Feature: A Peek Into JD’s Blockchain Business

Posted on by Ling Cao

by Robin Luo

Blockchain has become increasingly popular in recent years, as it can provide undeniable transparency and improve consumer trust.

But for ordinary people, their question is simple: What is blockchain, and what changes will it bring to them?

“Take food as an example: beef, chicken, or seafood,” said Liu Wenjing, a blockchain specialist with JD Digits, a leading digital technology company that has its roots in JD.com. “Information will be collected and traced by blockchain from rearing, feeding and all the way to shipping and delivery. And it can’t be altered without authorization.”

This year marks the 7th anniversary of JD Digits. The young unicorn company has gained fast growth since it was founded. Liu Wenjing and the blockchain have grown along with the company.

In November 2016, the JD-Y business unit, which is devoted to supply chain innovation, was officially created, and with it, the JD Blockchain team was also formed.

At that time, blockchain was still at an early stage, and the concepts of asymmetrical cryptography and intelligent contracts were new to lots of researchers. Liu and colleagues had to learn from scratch.

“It felt like I was back to school,” she recalled. “Every day we had to study hard on blockchain. Each one of us was assigned with a certain field, and we needed to learn fast, then share the knowledge with others.”

Their efforts paid off. A few months later, JD announced the establishment of JD Tracing and Counterfeit Alliance, a platform aiming to put data from important steps in the production process online, and to make it tamper-proof through blockchain.

JD’s blockchain has been applied successfully in a number of cases. In an ongoing project called the Running Chicken, JD helps farmers in Wuyi County in Hebei province raise free-range chickens. Blockchain technology has played its role for maximum quality assurance and full traceability.

Since early 2018, JD customers have been able to review details about the rearing process for every chicken they buy. A scan of the QR code on the poultry’s packaging allows buyers to view detailed information on sourcing, feeding intervals and more. The chickens are delivered via JD’s self-operated logistics network.

For well-known brands like Wyeth and Nestlé, JD integrates their products with its own storage and logistics system, and creates a unique ID for each can of milk powder to ensure information transparency.

Step by step, JD’s blockchain platform has already partnered with over 1,000 brands and merchants, accumulated more than one billion pieces of commodity data, and responded to more than 7.5 million consumer traceability requests. Scenarios covered include the categories of fresh goods, maternal and infant, alcohol, makeup, supermarket and convenience store, and more.

Blockchain is one of the many high-end technologies JD Digits is embracing. It also has business in AI, robots, digital marketing, smart city and fintech fields.

Things have changed in Liu Wenjing’s work. Four years ago, she had to promote the newly-born blockchain service from door to door. Now as the technology is thriving, more and more companies are reaching out to her for cooperation.

“Through blockchain, we helped companies improve efficiency, create new business models and accomplish digital transformation,” Liu said, her eyes were sparkling with confidence. “I believe blockchain still has huge potential in the future.”

 

(press@jd.com)

JD and Fulinmen Partner on B2M Initiative

Posted on by Rachel Liu

by Rachel Liu

JD Business and Fulinmen, China’s leading brand for rice and cooking oil, formed a partnership for B2M on October 21st.

B2M means Business to Manufacturer, and is a similar model as C2M but is related to providing customized products through JD’s big data and customer insights for enterprises purchases. In the partnership, the two sides will jointly develop customized products and services based on JD’s big data to meet enterprise clients’ demands for employee gifts.

Rice and cooking oil are popular products for employee gifts in Chinese companies. Since Fulinmen’s debut on JD Business in 2016, it has become a top-selling brand during festivals when companies need to send employee gifts. Sales of Fulinmen on JD Business increased 133% during the Dragon Boat Festival (May 5th on Lunar calendar, which is June 25th this year) and nearly 100% during the Mid-Autumn Festival(August 15th on Lunar calendar, which is October 1st this year.).

JD’s B2M customization platform provides direct connection between Fulinmen and enterprise customers. Customers can submit their demands for products regarding aspects such as package design on the platform, and these requirements will be sent to Fulinmen’s factory for production. The two sides will also work together on the building of sales channels and a service network. In the future, JD can also work with Fulinmen’s networks and dealers all over China to explore more business opportunities.

“We have observed that the products designed for individual customers are not always suitable for enterprise customers, and customized products for enterprises is a market with huge potential. We hope to work with Fulinmen to explore this market with more customized products,” said Yu Chen, general manager of key accounts, JD Business.

 

(liuchang61@jd.com)

Richard Liu’s Coaching Management Style Helps Incubate Unicorns

Posted on by Yuchuan Wang

by Yuchuan Wang

On September 27th, JD Health, JD.com’s health unicorn, filed to list on Hong Kong Stock Exchange. Recalling the company’s six years’ of development, Lijun Xin, CEO of JD Health, is grateful for Richard Liu’s confidence in the team and his directional coaching.

In the early development stage of the company’s health business, Xin and his team encountered many problems. Liu was always encouraging the team to see the opportunities in the industry and believed that they could build another JD.com through JD Health.

In 2017, when the business had already become China’s largest online retailer for pharmaceuticals, Xin was hesitating as to whether to pursue other medical services such as online medical consulting. “You have to do the business thoroughly. If JD wants to enter the health industry, the business should spin itself off from the retail business and develop according to the industry’s own laws,” said Liu.

In August 2020, Hurun named JD Health the youngest unicorn valued at US$ 7 billion and now its business has extended from retail to internet-based medical service, intelligent hospital solutions, and consumer healthcare services.

When Liu first established JD Digits (formerly JD Finance), he gave Shengqiang Chen, CEO of JD Digits, two directives, and let him lead the business independently. First, do the dirtiest, bitterest, the most tiring and most difficult work for the industry as this will be the most valuable and long-term; Second, Liu required that if JD Digits were to make RMB 100 yuan, it would reserve RMB 30 yuan for clients and partners.

The valuation of JD Digits has reached more than RMB 200 billion yuan and filed its IPO papers on the Star market in Shanghai in September this year. The IPO is widely expected to be the biggest digital technology IPO on the Star market.

“Apart from Liu, those who did real jobs at JD are now emerging from the backstage, which is a good thing for investor confidence,” said David Dai, a Hong Kong-based analyst with Bernstein, in an interview with Bloomberg.

Since 2018, JD.com made many efforts to adjust its organization structure so that each business unit can be focused on its operations and development. In addition to the organization upgrade, the atmosphere of appointing young managers, advocating for technology innovation and constantly improving talent cultivation plans are imperative for JD’s future development.

 

(yuchuan.wang@jd.com)

JD Health Doctor Made The First Prescription of New Viagra

Posted on by Martin Li

by Martin Li

Pfizer partnered with JD Health to launch the latest generation of its popular erectile dysfunction (ED) medication Viagra in China on October 25th. Doctor of JD Health provided consultation for patient and wrote the first online prescription for the new Viagra Orodispersible Tablets on the day.

The sales of ED medications on JD Pharmacy have grown at a rate of more than 70% for the past four years, according to data from JD Health.

JD Pharmacy is the online drugstore of JD Health, which is a combination of online drugstore and medical consultation.

ED medicine sales had exceeded the total of last year by September this year. 47% of the buyers in the first nine months of the year were first time buyers.

Besides users, JD Health has also witnessed increasing popularity among leading pharmaceutical companies like Pfizer.

October 25 marked China’s 21st annual male health day.

JD Health will strengthen cooperation with Pfizer in the fields of patient education, health management and customized medical service. Plus, the two parties will explore the innovative Internet-based ED treatment modes.

 

(bjlihao3@jd.com)

 

 

JD Logistics Awarded Best Social Enterprise in Greater China

Posted on by Yuchuan Wang

by Yuchuan Wang

JD Logistics, JD.com’s logistics arm, has been awarded by HRoot, China’s leading human resources media company, as one of the total 14 enterprises including Manpower Group, Bayer China, SGS China and Dalian Wanda Group won the Best Social Enterprises in Greater China award on October 24th.

With the mission “Powered by technology for global efficient circulation and sustainable development”, JD Logistics received the award for combining revenue growth, profitability, and for creating value for its employees, clients, the industry, the society and the environment.

Powered by technology for global efficient circulation and sustainable development

As of now, JD Logistics has served 200,000 business clients to provide integrated supply chain and logistics services. Its logistics network is able to deliver 90% of JD.com’s first party orders in 24 hours, providing an efficient logistics experience that no other company at this scale in the world can match.

Despite the rapid development of business scale, JD Logistics is committed to providing its employees a dignified, happy and fulfilling working experience. With more than 200,000 full-time logistics employees, the company continues to provide staff with competitive salaries and benefits, incorporating advocacy of social responsibilities.

The Green Stream Initiative is JD Logistics’ key sustainability strategy. Since its launch in 2017, JD Logistics has been leading the industry in cutting its carbon footprint such as application of recycled packages, new energy logistics vehicles and photovoltaic power generation.

With the goal of becoming a world-leading supply chain logistics enterprise, JD Logistics will keep promoting rapid industry growth and sustainable development.

 

(yuchuan.wang@jd.com)

JD Logistics to Power Humanwell Healthcare’s Pharmaceutical Supply Chain

Posted on by Yuchuan Wang

by Yuchuan Wang

Humanwell Healthcare Group, a China-based integrated healthcare solutions provider, has inked a partnership with JD Logistics who will help Humanwell build an integrated smart medical supply chain management system.

JD Logistics will power Humanwell in four major areas. First, it will help the healthcare company upgrade its warehouse management system to be flexible enough to manage multiple warehouses. Second, by building a highly expansible and compatible system, JD will enable every order of Humanwell to be tracked. Third, JD will help manage Humanwell’s up and downstream partners’ data digitally and systematically. Finally, an operations data visual platform will help the company make informed decisions and improve the sales forecast accuracy.

“The digitization of supply chain is of great significance in improving the overall operations efficiency especially under uncertainty,” said Hongjie Zhang, chairman and general manager of Humanwell. “Leveraging the partnership with JD, we hope to build an even more efficient warehouse management system which may provide a new method supply chain management in the medical industry.”

“JD Logistics is committed to building an agile supply chain with partners like Humanwell to further improve the industry’s supply chain level and technology services,” said Bing Fu, head of strategy at JD Logistics. “The exploration with Humanwell will provide a supply chain solution replicable throughout the entire pharmaceuticals industry.”

 

(yuchuan.wang@jd.com)

JD’s Smart Fulfillment Center Featured in Bloomberg’s Coverage of China’s Q3 GDP

Posted on by Martin Li

by Martin Li

The robust activity inside one of JD’s highly automated fulfilment centers has been featured in Bloomberg’s latest coverage of China’s GDP figures for Q3, which grew by 4.9% year on year.

“No place is more symbolic of China’s economic recovery than an online shopping fulfillment center like JD’s,” said the media in its tweet.

“No place is more symbolic of China’s economic recovery than an online shopping fulfillment center like JD’s,” said the media in its tweet.

Screenshot of Bloomberg’s video report

JD’s Asia No.1 fulfillment center in Beijing is one the company’s 30 such facilities across China. It covers an area of around 120,000 square meters and went into operation in 2017.

The center in Beijing handles orders from places like Beijing, Hebei, Shandong, Tianjin and Inner Mongolia. Its maximum daily handling capacity is more than 800,000 orders.

The center has witnessed a 10% growth in the number of orders in the past one month.

Watch Bloomberg’s video report Here

 

(bjlihao3@jd.com)

 

Consumers Rush to JD Super for Coffee, Chocolate, Razors and more in Singles Day Pre-sale

Posted on by Ella Kidron

by Ella Kidron

Consumers are getting a head start in stocking up on all things FMCG this Singles Day period. Data from the kick-off of the pre-sales indicates high demand for various products. For example, the Nestlé Dolce Gusto gift box sold out in 30 minutes, reaching a record high and ranking No. 1 in the “mixed food” category (which typically includes items like instant drinks). Sales of delectable Ferrero Rocher 48-piece packs within the first 20 minutes of the pre-sale exceeded sales of the entire day last year, and sales on the day saw year on year growth rate of over 1000%.

Sales of the Gillette gift box on October 21-22 increased 200% YOY. Dental health category sales increased five times compared with last year. High end imported grain pet food was very popular, among which sales of PetcurenGo within 20 minutes of the pre-sale exceeded the whole day last year, increasing a whopping 3000% on the day. This reflects the fact that consumers are constantly paying more attention to pet health, in addition to their own.

JD Super, JD’s online supermarket which is also China’s largest, has seen strong performance having shown early on this year that it was able to guarantee the livelihoods of consumers across the country in the most pressing period of the COVID-19 outbreak. On JD’s second quarter 2020 earnings call on August 17th, CFO Sandy Xu explained that the supermarket category, including FMCG and fresh produce, became the single largest product category by revenue in the first half of 2020, surpassing mobile phones, home appliances, and computers – JD’s former “champion categories” (which also performed well).

 

(ella@jd.com)