by Martin Li

JD Central (JDC), the e-commerce joint venture of JD.com in Thailand, has been enabling Chinese brands to seek online expansion in the country with its integrated solutions.

Among the well-known Chinese brands in partnership with JDC are Huawei, Oppo, Vivo, OnePlus, Xiaomi, Hisense, Haier and TCL.

“Last year we offered reservations for our first phone in Thailand via JDC’s e-commerce platform. We sold 200 phones within the first hour of sales – impressive for a smartphone which sells for around RMB 4,300 yuan. We received almost 5,000 reservations,” said Zhang Fei, country manager of smartphone maker OnePlus, in a recent online interview with Chinese media.

One Plus chose to cooperate with JDC in its effort to reach people with strong purchasing power, according to Zhang.

Its online revenue accounted for almost 40% percent of the total sales in Thailand in 2019.

Similarly, Chinese home appliance brand Haier started cooperating with JDC in March. Since then, its monthly sales volume has increased five times.

Electronics brand TCL achieved a 10-time growth in monthly sales since its cooperation with JDC in March.

While helping boost online sales of Chinese brands, JDC seeks to enable them with a comprehensive e-commerce solution.

Vincent Yang (C), JDC CEO, joined by Chinese brands’ country managers at gathering in September.

“JDC is an atypical e-commerce player. The e-commerce platform is only part of the whole infrastructure and supply chain. JD provides services in retail, advertisement, fulfillment and finance. In the future, we hope to complete these four networks in Thailand, providing one-stop service for brands which seek development in Thailand,” said Vincent Yang, CEO of JDC.

Zhao Ping, deputy head of Academy of China Council for the Promotion of International Trade, said that Chinese enterprise seeking overseas development are facing both opportunities and challenges.

“Online digitalization is driving growth. Cross-border e-commerce is leading the growth of China’s foreign trade. During the current pandemic, online expansion could be a good chance for Chinese brands,” said Zhao. “Meanwhile, supply chain is undergoing digitalization.”

“It is the top priority to enhance digitalization of the supply chain. Competition in international markets has shifted from price, quality and service to supply chain strength. E-commerce has become an important choice,” added Zhao.

Speaking of the pandemic’s impact on JDC, Yang said, “JDC achieved robust growth during the pandemic not because of lavish marketing, but because of its supply chain advantage and customer experience.”

JDC has built eight warehouses across Thailand. More than 95% of its direct-to-consumer orders can be delivered the same or next day.

 

(bjlihao3@jd.com)

 

 

 

by Ella Kidron

One of the many things COVID-19 has shined a light on is the importance of sustainable development and building a sustainable, resilient future. In an in-depth leadership feature in the Wall Street Journal published this week, Ilham Kadri, CEO of nearly 160-year-old Belgian chemical company Solvay explained succinctly explained the link between business performance and sustainability, “sustainability is profitability”. The idea of developing a sustainable approach firmly rooted in the core identity of the business is something JD has practiced for years, and a position the company continues to prioritize and strengthen.

In May 2020, in a letter explaining where the company has come from and where it is going, founder and CEO Richard Liu announced JD’s updated mission: Powered by technology for a more productive and sustainable world. Liu wrote, “Sustainability refers to our desire as partners: to share business success with partners, to provide a platform for fair and balanced development for employees, to protect the ecological balance, and to be a grateful and responsible corporate citizen, achieving a balance of people, planet and profit, and to do our part for the sustainable development of the world”. He added that, with technology as the cornerstone for development, JD will pursue maximum social value and uphold its long-term philosophy to create a sustainable world with its partners.

According to WSJ, CEOs increasingly are embracing the idea that a company’s environmental, social and governance practices will play a role in its future success. The article cites a PWC survey which demonstrates that a quarter of CEOs now strongly agree that investing in climate-change initiatives could lead to significant new product and service opportunities for their businesses, up from 13% in 2010. The Journal recently released a list of the top 100 most sustainable companies in the world following the framework of the Sustainability Accounting Standards Board (SASB), further emphasizing the critical importance of ESG to the future of business development.

For JD, ESG (Environment, Social and corporate Governance) is not just a commitment to shareholders, but a commitment to society and the world we all live in, to deliver trust. This trust extends across the business. Take logistics as an example. JD’s Green Stream Initiative sustainability strategy aims to galvanize partners and collectively make the supply chain greener. The project was named as one of the World Economic Forum’s Lighthouse projects for 2020 demonstrating innovation and investment across key areas of social value. It also won the “Sustainable Retailing Initiative of the Year” award administered by the World Retail Congress. JD also joined the Science Based Targets Initiative (SBTi), an ambitious global campaign aimed at driving corporate action on climate change.

Recognizing that a company is only as good as its people, the company has continued to pursue different talent and training mechanism enhancements. Last year, JD instituted employee surveys through its internal communication tools on a daily basis, covering a broad range of topics such as company culture, team cooperation, compensation satisfaction and other areas. The surveys enable employees to provide feedback on the state of their individual departments, allowing for a channel to turn the feedback into actionable changes.

JD has also participated in extensive poverty alleviation efforts in rural areas. The company has pioneered its rural e-commerce strategy, aiming to make agricultural products in rural areas available online, while allowing authentic, quality products to reach residents in rural areas. JD has helped launch over 279 poverty relief specialty malls on its platform, selling over three million local specialty items, with sales exceeding RMB 75 billion yuan, and contributing to helping over 900,000 households earn a living so far.

 

 

(ella@jd.com)

by Vivian Yang

JD Health’s heart center organized a number of activities to raise people’s awareness of heart health under the international theme of “Use Heart to Beat CVD (Cardiovascular Disease)” on the 22^nd World Heart Day on September 29^th.

The center invited several well-known cardiovascular experts to conduct free medical consultations online, share heart disease-related knowledge and answer questions from patients online, covering topics such as drug use, disease prevention measures and more.

JD Health’s heart center currently consists of four departments: cardiology, cardiac surgery, prevention and rehabilitation, and psycho-cardiology. Led by Dr. Hu Dayi, one of China’s top cardiologists, the center offers access to more than 700 cardiovascular experts in China via telemedicine services.

In addition to online medical consultation, patients can also follow expert’s advice and conveniently purchase medicines on JD’s online pharmacy platform at favorable prices and enjoy efficient delivery service. Special discounts on a variety of blood pressure meters and other heart-related healthcare products were offered on World Heart Day.

Base on the number released by the American Heart Association, about 17.5 million people worldwide die of heart diseases in 2014, accounting for 30% of all deaths. In China, the incidence of heart disease is growing quickly. About 3.5 million people suffer from heart disease, a data released in 2019 by China’s National Center for Cardiovascular Disease.

 

(vivian.yang@jd.com)

by Rachel Liu

JD will channel key promotion resources toward 20 top home appliance products from JD’s C2M initiative, which leverages JD’s big data insights to jointly develop customized products with brand partners. The highlighted products, which include 10 new products and 10 hot-selling products, span 11 categories such as refrigerators, TVs, water heaters and air conditioners— with 14 leading brands including Midea, Sony, Haier, Hisense and more.

The selected 20 products will enjoy a prominent position in the monthly promotion of home appliance products, with special flash sales and more. Those brands will also receive marketing guidance during the whole product lifecycle to help improve product performance.

JD launched the C2M initiative for home appliance products in 2018 to meet customers’ demands. In 2020, sales of C2M home appliances on JD increased 100% YOY, and the initiative has launched over 150 C2M products, 40 of which ranked Top 3 in their respective categories.

The selected brands saw great sales during the National Day holiday (October 1^st – October 8^th), with sales of a Haier C2M water heater increasing by five times, compared with the average daily sales in the previous month.

The success of the C2M initiative lies in its close attention to customer feedback. For example: After JD big data observed that many customers expressed that they wished water heaters had screens indicating how much hot water was left while showering, the brand added a hot water indicator to the product’s display.

Another successful case is Sony’s full-screen AI eye protection TV, which was developed in response to customer feedback that expressed concern for children’s eyesight while watching TV. Sales of the TV increased six times during the National Day holiday, compared with the average daily sales in September.

With JD’s vast consumption data, brands can stay informed about customer demands. By working closely with JD’s C2M initiative to develop products that can precisely meet customers’ needs, brands can also lower the costs of developing and testing new products. Additionally, customers can be assured that they will find the best suited products for their needs at the best cost, and within a shorter time.

 

(liuchang61@jd.com)

by Ling Cao

Sales of computer and digital products soared during the National Day holiday (October 1^st to 8^th), according to JD Data. In just 30 minutes on National Day, sales of gaming computers increased 400% YOY, and laptops sales increased by 23 times, setting a new record.

Specifically, sales of high-end laptops increased 20 times YOY, and PCs created for designers increased 11 times YOY. Nvidia’s new video card series RTX30 were very popular, with gaming computers featuring Nvidia’s new RTX3080 graphics card sold out in just 30 minutes.

During the holiday, Intel launched a super brand day on JD on October 2^nd, which attracted high numbers of customers. Within one minute of opening the sale 10,000 Intel computers were sold, and sales over the course of the day were 379% compared with the previous 30 days on average. Intel’s new 11^th gen chipset also sold out quickly.

As Intel’s long-term partner, JD provided strong online marketing resources to promote the campaign, as well as leveraging popular bands to appeal to more customers via Douyin and Weibo. Additionally, JD’s offline computer and digital experience stores participated in the campaign, in omnichannel sales promotion efforts.

 

(ling.cao@jd.com)

by Hui Zhang

Novartis, one of the major global pharmaceutical companies, announced the launch of its MS (Multiple Sclerosis) drug Siponimod on JD Pharmacy， JD Health’s pharmaceutical platform, on Sept. 25^th, making JD the first platform to sell the drug in China.

Siponimod, a drug for the treatment of rare diseases such as MS, requires cold chain to transport. JD will rely on its dedicated pharmaceutical warehouses, nationwide supply chain network and information systems including an intelligent temperature monitoring platform to ensure the most suitable environment for the drug’s delivery, with easy tracking of the delivery process.

MS is a potentially disabling disease of the brain and spinal cord. There are about 2.5 million patients with the disease worldwide, with an incidence of about 5 in 100,000 in Asian and African countries and more than 30,000 in China.

In China, the diagnosis of MS patients is often a long and difficult process,with 47% of patients cannot be diagnosed immediately and 38% of patients are misdiagnosed as having other diseases. Few disease-modifying therapy (DMT) drugs that can cure MS enter the Chinese market, and the utilization rate is less than 20%. At the same time, physicians in second- and third-tier cities have little experience in diagnosis and treatment, and patients scattered all over the country have to travel to big cities to purchase drugs.

“Siponimod has been shown to be effective in slowing disability progression in patients with progressive MS and can provide a powerful new treatment weapon for neuroimmunologists and MS patients in China,” said Hui Chen, vice president and head of commercial and emerging markets of Novartis China. “We will work with JD Health to further enhance the accessibility of the new drug, and thus to improve the quality of life for more patients.”

 

(zhanghui36@jd.com)

by Martin Li

Resorts in Hubei province were favored by tourists during the eight-day National Day holiday in China, which ended on Oct. 8^th, according to data from JD’s cultural and tourism business department.

Among the most popular cities in the province were Wuhan, Yichang and Xiangyang. The largest sources of tourists include Guangzhou, Beijing, Nanning and Haikou.

Hubei is home to almost 400 top-rated State cenic spots in China. Hubei Provincial Museum, the venue of the 10^th China (Wuhan) International Garden Expo, and Wuhan Botanical Garden were the three most popular ones during the holiday.

Thirty key scenic spots in Hubei received more than 210,000 tourists as of 2:00 pm on October 1, bringing in total income of RMB 20.32 million yuan, back to 82.5% of the amount during the same period last year.

Discounts offered by quality hotels through e-commerce platforms including JD also contributed to the recovery.

Hotels which offered online packages with favorable prices were much sought-after by tourists, according to JD data.

In China, there were 14,941 flights on October 1^st, transporting 1.67 million travelers, leveling with October 1^st last year. October 1^st saw 97 million tourists across the country, generating income of RMB 76.65 billion yuan, according to official statistics.

Besides the tourism market, the film industry in China also saw a robust recovery during the long holiday.

The first three days of the holiday saw box office sales exceed RMB 2 billion yuan. Total box office sales in China this year to date exceeded RMB 10 billion yuan by 1:00 pm on Oct. 3^rd thanks to more than 270 million movie goers.

E-commerce platforms including JD have been taking active measures to make it easy and carefree for people to buy movie tickets, including a real-name purchase system completed within three days, as well as various discounts.

 

(bjlihao3@jd.com)

 

 

by Vivian Yang

JD Super, the online supermarket of JD.com, kicked off its Pet Life Promotion Week starting on Oct 10^th with a series of pet products and services on sale, including the popular JD Brand Super Days.

“The pet economy has become a prominent emerging consumption trend in China,” said Lizhen Liu, general manager of the consumption department of JD Retail. “JD Super is China’s leading supermarket both online and offline. We can provide strong support on big data and consumption insights to pet brands and help them reach the right customers, and also bring customers good quality pet products and services.”

According to a Nielsen report on pet food trends in 2020, sales of pet food on JD Super increased sharply from January to July this year, far exceeding the average growth rate of other B2C platforms. Within this period, sales of the popular Chinese pet brand Wanpy rose 15 times. Other popular brands such as Natural Balance, GO! Care, Ramical, Orijen, Solid Gold, and MyFoodie all achieved 200% to 500% growth.

JD Super has also stepped up efforts on channel building and brand cooperation in the pet category. During this year’s Pet Fair Asia, JD Super inked a number of agreements with pet brands including Mars, Royal Carnin, MyFoodie, Navarch, Nature Bridge, Frontline and Pure&Natural, with the goal of supporting 100 brands to achieve over RMB 100 million yuan of transaction volume in the next 3 years.

On the offline side, JD Super is enriching its omnichannel services for pet owners, joining hands with New Ruipeng Pet Healthcare Group to offer convenient pet products and services under JD’s “One-Hour Delivery Circle” program. The services will be available in 100 Chinese cities, including delivering pet food, pet prescription drugs, pet deworming, pet vaccination, pet beauty and more.

“With the expansion of omnichannel development and partnerships, JD Super will play an important role in driving the upgrade of China’s pet industry, and help form a healthy business ecosystem,” said Liu.

 

(vivian.yang@jd.com)