JD Home: Connecting Online and Offline during Singles Day

Posted on by Rachel Liu

by Rachel Liu

JD Home stores, JD’s offline retail experience stores, have seen an increase of over 1 million members coming from both online and offline during this Singles Day period (November 1st to 11th).

JD started to build JD Home stores in 2016, aiming to provide a place for customers to touch and feel products, especially electronics products, before they shop online. With JD’s brand endorsement, customers have strong trust in the stores. JD Home also shares supply chain, inventory and logistics with JD, providing rich choices on products. Based on JD’s big data and Location Based Services (LBS), JD can also help with store location selection. As of November 2020, JD had 2,000 JD Home and JD Mobile Stores.

To help the JD Home store owners better run their stores, JD has provided multiple kinds of support covering livestreaming, customer attraction and one-hour delivery.

During COVID-19, many JD Home stores saw declining customer numbers as people were hesitant to be in stores. JD helped the store owners to do livestreaming to expand sales channels by providing trainings and awarding livestream shows. JD Logistics continued to support fulfillment and delivery service.

On November 1st, JD Home stores held over 300 livestream shows on JD, Wechat and Kwai (one of China’s most popular short video platforms), and many stores saw sales generated from livestream reach RMB one million yuan. On November 11th, over 60% of sales in JD Home stores were generated by customers from third to sixth tier cities. During the entire Singles Day period, JD Home’s livestream received over 100 million views on JD, Wechat and Kwai, and over 40% of customers were from lower-tier markets.

Earlier this year, JD Home and JDDJ (JD Daojia) jointly launched one-hour delivery service. Customers who order products on the JDDJ platform from JD related offline stores, can enjoy one-hour delivery service provided by Dada couriers. Under this model, when receiving the orders, JD doesn’t need to send the orders through warehouses, fulfillment centers and delivery stations. Instead, the orders can be transferred directly to the offline stores near the customers through LBS, optimizing customer experience and efficiency.

During Singles Day, new customers who used one-hour delivery increased four times YoY. The average delivery time for the service on November 11th was 36 minutes.

 

(liuchang61@jd.com)

JD Awarded Top Satisfaction Rating Among Parcel Delivery Service Providers

Posted on by Ling Cao

by Ling Cao

China’s State Post Bureau announced that JD Express received one of the highest satisfaction ratings among parcel delivery service providers in the third quarter, marking  the second time JD has won the honor this year.

JD Express received a score of 80, above the average score of 78.6—which itself has risen 0.4 points since last year, an indicator that the entire industry is pushing toward a more satisfying customer experience. The score system was calculated via an online survey, with 15,900 participants across 10 service providers in 50 cities.

During this year’s Singles Day Grand Promotion, 93% of JD’s first party orders achieved same or next day delivery speed, while volume of parcel delivery increased 164% YoY, and volume of local specialty orders increased five times compared with the June 18th promotion period, meeting different delivery needs from customers.

Now JD’s parcel delivery can provide service in 338 cities in China, and the doorstep delivery service is popular among customers.

Representative from JD Express said, “Going forward, JD will continuously invest in technology and create diverse delivery services for customers, providing a fast, accurate, stable and best delivery experience for them.”

 

(ling.cao@jd.com)

JD and China Railway Container Add Multimodal Railway Container Transport Route

Posted on by Yuchuan Wang

by Yuchuan Wang

On November 15th at 10:45 am, the No. 79366 train left Wujiashan (吴家山) station in Wuhan, conveying 600 tons of goods of JD.com, to North Changsha station. The train, nicknamed “Mobile Warehouse”, was loaded with 30 railway containers, jointly operated by JD Logistics (JDL) and China Railway Container.

As one of the four major railway hubs in China, Wuhan is at the crossway of the Beijing – Guangzhou railway line, and many other important railway lines. Changsha is well connected by roads, river, rail, and air transportation modes, and is a regional hub for industrial, tourist, and service sectors.

Equivalent to 20 17.5-meter transportation goods trailers, the train is expected to ease the pressure of limited road transportation resources and support goods allocation to meet the fast fulfillment demands of JD’s merchants. In addition, transfer from road to railway will also contribute to lower carbon emissions. JD just announced that it plans to reduce 50% carbon emissions by 2030. Once the train arrives at North Changsha Station the next morning, the goods will be transported to regional warehouses by road transportation.

“With the rapid development of multimodal transportation in China, we have seen great advantages of this transportation in the logistics industry,” said Wei Yu from JD Logistics. “We will continue to develop our multimodal business, deepen the collaboration with railway to explore innovative models and further consolidate JD’s logistics infrastructure.”

During this past Singles Day Grand Promotion (November 1st – November 11th), 93% of JD’s first-party orders were delivered within 24 hours. JD’s smart supply chain is helping more and more merchants and products sell across China and even the globe, connecting the real economy with the digital world.

 

(yuchuan.wang@jd.com)

JD Turns Focus to Value-added Services

Posted on by Kelly Dawson

by Kelly Dawson Jd.comby Kelly Dawson

In late October, Mr. Qin bought seven multimedia teaching systems on JD.com for his tutoring organization in Beijing, at a price of around RMB 30,000 yuan each. Weeks later during JD’s Singles Day Grand Promotion in November, his heart sank to see that each system was now selling for 4,000 yuan less. He feared he’s missed out on a great deal—and worried that his supervisor would be unhappy.

Then he remembered that he had purchased the machines with price protection insurance, and that he was well within the 30-day grace period. He quickly submitted an application on JD, but was skeptical that he would actually receive the refund. When he had attempted to redeem price protection insurance on other ecommerce platforms, he had only received coupons to apply to other purchases.

But as he contemplated this concern, his phone rang: It was the company’s financial department, announcing that they had received a refund of RMB 27,000 yuan. It had been only one minute since Mr. Qin submitted his application.

Mr. Qin’s case is only one example of JD’s increased focus on customer services this year.

Another beneficiary of JD’s customer services during the Singles Day period was Mr. Ma, who purchased a cotton coat from a third party seller on JD as part of the promotion. When he received the coat, he realized it was a bit tight to wear over his favorite lined puffer jacket, a must during the frigid winters of his northern city of Beitun, in Xinjiang Uygur Autonomous Region. He applied for JD’s “free door-to-door exchange” service that ensures door-to-door exchange regardless of where a customer lives—even 30 kilometers away from the nearest JD delivery station, in Mr. Ma’s case.

In order to ensure that Mr. Ma’s exchange went smoothly, a JD courier named Wang Pun rose before dawn on the morning of November 8th. He washed his face with cold water, and set out on a 250-kilometer journey from JD’s sorting center in Beitun to the sales department of the third party merchant that had sold Mr. Ma his coat. Around 1 pm, he arrived at the office—it was the first time the coat company had received such a visit for a customer exchange. Coat in hand, Wang turned around and set off for Beitun. Over the course of the day, he traveled a total of eight hours to ensure Mr. Ma would receive his return within 24 hours of his application for an exchange.

During this year’s Singles Day period, more than 90% of JD’s third party merchants offered the door-to-door exchange service—with ultimate savings estimated to be more than RMB 30 million yuan of freight and 33.6 million hours of waiting time, according to JD Express.

Additionally, JD Express reported that during the Singles Day period, JD’s price protection insurance saved consumers more than 100 million accumulatively, enabling consumers who bought products before the promotion to receive refunds for price differences.

In fact, JD’s value-added services ranked first among all e-commerce companies during the Singles Day period, according to a customer satisfaction survey published by Southern Metropolis Daily, a Guangzhou publication.

During that period JD’s customer service recorded more than 15 million customer service interactions, a development also driven by a rising willingness among customers to pay extra to enjoy value-added services, according to the report.

 

(kellydawson@jd.com)

 

 

 

JD.com Accounts for 30% of China’s Home Appliance Market During Singles Day

Posted on by Hui Zhang

by Hui Zhang

JD.com, Suning and Tmall remained top three in the home appliance market in terms of both online and offline business, according to a new report released by the China Association of Market Information and Research, a subsidiary of the National Bureau of Statistics. The three companies claimed market share of 28.5%, 18.4% and 14.6% respectively from November 1st -11th—reinforcing JD’s position as the most trusted platform for Chinese consumers.

The report also confirmed a prediction by Nielsen before the promotion period that JD would be the most trusted platform for consumers of 3C products and home appliance consumption.

Both domestic and foreign home appliance brands have witnessed robust sales growth through JD.com during this year’s Singles Day Grand Promotion. Sales of air conditioners exceeded RMB 100 million yuan in the first 15 seconds, and sales of refrigerators and washing machines surpassed RMB 300 million yuan in the first 2 minutes on November 11th. The number of 70-inch flat-screen TVs and rice cookers sold through JD.com exceeded 10,000 and 100,000 units respectively. Sales of Haier, Midea and Gree products hit RMB 100 million yuan on JD.com in just one minute on November 11th.

In addition to its online home appliance business, JD led in omnichannel sales of home appliances in China by opening offline flagship stores in various cities, such as Nanjing, Kunming, Suzhou, Ma’anshan, Bengbu, Deyang and Jiaozuo, each of which has offline stores spanning over 10,000 square meters in size. Additionally, JD opened more than 1,000 JD 5Star stores across China to further improve consumers’ shopping experience.

 

(zhanghui36@jd.com)

JD.ID Sees Stellar Sales Growth in Latest Campaign

Posted on by Martin Li

by Martin Li

JD.ID, the e-commerce joint venture of JD.com in Indonesia, registered 1300% growth in year on year sales volume during the its latest promotion campaign.

The campaign was named HARJOYNAS, which lasted from November 9th to 11th in the country, where the COVID-19 pandemic is still going on.

Average user spending increased by 450% compared with the same period of last year. Meanwhile, the number of products sold jumped by 150%.

The campaign was named HARJOYNAS, which lasted from November 9th to 11th in the country, where the COVID-19 pandemic is still going on.

Among the best sellers were groceries, health care products, maternal and child products, household products, smart phones and tablets.

“In the midst of the pandemic situation, people are making the best use of the momentum of the online shopping festival, such as shopping for daily necessities and fulfilling lifestyle needs. People no longer take advantage of massive ‘discount parties’ just to shop for secondary or even tertiary needs,” said Mia Fawzia, marketing chief of JD.ID.

Seeing this changing trend, JD.ID is optimistic in achieving higher consumption targets in the future, especially in organizing a series of festive sales events, which culminate in HARBOLNAS, the largest e-commerce shipping event in Indonesia which falls on December 12th, the same day the 12.12 shopping event celebrated in China by parent company JD.com.

“JD.ID will continue to strive to serve and fulfill every need of the Indonesian people, provide the best shopping experience to customers in all situations, and carry out the company’s main mission to bring happiness to all customers throughout Indonesia,” said Fawzia.

 

(bjlihao3@jd.com)

JD.ID Helps Indonesian Government Distribute Social Assistance Packages

Posted on by Martin Li

by Martin Li

 JD.ID, the e-commerce joint venture of JD.com in Indonesia, has cooperated with the Ministry of Social Affairs in the country to provide and distribute 50,000 social assistance packages to communities which are affected by the COVID-19 pandemic.

The packages consist of rice, canned food, edible oil, biscuits and milk.

Government officials visit JD.ID warehouse

On November 12th, the acting director of Social Protection for Social Disaster Victims, Adi Wahyono, visited the company’s warehouse in Marunda, Bekasi to observe the packing process.

During the visit, the director expressed confidence about the quality of the commodities provided by the company.

“We are pleased to support the procurement, packaging, and storage of 50,000 social assistance packages consisting of the nine primary commodities. We will ensure that every process runs perfectly, especially in terms of quality and authenticity of each product, which should be in line with the our motto, #DijaminOri (original guarantee),” said Sandy Permadi, CFO of  JD.ID, who also joined the warehouse tour.

“We also hope that, in the future, JD.ID can contribute more to other social activities, which can have a positive impact on communities in-need, especially those who are affected by the COVID-19 pandemic,” said Permadi.

JD.ID is widely known as a platform for authentic products in Indonesia.

The ministry will continue to carry out and monitor additional effective measures to ensure that the social assistance packages will get distributed instantly.

 

(bjlihao3@jd.com)

 

 

In-Depth: Singles Day Carnival Shows JD’s Power to Boosts Real Economy

Posted on by Rachel Liu

by Rachel Liu

The curtains have closed on this year’s Singles Day Grand Promotion. Transaction volume on JD from November 1st to 11th reached RMB 271.5 billion yuan, and 264 brands saw over RMB 100 million yuan sales on JD during this period, over 13,000 key brands saw their sales doubled.

Sales increased across categories: sales of luxury products increased 100% YoY; sales of high-end beauty products increased 100% YoY; and 19 tons of fresh produce were sold during the sales promotion. On November 11th, RMB 100 million yuan worth of air conditioners were sold in the first 15 seconds. The sales increase not only reflects the strong potential of the Chinese consumption market, but is also proof for how digitalization and the online economy can support the growth of the real economy.

“A lot of manufacturers are working with JD on smart supply chain to improve the efficiency of production, and many brick-and-mortar retailers are also leveraging JD’s capability to achieve digital transformation,” said Hui Liu, Chief Data Officer of JD Big Data Research Institute. “These are all examples of how JD can support the growth of the real economy. We believe that JD will play a more important role in the dual circulation as a company with both digital and real businesses.”

Through providing high-quality products and services to customers and expanding domestic demand, JD will continuously help manufacturing products to upgrade and help retailers and brands to make innovations in their businesses.

 

Brands and offline businesses achieved growth

Heavily impacted by COVID-19 earlier this year, many brands took this year’s Singles Day as an important chance to improve their brand recognition and performance in the Chinese market. In addition to physical products such as consumer goods and electronics products, the service products and value-added services also surged on JD.

Customers in over 328 cities can now enjoy one-hour delivery service provided by JD Super and JDDJ (China’s leading on-demand delivery platform) from over 570 supermarkets. JD also has over 1000 JD Auto Service stores around China in 29 provinces, municipalities and autonomous regions to provide auto parts and maintenance services for customers. During this Singles Day, the number of car maintenance orders increased 220% YoY in JD Auto Services stores. Customers who buy home furnishing products on JD, especially large size products like cabins and sofas, can also enjoy hassle-free delivery and installment services.

During Singles Day, home furnishing products with these kinds of services increased 100% YoY. With more customers moving online for health-related products and services, the number of health consultations from JD Internet hospital increased 6 times YoY this Singles Day, and reservations for HPV vaccines and health examinations increased 32 times and nearly 2 times YoY respectively. JD’s on-demand delivery service for medical products also saw sales increase by 21 times YoY.

JD’s extensive supply chain network made it possible to bring the Singles Day boom to offline businesses too. JD’s Omnichannel Fulfillment program enables offline partnered supermarkets and stores around China to deliver orders made on JD, which brings more orders to offline businesses and improves their sales and performance, while improving the delivery time for customers. From November 1st to 11th, sales of JD’s Omnichannel Fulfillment program increased by over 62 times. The delivery time for customers was also shortened to as fast as 11 minutes.

“We encouraged more partners to join the innovative program this time, such as Walmart, Sam’s Club, Yonghui and more, hoping to meet customers demand across different scenarios,” said Carol Fung, president of JD FMCG Omnichannel. “Online and offline integration has become our key focus. Our strong supply chain ability and deep cooperation with brands has enabled us to empower partners.”

JD E-Space store at midnight of November 11th

JD E-Space store at midnight of November 11th

JD’s offline stores joined the Singles Day carnival too. Sales in the over 600 JD Computer and Digits stores increased over 200% YoY. Over 50,000 customers made reservations on JD to experience products offline in these stores. Customers in Chongqing again showed their passion for JD’s 50,000-square-meter offline electronics experience store JD E-Space, which opened one year ago. On November 1st, the store’s innovative products and immersive shopping experience successfully attracted over 30,000 customers to experience offline shopping despite an overall trend of Chinese consumers increasingly going online to shop.

 

Smart supply chain lifts real economy

One of JD’s key advantages is the strong and massive supply chain infrastructure it has established over the past years. JD has been opening its supply chain capability to partners to improve the efficiency and customer experience, while lowering costs for the whole industry.

An outstanding example is C2M. “JD’s huge amount of data gives us insights on what customers want and are willing to spend money on,” said Hui Liu. “As the largest retailer in China, we can get up-to-date information on consumption trends and even break down by different regions and sectors. This can help our brand partners make smarter decisions on what products to design, how to set prices and even how much materials to procure and when to do promotions. This is what we call C2M.”

This approach can not only help upstream manufacturing companies to optimize their production process and develop the next generation of new products with confidence, but also enables customers to enjoy products that they are more satisfied with, Liu said. “We provide customized information for clients from along the chain, from the real economy players to consumers.”

Instant rice noodles brand Baman (霸蛮) developed a special “smelly tofu” flavored rice noodles product according to analysis of comprehensive customer profiles and food industry trends provided by JD, and the product achieved a sales increase of nearly 130% YoY during this Singles Day.

C2M is not just about product design— brands can also receive suggestions on marketing strategies. This Singles Day, JD helped Chinese snack brand Bestore achieve a 110% YoY sales increase through a more precise forecast on consumer demands, and helped the brand to better make use of its traffic across all platforms to achieve higher ROI. This Singles Day, many C2M home appliance products from Midea, Haier and more brands became the best-selling products. This could not have been achieved without JD’s smart supply chain.

The agricultural industry is another example of JD’s smart supply chain benefiting the real economy. Since the epidemic, JD began to open more of its supply chain, logistics, finance, and marketing abilities to increase sales for agricultural products. Many industry belts joined this Singles Day under JD’s support: The Wuchang rice industry belt saw a YoY sales increase of 21 times, and sales of cooking oil from Shandong province increased by 4 times YoY.

Behind the waves of orders and increasing sales, JD’s smart supply chain and logistics are what enables the information of the orders to be transferred effectively and orders to be delivered to customers’ hands lightning fast. Now JD operates over 500 SKUs (Stock Keeping Unit) and around 800 warehouses. JD’s online product availability is above 95%, and turnover rate at JD’s warehouses is controlled to within 35 days, and 93% of direct-sale products can be delivered within 24 hours.

JD has been opening its supply chain capability to partners to improve the efficiency and customer experience, while lowering costs for the whole industry.

Though opening its supply chain, JD achieved data synergy with over 55% of brands and helped over 5 million products with sales forecasting to give brands suggestions on how many products to produce and stock. With smart forecasting and replenishment, JD supported the decision to put pre-order products in the front warehouses in nearly 200 cities and districts in 32 provinces, municipalities and autonomous regions successfully improving delivery efficiency.

 

JD’s technology lifts real economy

According to Bowen Zhou, Chair of JD Technology Committee, as JD has strong technology ability and know-how in retail industry, as well as practices in retail and logistics, JD is not just providing IT infrastructures for the real economy, but more concrete services. During this Singles Day, JD’s blockchain technology was able to provide tracing service for over 1,000 brand partners covering fresh food, maternal and baby products, liquors, beauty products, luxury products, cross-border products and medical products, categories for which customers attach great importance on authenticity when shopping online. JD customers looked for traceability information over 7.5 million times during the Singles Day period.

JD’s NeuHub open AI platform, which targets to provide core advanced AI technology covering natural language processing, speech recognition, computer vision, machine learning and more to JD’s internal business, external developers and small-to-medium sized enterprises, continued to empower partners during this Singles Day. On November 11th, NeuHub was used for 74.2 million times in just the first hour. Functions like snapshop, voice interaction and AI-powered sentiment recognition that tailor responses based on customers’ perceived tone, all provided fresh shopping experiences for customers. Smart customer service provided service for 1.38 million times in the first hour of the Singles Day period, among which, 90% of inquiries were handled independently by the system.

Economist Xiaolei Zuo commented: “JD’s smart supply chain can not only provide service for its own business. It can be integrated into many supply chains in society and provide high-quality supply chain services to other industries. This integrated supply chain will bring great value to the industry.”

 

(liuchang61@jd.com)