GSSC Series: JD Announces World’s First Level-4 Autonomous Delivery Vehicle Application at Scale

by Yuchuan Wang

At Global Smart Supply Chain Summit held by JD Logistics on October 22nd, Zhenhui Wang, CEO of JD Logistics, announced that a city-level autonomous delivery robot project is being operated on a daily basis in Changshu, Jiangsu province, a top 5 county-level city by GDP in China. JD plans to put 100 autonomous delivery robots into operations in the city by the end of this year to facilitate Changshu in building smart city.

The robot drives itself, unsupervised, from JD’s delivery station loaded with parcels and plans its own route based on the parcels’ addresses. It will send messages or phone calls to recipients with a verification code so that they can pick up their packages. It waits a certain amount of time at every stop, such as a residential compound or an office building, before moving on to the next stop.

JD plans to put 100 autonomous delivery robots into operations in the city by the end of this year to facilitate Changshu in building smart city.

According to the State Post Bureau of China, as of October 18th, China has delivered over 60 billion packages in 2020. Thirty-eight days prior, the number was only 50 billion. Nearly 50% of couriers in China work 10 to 12 hours a day. As the delivery amount skyrockets, automated solutions are considered a viable way to ease the stress of both the industry and couriers.

JD debuted its very first autonomous delivery robot in September 2016. After years of research and iterations, JD Logistics revealed its 4.0 robot last year and became the world’s first company to apply Level-4 autonomous driving technology on public roads without any human interaction. In February this year, this robot was put into use in Wuhan, the epicenter of the COVID-19 outbreak in China, to ensure contactless delivery from delivery station to hospitals and residential compounds. During its 107-day deployment, the robot traveled over 6,800 kilometers and delivered more than 13,000 packages.

JD debuted its very first autonomous delivery robot in September 2016.

The core of JD’s autonomous delivery robots is the autonomous driving system developed in-house and its arithmetic logic unit which has lowered the power consumption to 10% of the industry average, and is equivalent to that of a standard lightbulb.

JD also researched a cloud simulation platform which has accumulated the historical operations data and is able to discern how the robot should behave in numerous traffic scenarios which largely raises the vehicle’s ability to drive safely on open roads.

In addition, JD also launched a delivery robot “adoption plan”. In Changshu, couriers can apply to adopt the delivery robots to facilitate their work. “We expect JD’s delivery robots to largely improve couriers’ working efficiency and enable them to have more time to provide more caring and customized services to consumers, transforming their job from operations to management,” said Qi Kong, Chief Scientist and head of Autonomous Driving at JD Logistics.

Jie Wang is a courier at JD’s Dongnan delivery station in Changshu. He adopted a delivery robot in August. He said that by employing the robot for part of his deliveries his monthly salary increased by over 30% in September alone. “It saved me plenty of time for delivery so that I am now able to put more of my attention on parcel collection,” said Wang.

Jie Wang, JD courier

Jie Wang, JD courier

“We will continue to increase the investment in logistics technology and we will also make logistics technologies available to the general public, facilitating social infrastructure upgrades,” said Zhenhui Wang, CEO of JD Logistics. “In terms of the application of technology, more than 100,000 robots will join our family in the next five years, greatly enhancing the customer experience and alleviating the workloads of our front-line brothers and sisters.”

 

(yuchuan.wang@jd.com)

JDer Lab #8 with Jeff Chai: Embracing Changes and Challenges

by Kelly Dawson

JD.com’s more than 280,000 employees range from warehouse workers to nation-renowned doctors, with a wide range of backgrounds and areas of expertise. In the next installment of our JDer Lab series, we speak to Jeff Chai, a management trainee in JD’s strategy division.

 

When Chai graduated from an American university in 2017 with a master’s degree in applied analytics, most of his peers chose to pursue finance or investment banking. But he wanted a different path, one that explored new territory and innovation in an evolving industry. Later that year, he joined JD’s headquarters in Beijing.

“I chose JD because I wanted to challenge myself, and because I wanted to do something different,” he said. “I got what I wanted at JD.”

In his time at China’s largest retailer, Chai has tackled many challenges, but 2020 has been a particularly meaningful year. As COVID-19 has accelerated around the world, JD has participated in various initiatives to support virus-fighting efforts.

“We spent almost 3 weeks, day and night, to generate a final solution to send masks from China to Europe and Latin-America to help them fight COVID-19,” Chai recalled. “Every person’s work, every small challenge was tough to overcome, but with passion and responsibility. I think everyone is proud of what JD did. I think this is how a company shows its social responsibility.”

For Chai, the emotion and pride of realizing the masks had successfully arrived in Europe, and were in the hands of people who could now face the virus safely, contributed to his best day so far at JD.

There have been other highs too, but one thing has remained constant: change. “Here at JD, everyone is used to changes, not only from the inside, but also from the outside world. The world is changing fast, so we have to embrace change.”

In his experience, some companies don’t encourage evolution, or their employees don’t have the confidence to adapt to evolving circumstances. But at JD, those changes are expected. JDers don’t fear change because they are aiming to be pioneers in the industry, Chai said.

This quality defines his colleagues, Chai said—along with intelligence, passion and professionalism. In his first year at JD, his small team did not have quantified KPIs, but every member of the group pushed above and beyond to achieve their goals. They didn’t want to settle for being “working machines” simply going through the motions, he said.

“They wanted to push themselves,” Chai said. “They hoped to do better, not just good. Those are JDers.”

(kellydawson@jd.com)

 

Chinese Consumers Tagged JD for Three Keywords: “Trustworthy”, “High-End” and “Highly Efficient”

by Vivian Yang

JD.com is rated as the most trustworthy e-commerce brand, according to a survey of Chinese consumers conducted by iResearch consulting firm. The ranking was released on October 20th as part of iResearch’s online consumption insights report, which aims to assess brand image among Chinese e-commerce platforms and to better understand the subtle relationship between consumers and these platforms.

The report indicated that 56.56% of respondents tagged JD.com with the keyword of “trustworthy”, which is a much higher rating than other platforms. The other two highest rated keywords for JD.com by consumers are “high-end” and “highly efficient”. This feedback is in line with JD’s long-term commitment to product authenticity and quality, as well as fast delivery and premier after-sales services.

The survey also found that the most popular product categories during this year’s Single’s Day shopping festival will likely be general merchandise and apparel. To encourage consumers to buy things more thoughtfully during the shopping extravaganza, JD will further enhance its services in providing helpful and timely support in the whole shopping process, in order to meet customers’ diversified demands and live up to their trust.

 

(vivian.yang@jd.com)

Nielsen: JD is Consumers’ First Choice for 3C Products In Singles Day Promotion

by Robin Luo

Based on projections by the data analysis firm Nielsen, JD is expected to be the first choice of consumers buying 3C products (mostly computer, consumer electronics, and communication products) in this year’s Singles Day promotion.

As the annual shopping festival nears, consumers are starting to plan what they want to buy. 3C products are among their top choices. The Nielsen report reveals that although the 3C product market has taken a hit from the pandemic in 2020 H1, there are signs of a gradual recovery since the second quarter.

Home electrics won the favor of more consumers on JD, gaining a 28.9% year-on-year increase in market share.

Why is JD standing out in the crowded 3C products market? The reason is its firm and lasting commitment in promoting better, more innovative services to consumers, analysts said. Additionally, contributing factors to JD’s success in this area are the integration of an omnichannel retail ecosystem, acceleration of digital processes and pushing forward the sinking market strategy, which is a shift toward lower tier markets.  

The report also shows that consumers have now raised their standards for a pleasant buying experience. Besides the basic elements of brand and quality, they also focus on the service they get. To some extent, service has become a new core value of e-commerce.

In 2020, JD has remained in close cooperation with 3C makers, and built a service system that covers the entire sales process. The shopping experience of consumers has been greatly boosted with new features such as one-hour delivery, 30-day insurance, 30-day easy refund and more. These measures have helped JD remain a top choice of consumers in the 3C category, resulting in a leading share of the market.

(press@jd.com)

JD Super Boosts Development of Tea Industry

by Rachel Liu

JD Super, JD’s online supermarket, has formed a tea industry alliance with the local government of Anxi, Fujian province and leading tea brand Bamatea (八马茶业). Anxi is the origin place of Tieguanyin tea, one of the most popular teas in China. Through this partnership, JD will leverage its big data platform to provide digital support for the transformation of the local tea industry. The three sides will also work together to build higher standards and a better environment for the tea industry.

Bamatea will leverage JD’s omnichannel ability by working with JD Daojia, SEVENFRESH, Yihaodian to achieve one-hour delivery in first to fourth tier cities, providing on demand service for customers.

JD Super will provide Bamatea with digitalized solutions and insights on customer profiles and shopping habits, in order to help the firm improve its service and products. In the next five years, Bamatea and JD will also co-build smart warehouses in mid-China to serve thousands of the tea brand’s offline stores.

“Tea is a very important category for JD Super, and it’s an important part of Chinese traditional culture,” said Xiaojun Wang, head of packaged food at JD Super. “As the leading supermarket in China both online and offline, we want to work more closely with our partners to achieve better growth. I believe under the partnership with Bamatea and Anxi government, the sales of Tieguanyin tea on JD will see another round of growth, and we can bring more tasty and healthy tea to our customers.”

JD Super and Bamatea have been partners since 2012. As of 2019, annual sales of Bamatea on JD Super have increased by 60 times. As of September 2020, customers who have become Bamatea’s members on JD have reached 1.05 million. JD Super is one of the fastest growing channels for Bamatea.

 

(liuchang61@jd.com)

Dr. Jianguang Shen: China Is Experiencing a V-Shaped Consumption Recovery

by Vivian Yang

Dr. Jianguang Shen, Chief Economist at JD Digits, spoke at the opening session of the World Economic Forum’s Job Reset Summit on October 20th to share his thoughts on China’s economic recovery and consumption trends under the theme of the “New Economic Context”.

“The [economic] recovery in China has been stronger than expected,” said Dr. Shen during the online discussion. “There is a V-shaped recovery on the consumption. According to JD’s big data, luxury goods consumption, in particular, has achieved over 50% growth [in the recovery period].”

Watch the replay of the opening session here.

Watch the replay of the opening session here.

As the virus is contained and normal life resumes in China, people have satisfied pent-up travel demand by venturing out during the National Day Golden Week holiday( October 1st to 8th ), and have shown an upsurge of spending desire on consumer goods. Dr. Shen pointed out that higher-income people who can work remotely during the lockdown still have strong spending power, whereas it is the lower-income people who are the most vulnerable, and whose consumption demand has been suppressed.

From a more macro perspective, Dr. Shen said that there are positive signs of China’s economic recovery, evidenced by a 9.9% export growth in September. Consumer electronics and home appliances are among the main categories China exports to the world, as people from many countries are needing these products to work from home during this period. At the same time, production in China has been very strong with a growth rate of almost 7% in September, which is even stronger than the same period last year. Consumption has picked up as well, but is still not as robust as production. But the excessive supplies from domestic production are well absorbed by the rest of the world.

In an exchange about how COVID-19 can promote the development of a green economy and ESG (environment, social and governance) efforts, Dr. Shen expressed confidence that the digital economy will help to drive carbon neutrality in China.

“Internet-based economy and digitalization will become a key driver of China’s growth in the next decade, or even a few decades,” Dr. Shen said. For example, mobile payment will spare the use of credit card materials and a lot of paper, and internet-based telemedicine services will enable more innovative healthcare solutions. “China is leading the utilization of big data and AI technologies, [which will drive the country] to be more efficient in reducing pollution and achieving sustainable growth,” he added.

The Job Reset Summit is a virtual event held by the World Economic Forum from October 20-24. The event has convened visionary leaders from business, international organizations, government, civil society, media and the broader public to shape a new agenda for growth, jobs, skills and equity.

Dr. Shen was joined in a panel consisting of Janet Henry, Global Chief Economist of HSBC Holdings plc; Catherine L. Mann, Managing Director and Global Chief Economist at Citi; Eric Parrado, Chief Economist and General Manager, Research Department at The Inter-American Development Bank; and Guy Johnson, a presenter from Bloomberg LP.

Dr. Shen was joined in a panel consisting of Janet Henry, Global Chief Economist of HSBC Holdings plc; Catherine L. Mann,

Watch the replay of the opening session here.

 

(vivian.yang@jd.com)

JD Super Accounts for Over 50% of Online Market Share in Multiple FMCG Categories

by Rachel Liu

Leading data analysis firm Nielsen released the FMCG Industry Trend Report of January to August 2020 today,October 20st. Data shows that JD Super, JD’s online supermarket, accounts for over 50% of online market share in multiple categories such as infant formula & diapers, cooking oil, packaged rice, bottled water, wine, sports beverages, vodka, beer, brandy and whisky.

Chinese parents have increasingly high demand for maternal and baby products. JD Super’s vast product choices, commitment to authenticity and comprehensive after-sales service making it the first choice for many Chinese parents to shop with peace of mind. Products that customers traditionally buy online, such as cooking oil, rice and flour, also saw a transfer to online with the impact of COVID-19, and JD Super has become the main shopping platform since the outbreak due to JD’s ability to continuously ensure supply.

JD Super also works closely with many leading brands in the industry. For example, it signed a partnership with popular oil brand Fulinmen (福临门) in September to help the brand sell RMB 15 billion yuan of products in the next three years.

More Chinese consumers choose JD to order heavy products such as beverages and water thanks to the competitive prices and JD’s delivery service directly to their doorsteps. High-end and imported liquors are also getting more popular among young and affluent customers. With JD’s Omnichannel Fulfillment program, customers in some cities in China are now able to receive wine and other beverages in two hours on average, and sometimes in as fast as 30 minutes.

 

(liuchang61@jd.com)

Forrester Ranks JD Cloud & AI No.1 in Strategy Layout, Infrastructure Management and More

by Ling Cao

JD Cloud & AI is one of the most significant public cloud development and infrastructure platform providers in China, according to a new report released October 19th by the reputable American market research company Forrester.

The report, titled Public Cloud Development And Infrastructure Platforms In China, Q4 2020, used 33 criteria to rank JD Cloud & AI first in the areas of strategy layout, product capability covering AI and machine learning, infrastructure management and operation, as well as market performance.

The report also determined that JD Cloud & AI is among the few providers who have made progress in both strategy and product perspective.

“Smart supply chain is the differentiator for JD Cloud & AI,” an industry expert said of the report. “The Forrester evaluation provides strong support for enterprises to purchase JD’s cloud based products and technology services.”

According to the report, JD’s smart customer service, technology and smart supply chain received high satisfaction marks among clients.

Dr. Bowen Zhou, Chair of JD Technology Committee said, “JD’s years of accumulated technology and industry experience in the areas of retail, logistics and supply chain has made it one of the few companies with the ability to provide Internet infrastructure.”

JD Cloud & AI has helped 100,000 clients go digital in the last year, including state-owned enterprises, media, education, medical, finance, e-commerce and gaming. More than just reducing costs, JD has observed that these partners have also made their businesses more agile as a result of the cooperation.

 

(ling.cao@jd.com)