Stubborn Flowers: A Couple at a JD Station in the Gobi Desert

by Kelly Dawson

At night the Gobi Desert of northwestern China can be cool like icy waters; at the height of day the heat can be scalding and relentless. Vegetation is rare, and one can drive for kilometers with little sign of life.

For many years, the area’s windy, freezing to blistering conditions made it a “no go zone” for express delivery. Then, in 2016, a JD Logistics truck arrived, announcing the opening of a JD delivery station here on the dusty outskirts of the city of Jiuquan, Gansu province.

Huang Yanhua was one of two original employees at the station. On that first day she accompanied the stationmaster on the maiden voyage to deliver packages. As they arrived at the final address that evening, they discovered that the information had been entered incorrectly. They were 60 kilometers away from the correct address.

Huang wondered aloud whether they might deliver the package the following day. As the stationmaster started the engine, his response was firm: “No matter how far away, the package must be delivered today.” True to his word, the final package was delivered around 11 pm.

Since then, the red JD truck has become a staple, picking up and delivering packages across the area night and day. Behind the wheel most days is Huang, who since the stationmaster’s departure now runs the station.

Since then, the red JD truck has become a staple, picking up and delivering packages across the area night and day.

Today Huang wears a thick coat, bundled for protection against the temperature drop of 20°C after sunset. Before departure, she sorts the nearly 200 packages according to the distance of the delivery addresses, and stacks them neatly in the back of the truck. As always, the stationmaster’s credo remains fresh in her mind. Whatever difficulties she may face—wind, rain, scorching sun, inaccurate delivery information, or more—she intends to deliver every package by night’s end.

Since Huang began working at the station four years ago, daily packages have risen from 30 to as high as 500 orders a day. That original JD truck has been upgraded, from 4 meters across to 9 meters. After the original stationmaster left and deliveries increased, Huang knew she needed an assistant—but job inquirers always disappeared when they learned the location of the station.

Eventually, her husband Wei Wei quit his job and joined her at the station as support staff. The couple’s son is taken care of by a grandparent when they are at work, and they are fortunate that the boy is obedient and appreciative of their sacrifices, Huang said.

While Wei Wei originally joined the team to simply support his wife, over time he began to truly believe in the value and function of the station, he said. Knowing that their delivery services improved the lives of locals living in the area was deeply satisfying.

“There is an old grandmother who likes to order snacks, and she always shares them with us. She likes to brag sometimes that she’s a JD Plus member,” Huang recounted, laughing. “Sometimes she feels upset that she gets to sit comfortably at home while we are out in the elements battling the weather each day and thanks us profusely, but we always tell her it’s our duty.”

Other locals have also expressed their appreciation for the couple. Huang described one customer who does scientific research in an isolated location. “He left us a message saying, “I finish work very late each night, and I feel like I’m in good hands with you, knowing that my packages will always arrive safely.”

Life in the desert can be eventful too, Huang said. Earlier this year as the pandemic receded in China, the nearby Jiuquan Satellite Base opened its doors to outdoor vehicles for the first time in months. During that time 2,600 packages for staff at the base had piled up at the JD station. With the stationmaster’s credo in mind, Huang and her husband worked late into the night, disinfecting each and every package with alcohol before delivering the items to each customer at the base, ensuring the highest safety standards.

This year Huang Yanhua and Wei Wei received the 8th JDL first-line award, officially recognizing their commitment to growing the distant JD station, which despite difficult conditions has flourished like a stubborn flower in the desert.

As Huang loads the truck tonight, she tells the story for which the city of Jiuquan (酒泉 literally means “Wine Spring”) is named. During the Western Han dynasty, a distinguished military general named Huo Qubing (霍去病,140 BC – 117 BC) won a battle in the Gobi Desert and was later awarded by the emperor with a jar of precious wine. The jar was not large enough to ensure that all of his men could have a taste—so he poured it into a creek, and he and the soldiers drank at the water’s edge together.

Locals tell this story often, Huang said. She loads the last of the packages, which will be delivered to residents across the area with care. Her work is also like fine wine, she says, poured on a barren expanse and shared by all who greet her on the journey.

 

(kellydawson@jd.com)

JD Logistics Ready for Upcoming Singles Day Grand Promotion

by Vivian Yang

JD Logistics announced on October 15th that it will upgrade operation measures to support merchants in preparation for the upcoming sales season, which is starting in a week’s time. Merchants have started to increase their stock at JD’s warehouses to respond to the expected shopping spike. It is estimated that over 1.2 billion commodities will be stocked with JD prior to the Singles Day (November 11th ) Grand Promotion.

To ensure smooth and highly efficient fulfillment operations during the event, JD Logistics is geared up to perfect each stage of its end-to-end supply chain process, to provide integrated logistics solutions to its merchants and unparalleled delivery services to customers.

JD Logistics' automated warehouse

JD Logistics’ automated warehouse

Highlights of JD Logistics operation upgrades for Singles Day Grand Promotion include:

Intelligent warehouse management: Currently JD warehouses manage more than 6 million SKUs that cover almost all the product categories on the market. At the same time, their inventory turnover rate remains above the industry average. This is realized through a system referred to as the “intelligent brain”, a comprehensive adoption of advanced technologies including intelligent operation scheduling, big data selection, AI-powered bookings for bulky goods delivery and more. The “intelligent brain” warehouse management system has been applied in every JD warehouse that can perform hundreds of millions of calculations within a minute.

Over 95% stock forecast accuracy: Based on more than a decade of experience with grand promotion events, system development, big data analysis and supply chain models, JD is able to accurately predict consumers’ shopping behaviors and respond with sufficient resource reserves such as storage capacity, manpower and system readiness.

Introducing fast track services to avoid warehousing jams: Similar to a highway’s ETC(Electronic Toll Collection) service, JD Logistics initiated fast track services to simplify the warehousing process for merchants during the commodities influx ahead of the grand promotion. Ninety-nine percent of commodities can be successfully stored in JD’s warehouses within 24 hours.

Leveraging pre-sales for peak load cutting: By putting predicted hot seller products in the front distribution centers and advancing sales of bulky items while they are in transit with suppliers, JD Logistics can help merchants shorten sales cycles and improve sales opportunities in peak times.

Loans support with storage pledge: Merchants can use their stock at JD’s warehouses as pledge for loans offered by JD, with an unlimited amount and real-time account transfers. This policy has provided critical cash flow support for hundreds of merchants during the pandemic.

Green and precise packaging: By virtue system of the “intelligent brain”, packages and orders in JD’s warehouses will be precisely calculated to find the most environmentally-friendly match, ensuring all kinds of materials and their sizes including carbon boxes, handbags, thin tapes, circular containers and more can achieve their maximum value with minimal waste and pollution.

 

(vivian.yang@jd.com)

JD Super Kicks Off Mead Johnson Super Brand Day

by Rachel Liu

JD Super, JD’s online supermarket, helped world-leading infant formula brand Mead Johnson to achieve high ROI and sales on its Super Brand Day on October 11th,when sales of the brand surpassed RMB 10 million yuan in the first 30 minutes, and reached 2.5 times of its sales on June 18th, the peak day of JD’s Grand Promotion.

Many Mead Johnson products achieved impressive sales. Sales of the Enfintar series was 21.8 times comparing with its average daily sales, and Enfa A+ series increased 200% compared with average daily sales.

An multichannel approach has been key to Mead Johnson‘s success on the Super Brand Day. In addition to JD’s several online channels, 59 brick-and-mortar JD Maternal and Baby stores in 25 provinces showcased the same products as the online stores creating a seamless promotion environment. QR codes for Mead John’s cross-border products were also placed in the store enabling consumers to conveniently place online orders while in the stores. Mead Johnson’s 1,979 offline stores in China also joined the campaign and saw sales reach 25 times that over average daily sales.

The move of consumers online during COVID-19 coupled with the resumption of offline shopping in the epidemic recovery period has made brands’ need to take a multi-channel approach to retail even more of an imperative. JD Super’s omnichannel marketing solutions have helped customers reach out to a larger yet more targeted consumer base to improve the efficiency of marketing programs.

 

(liuchang61@jd.com)

JD Health Holds China Medical Digital Marketing Conference in Shanghai

by Hui Zhang and Rachel Liu

JD Health held its inaugural 2020 China Medical Digital Marketing Conference in Shanghai on October 15th. Representatives from over 10 leading global medical enterprises and over 100 executives from medical supply chain companies joined the conference and discussed topics including new drug marketing, innovative marketing, payment methods, channel revolution and more.

Enlin Jin, general manager of medical products and head of strategic investment at JD Health shared the reason of holding the conference: “It’s high time for us to share more insights and medical marketing to better serve the industry the as medical industry and internet industry are getting closer every day.” He emphasized the importance of the whole industry participating in the conversation.

JD Health held its inaugural 2020 China Medical Digital Marketing Conference in Shanghai

In the session on the topic of new drug marketing, Yue Chang from JD Health’s Medicine Department said providing patients with an online platform integrating doctors, drugs and insurance, and continuously accumulating data outside hospitals is a new solution to solve obstacles faced in marketing new drugs. However, new drug marketing is only the first step in pharmaceutical marketing. According to Jing Fan from JD Health’s Medicine Department, pharmaceutical companies should take advantage of their own strengths, the convenience of the internet, and putting patients at the center to provide one-stop services covering disease knowledge sharing, diagnosis, treatment, disease management and financial services, as well as value-added services for pharmaceutical companies.

At the same time, new payment methods also present challenges and opportunities for pharmaceutical companies. In addition to considering payments by patients themselves, we should also consider taking advantage of the internet and expanding from solving the payment problems of individual patients to solving the problems of the entire family, according to Bo Gan from the Medicine Department.

In terms of sales channel revolution, Xinyuan Zhou, general manager of JD Health’s Channel Innovation Department and also head of JD Pharmaceutical Procurement Platform, called on all participants in the industry to utilize technology to construct a smart pharmacy, providing clear benefits to both patients and pharmacies.

Digitalization drive medical marketing

China’s medical marketing industry is facing major changes. Traditional medical marketing is mainly done through medical representatives and offline medical conferences. In recent years, the government has launched a series of new regulations concerning “Internet + medical health” model to improve digitalized marketing in the medical industry.

According to the 2020 China Medical E-commerce Development White Paper released by Yiou Think Tank this May, the scale of China’s pharmaceutical circulation and pharmaceutical e-commerce market increased year by year from 2013 to 2018. The Chinese pharmaceutical e-commerce market reached RMB 97.8 billion yuan in 2018, an increase of 32.7% compared with the same period last year. The internet has become an essential new scenario for medicine promotions.

According to the 2020 Digital Medical Insights Report released by BCG and Tencent, the average growth rate of digital health users in the past three years has reached 30%. By the end of 2019, the number of digital health users in China accounted for 70% of the total number of mobile Internet users, reaching 620 million. Among them, more than 60% of consumers learned medicine-related information such as health care and disease diagnosis and treatment online. The increasing number of online users is an indication of the more extensive role of medical marketing, covering not just hospitals and doctors, but also individual patients. More doctors are also signing up to provide services for internet hospitals.

 

(zhanghui36@jd.com, liuchang61@jd.com)

JD.com Makes Online Shopping Possible for The Visually Impaired

by Yuchuan Wang

Today is White Cane Safety Day, which recognizes the achievements of blind or visually impaired people. According to the China Disabled Persons’ Federation, there are over 17 million visually impaired people in China, many of which are now able to enjoy the conveniences of online shopping thanks to JD’s efforts.

For many visually impaired people, placing an order online in the past seemed as mission impossible. But since 2016, JD.com has continually upgraded its shopping app to enable easier shopping for disabled people, especially the visually impaired. JD’s app is now able to help the blind accurately search and buy products by utilizing their ears, with spoken notifications for functions from searching to screening to pay, and even letting consumers know the latest promotions and coupons.

Liquan Wu is a JD customer who lost his sight. In an appreciation letter to JD, he wrote, “Because of JD, I am able to shop freely in a way that people like me have always dreamed of; because of JD, people who can’t see can buy items for our parents, relatives and friends, which we could never do before. It feels so great that I never want to lose it.”

JD’s R&D team conducted in-depth research into the needs of visually impaired consumers, with some team members often visiting massage parlors staffed by blind masseuses, in order to get first-hand user feedback. JD also collaborated with the Information Accessibility Research Association based in Shenzhen, to accurately understand the user group’s needs based on scientific data and real experiences.

Leveraging technology, JD has built a communication bridge with the disabled. The company hopes to light a bigger world for the visually impaired through continuous innovation in technology.

 

(yuchuan.wang@jd.com)

Posted in ESG

JD and NVIDIA Debut New GPU Products

by Yuchuan Wang

Under the scenario of heterogeneous computing which uses more than one kind of processor or core, businesses are often faced with the problem of “excess computing power”. JD Cloud & AI has researched two vGPU instances with NVIDIA® Tesla® P40. They provide multiple CPU and memory combinations so that users can select appropriate computing resources, improving the flexibility of their systems and lowering costs.

The Virtual Computer Server vGPU instance is best fit for AI and scientific computing scenarios for design and research institutes and deep learning education/experiments. The Quadrov DWS vGPU instance can be used by the film and television industry for real-time rendering, image processing and architecture designing.

The “Natural Language Processing Training Camp” jointly held by JD Cloud & AI and GreedyAI, a Beijing based technology education company, is using the P40*1/2 cloud hosting backed AI training cluster. The camp, which provides access to business-use AI project resources and JD’s real application scenarios, has attracted over 200 people in the AI technology space, among which many are college students from  Harvard, Cambridge, Tsinghua and Peking University, etc.

In the future, JD will continuously leverage its expertise and experience in AI, big data and cloud computing to provide value-added services and products to industry clients and partners.

 

(yuchuan.wang@jd.com)

JD Upgrades Measures to Help Brands on Omnichannel Marketing

by Ling Cao

JD announced that it will upgrade measures to help brands create an omnichannel marketing strategy, including traffic and user management. The announcement, which was made at the JD Advertising & Marketing Summit today at JD headquarters in Beijing, comes ahead of the upcoming annual Singles Day promotion.

As the pandemic recedes and outdoor ads resume, more and more brands are looking to offline opportunities to expand reach. During the summit, JD announced its offline marketing brand Jingpingguo, which is part of JD’s omnichannel marketing strategy. Jingpingguo’s offline ad services integrate resources from five scenarios, ranging from residential compounds, supermarkets, travel, office and life services.

JD announced that it will upgrade measures to help brands create an omnichannel marketing strategy, including traffic and user management

Paul Yan, President of JD Business Growth said, “Based on JD’s data, Jingpingguo can do customer profiles, and combine those with offline ad resources based on locations, helping the marketing initiatives reach even more precisely targeted customers.”

JD can also make visual data reports for ad owners to help them review the ad’s performance, making it easier to track and assess long-term value.

JD recently launched JD GOAL (“Goal” is an acronym that refers to targeting Group,Osmosis,Advancing,Loyalty), which is a user growth methodology based on big data, that aims to make user management more precise.

JD GOAL can help increase long-term user value, and strengthen a brand’s membership pool, in order to promote user loyalty and growth. The methodology can be applied for new product launches, to expand target customers, to reach potential future customers, as well as increase marketing ROI.

 

(ling.cao@jd.com)

In-Depth: Behind Richard Liu’s “Bountiful Harvest”

by Ella Kidron and Yuchuan Wang

“This year, JD.com’s U.S. market value has risen nearly 140%, bringing it into the hundred billion camp,” an article in domestic Chinese media outlet Huxiu.com (虎嗅) wrote. Behind the rise is a secondary listing on Hong Kong Stock Exchange, a Dada-JD Daojia valued at 550 million USD, a RMB 20 billion yuan JD Digits on its way to listing on China’s STAR Market, and JD Health, which according to public estimates, is valued at US$ 30 billion. Behind all that, however, is the visionary thinking and quick feet of founder and CEO Richard Liu.

 

Self-built logistics

In 2008, JD posted an announcement on its website discouraging users from placing orders, and even more surprisingly, encouraging them to go elsewhere to buy things. The reason? JD’s warehouse had beyond reached its capacity – it couldn’t keep up with the pace of demand, meaning that products couldn’t enter or leave the warehouse, and that delivery was left utterly paralyzed. In decision-maker Liu’s eyes, this move, which undeniably would impact business itself, was an imperative. The damage to customer experience due to the delivery delays would be much more costly in the long run than the loss of sales. At the time, JD’s hard disk repair rate was extremely high, attributed to third-party logistics players’ careless loading and unloading.

Beginning in 2007, under Liu’s direction, JD decided to develop its own logistics network from scratch. The reason was quite simple – China’s logistics network at the time was too fragmented and there wasn’t a player who could guarantee the quality that Liu so required in order to provide the best customer service out there. At the beginning, in the areas that the business which today is independent business group, JD Logistics, covered, JD guaranteed 100% next-day delivery and 40-50% same day delivery. To further solidify JD’s differentiation in the market, Liu introduced the “211” concept. Essentially, orders placed before 11:00 am would arrive the same day, and orders placed before 11:00 pm would arrive before 3:00 pm the next day. At the time, when JD’s coverage area was limited, this far exceeded any of the existing delivery standards offered by other players, and today, with much more extensive operations, it remains the gold standard, and JD is the only company of its size in the world to live up to such a promise. This is because for Liu, it is not about looking at the competitor and seeing where they are, but rather putting one’s full focus on the user. Through 211, JD created a new type of value, and that value has driven consumer loyalty.

 

A comprehensive health ecosystem

In 2014, Taizhou, which is also known as “China Medical City” operates a 30 square-kilometers pharmaceutical High-tech Zone, approached JD with the desire to build an online “medicine city”. The first team Liu sent to evaluate the project returned saying that it couldn’t be done – there is no policy and the risk is too big. Steadfast to making it happen, Liu again sent Lijun Xin, today’s CEO of JD Health to give it another go – it was going to be too difficult. Years of entrepreneurial experience, however, had given Liu an extremely keen sense that things that were easy to do rarely produced value. He told Xin’s team, “There are plenty of problems in the medicine and the pharmaceutical industries. The opportunities are enormous.” There was only one path and one direction to move – forward.

By 2016, JD had already established its footprint in the pharmaceutical sales industry, and become the largest internet retailer of pharmaceuticals. But Liu saw that they needed to develop the business in step with the health industry, not purely retail. He told Xin that he wasn’t sure how big the business could become, but if they were to do it well, the scale might be able to match that of JD.com itself. The health business could be “another JD”.

The company also wanted to realize 211 in health. In order to enabling coupling with offline hospital resources, JD made its way around China’s over 2,700 AAA hospitals (the highest classification for hospitals), eventually brining the large majority of them into JD Health’s “Family Doctor” program, which provides people subscription-style access to doctors all around the country through online consultation services (as well as the option of follow up offline in some cases). The program both expands access to top doctors in places that one would typically have difficulty tracking one down, and also helps to reduce bottlenecks in hospitals with high demand services.

As China’s largest pharmaceutical retailer, JD Health covers medical and health e-commerce, internet-based medical service, intelligent hospital solutions, and consumer healthcare services. It has a team of over 300 full-time online doctors who handled upwards of 150,000 patient interactions or more a day during the height of COVID-19.

 

Where digital technology meets industry 

This year, JD ranked among the among the top five TMT (Technology, Media, Telecom) companies in R&D investment on a list of top 500 Chinese enterprises by R&D. In 2019, listed and unlisted enterprises under the umbrella of JD invested a total of RMB 17.9 billion yuan in R&D, with a year-on-year increase of up to 47.8%. This investment stems from yet another common trend in the JD story – making each and every piece of the puzzle smarter through technology as the company’s own technology capabilities have continued to improve. JD Digits, a leading Chinese digital technology company which started as JD Finance, is a piece of the puzzle. CEO Chen Shengqiang realized that the company could make its mark on various industries by providing underlying digital technology infrastructure. JD Digits’ widely anticipated IPO is expected to be the biggest digital technology IPO on the Star market.

The company reported 1H 2020 revenue of RMB 10.327 billion yuan, according to its prospectus, and has 600 financial institution clients including commercial banks, insurance companies, funds, trusts and securities companies. It has served one million small and micro enterprises, 200,000 small and medium-size enterprises and 700 large business centers with its business and technology solutions. In terms of government and other client services, JDD has served more than 40 urban public service organizations with the smart city operating system as its core product. It has a huge IoT marketing platform with over 15 million self-operated and alliance media points, covering more than 300 cities and more than 600 million people.

A leader in “digitalization”, smart city has been identified as one of JD Digits key projects. Just last month, JD hosted media in Nantong city, Jiangsu province to see China’s first modern governance command center based on JD Digits’ intelligent city operating system. This command center can realize digital city management, enabling precise transportation forecast, intelligent monitoring for hazardous chemicals, environmental conditions monitoring and more, in addition to providing visual reports to manage the city.

At the heart of it, what has happened in 2020, the so-called “harvest” that Liu has reaped, as referred to by Huxiu, is about much more than 2020 alone. Rather it is about persistently following simple principles over a journey of years. From retail to logistics, health and digital technology, commitment to customer first the trust earned as well as the not merely courage but determination to get the seemingly impossible things done, are common threads in the JD story.

 

(ella@jd.com; yuchuan.wang@jd.com)