JD Holds Annual Grand Promotion Day for PLUS Members

by Ling Cao

JD is holding its annual grand promotion today (Jan 8) for members of JD PLUS, JD’s premium membership system. Benefits include the opportunity to use RMB 1.8 yuan to purchase cosmetics packages and handbags, as well as discounts to purchase a wide range of other products.

JD also offers a “super card” with eight integrated privileges for new members, including 2.5kg Chilean cherries, VIP membership for the platforms Tencent video, QQ music and JD Reading, as well as a special card for McDonald.

JD PLUS has already cooperated with over 800 brands, including Unilever, Siemens and Yili, with 720 brands providing 5% discounts for members purchasing products on JD. Members can also enjoy special prices for millions of products on JD.

Additional provileges include 12% discounts for ordering Didi, RMB 1 yuan to order a hamburger on Burger King, and RMB 9 yuan to buy a cup of COSTA coffee.

Chunhui Meng, head of JD PLUS said, “JD PLUS aims to create an integrated membership system with partners, which combines online shopping with a cross-border lifestyle, providing members with high quality products and benefits.”

 

(ling.cao@jd.com)

JD Empowers Duty Free Industry through Supply Chain and Digitalization

by Rachel Liu

JD Worldwide, JD’s platform for imported products, opened a duty free store in Sanya, Hainan province on December 30th, 2020, together with a cross-border experience store through partnering with Hainan Tourism and Investment Development Co. Besides makeup products, fragrance and chocolate, which are common in many duty free stores, the JD stores also provide a wide range of electronics products, providing travelers with more choices.

By joining the duty free business, JD can benefit brands and traditional industry players with supply chain capability and digital tools.

According to research conducted by Industrial Securities, during July to October 2020, makeup accounted for 48% of total sales of offshore duty free products in Hainan province, with watches accounting for 14.7% and accessories 15.4%. The categories of duty free products are very limited. Although customers have the demand for a wider variety of  products, many brands do not have the ability or resources to get into the business.

With JD’s experience in logistics and finance, as well as its close connection with international brands (especially electronics brands), brands can get into the duty free business easily and quickly through cooperating with JD. With more brands joining, they will have more control over the product price and channels on the duty free market, thus making the industry more regulated.

JD’s participation will also help traditional duty free players with their challenges. In China, only five companies are approved to do duty free business, and they mostly focus on operating offline stores. As digitalization is the trend of the retail industry, JD’s joining could help them with digital transformation, such as more detailed and efficient customer operations, targeted marketing campaigns and more. Take customer operations for example: customers for duty free stores are usually travelers, which means they are not likely to revisit the stores frequently. JD’s digitalization capabilities can help the stores move the customers online and use LBS (Location Based Service), targeted advertisements and more to activate them.

JD’s store management tools, such as electric price tags, a smart advertisement board and customer road map, will bring customers a better shopping experience in the stores.

“With the change of policy on Hainan’s duty free business, both customers and industry players demand new experiences and opportunities. Instead of competing with existing duty free companies, JD’s joining can not only supplement traditional product categories, but also bring omnichannel experiences into the duty free industry, as well as making the industry more standardized and efficient,” said Mark Ma, operations head of JD’s duty-free business.

 

(liuchang61@jd.com)

JD Customers Stock up on Warm Goods to Fight the Cold in China

by Vivian Yang

A massive cold wave is sweeping across China. On January 6, Beijing saw a drastic temperature drop to -17.1℃, the lowest since the 21st century.

China’s National Meteorological Centre (NMC) has predicted that from Jan. 4-13, the cold air will frequently grip the country in its southern provinces including Anhui, Jiangxi, Zhejiang, Fujian and Yunnan as well as many parts of North China.

As the outdoor temperature keeps plummeting, people’s shopping carts on JD.com are getting increasingly “warmer”. According to JD’s consumption big data, searches with “warmth”-related keywords have tripled in the past week compared with the same period last year, with radiators, heaters, kettles, heating furnaces, portable hand warmers and other products ranking high on the search list.

“Thermal underwear for -40℃” becomes the most popular search in the cold resistant outfit category. In addition to coats, boots, gloves, socks and hats for extreme weather, products with high-tech materials are a big draw for many consumers.

Search volume have multiplied for down jackets, vests and duvets as well as wool hats, scarfs, sweaters, pants, socks, insoles and more during this period of time.

“The coldness has been a reminder for many people to send love to their family members,” noted Yao Chen, researcher of JD Big Data Research Institute. “We found that a great number of warmth-related product orders made by customers from the big four tier-one cities in China, namely Beijing, Shanghai, Guangzhou and Shenzhen, are going to recipients living in different cities, which undoubtedly, in most cases, should be the senders’ hometowns,” Chen added.

 

(vivian.yang@jd.com)

JD International Business’s Concludes First English Speech Contest

by Hui Zhang

The final of the first JOY Cup English Speech Contest organized by JD International Business, JD.com’s international business division, was held on Dec. 29. Twelve employees qualified to join the final round competition, out of 40.

The final contest was divided into two sections – a 2-minute keynote speech on the theme of “Better Quality, Better World” and 1-minute impromptu speech. Contestants engaged in heated discussions on topics such as logistics, cross-border business, e-commerce development in Southeast Asia, the future of offline retail, O2O, opportunities and challenges during pandemic, and more. Two contestants from Indonesia and the U.S. joined remotely.

After a fierce competition, Yiming Jiang from JD.ID won the first place, Gao Jiaqi from cross-border business unit and Pei Moran from JD Central won the second place.

Contest Champion Yiming Jiang Rewarded 

“Language ability is an important factor influencing international business development. We hope to evaluate the English ability of our employees through the contest and thus to improve their cross-cultural communication ability as well,” said Xiaobing Yan, senior VP of JD and president of JD International Business.

 

(zhanghui36@jd.com)

JD’s Smart Enterprise Procurement Platform Unveils New Trend on Gifts

by Ling Cao

Data from JD’s smart enterprise procurement platform revealed that employees of enterprises cooperating with JD are increasingly using a platform built by JD Business to select gifts for the Chinese New Year (CNY) holiday.

The platform allows employees to select products on an integrated platform, and have the products sent to their doorsteps via JD’s in-house logistics service. It also optimizes the process and cost for enterprises to arrange gifts during the upcoming holiday. Chunzheng Song, president of JD Business said, “The platform aims to optimize the process and cost for enterprises to arrange gifts for the upcoming holiday.”

Unlike traditional CNY gifts for employees, such as rice and oil, nuts and candy, as well as bedroom accessories, JD’s data showed that in December last year, orders of cellphones, digital products, books and medical and healthcare products largely increased, while fresh produce became a new popular selection.

The growth rate of medical and healthcare products far surpassed the same period in 2019, with the most popular products under those categories being washing and personal care, disinfection protection, home care, thermometers and sphygmomanometers. Some other popular items include nutrition products, medical checkup services and family medical instruments.

In terms of the enterprises using the platform, construction, service and real estate are among the highest growth rate industries, while orders from finance, trade and retail, and energy industries increased by two times YOY, respectively.

 

(ling.cao@jd.com)

JD’s Duty Free Store in Sanya Helps Boost Consumption

by Ling Cao

JD’s duty free store in Sanya, Hainan province has helped boost local consumption from tourism during the latest New Year’s Day holiday.

The store, which opened on December 30th last year, is located on the second floor inside the Sanya Hailv Duty Free Shopping Center. Another JD store, a cross border experience store, also opened on the fourth floor of the shopping center, which is one of the three newly opened duty free centers Hainan has launched on December 30th, 2020. Data from Haikou’s Customs showed that during January 1st to 3rd, sales from these shopping centers reached RMB 540 million yuan, an increase of 195% YOY, hitting a historical record.

Data from JD’s cross border experience store showed that healthcare products were among the most popular categories, followed by cosmetics and baby and maternal products.

Di He, supply chain head for JD’s duty free business said, “Leveraging big data analysis, we have recognized that many elderly people always travel to Sanya to go through the cold winter. Those customers will pursue healthcare products rather than cosmetics and perfume. JD can meet this demand by leveraging our long-built supply chain capabilities.”

JD’s store has also joined the Sanya Hailv Duty Free Shopping Center to provide discounts and coupons for customers, promoting general consumption for the new year.

 

(ling.cao@jd.com)

JD Logistics Awarded Top Science Technology Award for China’s Postal Industry

by Yuchuan Wang

JD Logistics has won first and third prize at China’s 2020 Science and Technology Awards for the Postal Industry. The company received the awards on Dec. 31, 2020 for its 5G logistics park production control system and its network planning & simulation platform respectively. Organized by China Express Association, the award recognizes and rewards outstanding organizations or individuals in the industry.

The 5G logistics park production control system enables the intelligent management of logistics vehicles, workers and energy. For example, it can automatically recognize the volume of goods for a shipment and match it to the best-fit vehicle. Already applied in JD’s Beijing Asia No.1 fulfillment center, the system has helped the center increase workers’ efficiency by 15% and lowered operations costs by 10%.

The network planning & simulation platform helps build the digital twin of real-world operations and guide intelligent decision-making for long-term planning, operations and productions. With the platform, warehouse turnover days can be reduced by 10%, while forecasting efficiency can be increased by as much as 500%.

JD Logistics continues to innovate in the logistics technology and promote the application of advanced technologies such as 5G, IoT and blockchain in the industry.

 

(yuchuan.wang@jd.com)

JD Logistics Upgrades Infrastructure in Tibet

by Vivian Yang

JD Logistics (JDL) unveiled its updated logistics system in Tibet in close collaboration with the local government. An integrated warehousing and distribution center was opened in Lhasa on the first day of the new year, and will serve as an important logistics infrastructure to drive up supply chain efficiency for the local economy, with priority on the promotion of local agricultural products.

Signifying a milestone for Tibet’s logistics development, the updated logistics system is designed to provide a comprehensive network in Tibet, including the construction and services of warehouses, transportations and deliveries, and covering the entire Tibet, according to JD Logistics.

JD's opened an integrated warehousing and distribution center in Lhasa on January 1, 2021

JD’s opened an integrated warehousing and distribution center in Lhasa on January 1, 2021

In an effort to support farmers and promote sales of their products, JD has built several production zone-based warehouses in Tibet to short-circuit the traditional sales channels and uplink them directly with more market demands.

Take Linzhi apples as an example. These apples, which are uniquely tasty thanks to its special geographical conditions, often faced market and transportation difficulties in the past. Now with the support of JD’s upgraded logistics network integrating warehousing and delivery solutions, the fruits can now reach the greater nationwide market by the same and next-day delivery.

Other local specialties that will benefit from the new logistics center include Tibet’s mineral water, beers, zanba(Tibetan, means backed highland barley flour), chili sauce, walnut oil, honey and more. They will not only be delivered by JD Logistics, but also supported by JD Retail for online sales via different JD channels, such as JD’s dedicated sales portal of Tibetan produce to support poverty alleviation.

At the same time, JD’s growing multi-level logistics network also plays an important role in helping industrial products, such as home appliances, to penetrate to lower-tier cities and into the life of ordinary people like those in Tibet, especially in remote areas. To date, JD’s logistics network has covered 47 counties/districts and 27 demonstration counties that leverage e-commerce for poverty alleviation in Tibet, providing a two-way transportation infrastructure to boost its development.

 

(vivian.yang@jd.com)