Five Pillars Supports the Rapid Growth of JD Health

by Vivian Yang

JD Health hosted its second Partners Conference in Chengdu, Sichuan province on October 29th. The event convened over 1,000 industry partners, policymakers, medical experts and media representatives to discuss new opportunities and challenges in China’s healthcare industry, and enhance understanding of JD Health’s business models and future plans.

During the conference, JD Health’s management team provided an update on the company’s progress from 2019 to 2020.

According to a report by Frost&Sullivan, a Silicon Valley-based research and consulting firm, JD Health became the largest online healthcare platform in China by 2019.As of September 30, 2020, the platform had more than 65,000 doctors, including full-time doctors, who provided an average of over 90,000 medical consultations online on daily basis. In the first half of 2020, the number of daily medical consultations on the platform was five times that of the same period in 2019.

JD Health's new logo released on 2020 Partners Conference in Chengdu 

JD Health’s new logo released on 2020 Partners Conference in Chengdu 

JD Health’s rapid development in the past 12 months has relied on following five pillars.

Policy support

Internet-based healthcare has undergone ups and downs in its over 20 years’ development in China. In recent years, the industry has maintained a complex compound growth rate of over 30%. The sign of upturn came in 2018 and is marked by China’s State Council guidance on the promotion of the “internet + healthcare” model.

In July 2020, China’s 13 ministries and commissions jointly issued a document requesting to improve telemedicine services and relax limitations on their inclusion in a national medical insurance scheme.

In September, the State Council issued another guidance to encourage the development of new business models in China in which it stressed the importance of promoting internet-based healthcare services, especially in the areas of orderly scheduling of online doctor’s appointments, telemedicine services, digital prescription circulation, medicine sales network and more.

COVID-19

The outbreak of COVID-19 gave a strong boost to the telemedicine industry in China. Data from China’s National Health Commission showed that the number of medical consultations from internet hospitals under its supervision increased 17 times in March compared with the same period in 2019, helping reduce some of the burden faced by brick-and-mortar hospitals.

JD Health also experienced explosive growth during this period of time. The platform reacted swiftly to the pandemic situation through sourcing and delivery of medical supplies to the most needed areas, providing 24/7 online medical consultation, offering a medicine information sharing platform and psychological support hotlines, conducting livestream sessions for medical knowledge education and more. The platform offered more than 10 million medical consultations from January to April 2020.

People’s Rising Awareness of Health Management

Chinese people’s health awareness has greatly increased in recent years. As people have become more mindful about health management, they are increasingly willing to spend more money on disease prevention. Telemedicine offers a good option to gain easy access to health knowledge and consult on minor ailments and common diseases online

In spite of this, for various reasons, health problems keep rising in China’s fast-paced society. According to China’s Blue Book of Health Management released in 2018, about 300 million Chinese people suffer from chronic diseases, with high blood pressure, fatty liver, dyslipidemia, and diabetes being the most common diseases among the population.

China’s growing aging population only makes the number more astonishing. Research by the Chinese Center for Disease Control in 2019 found that two-thirds of Chinese people over 60 years old are suffering from at least one chronic disease.

Under such circumstances, JD Health introduced the “Family Doctor” program that aims to provide customized telehealth services and long term health management support for Chinese families. In parallel, the company stepped up its efforts in opening internet hospitals for specialized chronic diseases, including the centers for diabetes, liver, cardiology and more.

Technology

Technology is the game changer for the internet-based healthcare industry. Thanks to the fast development of big data, AI, robots and more, JD Health is offering “smarter” healthcare services ranging from intelligent robot systems to enhance patient consultation interaction experience and triage efficiency and accuracy, to producing knowledge graph-based solutions such as the “PharmCoo” to supervise drug prescription and dosage.

JD Health has also partnered with research institutions, universities and city-level governments to leverage technologies to develop integrated medical service platforms online and offline to improve China’s medical resource allocation and healthcare service experience, especially enabling greater access of special medicines and doctor services to people in lower-tier cities and rural areas.

Strength in Supply Chain

Leveraging JD.com’s core strength of supply chain, JD Health has become the largest online pharmaceutical retailer in China, accounting for more than 15% of the market with an extensive presence in B2C , B2B and O2O services.

By June 30th 2020, JD Health operated 11 medicine-dedicated warehouses and over 230 healthcare-related products warehouses across China. There are more than 9,000 third-party merchants doing business on JD Health’s platform now, and its medicine wholesale trading platform JD Medicine Procurement provides services to over 170,000 downstream suppliers.

Economies of scale bring strong purchasing and negotiating power for JD Health to offer a rich variety of healthcare-related products at competitive prices. At the same time, suppliers can benefit from the traffic and distribution advantages on JD Health’s platform which helps to bring down marketing expenses. Additionally, JD Health’s ominchannel network has covered over 200 cities in China, ensuring same or next-day medicine delivery, delivery within 30 minutes, and 24/7 delivery services.

 

(vivian.yang@jd.ocm)

China’s National TV Reports on JDD’s Involvement in Digital Currency

by Ling Cao

China’s National TV reported that the People’s Bank of China’s (PBOC) is continuing its research and development of the digital RMB. The PBOC’s Digital Currency Research Institute and JD Digits have formed a partnership in this field to jointly promote the ecosystem.

Yunhan Lu, manager of the program at JDD will be responsible for applying the digital yuan in JD’s scenarios.  “On one hand, we think the digital yuan can help solve some of the pain points for ourselves. On the other hand, it can improve customer experience. Additionally, we can provide financial institutions, business partners and enterprises with digital yuan solutions.”

Tao Yang, expert from the Chinese Academy of Social Sciences said, “The digital yuan is a new form of renminbi which replaces a small portion of cash with a digital form.” Yang said, “Due to the safety, convenience and storage cost challenges of cash, digital currency was launched in 1980s, but it hasn’t yet be promoted at scale because of pain points like social governance management.”

Unstable value and lack of credit support for virtual currency has raised difficulties for financial supervision. Because of these problems, stable currency replacement forms have been launched, such as libra, a crypto currency by Facebook, but these forms require more government authorization to operate.

Haifeng Wu, Researcher from Shenzhen Finance Institute said, “Our digital yuan is endorsed directly by The People’s Bank of China  and it’s a brand new digital form of renminbi, so it has strong credit characteristics.”

 

(ling.cao@jd.com)

JD Upgrades Asia No.1 Fulfillment Center in Zhengzhou

by Yuchuan Wang

Just ahead of Singles Day, JD has upgraded its Zhengzhou Asia No.1 fulfillment center that the sorting center in it is now highly automated. Located in the provincial capital of Henan province which has nearly 100 million population and is the third most-populous province in China, the fulfillment center will enable more consumers in the region receive orders the same day they’ve placed them.

With an area of over 460,000 square meters, the upgraded Zhengzhou Asia No.1 fulfillment center can stock nearly 20 million small- and mid-sized and 300,000 bulky items. Its highly automated sorting center is able to handle one million orders a day – five times more efficient than a traditional sorting center.

In the automated pick-up area, more than 100 “Dilang” AGVs (automated ground vehicles) researched in-house by JD Logistics are applied to facilitate pickers.

In the automated pick-up area, more than 100 “Dilang” AGVs (automated ground vehicles) researched in-house by JD Logistics are applied to facilitate pickers. The AGVs increase the efficiency of picking by three times.

In addition to serving JD’s first-party retail business, the fulfillment center is also open to external merchants. So far, the Zhengzhou Asia No.1 fulfillment center serves tens of thousands of external merchants. JD Logistics has also signed partnerships with Yadu Group, a Henan based medical equipment manufacturer and Jinju Technology, a Geely-backed auto aftermarket company, to provide smart warehousing and omnichannel supply chain services.

Upgrading the Zhengzhou Asia No.1 is also imperative for JD Logistics’ lower-tier markets program,”

“Located in the Central China region, Zhengzhou is an important transportation hub and is of great significance for the national economy and logistics development. Upgrading the Zhengzhou Asia No.1 is also imperative for JD Logistics’ lower-tier markets program,” said Haifeng Li, head of JD Logistics branch in Henan. “It serves as the infrastructure to ensure fast delivery in lower-tier cities and rural area. More and more consumers will be able to receive their orders on the same day after ordering online.”

JD started building its first automated logistics fulfillment center in Shanghai in July 2009. By October 2020, the company operates 30 Asia No.1 projects across China. As the name indicates, the plan was to build the largest scale and most advanced network of e-commerce logistics centers in Asia.

 

(yuchuan.wang@jd.com)

JD Logistics Wins National Awards for Fight Against COVID-19

by Robin Luo

JD Logistics has won two national awards for its contribution to the fight against COVID-19 recently.

First, 11 employees from JD Logistics won the Excellent Individual Award; second, 3 JD Logistics teams, namely the Beijing vegetable and fruit transportation team, the Wuhan Jiangjun delivery station and Hainan distribution center, won the Team Excellency Award, granted by the Ministry of Transportation of the People’s Republic of China.

Feng Xuetian, is head of the cold chain transportation team of JD Logistics’ Southern China branch.

Portrait of JD Workers, COVID-19 Fighters

Feng Xuetian, is head of the cold chain transportation team of JD Logistics’ Southern China branch. On Jan. 24th, the Traditional Chinese New Year’s Eve, when every household in China was enjoying family reunions, Feng parted from his family and rushed more than 600 miles overnight, all the way from Guangzhou to Wuhan, the epicenter of COVID-19.

At that time, Wuhan had just announced citywide lockdown. To make sure the medical supplies delivered in time, Feng raced against clock on the road. On the next day at around 2:00 p.m., Feng showed up on time at an expressway checkpoint and handed the supplies to local medics. He managed to cut the original itinerary by more than five hours.

Yao Hui, a JD truck driver in Xinjiang, threw himself into the fight against COVID-19. He was tasked with delivering medical equipment, electrical appliances and quilts to designated hospitals in Urumqi, the capital city of Xinjiang.

Fang Yong, head of the JD’s Hubei supply transportation team, volunteered to support on the frontlines when the epidemic situation was still critical. He sent vegetables to residents isolated at home, and called on colleagues to donate food and other life necessities to areas short of supplies.

Fang Yong, head of the JD’s Hubei supply transportation team, volunteered to support on the frontlines when the epidemic situation was still critical

Fight Epidemic with the Strength of the Group

The Wuhan Jiangjun delivery station’s location proved critical during the lockdown. Three kilometers to the east, is Wuhan Jinyintan hospital, one of the major designated hospitals to receive patients infected with COVID-19, and two kilometers to the west, sits one of the largest residential communities in the city.

The delivery station was at the heart of the storm. Yet, fearlessly, the 12 members of the station stick to their post. They handled twice the amount of parcels than usual, and delivered them to hospitals and local residents.

When Beijing reported a cluster of new COVID-19 cases related to the Xinfadi wholesale market in June, JD Logistics joined hands with a few companies to safeguard supply of food and daily necessities. As of early July, JD’s Beijing vegetable and fruit supply transportation team delivered nearly 4,000 tons of vegetables and fruits, making every effort to ensure that fresh and safe agricultural products were available in Beijing even as the key wholesale markets were shut down.

Hainan distribution center, had been working relentlessly throughout the epidemic. At the time, road were closed, villages were shut down, residents were in dire needs of daily necessities. The distribution center, though understaffed, assumed the task of delivering medical equipment and daily necessities for the whole province.

In addition, JD Logistics also won the “Team Excellency Award” from the Hubei provincial government, as announced at a ceremony in Wuhan in September. At the peak of the epidemic, JD leaned on its supply chain and technology capabilities to restructure its fulfillment network in order to ensure the livelihoods of people in Wuhan. The company also deployed autonomous delivery robots to provide contact less last mile delivery services in the city.

JD Logistics also won the “Team Excellency Award” from the Hubei provincial government,

 

(press@jd.com)

Posted in ESG

JD Digits Redefines “Chief Growth Officer”

by Robin Luo

You might have heard these titles before: They start with the letter C and are senior executives in a company, such as CEO, CFO and CTO.

Lately there’s a new one in the C suite: CGO, Chief Growth Officer. By definition, the CGO is responsible for the growth of a company, whether in revenue, customers, market shares or profit. At most companies, it’s a high-ranking role, just like its peers.

But at JD Digits (JDD), a digital technology company with roots in JD.com, every single employee is deemed a “CGO”.

“It represents a notion,” said JD Digits Vice President Ling Xu. “Growth is the target and we are all committed to helping clients achieve the target. Only when clients reach their goals, can we share the benefits. It’s a client-centered philosophy, to encourage the employees to put clients first.”

For instance, a blockchain team in JDD has given over 1,000 brands and merchants access to JD’s blockchain platform, helping them improve efficiency, create new business models and accomplish digital transformation.

 

CGO and sustainable growth

In recent years, the global economy has been mired in a downturn. Aggravated by the pandemic this year, people are looking for a new momentum that can help get the economy back on track. For many companies, digital technology represents a way forward.

As a digital solution provider, JDD has helped many businesses go digital, with the company itself playing the role of CGO to fulfill their goals of digital transformation and upgrading. In this understanding, CGO is no longer a person— it represents the entire company.

In the bigger picture, JDD is bringing digital technology closer to the real economy, with an aim to maintain sustainable growth in the long run.

 

Key to Growth

In China, JDD is one of the few companies that both understand the value and hold the capability of digital technology. Based on cutting-edge technologies such as AI, big data, IoT and blockchain, JDD has accumulated rich experience and expertise in digital transformation and upgrade.

Up to now, the company has worked in robotics, intelligent cities, digital marketing, financial technology and many other fields, serving hundreds of millions of individual users, more than 700 financial institutions, governments and other public institutions in more than 30 cities.

 

Make Growth Happen

JDD, in its role as CGO, has two patterns to help clients to grow.

For companies with strength in digital technologies and in-depth understanding towards their industry, JDD will serve as an accelerator to boost their digital transformation and help them access more valuable resources.

On the other hand, for those newcomers to the digital transformation, JDD is more of a trustworthy consultant to guide them and impart the industrial know-how.

 

(press@jd.com)

JD Health: New Logo, New Mission and New Era

by Vivian Yang

2020 JD Partners Conference was held on Oct. 29th in Chengdu, Sichuan province under the theme of “Photosynthesis and Symbiosis”. Over 1,000 industry partners, policy makers, medical experts and media gathered to discuss the new opportunities and challenges of the China’s healthcare industry in the post-COVID ear, and promote greater cooperation to drive the industry’s transformation.

At the conference, JD Health released its upgraded company strategy that positions itself as a supply chain-centered, medical service-based and digitally-driven health management platform that covers the full life cycle and healthcare scenarios for its customers. With the vision to become the most trusted health management provider, it’s mission is to be the “chief health officer” for the Chinese people.

Lei Xu, Chairman of JD Health and CEO of JD Retail said in his opening speech that the healthcare service industry is facing a critical period of digital transformation. “JD is ready to open up its core technology, supply chain, big data capabilities to make itself and its partners stay ahead of the curve.”

Lei Xu, Chairman of JD HealthLei Xu, Chairman of JD Health

“Exploring business model innovation for healthcare services, promoting efficiency of hospital’s management and operations, and accelerating the information construction for public health are all important values that JD Health can bring to the healthcare industry.” Xu said.

Yuhui Zhang, deputy director of the Health Development Research Center of the National Health Commission, highly recognized JD Health’s  concept, He pointed out at the conference that “the policy dividend has been released, and the “big health” industry should seize the prime opportunity for development to offer more diversified and customized healthcare services to meet different levels of customers.”

Earlier this year, JD Health demonstrated its valuable strength in the fight against COVID-19. “We are not complacent about this,” said Lijun Xin, CEO of JD Health on the conference, “JD Health will keep the momentum and continue to join forces with our partners to promote the healthcare industry to be more digitalized and intelligent, improving medical service supplies and quality by focusing on the development of omnichannel and lower-tier markets.

Lijun Xin, CEO of JD Health

Lijun Xin, CEO of JD Health

JD Health launched its new logo that includes two leaves during the conference. The leaves are called arisaema heterophyllum(天南星), an ingredient used in traditional Chinese medicine and are associated with an anecdote concerning the father of Traditional Chinese Medicine Li Shizhen(1518-1593). It is said that Dr. Li once found that there was a recording error in the herbal book about the leaves’ use that almost cost the life of his patient. The incident prompted him to re-edit the Compendium of Matera and correct all possible misinformation.

JD Health released its new logo

JD Health released its new logo

With the new logo, JD Health wishes to carry on Dr. Li’s spirit in promoting medical progress. It also marks a new era for JD Health’s development in which it will embrace greater cooperation with its partners to build a win-win ecosystem, promote the growth of internet hospitals and facilitate more people to get access to high-quality medical resources and trusted healthcare services.

 

(vivian.yang@jd.com)

JD Health Launches “Family Care Project”

by Hui Zhang

JD Health announced a “Family Care Project” at the JD Health Partners’ Conference in Chengdu on Oct. 29th, aiming to provide a one-stop healthcare solution for family health management.

JD Health’s “Healthcare + Medicine” business model has been widely recognized by consumers and has played an important role in meeting their healthcare demands since the outbreak of COVID-19 pandemic. The pandemic has also changed people’s attitudes towards telemedicine.

According to official statistics, the number of telemedicine consumers in China has reached 620 million.

For the upcoming grand promotion of November 11th, JD Health introduced a “Family Care Package”, which is part of the project, focusing on providing coupons and discounts for products and services related to healthcare management and medicine purchase.

The Family Care Package includes online consultation services. It also includes a family health check-up service, which frees consumers from the hassle of choosing a health check-up package, as well as offers them the opportunity to consult with a doctor about health check-ups and have the report interpreted. The package also provides common household remedies and health related products, such as cold medicine, masks and disinfectant, which are also highly practical and necessary to safeguard the health of the family.

“The launch of the ‘Family Care Project’ is aimed at responding to consumers’ online health management needs, expanding the reach of the service from individuals to families, and giving back to consumers through preferential policies”, said Fan Hui, general manager of JDH’s marketing department.

Fan Hui, general manager of JDH’s marketing department, introducing “Family Care Project”

Fan Hui, general manager of JDH’s marketing department, introducing “Family Care Project”

JD previously launched a “Family Doctor” telemedicine service in August to provide timely, consistent and comprehensive primary healthcare support for families.

 

(zhanghui36@jd.com)

JD Applies New Services to Provide Better Shopping Experience during Singles Day

by Rachel Liu

Shopping festivals are no longer only about promotions. According to the 618 Ecommerce Platforms Service Satisfaction Report released by Retail Lab under Southern Metropolis Daily, price only ranks No.3 among the key concerns for customers in shopping, and service has surpassed price to become a top focus for customers. JD has launched a series of innovative services covering different businesses in this Singles Day to provide customers with a better shopping experience.

 

Mobile Phone

During this Singles Day, JD is providing 43 services for mobile phone consumers, including the highly popular trade-in, one-hour delivery, 30-day no reason return, and two other new services. JD’s Singles Day pre-sales period is being held October 21st -31st, and the official sales period is from November1st -11th. Customers can pay a deposit during the pre-sale period and then pay the rest when the official sale begins, and enjoy a cheaper price.

Typically, this would be that customers wouldn’t receive their products right away, but JD has arranged for some of the mobile phones to be pre-ordered and paid for earlier, and then JD will deliver the products same- or next-day. If the price happens to drop further after November 1st, the price difference will be deposited in customers’ accounts automatically. As the first e-commerce platform to launch this service, JD has witnessed its growing popularity among customers – data shows that over 50% of the customers chose to enjoy the products ahead of time instead of waiting for official sales.

Another service is the 1.2 times refund. If customers find that the prices of mobile phones bought on JD are lower during the Singles Day period, JD will provide a refund that equals 1.2 times the price difference. JD also continued its 30-day return service and expanded it to most of the mobile phone products on the platform, while the industry standard is usually 7-day return window.

 

Consumer Goods

This Singles Day, pet owners don’t need to worry about buying the wrong pet food on JD. During big promotions, pet owners tend to stock up on pet food, but they can’t guarantee that their pets will enjoy the taste. JD Super, JD’s online supermarket, has launched a new service which allows customers to return already-opened pet food that their pets don’t like. During Singles Day period, the service is expanded from seven days after customers receive the orders to 30 days. JD Super also extended its refund policy to 30 days – from November1st to November 30th, customers who find that prices of items they previously bought are even lower can apply for a refund of the price difference.

 

Fresh Food

JD Fresh launched nine after-sales services to ensure customers enjoy high-quality, fresh and healthy food. If customers having problems with their orders, such as damaged packages or food quality issues, they can apply for after-sales service within 48 hours. Customers can enjoy a refund directly without the need to send the old products back. For example, October and November are hairy crab season in China and many consumers visit JD to buy hairy crabs. Any customer who finds a dead crab in their order can immediately receive two live hairy crabs.

 

Health Consultancy

COVID-19 has made customers get familiar with online health consultancy. To enable more customers to enjoy premium health care resources, JD Health invited over 100 doctors from AAA hospitals (the highest tier of hospitals in China) in different areas to provide free consultancy services for JD customers during this Singles Day.

 

Additionally, as many customers began to decorate their new homes with the improvement in the COVID-19 situation, JD has been providing comprehensive home furnishing services including measurement service at customers’ doorsteps, free delivery and installment of furniture, and 30-day no reason return.

 

(liuchang61@jd.com)