JD and Diageo Partner on Responsible Drinking Efforts in China

Posted on by Ella Kidron

JD.com, China’s largest retailer, and Diageo, the world’s largest international spirits producer, have reached an agreement to partner on promoting responsible drinking and moderate consumption of alcohol in the China market. The announcement was made on Nov. 6th at the third annual China International Import Expo (CIIE) in Shanghai. Mr. Weibiao Gu, General Manager East China for JD Super (JD.com’s online supermarket), and Mr. Mark Edwards, Managing Director of Diageo China, were present for the signing ceremony at the UK Food & Drink Pavilion at CIIE. This initiative is highly aligned with both partners’ commitment to leverage their respective business strengths to bring positive and meaningful impact to society.

Specifically, under the agreement, JD and Diageo agree to jointly advance three initiatives. First, the two partners will jointly collaborate to advance global standards for responsible drinking in conjunction with leading organizations such as the International Alliance for Responsible Drinking (IARD). In addition, JD and Diageo will work together with industry partners in China to advance the development of a code of conduct for responsible sales of alcohol online in China under the principle of self-governance. Finally, the parties will promote DRINKiQ, a responsible drinking education platform, in China, as well as other initiatives and campaigns that jointly advance consumer education and support reduction in alcohol-related harm.

JD, as China’s retail and e-commerce leader in beer, wine and spirits, with over 400 million active customers across the JD.com platform, has already taken steps to promote responsible consumption of alcohol, such as providing clear guidance for safe consumption in the product descriptions on its e-commerce platform. The company will continue to strengthen its efforts in this area.

“We are pleased to further our commitment to consumer safety through this partnership with Diageo and to pioneer efforts for responsible drinking on e-commerce platforms in China,” said Mr. Weibiao Gu, General Manager East China for JD Super (JD.com’s online supermarket). When it comes to the consumption of alcohol, in addition to ensuring product quality, we want to guarantee that consumers have an enjoyable and informed experience. This partnership with Diageo is an important step in that direction.”

Diageo has been a long-term, dedicated advocate of responsible drinking globally. DRINKiQ marks one of its most signature efforts in this area. The interactive platform provides easily digestible information for the public to enable them make more informed decisions when consuming alcohol, and to prevent harmful behavior such as underage drinking, drunk driving and excessive consumption.

“Bringing positive social impact to every market that we operate in is a mission of Diageo.  We are actively advocating for responsible drinking to ensure the well-being of our consumers. Through the partnership with JD, we are confident that we can inspire more Chinese consumers to engage in positive drinking behavior and hopefully we can contribute to Chinese people’s aspirations towards a “better life” by celebrating life, every day, everywhere,” said Mark Edwards, Managing Director of Diageo China.

 

(ella@jd.com)

JD Launches “Imported Supermarket” at CIIE

Posted on by Rachel Liu

by Rachel Liu

JD Worldwide and JD Super, JD’s online supermarket, will launch the “JD Imported Supermarket”, which gathers high-quality imported consumer goods from all over the world, including milk from New Zealand, makeup products from Europe, health care products from Australia and more.

The announcement was made during the third China International Import Expo (CIIE), which is taking place in Shanghai from November 5th to 10th. This year marks the third year for JD to join the event.

In 2019, JD announced on CIIE that it will purchase nearly RMB 400 billion yuan of imported products in the next three years. Though affected by COVID-19 this year, JD will continue to leverage its supply chain in China and overseas to promote imported products to Chinese consumers, and push forward the achievement of the RMB 400-billion-yuan purchase plan.

JD Imported Supermarket

JD’s supply chain and logistics capability will provide a seamless shopping experience for customers who buy imported products. Now JD Logistics has over 110 overseas warehouses, over 10 bonded warehouses and cross-border ports as well as nearly 1,000 transportation routes to ensure fast transportation of imported products. Products from JD Imported Supermarket, the platform on JD.com for imported consumer goods, can be delivered same-or-next day in cities including Beijing, Tianjin, Guangzhou, Chongqing and Zhengzhou. In 2021, JDW will build more warehouses in key cities and improve the delivery speed for customers.

JD Worldwide is also launching its first offline experience pop-up store for imported products in Shanghai during CIIE. In this store, customers can experience the most popular imported products, including on-site wine tasting.

For many Chinese consumers, JD has become the go-to destination when shopping for imported products. During this year’s Singles Day Grand Promotion, JD’s platform for imported products, JD Worldwide, has seen great sales performance. On November 1st, sales on JD Worldwide increased 220% YOY; sales of imported makeup products increased by four times YOY; and sales of imported maternal and baby products increased 280% YOY. JD Worldwide aims to provide over 500,000 types of imported products from over 100 countries during this Singles Day Grand Promotion period.

JD Worldwide is the gateway for many overseas brands to enter the Chinese market. As of May 2020, JD has introduced over 1,000 brands and over 500 third-party stores on the platform, including Nestlé, Abbott and DHC.

Besides helping international brands break into the Chinese market, JD also helps Chinese brands to “go out”. In 2018, JD Central, JD’s joint venture ecommerce platform in Thailand was officially launched. In the past two years, the GMV of JD Central increased 550%. JD Central has established eight warehouses in Thailand, and 95% of direct-sale orders can be delivered same-or-next day. 85% of orders can achieve next-day delivery across the whole country.

Brands who are interested in building their business with JD in China can apply via https://www.jd.hk/cooperation_en or by emailing worldwide@jd.com.

 

(liuchang61@jd.com)

JD Health Deepens Cooperation to Build a “Smart and Healthy Beihai”

Posted on by Vivian Yang

by Vivian Yang

JD Health completed the first stage of the “internet + healthcare” project for Beihai city, Guangxi Zhuang Autonomous Region after a year of collaboration. Titled “Smart and Healthy Beihai”(智慧健康北海), the project has successfully completed seven healthcare informatization projects, which include healthcare cards for local residents, a monitoring and management system for public health, a system for health management in schools, a system for signing up family doctors, a system for village doctors, a system for skilled medical experts, and a system for administrative management.

A joint meeting between JD Health and the Beihai government was held on November 3rd in Beihai during which the two sides reviewed the achievements of the project’s phase one targets and kicked off phase two, which is focused on the comprehensive implementation and upgrading of these systems. The project is scheduled to be completed before July 2021.

“In the next step, we will continue to introduce more mature internet technologies and resources to the city’s healthcare development plan,“ said Lijun Xin, CEO of JD Health.

“Leveraging JD’s strength in AI, big data, digitalized and intelligent supply chain, we will join hands to deepen cooperation to build a ’Smart and Healthy Beihai’,” he added.

 

Cai Jinjun, Mayor of Beihai (center), Lijun Xin, CEO of JD Health (thrid from the left) visit the project exhibition center 

Cai Jinjun, Mayor of Beihai (center), Lijun Xin, CEO of JD Health (thrid from the left) visit the project exhibition center 

Under this cooperation, JD Health and hospitals in Beihai city can integrate their premier medical resources and doctors pool both online and offline, offering more high-quality medical services and easy access to local people.

At the same time, JD Health’s heart center and Beihai People’s Hospital reached an agreement to establish programs to promote the R&D in medical specialties. Starting with the cardiovascular area, Dr. Hu Dayi, director of JD Health’s heart center is invited to join Beihai People’s Hospital to carry out nationwide academic exchange and training on this subject.

Chen Zhiyu, President of Beihai People's Hospital (front row, left) and Hu Dayi, Director of JD Health's heart center (front row, right) on the cooperation signing ceremony 

Chen Zhiyu, President of Beihai People’s Hospital (front row, left) and

Hu Dayi, Director of JD Health’s heart center (front row, right) on the cooperation signing ceremony 

 

(vivian.yang@jd.com)

Lang Lang and Gina Celebrate Singles Day Sales at JD’s Headquarters

Posted on by Yuchuan Wang

by Yuchuan Wang

Today, Lang Lang, together with his wife Gina Redlinger, who is also a celebrated pianist, came to JD’s headquarters to celebrate the Singles Day Grand Promotion as the brand ambassadors of JD Worldwide, JD.com’s e-commerce business for imported products.

JD Worldwide will provide over 500,000 different products from more than 100 countries and regions during the Singles Day period. Consumers in over 100 cities will be able to receive their orders placed from bonded warehouses in only 24 hours. On November 1st, the kick start of JD Worldwide’s grand promotion, sales of the platform surpassed the whole day of last year’s November 1st in just 40 minutes. The first day sales of beauty products increased four times on a year-on-year basis.

“I like to buy beauty products on JD Worldwide,” said Redlinger. “JD Worldwide has rich brand choices and holds an imported products day every month on the 15th.”

“I wish JD Worldwide a bright future and better sales performance,” said Lang Lang.

Lang Lang and Redlinger played the theme song of JD Worldwide in a piano duet during their visit to JD’s headquarters in Beijing. The couple also hosted a livestream show on JD Live.

 

(yuchuan.wang@jd.com)

JD.ID Launches ‘Nearby Shops’ Feature To Back Small Businesses

Posted on by Martin Li

by Martin Li

JD.ID, the e-commerce joint venture of JD in Indonesia, has launched a feature named Nearby Shops on its website and mobile app to support micro-, small- and medium-sized businesses in the country during the ongoing COVID-19 pandemic.

Brand partners and merchants can register their offline stores and location with the help of the feature. Then the system will give exposure to their stores by displaying a list of stores closest to buyers’ locations. Meanwhile, customers can easily find the nearest stores.

“With the Nearby Shops feature, JD.ID aims to provide versatility to loyal customers while delivering a memorable shopping experience with a fresh approach,” said Eyvette Tung, director of offline stores at JD.ID.

Currently, the feature is available for customers in the Jabodetabek region with Gojek providing on-demand logistics services.

“In the future, JD.ID will work with more partners to present a wider, higher quality and more original products range with a larger coverage area and reliable, fast and accurate delivery services,” said Tung.

The feature can also help customers in the region to quickly spot eight JD Hubs– JD’s offline retail store chain for daily necessities.

 

(bjlihao3@jd.com)

Chinese Consumers Turn Focus to Home Comforts and Self-Care

Posted on by Kelly Dawson

by Kelly Dawson

In a year when many people have spent more time at home during the pandemic, Chinese consumers are demonstrating a desire to beautify their homes and focus on self-care. During the first three days of this year’s Singles Day Grand Promotion (November 1st -11th ), shoppers on JD flocked to buy products across home and lifestyle categories including kitchen, living room, children’s room, home spa items and more.

During the 3-day period shoppers on JD bought 6.43 million kitchen shelving units, with Gen Z making up nearly half of buyers. One cooking pot model saw sales increase by three times.

Continuing the trend of younger consumers spending big were parents born between the years of 1985-1990, who bought about 10,000 units of a product designed to correct kids’ sitting posture. Parents in general were highly focused on the well-being of their children, with sales of table and chair sets designed to facilitate learning for kids increased by four times; and sales of a children’s bed and mattress set designed to promote better sleep and spinal health more than doubled.

While in the past smart devices were mostly bought by younger consumers with an interest in new technology, families and married couples are demonstrating more interest in smart devices. For example, 60% of people who bought a particular multi-function smart toilet were married men; and 90% of these buyers opted to include a private care function specifically designed for women. Sales for a fogless smart bathroom mirror also increased by three times; and a smart bed designed to prevent snoring also saw sales double.

Creating a more comfortable experience in the bathroom and shower were clearly a focus, with one premium softening shower gel selling 210,000 units. More than 304,000 individual face masks were sold during the period too.

Additionally, younger men are increasingly showing interest in self-care, with 44% of customers who bought a men’s facial essence beauty product born after 1985.

 

(kellydawson@jd.com)

In-depth Report: JD Industrial Technology: The Fourth Unicorn Under JD

Posted on by Ling Cao

by Ling Cao

“JD Industrial Technology hopes to drive industry transformation based on technology, and to become the world’s largest industrial technology e-commerce platform,” Deming Ding made this remark last week.

Ding is general manager of JD Industrial Technology, a subsidiary of JD.com and a division of JD Business service unit, operates an e-commerce platform that specialized in industrial maintenance, repair and operations (“MRO”) products and services, and provides intelligent purchasing platform and supply chain solutions for corporate customers.

Deming Ding, general manager of JD Industrial Technology

JD Industrial Technology is considered as the fourth unicorn under JD.com. The previous three unicorns under JD are JD Logistics, JD Digits and JD Health. On April 24th, JD.com entered into definitive agreements for the non-redeemable series A preferred share financing of JD Industrial Technology. The total amount raised is US$230 million, bringing it to US$2 billion, and making it the highest valued domestic industrial technology company in China.

“In the long-term, we want to become the service provider of industrial IoT. This is all based on technology,” Ding added. He explained that JD Industrial Technology’s three key differentiators are technology, supply chain and operations experience.

 

All based on technology

Ding said, “JD can leverage AI to help clients predict procurement demand, and apply the technology for the whole process covering fulfillment, delivery, and more.”

Based on technology, JD Industrial Technology has built an AI-powered integrated procurement system for enterprise clients, enabling them to improve procurement efficiency. Enterprises can use image recognition technology to automatically recognize product images, parameters and categories, and send alerts regarding illegal operation, with an accuracy rate of up to 95%.

JD Industrial Technology has also launched a product pool to solve the industry’s pain points for non-standard product management. The pool leverages JD’s AI and big data, and experience from leading brands, so that clients can easily find and purchase specific, non-standard products on JD, for instance, a very specialized screw.

A Zhejiang based electric company Delixi Electric signed an agreement with JD in this filed in September last year. Junqian Yang, chief growth officer of the company, said “The manufacturing industry is different from other industries in that it tends to deliver on schedule, and any sudden incidents may cause irreparable consequences. That’s why  factories  need professional engineers on site. They also need store spare materials, meaning huge inventory costs. Cooperating with JD provides us with a smart procurement platform, enabling us to upload information on the platform. This helps us analyze the materials, predict a single device’s condition more precisely and prepare inventory in a realistic way, making the process more cost-effective.”

Delixi Electric signed an agreement with JD

Leveraging JD’s smart retailing experience, the company has also launched a smart retail store solution, which helps to standardize and digitalize offline stores. With JD’s help, offline stores can enjoy services to upgrade their brand image, rebuild their store, implement smart store systems, and more.

 

Building supply chain

JD has served millions of different types of clients, covering key accounts (KA), such as Fortune Global 500 companies, small and medium sized businesses (SMBs), retail companies and individuals.

“Leveraging JD’s existing self-built supply chain capabilities, we increased our business scale in a short time for standard industrial products, and now we are expanding the infrastructure development specifically for enterprise clients, especially for KA clients who have complicated demand and internal processes. We need to make sure our supply chain can meet their need,” Ding added. “The integrated supply chain infrastructure can also empower SMBs with optimized value and improved fulfillment efficiency.”

JD Industrial Technology exhibition at 22nd China international Industry Fair (CIIF) in Shanghai

Enterprise clients have different fulfillment requirements, some of which may be unexpected. To ensure fast delivery and minimize the number of touchpoints, JD will typically make multiple delivery runs per day, rather than consolidating into one. “It annoyed us to receive different packages coming from JD in multiple times in one day. Ideally, we wanted them to send in one consolidated package at a fixed time, such as once in a week, rather than the day after we placed the order. Normally we will only need these materials a week later. We just prefer to place orders in advance.” One company representative said.

The conflict is due to JD’s B2C supply chain network design. Previously, JD used the B2C supply chain system to serve B2B clients, which met several challenges, such as delivery time, special invoice requirement and more. Ding’s team observed these challenges and started to build supply chain network specifically for enterprises, including forward warehouses, special transportation fleet and post-sale services.

 

Operations and services

JD’s retail and marketplace models gives the company strong advantages in terms of operations. Through the retail model, JD can hold inventory and deal with manufacturers directly, allowing JD to control the whole process from pre-sale to after sales. JD is also able to provide tailored solutions for KA clients who have such requirements.

Service is one of the challenges for digitalization in this area. Ding added, “For now, many industrial e-commerce platforms can only provide transaction services, while they cannot provide the related offline services.”

JD’s Jing Gong Bang (京工帮, which literally means JD Industry Helper) was launched to address this problem. The Jing Gong Bang system provides “last mile” services to help digitalize the industry by connecting big companies with industry-leading service providers for manufacture-level omnichannel service solutions.

JD’s Jing Gong Bang program signing ceremony

Currently most clients still view JD as a platform to provide standard industrial products. More professional products such as electrical engineering materials or bearings still lack recognition from clients, but this has started to change. On JD’s super industrial technology day held last month, the company noticed that these professional products saw rapid sales growth. For example, power transmission products increased by 1200% y-o-y, and chemicals increased by 710% y-o-y. “Part of the reason is that we educated our clients about our products and services.” Ding said.

World-leading electric company Schneider Electric is a key account for JD Industrial Technology. Zhijie Xi, e-commerce director for Schneider Electric’s B2B e-commerce department said, “JD’s industrial technology solutions is a digital platform and ecosystem, which connects resources for the entire process, which can achieve service synergy in the whole market, help upgrading the industry”.

“Going forward, we need to build a comprehensive service system covering pre-sales to post sales for professional products,” Ding added. “Only in this way can we improve clients’ loyalty.” He shared that it’s easy to buy a standard product on JD without complicated after sales service, such as masks, but for a product like a bearing, it’s necessary to provide installation service.

 

Future outlook

“Industrial Technology is an essential industry for JD to enter, as the company is now expanding its 2B business and lower tier markets business,” Ding shared. The industrial technology business can help JD expand its reach beyond retail. The accumulated supply chain and technology infrastructure built for enterprises can also provide input and feedback for JD’s retail middle platform as a whole.

Consistently building supply chain infrastructure and developing industrial IoT capabilities will be JD Industrial Technology’s main focuses. “We have an advantage because we own inventory. We can combine industrial IoT with real applications, such as operations management, forecasting and maintenance, as well as inventory optimization,” Ding said.

JD Industrial Technology exhibition at an offline event

According to industry data, the industrial procurement demand in China has steadily increased. Total procurement amount in 2019 was RMB 2.11 trillion yuan, and the CAGR is expected to be 4.5% in next five years.  Ding said: “I hope more and more participants can join the industry together, in order to cultivate the market. Clients will ultimately make decisions based on brand awareness, service capability and price.”

 

(ling.cao@jd.com)

JD Sees Purchasing Surge by Enterprise Clients during Singles Day Grand Promotion

Posted on by Ling Cao

by Ling Cao

On November 2nd, JD saw newly registered enterprise clients surge, increasing 770% YOY on the day, according to company data.

While enterprise clients are traditionally not active participants in the Singles Day Grand Promotion, their enthusiasm is highly visible this year. Top categories for purchases include industrial products, fresh produce, healthcare, office products, home appliance and consumer goods, all of which saw sales increase over 100% YOY. Industrial products hit an over 388% YOY growth rate.

One customer, Ms. Wang said, “The sales promotion made me achieve my procurement profit margin for this year.”

JD has also announced the creation of a business application-oriented brand alliance with leading brands such as Lenovo, Midea and Canon. Under the agreement, the companies will provide B2M (Business-to-Manufacturer) procurement services, and help enterprise brands achieve digitalization. Data showed that business use product sales increased over 400% YOY on Nov. 2nd.

The promotion is attracting many new business customers, with first-time enterprise clients increasing 409% YOY. During the promotion period, JD is providing subsides and resources to SMEs, helping them save costs when the epidemic has been gradually faded.

Chunzheng Song, president of JD Business said, “As China’s largest intelligent and integrated procurement platform, JD Business aims to integrate its resources and achieve synergy with industries, providing corp  orate clients with a more valuable service, helping contribute to the economic recovery.”

 

(ling.cao@jd.com)