Dada Receives ESG Rating Upgrade from MSCI

Posted on by Vivian Yang

Dada Nexus Limited (NASDAQ: DADA, “Dada”), China’s leading local on-demand delivery and retail platform, and a wholly consolidated subsidiary of JD.com, recently received an ESG (Environmental, Social, and Governance) rating upgrade from Morgan Stanley Capital International (“MSCI”). Dada’s ESG rating was upgraded from “BBB” to “A”.

MSCI ESG Ratings provide an opinion of companies’ management of financially relevant ESG risks and opportunities. The latest upgrade recognizes Dada’s firm commitment to sustainable development and continuous improvement in ESG practices. In particular, Dada outperformed the industry in multiple categories including carbon emissions, privacy & data security and corporate behavior.

In addition, in September 2023, Dada received an ESG score of 36 in the S&P Global Corporate Sustainability Assessment, ranking it among the top 16% in global peers of FDR Food & Staples Retailing.

Dada has been incorporating ESG philosophies and standards into its business operations as part of its sustainable development strategy. In May 2023, Dada published its 2022 ESG Report, comprehensively disclosing its governance, management approach and practices in key ESG issues. Several highlights include:

On the environmental front, Dada aims to promote end-to-end carbon emission reduction.

  • In 2022, Dada Now’s intra-city on-demand delivery service covered over 1.8 billion kilometers, with electric vehicles accounting for almost 100% of its fleet. This has resulted in a significant reduction of approximately 500,000 tons of greenhouse gas (GHG) emissions compared with deliveries made with gasoline vehicles.
  • Since 2020, JDDJ has gradually transitioned from ordinary plastic bags to biodegradable plastic bags, which covered around 70% of total orders on JDDJ in 2022.
  • Dada also strives to foster a low-carbon culture in workplaces, with scope 1 and 2 GHG emission intensity reducing by over 50% to 0.11 tons per RMB million revenue in 2022.

On the social front, Dada practices “win-win development” together with employees and ecosystem partners.

  • Pursuing the equal pay for equal work principle, Dada saw the pay gap between male/female employees and overall workforce at merely ±2% in 2022.
  • JDDJ enters in in-depth partnerships with retailers and brands in China, helping partners seize on-demand retail opportunities and enhance operating efficiency. It has now onboarded over 400,000 offline stores and cooperated with around 300 brand partners, serving users across 2,200 cities and counties.
  • Dada Now provides employment opportunities for a wide range of flexible workers, with around 1 million annual active riders in 2022, of which over 80% were from lower-tier cities. Dada Now has also launched comprehensive safety protection measures and established effective incentive schemes to protect riders’ interest, while actively providing training and care for riders to enhance their experience.

On the governance front, Dada focuses on improving its corporate governance and practicing responsible business conduct.

  • Dada is committed to enhancing board diversity and professional skills, strengthening risk management, and adhering to business ethics.
  • Dada attaches great importance to user privacy and data security. In the end-to-end process of user data collection, storage, computing, usage, sharing and destruction, Dada upholds the principle of protecting user rights and interests. It also integrates user privacy protection philosophy into product R&D. For example, since 2019, Dada Group has implemented a virtual number program to protect user privacy.

To view Dada’s ESG report in full, please visit the ESG section on Dada’s IR website at https://ir.imdada.cn/corporate/environmental-social-and-governance.

 

(fuzongheng1@jd.com)

JD.com Debuts the National Pavilion of Colombia

Posted on by Vivian Yang

JD.com proudly announced the official launch of the National Pavilion of Colombia on December 19th, marked by a grand opening ceremony held at the Embassy of Colombia to China in Beijing. The country-themed online store is the result of significant support and backing from the Embassy of Colombia to China and ProColombia, and is a collaborative effort between JD Super, Prestige International, and several leading Colombian food and beverage brands.

Showcasing Colombia’s Premium Delicacies

Among the first products featured on JD’s National Pavilion of Colombia is the country’s national chocolate brand LOK, made from Colombia’s single-origin beans. Another highlight is ALTITUD1960 coffee, offering a unique osmanthus sugar flavor derived from Colombia’s famous coffee beans. Additionally, the pavilion showcases Dictador rum, a long-time favorite in royal circles.

Yusuf Ma, head of JD Super’s National Pavilion program, highlighted the intent behind this collaboration: “Responding to the rising demand for unique, high-quality international products in China, we’ve collaborated with partners who bring strong supply chain expertise. We’ve also received endorsement and support from embassies and official bodies to expand our selection of premium global products. Our goal is to deepen our cooperation with Colombian businesses, aiding their growth in China and introducing more Colombian products to the Chinese market.”

Promoting Trade and Cultural Exchanges Between Colombia and China

H.E. Sergio Cabrera, Ambassador of the Republic of Colombia to China, expressed confidence in the initiative, stating, “I am convinced that this initiative will be a catalyst for promoting Colombia in China.” He added, “This project has our full support to promote our country’s products, culture, and, above all, to demonstrate the hard work and talents of the Colombian people.”

“We believe that the Colombian National Pavilion on JD.com will be a window for Chinese customers to get to know and fall in love with Colombia for its richness and charm, ” said Tina Yang, Vice Chairperson of Prestige International Trade Development Co., Ltd.  “Meanwhile, we look forward to further promoting exchanges and cooperation between China and Colombia in the fields of culture, art, and education, injecting new impetus into the friendship and cooperation between Colombian and Chinese people.”

Launching the Cocoa Farmer Support Plan

The National Pavilion’s opening also marked the commencement of the “Cocoa Farmer Support Plan,” a social welfare initiative by JD.com, in collaboration with Prestige International, LOK, and the El Alcaraván Foundation. This plan dedicates 4.5% of LOK chocolate sales to aiding Colombian cocoa farmers, improving their income and living standards.

The initiative focuses on promoting fair trade practices to ensure fair remuneration for 1,600 local cocoa farmers. It also aims to support cocoa farming families with children out of school, facilitating their return to education through subsidies.

JD.com’s National Pavilion program now features over 110 pavilions, showcasing nearly ten thousand specialty products from almost 60 countries. In August, JD.com introduced its “Pavilion of Latin America and Caribbean” (LAC) online store. As the program expands, JD National Pavilions are set to unlock new opportunities for collaboration, benefiting consumers, producers, brands, suppliers, and their communities.

 

(vivian.yang@jd.com)

JD.com Earns Spot on 2023 Dow Jones Sustainability World Index

Posted on by Vivian Yang

S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, recently announced the results of 2023 Dow Jones Sustainability Indices (DJSI).  For the first time, JD.com was included on the Dow Jones Sustainability World Index ((DJSI World), which represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index (BMI) based on long-term economic, environmental, and social criteria.

The DJSI are float-adjusted market capitalization weighted indices that measure the performance of companies selected using environmental, social, and governance (ESG) criteria, and the DJSI World comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA). JD.com’s inclusion on the index underscores the company’s ESG progress and achievements.

JD.com’s 2022 ESG report highlights the company’s commitment to establishing a “Responsible Supply Chain,” with significant strides in enhancing its ESG practices in line with long-term objectives. Key achievements include:

  • Sustainable Development: JD Logistics has recycled packaging over 220 million times. Under its Green Stream Initiative, reusable boxes have been deployed 200,000 times across 30 cities, totaling 20 million deployments. Additionally, JD has installed photovoltaic power systems in 23 industrial parks, with the Xi’an Intelligent Industrial Park becoming the first in China to achieve carbon neutrality in logistics. The company has expanded the use of electric vehicles and introduced hydrogen-powered transport routes nationwide.
  • Employee Welfare and Job Creation: Over the past three years, JD has generated 290,000 new jobs and invested RMB 106.5 billion in compensation and benefits for frontline staff. The company has also established a housing security fund for employees and invested over RMB 60 billion in the “JD Youth City” housing development.
  • Rural Revitalization: JD’s approach to modernize agriculture has integrated small farmers into larger markets, significantly benefiting rural economies. This strategy has generated a trillion-yuan output in less than three years, impacting millions of farmers. The second JD Agricultural Specialties Shopping Festival supported over 2,000 agricultural production zones, promoting high-quality development.

In October 2023, JD joined the United Nations Global Compact’s “Forward Faster” initiative, committing to leading in the gender equality goals and demonstrating its commitment to sustainable development and corporate social responsibility aligned with the global Sustainable Development Goals.

As a technology and service company with supply chain at its core, JD.com is dedicated to powering a more productive and sustainable world through technology. This commitment extends to collaborating across diverse sectors to contribute to a vision of a green and sustainable future.

 

(vivian.yang@jd.com)

Posted in ESG

JD Logistics Accelerates Global Expansion with New Express Delivery Service to North America and Europe

Posted on by Yuchuan Wang

December 15, 2023 – JD Logistics, the logistics arm of JD.com and a global leader in integrated supply chain and logistics solutions, today announced the launch of its international express delivery service. The new service marks a significant milestone for JD Logistics, representing both an expansion of its renowned logistics services to the global stage and a key phase in the company’s broader international market expansion.

Currently available for individuals in Shenzhen and Guangzhou, the express delivery service will initially cover 23 countries across North America and Europe, facilitating one-way deliveries from China. Looking ahead, JD Logistics plans to extend the reach of this service, expanding its availability throughout China.

Leveraging the company’s robust express delivery network, customers in China can book doorstep pick-ups through the JD Express mini program on WeChat and expect one-hour pick-up by JD’s in-house couriers, a testament to the company’s dedication to efficiency and customer satisfaction. Moreover, real-time parcel tracking provides customers with transparency and peace of mind throughout the delivery process.

JD.com is actively expanding its international supply chain and logistics capabilities. In a strategic collaboration with Geopost earlier this year, JD Logistics developed comprehensive shipping solutions for consumers and businesses between China and Europe. Additionally, the company is adapting its highly efficient warehousing model, proven successful in China, to meet industry demands in Europe, North America, the Middle East, Australia, and Southeast Asia. Notably, JD Logistics’ overseas warehousing operations already offer same-day fulfillment services in key European markets, including Germany, the Netherlands, France, the U.K., Spain, and Poland, while ensuring rapid two-to-three-day delivery across 90% of regions in the United States.

JD Logistics’ venture into international express delivery is a natural extension of its existing capabilities. Over the past decade, the company has transformed the delivery landscape in China by pioneering same- and next-day delivery, setting a new standard of service for hundreds of millions of consumers. This achievement was made possible through JD Logistics’ six highly synergized logistics networks, encompassing warehousing, line-haul transportation, last-mile delivery, bulky item delivery, cold chain logistics, and cross-border logistics.

 

(yuchuan.wang@jd.com)

JD Worldwide Launches the “Bayern Pavilion” in Cross-Border E-Commerce Initiative

Posted on by Vivian Yang

On December 8th, 2023, JD Worldwide, the cross-border e-commerce platform under JD.com, announced a new collaboration with the city of Munich, Bavaria (Bayern in German), and digital marketing agency Hylink to introduce the “Bayern Selectives Pavilion.” This themed flagship store is designed to provide Chinese consumers with a convenient one-stop online shopping experience to discover and purchase a variety of Bavarian products and cultural items.

The inaugural brands launched in the store include Roeckl, Die Rockmacherin, Werner Christ, and Online pens, featuring a diverse range of categories such as apparel, accessories, food and beverages, and stationery. In response to evolving consumer preferences, the Pavilion intends to expand its product range by offering skincare and beauty brands, delicacies, and many more.

During the pavilion’s opening ceremony, key partners from the state of Bavaria, including Clemens Baumgärtner, Head of Munich’s Department of Labour and Economic Development; Helmut Käs, Head of BMW Group Classic and Managing Director of Munich Tourism Promoting Association; Michael Käfer, CEO of Käfer; Caroline Lauenstein, founder of Die Rockmacherin; Alexandra and Thomas Batsch; and Alexander Apfel, founders and CEO of ONLINE, recorded video messages expressing their enthusiasm and support for the Bayern Select Pavilion, emphasizing its role in extending the reach and accessibility of premium Bavarian products to the Chinese market.

Tong Defa, Consul General of the Chinese Consulate in Munich, highlighted the significance of this collaboration as a milestone in Sino-German trade relations. In his remarks, he noted that “China is the world’s largest import market of cross-border e-commerce. JD Worldwide’s expansion will create increasing global opportunities, benefiting more countries and regions like Germany and the state of Bavaria.”

Luke Liu, Head of KA, duty-free and global sourcing in Europe of JD Worldwide, said, “We are thrilled to seamlessly integrate Bavaria’s premium brands and products, JD’s highly efficient sales channels, and the aspirations of Chinese consumers for high-quality goods through the establishment of the Bayern Selectives Pavilion. We strive to enhance services across consumer scenarios, marketing, quality of products and customer services, and merchant recruitment to become the preferred gateway for international brands entering the Chinese market.”

Wenjing Wang, Managing Director of Hylink Germany, which is the operator of the pavilion, said, “Hylink is dedicated to building communication bridges for premium brands between China and the world. Starting with the Bayern Selectives Pavilion project, we aim to collaborate closely with the Munich city to curate distinctive local products, inviting Chinese consumers to appreciate the craftsmanship, culture, and history of Bavaria.”

Imported European products, particularly those from Germany, have consistently found favor among Chinese consumers on JD.com. According to the “2023 Report on European Imported Product Consumption Trends” by JD’s Consumption and Industry Development Research Institute, young consumers aged 26 to 35 account for 45% of European product purchases. Furthermore, there is a growing interest in European products among consumers in rural and county markets in China, with a high appreciation for goods made in Germany.

 

(vivian.yang@jd.com)

JD Technology’s Supply Chain Financing Extends to Third-Party Warehouses

Posted on by Yuchuan Wang

JD Technology, the technology services arm of JD.com, recently announced the opening of its supply chain finance services to third-party warehouses. In collaboration with Deppon Express, JD Technology now provides warehousing operations + mortgage financing solutions to clients in sectors ranging from home appliances to wine & spirits industries.

Since 2014, JD Technology has been at the forefront of offering logistics financing solutions tailored to industry needs. At present, JD’s mortgage financing offers loans secured against stored goods. This innovative platform supports real-time, automated management of collateral, enabling around-the-clock repayment options. For merchants selling through JD.com’s retail business, JD Retail, credit lines of up to RMB 10 million can be approved automatically, with funds made available instantly. This contrasts with traditional financial institutions, as non-JD Retail merchants benefit from simpler document submission requirements and a more efficient due diligence process.

Deppon Express operates in more than 60 cities and has 1.3 million square meters of warehouse space. It provides customized solutions for large and delicate items such as home appliances, furniture, and wine & spirits, and enhances JD’s supply chain financing in monitoring and managing goods in warehouses. JD Technology’s expertise in supply chain financing is anchored by three core capabilities: the efficient management of goods, accurate valuation of goods, and a robust network for goods disposal. Specifically, in terms of product admission and valuation, JD Technology can integrate online sales data to systematically and dynamically estimate the value of goods. This approach considers various factors, including historical transaction data, product price trends, and projected market demand, and more.

JD Technology’s logistics financing solutions are making a significant impact across nine key industries, ranging from home appliances to spirits, and encompassing sectors like computer and office supplies, mobile phones, as well as baby and maternal products. The scale of its operations is vast, having overseen more than 2,000 warehouses and managing an inventory valued at over 20 billion yuan.

 

(yuchuan.wang@jd.com)

JD.com Celebrates the Launch of Slovak National Pavilion

Posted on by Vivian Yang

by Vivian Yang

On December 5th, JD.com announced the grand opening of the National Pavilion of Slovakia at the residence of Ambassador of the Slovak Republic to China Peter Lizák,  The event marked a significant moment, as Slovakia, famously known as the “Country of Castles,” became the 20th European country to launch a country-themed flagship store on JD.com.

Ambassador Lizák expressed in his opening remarks, “This project marks a significant milestone for Slovak enterprises and Chinese customers. It brings new potential into our bilateral cooperation.”

The Pavilion showcases a range of Slovak specialties, including the internationally acclaimed LYRA ruby milk chocolates, wine collections from 400-year-old Modra wine cellars, and exquisite RONA glassware. These specialties are now readily accessible to Chinese consumers via the JD app, offering them the ease of shopping with competitive pricing and JD’s efficient delivery services.

“This is just the beginning. More Slovak products will soon be added,” said Ambassador Lizák, revealing a number of Slovak premium dairy brands are on the way to meet Chinese consumers. Moreover, Ambassador Lizák noted the growing opportunities in tourism, especially with Slovakia’s recent inclusion on China’s overseas group tours destination list, which could attract Chinese visitors to Slovakia’s scenic landscapes and historic landmarks.

Yusuf Ma, head of JD Super’s National Pavilion program, part of the JD Retail division, said, ‘We are excited about the prospect of deepening our collaborations with additional Slovak brand partners and suppliers. This initiative is a reflection of JD’s commitment to enriching the Chinese market with a diverse assortment of high-quality products. Moreover, through our support of global brands in their journey into the Chinese market, the National Pavilion program becomes a vital link for cultural engagement and a dynamic platform for promoting tourism.” With over 50 brands achieving annual sales exceeding 1 billion RMB and more than 500 brands surpassing 100 million RMB in annual sales, JD Super has solidified its position as the go-to online store for Chinese consumers in supermarket categories, serving as a significant sales growth platform for numerous brands.

King Wang, chairman of CLIBIZ Holding Ltd., the store operator of the National Pavilion of Slovakia stated that “As the link between the embassy and JD.com, we aim to seamlessly introduce Slovak products to JD. Drawing on our expertise in online operations, we’ll focus on product curating, positioning, marketing, customer service, and more aspects for a smooth shopping experience.”

JD.com’s National Pavilion program now features over 110 pavilions, offering nearly ten thousand specialty products from almost 60 countries. The recent Singles’ Day Grand Promotion saw a remarkable 700% year-on-year growth in Gross Merchandise Volume (GMV) within the first 10 minutes, reflecting strong consumer interest in international products.

JD.com remains dedicated to fostering global trade and cultural exchange. The launch of the Slovak National Pavilion is a prime example of JD’s commitment to bridging the gap between Chinese consumers and the wider world, supported by its robust logistics and customer service expertise.

 

(vivian.yang@jd.com)

Empowering Beauty Retail: JD Worldwide Introduces Incentives and Solutions in Cross-Border E-Commerce

Posted on by Vivian Yang

by Vivian Yang

JD Worldwide, JD.com’s one-stop shopping platform for both imported and exported goods, recently hosted a merchant recruitment event in Shenzhen, focusing on beauty and skincare categories. Held on November 30th, the event showcased JD’s innovative cross-border e-commerce solutions, highlighting our integrated supply chain capabilities, and introduced various incentives for new merchants joining the platform.

Emerging Consumer Trends and Market Leadership

“The Gen Z demographic, primarily consisting of individuals born after the year 2000, has emerged as a major driving force in the consumption of imported beauty and skincare products. Since 2023, this group has shown an extraordinary growth of more than 250% year-on-year on JD.com,” shared the category manager of JD Worldwide. “Moreover, JD Worldwide continues to lead in engaging users from China’s smaller cities in this market segment, further establishing our platform as the go-to site for imported goods.”

JD Worldwide introduced bespoke incentive policies tailored for beauty and skincare merchants at the event, including JD’s “Spring Dawn” initiative, specifically designed to support small businesses and individual entrepreneurs in kick-starting their journey on the platform. Merchants can also benefit from substantial premiums of up to 5% of their annual sales. Additionally, we introduced specialized incentives for newcomers in categories such as perfumes and cosmetics, ranging from reduced quality assurance deposits to commission rebates.

Rising Demand for Imported Goods

The demand for imported goods in China is on an upward trajectory, fueled by increased availability, enhanced service efficiency, and a gradual reduction in prices. The “2023 Report on European Imported Product Consumption Trends,” published by JD’s Consumption and Industry Development Research Institute, reveals a 79% rise in users purchasing European imports. Notably, there’s been a 312% increase in users below 25 years and a 207% rise in transactions in county and rural markets.

During this year’s Singles’ Day Grand Promotion, JD Worldwide experienced a significant 100% year-on-year increase in transaction volume across more than 350 cross-border imported product categories. Particularly noteworthy is the 20-fold growth in our Korean direct procurement business within the beauty category.

Continued Innovation and Consumer Appeal

JD Worldwide is relentlessly innovating, evident in our consumer-favorite models like global buyers’ stores, National Pavilions, Global Supermarket, and the “just-in-time inventory from official brand sites” program. By leveraging JD’s advanced supply chain capabilities, we’re continuously refining and expanding our ecosystem. Our focus spans enhancing consumption scenarios, devising impactful marketing strategies, ensuring product and service quality, and intensifying merchant recruitment. Our goal is unwavering – to equip brand merchants with the tools and support necessary to thrive in the Chinese market.

Discover more about the opportunities and growth potential with JD Worldwide.

 

(vivian.yang@jd.com)