality mental health care.

 

(vivian.yang@jd.com)

JD.com Earns Spot in Gartner Supply Chain Top 25 for 2024

Posted on by Yuchuan Wang

JD.com, also known as Jingdong, was recently recognized in the Gartner Supply Chain Top 25 for 2024. This recognition highlights JD.com’s excellence and leadership in the global supply chain sector. As the only major online retailer from Asia on the list, JD.com joins industry leaders like Amazon, Apple, and Schneider Electric.

According to Gartner, the companies recognized on this year’s list embraced in three trends: attracting and engaging talent, AI-driven advances, and antifragile supply chains. JD.com’s inclusion on this list underscores its success in navigating complex challenges while delivering exceptional value to customers worldwide.

“The supply chain organizations in this year’s Top 25 were notable for better protecting growth rates in a challenging operating environment, while at the same time delivering more sustainable operations,” said Simon Bailey, VP Analyst with the Gartner Supply Chain practice. “The best supply chains now have ESG criteria firmly embedded in their operations, while delivering higher than average growth rates, better returns on physical assets (ROPA) and stronger margins.”

“We are honored to be recognized in the Gartner Supply Chain Top 25 for 2024 for our efforts in driving innovation in the global supply chain ecosystem,” said Hao Hu, Head of Supply Chain R&D at JD.com. “JD.com has developed cutting-edge technologies such as explainable forecasting, autonomous replenishment, and an intelligent carbon management platform to create a resilient, efficient, and sustainable supply chain that delivers value to customers worldwide.”

 

Significant investment in new technologies and infrastructure has enabled JD.com to continuously enhance its supply chain efficiency and agility, achieving an industry-leading 29-day turnover rate (in Q1 2024) while managing an extensive portfolio of over 10 million self-operated SKUs. Currently, JD.com boasts an automated procurement rate exceeding 85%, all while maintaining an average inventory availability of no less than 95%.

Advanced Technology for Resilient Supply Chains

In February, JD.com was awarded Gartner’s “Power of the Profession Supply Chain Awards for 2024” for its research in probabilistic forecasting and explainable AI technology. This technology has built a resilient planning system that delivers reliable decision-making despite unpredictable disruptions and rapid market changes. Integrating probabilistic forecasting with explainable AI significantly enhances supply chain agility and resiliency, especially during complex shopping scenarios like large-scale promotions and disruptions such as extreme weather conditions. This technology has boosted supply chain planning accuracy from 65% to 90%, reduced vendor lead times by 15%, and enabled JD to maintain a high service level.

Adopting GenAI for Industry-Specific Scenarios

JD.com’s advanced innovation in applying generative AI (GenAI) was also recognized by Gartner. The company launched a large language model (LLM), ChatRhino, for industry-specific applications. The model combines generalized data with JD’s proprietary intelligent supply chain data to address challenges in sectors like retail, logistics and finance. Businesses can utilize ChatRhino for commercial applications like intelligent customer service and AI marketing.

Global Footprint of Next-Gen Supply Chain

JD.com continues to expand its global footprint by replicating elements of its world-class logistics and supply chain solutions from China to address supply chain challenges in Europe, North America, the Middle East, Southeast Asia, and more. JD Logistics’ overseas warehousing operations already offer same-day fulfillment services in key European markets and rapid two-to-three-day delivery across 90% of regions in the United States. Recently, JD Logistics announced a significant expansion of its express delivery service, enhancing the international express delivery experience from China to 23 global destinations.

Intelligent Carbon Management Platform for Sustainable Supply Chain

On May 13, FORTUNE China announced its “China ESG Impact List 2024,” marking JD.com’s third consecutive appearance for its exceptional performance in environmental, social, and governance (ESG). Last year, JD Logistics introduced the Supply Chain Emission Management Platform (SCEMP), a groundbreaking platform for managing the carbon footprint of logistics transportation. SCEMP accurately calculates carbon emissions based on the actual routes of transportation vehicles. “Verified to encompass over 140 types of carbon emission factors for road transportation in China, SCEMP is the first of its kind in supply chain carbon management,” said Christiana Wang, a carbon reduction expert from JD Logistics.

 

About the Gartner Supply Chain Top 25

Supply Chain Top 25 ranking comprises two main components: business performance and community opinion. Business performance in the form of public financial and ESG (environmental, social, governance) data provides a view into how companies have performed in the past three years, while the community opinion component gives a peer and Gartner expert view to companies’ future potential and reflects leadership in the supply chain community. These two components are combined into a total composite score.

Gartner derives a list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000. In an effort to maintain the list of companies evaluated at a manageable level, a general annual revenue threshold of $15 billion has been applied and companies without physical supply chains are excluded.

 

(yuchuan.wang@jd.com)

JD.com Launches JD NOW: Transforming On-Demand Retail with Instant Delivery

Posted on by Vivian Yang

On May 16th, JD.com unveiled its upgraded on-demand retail business, JD NOW. Combining JD’s instant shopping services, formerly known as JD Shop Now and JDDJ, JD NOW offers a wide range of premium products from over 500,000 physical stores delivered in as fast as nine minutes to consumers across 2,300 counties and cities in China.

JD NOW’s new logo features JD’s mascot, JOY dog, wearing a bamboo-copter, symbolizing innovation and speed. In addition, JD NOW’s delivery riders sport new uniforms with a helmet topped with a bamboo-copter and a racing-style T-shirt. To enhance the delivery experience for special deliveries such as flowers and perishable items, riders in black gloves use mini-fridges to maintain optimal conditions throughout the delivery process.

Dada Now, China‘s leading local on-demand delivery platform and JD NOW’s delivery operator, is improving its operations and fulfillment technologies to ensure rapid delivery. Customers can enjoy ultra-fast doorstep delivery in as little as nine minutes, with the option of  insurance to cover any potential late deliveries.

Along with the introduction of the new brand, JD NOW gained a prominent new consumer touchpoint on the landing page of the JD App, showcasing five main categories: fresh produce, flowers and cakes, supermarkets, coffee and milk tea, and medicines. The JD NOW section dynamically updates its displays based on users’ locations and shopping preferences, while highlighting discounts to help consumers make informed decisions. Additional categories, such as digital products, baby and maternal supplies, and pet products, are also available.

On May 20th, a day associated with love in China’s internet culture, JD NOW launched romance-themed promotions, including limited-edition gift boxes with flowers and cosmetics and recommendations of gift items based on the popular MBTI personality test. These promotions aim to meet customers’ immediate needs for gift shopping.

China’s on-demand retail market has been growing rapidly and is expected to exceed RMB1 trillion in 2024, according to a recent white paper by the China International Electronic Commerce Center. The launch of JD NOW underscores JD.com’s commitment to enhancing user experience and meeting the increasing demand for instant and diverse shopping solutions.

 

(vivian.yang@jd.com)

JD.com Announces First Quarter 2024 Results

Posted on by Yuchuan Wang

On May 19, JD.com announced its unaudited financial results for the quarter ended March 31, 2024.  Below is an infographic with the key highlights. The full release can be found here.