JD Works with China Telecom to Offer Over RMB 100 Million Yuan of Coupons for 5G Phones

Posted on by Rachel Liu

by Rachel Liu

JD has partnered with China Telecom, one of the three main mobile operators in China, to offer over RMB 100 million yuan in coupons for the purchase of 5G phones, in an effort to grow the 5G market and boost the economy. The coupon promotion, which ends October 19th, can also be redeemed in China Telecom’s offline stores.

As 5G and online mobile sales become more prevalent, JD is playing an important role. According to data from leading analysis firm GfK (Grow from Knowledge), online sales of mobile phones accounted for over one-third of all mobile phone sales in China in the first half of 2020. Of these online mobile phone sales, 60% took place through JD, which is now the biggest online sales platform of mobile phones in China.

In order to promote 5G services and appliances, JD is working closely with China Telecom, which now counts more than 50 million 5G customers.

During the China International Fair for Trade in Services (CIFTIS) held last month, JD Logistics and China Telecom jointly released a white paper titled “5G Empowers Future Logistics”, providing a detailed solution for applying a private 5G network to smart logistics. This August, JD and China Telecom jointly launched the “JD PLUS x China Telecom Membership Card”, to provide coupons on mobile phone top-ups and shopping. Additionally, during the 2019 Singles Day (November 11th) Shopping Festival, JD and China Telecom jointly launched the first online 5G data package.

In the future, China Telecom and JD will explore the application of 5G more deeply in AI, smart transportation, autonomous vehicle delivery and more.

 

(liuchang61@jd.com)

JD Data: Golden Week Consumption & China’s Economic Recovery

Posted on by Ella Kidron

by Ella Kidron

This year’s National Day Golden Week holiday (held October 1-8th) was about three things: the Mid-Autumn Festival, homecoming and sightseeing. Consumers were out and about, stretching not only their legs but also their wallets, according to JD’s Big Data. Shopping behavior both contributed to the post-COVID economic recovery in China, and demonstrated the vitality of the Chinese economy as well as consumer confidence.

Travel and leisure, sports and outdoor activities, home renovation and home appliances, and jewelry drove the bulk of the holiday consumption boom. Many people heading home opted to send gift certificates home, simultaneously avoiding showing up empty handed and having to lug heavy boxes of mooncakes or hairy crabs on the long journey. Sales of food gift certificates increased 33 times YOY. Non-local orders for Hubei specialties increased over 100% YOY, indicating people either returning home and bringing local specialties on the way, or traveling to the province and giving family and friends back home a “taste of Hubei”.

Many consumers opted to travel with child in tow, explaining a 230% YOY increase in baby strollers, as well as a 200% increase in baby snacks and 180% increase in car seats, respectively.

Understanding that lugging a heavy box of souvenirs home can be a real pain, JD set up Express pickup locations at nearly 2,000 scenic areas, shopping malls and streets, hotels, bus stations and more around the country.

Consumers’ increased attention to health and wellness is also providing opportunities for the high-end personal items market. Personal care small home appliances increased over 40% with items like nano ionic blow dryers and intelligent sonic razors becoming new customer favorites. In general, browsing for “smart products” has increased 200%. Attention paid to automated fingerprint locks increased over 100%. Another large contributor to health, fresh has been no slouch. Transaction volume of the fresh category increased over 50%, among which dairy products and cold beverages increased 80% and meat increased 70%.

Home renovation demand has continued to grow started from Q2, driving an increase in large appliance purchases. High quality home appliances and kitchen and bath appliances increased 35%. From October 1-3, air conditioner sales doubled YOY, among which first class energy efficient ACs increased by 330% YOY, accounting for 28% of total turnover. Dish washers with disinfectant capabilities increased 150% YOY. Large screen TVs over RMB 10,000 yuan increased over 100% YOY while gaming TVs exceeded the average of the past five days and OLED TVs more than doubled.

A 131% YOY increase in business-use appliances sales also indicates a strong recovery of offline business. Large refrigerators, meat slicers and milk tea machines are some of the leading products.

Wedding fervor over the holiday gave gold and silver jewelry consumption a boost. Gold jewelry transaction volume increased 30% YOY while jade increased nearly 40%. The increase in gold jewelry matched that of last year’s National Day. More consumers’ choosing to invest in wearables (gold and silver jewelry) rather than “store-ables” (investment gold) indicates increasing consumer confidence following a tumultuous start to the year.

 

(ella@jd.com)

Consumer Spending during National Holiday Indicates Strong Recovery of Tourism and Shopping Enthusiasm

Posted on by Rachel Liu

by Ella Kidron and Rachel Liu

Consumption in the first four days of the eight-day Golden Week holiday (National Day) is going strong. Similar to data just prior to the holiday, JD Big Data indicates that categories most impacted by the epidemic are also the ones growing the fastest.

Tourism, sports, outdoor, home appliances, food and beverages and jewelry have been the main growth drivers. In jewelry, the once sluggish growth rate of gold jewelry consumption has returned to the average growth rate of last year’s National Day, while the growth rate of gold and silver for investment in the first half of the year has continued to slow since May, indicating less risk aversion and more enthusiasm for consumption.

Consumption also indicates a strong resumption of tourism. The number of customer orders made from popular tourist cities such as Beijing, Hangzhou, Huangshan, Lijiang, Sanya, Xiamen, Shanghai, Xi’an and Zhangjiajie (home of “Avatar Mountain”) to be sent to customers’ hometowns (“remote orders”) increased by an average of more than 100% YOY. Wuhan ranked first with an increase of 117%, while Zhangjiajie increased by 327% YOY compared with the May Day holiday period.

JD Super, JD’s online supermarket, shows that during the Golden Week consumers are buying a lot of disinfectant products to make their travels safer, as well as children-related products as they are spending more time with their kids. Data shows that sales of disinfectant wipes increased 130% YOY, and hand sanitizer increased 150% YOY. Sales of strollers and children’s bicycles increased 230% YOY, and sales of children’s car seats increased 180% YOY. In addition, sales of baby snacks increased 200% YOY. In many first-to-fourth tier cities, JD Super can now achieve 29-minute delivery.

 

(ella@jd.com; liuchang61@jd.com)

JD.com Ranks Among Top Five TMT Companies in China for R&D Investment

Posted on by Hui Zhang

by Hui Zhang

China released a list of the top 500 Chinese enterprises (ranking according to business income in 2019), which showed the total R&D expenditure of these enterprises in 2019 amounting to RMB 107.54 billion yuan, up 17% year-on-year, accounting for 63.55% of the R&D expenditure of Chinese enterprises in total. Among them, JD.com with other four enterprises ranked among the top five TMT (Technology, Media, Telecom) companies in R&D investment.

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%, which reflected the importance JD attached to technology investment. The number of employees of JD’s R&D system exceeded 18,000, of which talent with a master’s degree and above accounted for over 80%. The number of patent applications exceeded 3,651.

JD clarified the strategy of transformation to technology in early 2017, and raised nearly HK$30 billion used for technology promotion, aiming to transform from an e-commerce company to supply chain-based technology and service company.

JD is strong in technical areas such as intelligent supply chain, intelligent logistics, cloud computing, big data, AI, and IoT to facilitate relevant industrial development. In August 2019, JD’s intelligent supply chain was selected as a member of the “national team” of AI, and JD AI Research ranked top in eight different world rankings for various international competitions. JD Cloud is among the top ten in China’s public cloud IaaS (Infrastructure-as-a-service) market, an increase of 512% year-on-year in 2019. In addition, JD leveraged its advantages in IoT to construct the largest smart home platform in China starting from 2014.

During the pandemic, JD made full use of its intelligent supply chain and intelligent logistics capabilities to serve 15,000 customer units across the country nationwide and provide a total of more than 660 million items of supplies.

“JD has relied on the IoT, big data, AI and other technologies to continuously upgrade its core capabilities such as “intelligent supply chain and intelligent logistics”, which has also been JD’s key contribution to ensuring the normal operation of the economy and society across the country during the pandemic,” said Lei Xu, CEO of JD Retail.

 

(zhanghui36@jd.com)

Supply Chain Chief Scientist, Dr. Max Shen, Unveils the Inside Story of JD.com’s Omni-channel Solution during COVID-19

Posted on by Ling Cao

“The biggest change in the retail industry is users shifting from a centralized platform to multi-end shopping scenarios,” said Dr. Max Shen, supply chain chief scientist of JD.com, during a keynote speech titled “Embrace the Change of the Digital World: Growing Omni-channel” at NAEOS20 on October 5th, which was held live online.

During his remarks, Dr. Shen introduced the structure and capabilities of JD’s omni-channel business solution, and put forward a theoretical framework of the future supply chain.

JD.com’s omni-channel solution

Dr. Shen explained that JD’s omni-channel business solution has grown with changes in the consumer market. In the past, consumers mainly shopped at offline supermarkets, stores or online centralized e-commerce platforms. Nowadays, shopping has expanded to various retail scenarios such as social e-commerce, content e-commerce, and live broadcast e-commerce.

“JD’s omni-channel solution links multi-end scenarios through its supply chain capabilities, commodity trading capabilities and member marketing capabilities,” he said. “By reconstructing the elements of products, places, and people, JD.com provides consumers with a richer product selection, more convenient shopping experience and delivery services to meet the omni-channel needs for consumers to shop anytime, anywhere.”

Products: Combine online and offline orders, inventory and fulfillment capabilities to achieve omni-channel fulfillment services 

JD’s omni-channel fulfillment service can undertake orders from multiple sources both online and offline, mobilize warehouse and store inventory, and distribute capacities of upstream suppliers and third-party delivery companies. Through optimizing the algorithm, a better fulfillment path will emerge with optimized cost, timeliness, and a better fulfillment experience. In the past, when a user placed an order of daily necessities on JD.com, the product had to be delivered to the user through a series of processes such as JD’s warehouse, sorting center, and delivery station. However, through an omni-channel solution, the system would use an intelligent algorithm when matching inventory on JD.com. The most cost-effective, geographically convenient solution will be chosen, and the package will be delivered to the customer within 20 minutes. Through this cooperation, JD.com and partners have not only reduced the cost of order fulfillment, but also improved the user experience.

Places: Strategic integration of online and offline data among millions of stores

JD.com has completed the integrated layout of online channels and offline business formats, including JD’s online app, JD’s offline home appliance， experience shop JD Home, SEVEN FRESH and more, as well as cooperative convenience stores. In these scenarios, JD can build a comprehensive user behavior path through online user big data and offline user behavior, and create a closed-loop shopping experience that combines both online and offline data.

Taking SEVEN FRESH as an example, the store has added easy-to-operate QR code payment, self-service POS and a smart replenishment system.

JD.com is providing consumers with a more convenient, comfortable and personalized shopping experience through strategic integration of online and offline data.

People: Precise marketing for all users

In terms of membership marketing, JD can help brand partners achieve global user precision marketing, including user identification, crowd insight, user benefit design, membership system construction, distribution and monitoring of marketing activities and more.

A peek into the future supply chain

The epidemic has pushed JD to think more about the future supply chain capabilities. “The supply chain of the future is a supply chain driven by demand, functions with open coordination and agile responses,” Dr. Shen said.  “JD.com will focus on strengthening the user insight capabilities, deepening the collaboration, and optimizing the efficiency between supply chain collaboration nodes. By seeking certainty out of uncertainty, JD.com aims to improve the efficiency and agility of the entire supply chain.”

In terms of strengthening user insight capabilities, JD.com has built a new C2M customization platform for new products. Based on JD’s massive user data, it has in-depth insights into user needs. Through new product development, industrial design, simulation trials, launch and precision marketing, this approach provides an innovative path for new product development. Compared with traditional methods, the JD C2M customization platform can reduce product demand investigation time by 75%, and new product launch cycles by 67%.

In terms of deepening collaboration, JD’s supply chain is not only connecting partners together, but also collaborating with upstream and downstream enterprises in related industries to achieve continuous business innovation through open data, open process and open capability.

Optimizing the efficiency between collaboration nodes through big data technology and artificial intelligence algorithms, JD.com aims to realize the digitalization of business processes, the automation of operation execution, and intelligent decision-making, so as to improve the efficiency of the supply chain.

The future omni-channel supply chain must be an open and collaborative supply chain. JD is actively working to open up various capabilities and cooperating with partners to build an omni-channel business ecosystem.

Consumers Stock up on Hairy Crabs, Outdoor Gear and Snacks ahead of National Day

Posted on by Ella Kidron

by Ella Kidron

With this year’s Mid-Autumn Festival and Golden Week (National Day) eight-day holiday being the first major holiday post the COVID-19 outbreak, mooncakes are just one of the many items in high demand. Hairy crabs, outdoor gear and snacks are also seeing significant spikes, according to data from the JD Big Data Research Institute.

Beijing and Jiangsu province customers are loyal fans of hairy crabs, having been top two in terms of sales for two consecutive years. That said, Guangdong, Shanghai and Shandong consumers are also a force to be reckoned with. Sales of hairy crabs in Guizhou, Hainan, Zhejiang and Tibet are also growing rapidly, demonstrating the potential of online channels like JD in helping brands increase their reach customers. Customers also have a wider range of choices no matter where they sit.

Selected data from JD Big Data Research Institute report on National Day consumption trends

Selected data from JD Big Data Research Institute report on National Day consumption trends

JD data shows that the 18-35 age group continues to be a strong driver of hairy crab purchases, while the proportion of 46 and up middle-aged consumers increased 37%. While younger consumers are well served in online, many older consumers are cultivating online shopping habits, which combined with the trust and guarantee of the JD brand and the speed of JD Logistics, are key reasons why brands turn to JD.

This year JD implemented a series of measures to address consumer pain points associated with buying crabs online. First, the platform’s professional aquatic product buyers work almost year-round to guarantee the quality. Each hairy crab on JD also has a unique tracing code. Among other attractive incentives to customers of hairy crab are JD’s policy that crabs are weighed without ties to ensure fair pricing. Additionally, JD also offers two live crabs in compensation for any dead one – the highest level refund in the industry; price protection through year-end, and more.

It’s not all about crabs though. Several other staples of family reunions have seen huge increases. Making up for lost time having not been able to go home for a while, consumers are stocking up on liquor and other beverages, snack food and more. Those opting for a holiday adventure or even time in the great outdoors are also getting geared up.

Consumption in the travel category also increased 64% ahead of the holiday, while the jewelry category increased 31% and outdoor sports apparel, shoes and bags saw an increase of around 30%, all YOY (on the lunar calendar). Many people are spending the holiday getting married, and as a result wedding gifts, gold ornaments and other precious metal sales saw growth of over 50% YOY. Meanwhile, ice sports, yoga, equestrian, cycling, fishing, roller skating and other hobby-related gear have seen rapid growth. One consumer left a comment saying that they missed out on spring but are determined to not miss on fall and bought new equipment just in time to go cycling at Qinghai Lake.

 

(ella@jd.com)

JDer Lab #7 with Helena Xu: Finding Fulfillment in the Everyday

Posted on 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 another JDer about what it’s really like to work for China’s largest retailer.

 

 

For Helena Xu, Senior Business Development Manager of Cross Border Payment at JD Digits, job satisfaction isn’t necessarily pinned to the big “aha!” moments. Sometimes it’s the little moments that add up to a larger sum.

“Sometimes when I’ve had a long and exhausting day, I leave the office and look at the bright JD logo with the cute JD mascot dog, lighting up the night sky… and I feel a sense of fulfillment.”

Other days it might be in the moment when she hears about an exciting new business model that has the potential to reshape the entire industry—and knows she has a team of brilliant people and the resources to make it happen.

Although there are also those banner days that really do feel like mountain peaks, of course. Xu led one project to obtain an overseas financial license in order to establish a new business model, preparing meticulously over nine months in cooperation with a dozen JD departments. “Finally we made it,” she said. “And on that day, I was so happy. It was almost like giving birth to a baby. It was a marvelous day.”

Working with brilliant people certainly helps, she said. Many of her clients are pioneers in their own industries, so when they propose business ideas or encounter problems, it’s often uncharted territory. Xu’s team at JD Digits is able to respond fast and with a high level of professionalism.

“I am really proud of this, because we feel we are actually growing with our clients and making history together,” she said. “JDers come from different countries, regions and different industries, but they are all very young. When I talk about young, it’s not about physical age, but rather the kind of spirit that’s about people willing to share and take on new challenges. That’s something I love about JD.”

In fact, with time being such a rare resource for everyone these days, she thinks often about how both her teammates and the JD environment have impacted her life.

“There is a universal question of how to gain or obtain two days of efficiency or experience within one day,” she said. “Actually I think the answer would be working at JD because here the working environment is extremely intensive, dynamic and fast-paced. So your limit is surpassed and your capability is stretched…and finally, your horizon is expanded. As a result, you will find out your time value is doubled.”

Xu sees bright things ahead for JD.

“I feel JD is an exciting and fast-moving company, so I am really looking forward to leaving our footprints all over the globe, to connect, influence, and improve the whole world,” she said.

(kellydawson@jd.com)

JDers Awarded “Most Beautiful Couriers”

Posted on by Ling Cao

by Ling Cao

JD won two awards in the recent “Most Beautiful Courier” competition organized by China Post News and overseen by the State Post Bureau. The company’s Wuhan Asia No. 1 Cargo Fleet was among 5 courier teams industry-wide to win the award; and JD’s Pinglai Liu was among 14 couriers to receive the honor.

While the award title includes “beautiful,” it means beauty and warmth of heart.

The award ceremony was held on September 29th in Beijing, in recognition of the hard work of China’s over 4 million couriers, who deliver more than 200 million parcels per day. Their work was particularly meaningful during the height of the COVID-19 outbreak earlier this year.

As one of the select individual couriers to receive the award, Liu has been working in Zhaotong City, Yunnan province for over five years. During his time as a courier he has faced many different conditions, even navigating slippery mountain roads to send villagers to distant villages.

For example, he had carried elderly people across the river during flooding. Liu said

Because of his consistent doorstep delivery service, Liu has established closed relationships with local customers. “I remembered one snowy day, there was a vast expanse of snow and ice, and people were easily skidding on the road. My customer called me immediately and asked me to send the parcel on a later day after the snow had melted. I was so moved that customers care and understand us even though they normally hope to get the parcel in time.”

Nowadays road conditions have improved in Zhaotong City, and Liu doesn’t need to navigate treacherous roads for delivery. But he still provides help to others whenever he can. For example, he had carried elderly people across the river during flooding. Liu said, “This is not just an award on the surface. I want to provide the best service to local villagers so that they can enjoy the same type of convenience as people in big cities.”

As one of the 5 teams that won the award, JD’s Wuhan Asia No. 1 Cargo Fleet includes 99 couriers and drivers, who provided non-stop transportation and delivery service during the COVID-19 outbreak in Wuhan, ensuring the livelihood of many. In total, they delivered 6,000 tons of daily necessities to local people at the height of the outbreak.

As one of the 5 teams that won the award, JD’s Wuhan Asia No. 1 Cargo Fleet includes 99 couriers and drivers

One young driver from the fleet, Mingguang Yang, said, “We didn’t have time to think otherwise. We simply thought we could reunite with our families on next Chinese New Year’s Day. For this year’s Spring Festival, we had work to do to provide support during this difficult period.”

 

(ling.cao@jd.com)