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)

Photo Gallery: This Week at JD (November 9th- November 13th)

Posted on by Yuchuan Wang

International media interviewing Chenkai Ling, vice president at JD.com, at the company’s Singles Day command center

International media interviewing Chenkai Ling, vice president at JD.com, at the company’s Singles Day command center

More than 40 members of international media visited JD.com on November 11th to experience the company’s Singles Day Grand Promotion. The media group visited JD.com’s Asia No.1 fulfillment center in the southern suburban of Beijing, SEVEN FRESH omnichannel supermarket and toured JD.com’s headquarters. At the command center of JD Singles Day, media interviewed JD vice president Chenkai Ling, and Chief Data Officer Hui Liu on the company’s retail strategy and consumption trends of China.

 

Employees at JD.com’s headquarters in Beijing celebrate Singles Day Grand Promotion on the night of November 10th.

Employees at JD.com’s headquarters in Beijing celebrate Singles Day Grand Promotion on the night of November 10th.

 

Consumers observe Singles Day Grand Promotion in JD E-Space, JD’s 50,000 square meters offline electronics experience store in Chongqing, at 00:00 on November 11th.

Consumers observe Singles Day Grand Promotion in JD E-Space, JD’s 50,000 square meters offline electronics experience store in Chongqing, at 00:00 on November 11th.

 

Minghui Wang, operations manager at JD Fresh announced that JD Fresh has formed an industrial alliance for aquatic products

Minghui Wang, operations manager at JD Fresh announced that JD Fresh has formed an industrial alliance for aquatic products with over two hundred enterprises across the industry chain, covering brands, e-commerce players, and supply chain providers. The alliance was announced during this week’s FHC (Food & Hotel China) 2020 conference in Shanghai.

 

Enlin Jin(right) of JD Health and Siyuan Chen of Bristol-Myers Squibb at CIIE

Enlin Jin(right) of JD Health and Siyuan Chen of Bristol-Myers Squibb at CIIE

JD Health reached a number of cooperation agreements with global pharmaceutical firms at the 3rd China International Import Expo (CIIE) held from November 5th to 10th in Shanghai. For example, JD Health and Pfizer joined hands to launch STAQUIS, a crisaborole ointment for atopic dermatitis. JD Health and the American pharmaceutical company Bristol-Myers Squibb announced the co-establishment of a cloud platform for innovative treatment for liver diseases. Read more here.

 

JD Logistics Aims to Reduce 50% Carbon Emissions by 2030

Posted on by Yuchuan Wang

by Yuchuan Wang

As the first business group joining the Science Based Targets initiative (SBTi) in the area of logistics in China in 2019, JD.com’s logistics arm JD Logistics (JDL) has committed to reduce 50% carbon emissions by 2030 (starting from 2019). The target was approved and listed on SBTi’s official website on November 12th, 2020.

The Science Based Targets initiative is an ambitious global campaign aimed at driving corporate action on climate change, a partnership between the World Wide Fund for Nature (WWF)， CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI), , and one of the We Mean Business Coalition commitments.

JD Logistics commits that 50% of its suppliers by spend covering all upstream categories, will have science-based targets by 2025. The company also commits to increase annual sourcing of renewable electricity to 100% by 2030.

An important project of JD’s effort to reduce carbon emission is the Green Stream Initiative launched in June 2017. Under the project, JD Logistics has distributed recyclable delivery boxes in nearly 30 cities in China which have been used over 16 million times. JD also uses over 8,000 new energy logistics vehicles in approximately 40 cities. During the past Singles Day period (November 1st -November 11th), the Green Stream Initiative helped reduce packaging waste by 100,000 tons.

“JD Logistics setting SBTi’s goal is encouraging and commendable,” said Weikang Wang, WWF China Priority Project Coordinator of Energy Transition to 100% Renewable. “We believe that JD Logistics’ action will inspire more Chinese companies. We are willing to provide guidance to more Chinese companies to set and achieve scientific carbon targets, and eventually to support China’s 2060 carbon-neutral commitment.

“Our planet is faced with severe climate change challenges,” said Jerry Duan, head of the Green Stream Initiative at JD. “Businesses need to urgently join and make their science-based targets pledges. Through our long-term efforts in low-carbon operations and in close collaboration with SBTi, we hope to create a better future for our planet.”

 

(yuchuan.wang@jd.com)

Posted in ESG

National TV on JD: A Young Manager and Her 300 “Colleagues”

Posted on by Yuchuan Wang

by Yuchuan Wang

In JD’s fully automated warehouse in Shanghai, 300 AGVs (automated ground vehicles) have been working highly efficiently to sort consumers’ orders during this past Singles Day Grand Promotion period (November 1st to 11th), the world’s largest online shopping festival. Utilizing QR codes on the ground to plan their routes, the little robots automatically recognize and weigh the goods they carry. The manager of these AGVs is a 28-year-old girl, Jiang Shan. She told her story in the program “Voice”, broadcast by China’s national TV network CCTV.

Back in 2014, Jiang Shan was among the first employees working as a sorter for JD.com’s first Asia No.1 fulfillment center in Shanghai. As Jiang tells it, the sorting role used to be hard and boring, as she had to scan at least 8,000 bar codes on each parcel per day and bend over 3,000 times.

That changed in 2017, when JD launched the world’s first fully automated B2C warehouse in Shanghai Asia No.1 fulfillment center. As an employee for the advanced facility, Jiang soon had 300 new “colleagues”: all AGVs. The application of “little red ones” – as Jiang calls the robots – improved the efficiency of the warehouse by 10 times compared with a traditional warehouse, now able to process over 200,000 orders a day.

Jiang Shan was among the first employees working as a sorter for JD.com’s first Asia No.1 fulfillment center in Shanghai

“All I have to do is to ensure the normal operations for the little red ones. They save me a lot of efforts,” Jiang said. Now, as the team leader of the automated sorting team in Shanghai Asia No.1, she is always holding an iPad, monitoring the operations of the robots.

From her observation as a former sorter and now technical staff, Jiang finds that although the robots are more efficient, the job cannot be done without humans. When she observes any of the robots not working smoothly, she is able to fix it very fast.

“Clearly knowing they are all machines, I do feel they are my colleagues and they are smart guys,” Jiang said.

As industries are undergoing the transformation towards digitalization and intelligentization, this evolution also offers huge potential to help employees transform and develop and leave the hardest and most boring jobs to technology to handle. As early as 2016, JD launched a “cloud ladder plan” to equip staff members with technical abilities. Now, many front-line workers in JD’s warehouses and delivery stations have become professionals with technical abilities and just like Jiang, have now become managers.

 

(yuchuan.wang@jd.com)

Embassy of Sri Lanka in Beijing Signed National Pavillion Agreement with JD

Posted on by Ling Cao

by Ling Cao

The Democratic Socialist Republic of Sri Lanka has signed a cooperation agreement with JD Worldwide for the National Pavilion authorization program during this year’s China International Import Expo held in Shanghai.

Peishi Lv, head of business development of JD Worldwide said, “We will integrate our advantages more deeply and bring high quality and comprehensive selection of Sri Lanka products to China’s customers. At the same time, we will deepen our cooperation in product upgrading, brand cooperation and customer loyalty.”

The agreement was signed by K.K Yoganaadan, charge d’affaires at the Embassy of Sri Lanka in Beijing, and Philip Lu, deputy director of business development of JD Worldwide.

(From left to right) Sampath Perera, head of Sri Lanka tea promotion institution, Alexi Gunasekera, commercial minister at the Embassy of Sri Lanka in Beijing, Bin Wang, vice president of JD.com, and Xiangdong Luo, deputy GM for Asia Pacific of China North Industries Corporation witnessed the signing ceremony . The agreement was signed by K.K Yoganaadan, charge d’affaires at the Embassy of Sri Lanka in Beijing, and Philip Lu, deputy director of business development of JD Worldwide.

Alexi Gunasekera, commercial minister at the Embassy of Sri Lanka in Beijing said, “I’m optimistic about our cooperation, which will provide a better Chinese market for Sri Lanka enterprises. Additionally, the CIIE platform can also promote a tight relationship between Sri Lanka and China, bringing trade between the two countries to a new stage, and finally achieve win-win success.”

Jessy Yang，senior business development manager at JD Worldwide said, “JD’s National Pavilion program offers a channel for global brands entering China. Customers can enjoy Sri Lanka’s products such as black tea, coconut water and nuts via the pavilion. Additionally, JD will provide integrated resources to help local specialties build awareness.”

 

(ling.cao@jd.com)

JD Singles Day Wrap-up #8: Diversified Luxury Demands Boost Sales on JD.com

Posted on by Hui Zhang

by Hui Zhang

Diversified consumer demands for luxury products boosted sales on JD.com during the Singles Day period with sales of luxury products doubling year-on-year. Shoppers’ enthusiasm for luxury products gave a hint to the economic recovery in China after the pandemic.

JD’s data showed that sales of apparel, shoes, luggage and bags increased by 116%, 132%, and 93% respectively year-on-year. High-end products such as Fabergé’s jewelry; Veja’s white leather sneakers; Stefano Ricci’s leather belts, which are popular among male consumers in Beijing, Shanghai and Guangzhou; and Ami Paris’ sweaters were all widely welcomed by JD’s consumers, with Ami Paris’ classic sweaters sold out only in 30 minutes.

Luxury consumers are getting in on the game earlier. The number of consumers making their first luxury purchase on JD increased 279% YOY, and Generation Z consumers entering the world of JD Luxury increased 200% YOY.

Kevin Jiang, President of International Business, JD Fashion and Lifestyle, said: “We are seeing more diverse demand from our consumers. The mainstream luxury brands, such as Prada, Ferragamo, Burberry, Rimowa, Hugo Boss, and Coach, continue to perform strongly, but new brands, including designer brands, such as Manu Atelier, Ami Paris, and Stone Island, and also brands with strong character, such as Faberge and Stefano Ricci, are also showing amazing potential.”

Five more high-end brands, JW Anderson, Anya Hindmarch, Queen Anne Silver, Bohemia Crystal, and White Mountaineering, have all launched official flagship stores on JD.com during the Singles Day period, with some of them choosing JD as their first e-commerce partner in China. So far, JD has established partnerships with over 200 luxury brands, including Prada, Miu Miu, Delvaux, and Salvatore Ferragamo.

 

(zhanghui36@jd.com)