JD Logistics Upgrades Its Brand

Posted on by Yuchuan Wang

On August 18th, JD Logistics celebrated its eighth anniversary, following its official registration as a company in 2012. Zhenhui Wang, CEO of JD Logistics, sent a congratulatory letter (in Chinese) to JD Logistics employees, in which he announces the upgrade of JD Logistics’ mission and vision, organizational structure and brand image, to further its goal towards becoming a leading global supply chain and logistics company.

Below is a courtesy translation of Wang’s letter.

 

Seizing the moment and aiming even higher

A Letter from JD Logistics CEO

My dear brothers and sisters,

Eight years ago, we officially registered the logistics company.

Over the past eight years, with the upgrading of consumption and driven by the internet, logistics has become infrastructure for the whole society and the basic way to link people to a better life. JD Logistics has the honor to witness and participate in the creation of this golden era.

Over the past eight years, we have operated over 750 large-scale warehouses in China, with a total area of approximately 18 million square meters, storing over 6 million SKUs.

Over the past eight years, we have delivered a total of over 50 million tons of goods, equivalent to transporting enough water to fill nearly four West Lakes of Hangzhou. Our more than 200,000 brothers and sisters have been providing fast and more importantly, warm service to customers.

Over the past eight years, our logistics network has covered 100% of the districts and counties of Chinese Mainland, and has penetrated to the lower-tier villages and countryside. Technology-driven same-day delivery became an important standard of “China speed”.

Why have we become who we are today?

Do long-term things. Doing something long-term depends on determination and persistence. From the earliest opening of our warehouse in Beijing’s Fenghuangling (Phoenix Ridge), to today, when we are penetrating the lower tier cities with our warehousing network for the third time, the layout of our infrastructure extends from where sales happened to the origin of products, from warehouses to logistics hubs and to delivery stations, paving the way for shortening the chain from production to sales. From the operations of Shanghai Asia No.1 logistic park in 2014, to the launch of the world’s first fully-automated warehouse, and first 5G smart logistics park; from every real time delivery commitment to our consumers, to help our couriers optimize the delivery routes, our focus and investment in technology application and R&D continue to improve the customer experience and the efficiency of the whole process.

Do ordinary things. We believe that doing ordinary things well is the greatest contribution to the society. Ordinary is “order in the morning and receive it the afternoon”; It is every delivery-to-door service and continued delivery during Chinese New Year; It is daring to make provision of high quality services as the standard. Ordinary is the voluntary transportation channel for emergency relief materials during the pandemic; It is to ensuring the supply of medical supplies and daily necessities; It is to transport luggage for medical teams and distribute education materials; It is building the emergency materials supply management platform; It is the continued supply of Beijing residents daily food from Gaobeidian agricultural product base in Hebei. Ordinary is every parcel we have delivered with love and trust.

Do things together. Only when we work together can we have a long-term future. We are firmly committed to our opening-up strategy. Over the past three years, moving from serving JD Retail to serving hundreds of thousands merchants and social institutions, more and more clients have gradually handed over all their logistics business to us. Many also use our technology and services. Cases of our cooperation model have even made it into our client enterprise’s show rooms. Having opened up our integrated supply chain to society and serving more consumers and clients, we have gained many more like-minded partners. Let us drive the progress of the industry through a symbiotic ecosystem approach, and jointly improve the efficiency of the supply chain.

We are like a youngster, full of vitality. JD Logistics always adheres to the value of “customers first”, constantly improve service quality, and gain the trust of more customers. In order to more effectively move towards becoming the world’s leading supply chain logistics company, we are making three upgrades:

Mission and vision upgrade. JD Logistics’ mission will be upgraded to “Powered by technology for global efficient circulation and sustainable development.” Our vision will be upgraded to “become the most trusted service provider of supply chain infrastructure.” We firmly believe that the determination of establishing a self-built logistics network to provide a better customer service that has taken us to where we are today, our opening up strategy, technology-driven and global perspective will take us further.

Organizational structure upgrade. We have well-organized 7 big regions nationwide. We will achieve sustained high quality growth with a more solid organizational foundation, driven by technology we will achieve revolutionary technological improvements and the realization of a global dream.

Brand image upgrade. JD Logistics will present an even younger, more technical and more open brand image to the public. In “JDL”, “JD” represents JD.com, which is the root of JD Logistics’ development and provides guidance for our values. “L” represents Logistics, and also Lead, Link, Less and Love. Our continued pursuit is to offer simpler products and more cutting-edge technology, linking more entities and providing more warm services.

Eight years have passed; a better eight years are on the way

For the next eight years, JD Logistics will improve the customer experience and industry efficiency by building integrated supply chain services and high quality logistics products, guided by our upgraded mission and vision. We will work with more partners to accelerate the transformation of the industrial supply chain by building an omni-scenario logistics technology system and through digital empowerment. We will promote the penetration of the internet in lower-tier markets and the connection of production and sales, to contribute to the national strategy of supply chain and dual circulation development policy, and actively explore the road for China’ logistics to the world, to become a world’s leading supply chain logistics company.

 

Zhenhui Wang

CEO of JD Logistics

August 18, 2020

Coach and JD Deepen Partnership in China’s Market

Posted on by Ella Kidron

by Ella Kidron

Coach opened a flagship store on JD on August 16th. The opening of the store marks a further expansion of JD’s partnership with the American brand, following the hugely successful operation of JD’s first-party Coach store.

“We’re thrilled to take the next step in our partnership with Coach,” said Kevin Jiang, President of International Business, JD Fashion and Lifestyle.  “With offerings ranging from entry level to luxury, Coach is one of the most well-known luxury brands in China, and the brand has had consistently had outstanding performance on JD. Furthermore, Coach’s has strong and flexible design and manufacturing capabilities, meeting our rigorous supply chain standards. I’m looking forward to what’s to come in us continuing to work closely together.”

Coach is one of the most well-recognized luxury brands in China. Many consumers in China have fond memories of their exposure to Coach. Several mentioned buying or receiving their first Coach bag, which in most cases was also their first designer bag, as well as stories of upgrading to more premium Coach products as both they, and their lifestyles have matured. Likewise, JD’s consumer base on Coach is very broad, encompassing the younger consumers who select Coach for their starter luxury bag, especially consumers in the lower-tier cities, as well as more affluent consumers who seek the brand’s latest more high-end product lines.

As such, the store on JD is focused on meeting a diverse range of needs at all price points. Collections on offer include the classic Parker, the Tabby, one of the hottest styles this year, and the Hutton series including the China Collection with graffiti style “Rexy” emoticons by artist Guang Yu, as well as the latest fall/winter 2020 offers, a wide range of accessories, and more. In honor of the upcoming Chinese Valentine’s Day, a special floral bag collection is being sold exclusively on JD.

Coach opened a flagship store on JD

JD has already partnered with nearly 200 luxury brands this year alone. With a longstanding commitment to quality, proven experience in consumer operations, and unmatched supply chain and logistics resources, the company has repeatedly proven to be a clear choice for both brands and consumers in the luxury brands.

 

(ella@jd.com)

JD.com Tests “1+1+1” Livestreaming Model

Posted on by Ling Cao

by Ling Cao

Over the last two months, JD’s New Markets, the suppliers of JD’s convenience stores, has cooperated with Cofco Coca-Cola Beverages, the beverage company jointly formed by Cofco and Coca-Cola, and the third party joint warehouse, on two livestream events.

The “1+1+1” models by the three parties has received good performance, which all largely exceeded expectations. The livestreams are held in the joint warehouse, which not only provided small shops with high quality and cost-effective products, but also helped brands and the joint warehouse to accelerate business scale.

Located in Chengdu, Sichuan province, the joint warehouse is mainly for storage of milk and beverages. The first livestream saw good sales performance, hitting RMB 100,000 yuan in sales. Guanze Wang, head of the warehouse said, “Normally daily sales are just over RMB 10,000. With livestream, sales are ten times higher, which is amazing.”

After the first successful trial, the three parties regarded this as an important initiative and quickly decided to devote larger resources to holding a second one.

A representative of Cofco Coca-cola said, “At first it was only a trial. We didn’t realize it would be so successful. Once we saw the value behind this new model, we could get the support of the company.”

JD New Markets team helped the partner and the warehouse team to prepare the livestream

The initiative has resulted in a record over RMB 200,000 yuan in sales.

Wang from the joint warehouse said, “Many brands have come to us after the two livestream events. The new model has increased our income and confidence.”

 

(ling.cao@jd.com)

JD and Trip.com Partner to Provide More Travel Benefits to Chinese Consumers

Posted on by Ella Kidron

by Ella Kidron

On August 16th, JD and leading travel services provider Trip.com announced a new partnership. According to the agreement, the supply chain for Trip.com’s core products will be connected with the JD platform. The vision for future cooperation includes five core areas, user expansion, sharing of channel resources, full coverage of online and offline travel scenarios, cross-border marketing, and the development of enterprise travel. The goal is to meet all diversified travel-related needs of consumers before, during, and after travel, and jointly create the most reliable and satisfying platform for users.

As the largest retailer in China, JD will bring 8 million enterprise customers and nearly 400 million individual customers to Trip.com. At the same time, the cooperation will help JD continue to promote the diversification of its business, and enrich its supply chain capabilities in travel, given it even more strength to serve domestic and foreign industry brands, urban cultural and tourism industry construction and consumer travel service quality.

Despite significant impacts to tourism under COVID-19, JD has maintained an optimistic attitude towards China’s tourism industry and has continued to promote the development of the sector. In 2019, China saw over 6 billion domestic tourists, with tourism accounting for 11.05% of total GDP. Tourism has become a key expenditure item for national consumption.

JD Travel has always emphasized the concept of “quality travel.” It currently operates across six core business lines: transportation, hotel accommodation, travel and vacation, scenic spot and amusement park, local entertainment and enterprise travel services. In order to meet the needs of individual users, JD Travel integrates a wide range of consumer services and preferential packages. On the enterprise side, JD provides a rich online business travel solution, integrating high quality supplier resources, providing business customers with professional, comprehensive enterprise travel management solutions.

 

(ella@jd.com)

Highlights: JD Executives on Q2 2020 Earnings

Posted on by Yuchuan Wang

by Ella Kidron and Yuchuan Wang

On August 17th, JD.com reported second quarter 2020 earnings results. Net revenues grew by 33.8% in the second quarter. Annual active customers for the twelve months ended June 30, 2020 reached 417.4 million, up 29.9% compared with the twelve months ended June 30, 2019. On the earnings call to discuss the results, JD’s management team emphasized the company’s commitment to its partners, the integral role of supply chain across its businesses, as its unrelenting effort to provide the best possible experience for customers and clients alike.

On JD’s Q2 performance, CFO Sandy Xu said, “We are proud that JD played an important role to help our suppliers and users in this extraordinary time and contribute to society. As domestic consumption is still recovering from the disruptions brought by the pandemic, both the release of pent-up demand and a structural shift of consumers’ purchasing behavior from offline to online have added to our strong performance in the quarter.”

Among the highlights, general merchandise grew by 45% year over year, led by key categories such as supermarket and healthcare, demonstrating JD’s position as the leading reliable, full-category platform for consumers in China. Ms. Xu said, “Our supermarket category, including FMCG and Fresh Produce, became the single largest product category by revenue in first half of 2020, surpassing mobile phones, home appliances, and computers, our former champion categories… this steady shift demonstrates our strengthened brand recognition and consumer perception as an everything-store with increasingly broader selections.”

JD Retail CEO Xu Lei emphasized: JD Super has already become China’s largest supermarket online or offline. Going forward, we will further strengthen the establishment of our middle platform supply chain capabilities to satisfy consumers in different scenarios and provide more competitive prices. In addition, we (JD Super) will collaborate with JD Logistics on warehousing, including investments in cold chain logistics, to improve fulfillment efficiency and lower fulfillment costs. Lastly, we will keep promoting our omnichannel (strategy) to provide our supply chain capabilities to create more values not only for JD’s first-party businesses but also hundreds of thousands of offline stores.

In terms of key strategic priorities for JD Retail, Xu added that: First, we will keep opening up our supply chain. Second, we will further develop in lower-tier city markets and industrial belts. Third, we will keep promoting the building up of omnichannel capabilities. Fourth, we, including the whole JD.com group, have been strengthening our investment in technology and services and we will continue collaborating with enterprises on the business side.

JD Logistics was also a strong driver of profitability improvement from new businesses. CFO Ms. Xu mentioned on the earnings call that JD Logistics turned profitable on a non-GAAP basis in the quarter, driven by high order volume during the peak season and technology-driven productivity gains thanks to JD’s “best-in-class” fulfillment capacity. CEO of JD Logistics, Zhenhui Wang said: JD Logistics has attached great importance to the FMCG category this year. We will place more warehouses in the lower-tier markets, enabling more goods to reach customers and more customers to experience better JD Logistics services. In addition to our same- and next-day delivery program, we will provide one-hour delivery service for different categories and cities, letting our customers to choose for themselves.

For JD Health, on top of online pharmacy sales, which saw strong top line growth in Q2, JD’s online medical consultation service volume delivered 400% growth YOY as more users are aware of and get accustomed to the new service. User engagement was a key growth driver, especially lower-tier city users. In Q2, over 80% of new customers came from lower-tier cities, an improvement from previous quarters.

In terms of investments at the group level, CSO Jon Liao reiterated the company’s commitment to investing in companies which are complementary in terms of scale, scope, capability and long-term business value to build long-term strategic value. He also mentioned the company’s strong continued investment in lower-tier cities, supply chain and infrastructure.

 

*Note that all statements above are based on JD’s Q2 earnings call, and are under the Safe Harbor statement in the press release, available here: https://ir.jd.com/news-releases/news-release-details/jdcom-announces-2020-second-quarter-and-interim-financial

 

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

JD Logistics Releases Digital Twin Supply Chain White Paper

Posted on by Yuchuan Wang

by Yuchuan Wang

On August 14th, JD Logistics and China Federation of Logistics & Purchasing jointly released the “Digital Twin Supply Chain” white paper (in Chinese) at the “2020 Global Logistics Technology Conference” held in Shanghai.

One of the biggest benefits of digital twin technology is its ability to improve effectiveness of processes. “We hope the white paper could be a for reference for the industry,” said Wenming Zhe, chief architect and head of logistics R&D Architecture at JD Logistics. “The essence of supply chain and logistics is the optimization of resources, but the cost of trials in the physical world is often very high. Through digital twin supply chain, we hope to move the trials for optimization and simulation from the physical to digital world, which will ultimately assist the improvement of efficiency and cost in the physical supply chain.”

JD Logistics technology conference

A digital twin is a virtual replica of a physical asset and/or process that relies on real-time data to mimic any changes that occur throughout its lifecycle. The development of digital twin technology is dependent upon the progress of innovative technologies such as 5G, cloud computing, IoT, AI, blockchain and robotics.

As digital twin technology is being applied in more and more industries such as smart city, the white paper, for the first time, introduces the concept of “digital twin supply chain”. The white paper introduces the definition of digital twin, fundamental technologies, applications in supply chain and suggestions for further development.

A digital twin supply chain integrates forecasting technologies and decision-making tools with digital twin technology, thus improving supply chain efficiency and lowering costs.

As early as 2019, JD Logistics created its own digital twin supply chain platform “LoMir”, which is short for Logistics Mirror. The platform was first applied in JD’s Beijing Asia No.1 logistics park, and now covers over 8,000 transportation routes in JD’s self-owned logistics and warehousing network and provides accurate capacity forecasting and alert for sales peaks such as 618 and Singles Day (November 11th).

 

(yuchuan.wang@jd.com)

JD.com Announces 2020 Second Quarter and Interim Financial Results

Posted on by Yuchuan Wang

BEIJING, Aug. 17, 2020 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months and six months ended June 30, 2020.

Second Quarter 2020 Highlights

  • Net revenues for the second quarter of 2020 were RMB201.1 billion (US$1 28.5 billion), an increase of 33.8% from the second quarter of 2019. Net revenues from the sales of general merchandise products for the second quarter of 2020 were RMB64.0 billion (US$9.1 billion), an increase of 45.4% from the second quarter of 2019. Net service revenues for the second quarter of 2020 were RMB22.9 billion (US$3.2 billion), an increase of 36.4% from the second quarter of 2019.
  • Income from operations for the second quarter of 2020 was RMB5.0 billion (US$0.7 billion), compared to RMB2.3 billion for the same period last year. Non-GAAP2 income from operations for the second quarter of 2020 was RMB5.6 billion (US$0.8 billion) with a non-GAAP operating margin of 2.8%, as compared to RMB3.2 billion for the second quarter of 2019 with a non-GAAP operating margin of 2.1%.
  • Net income attributable to ordinary shareholders for the second quarter of 2020 was RMB16.4 billion (US$2.3 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the second quarter of 2020 increased by 66.1% to RMB5.9 billion (US$0.8 billion) from RMB3.6 billion for the same period last year.
  • Diluted net income per ADS for the second quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the second quarter of 2019. Non-GAAP diluted net income per ADS for the second quarter of 2020 was RMB3.51 (US$0.50), compared to RMB2.30 for the same period last year.
  • Annual active customer accounts3 increased by 29.9% to 417.4 million in the twelve months ended June 30, 2020 from 321.3 million in the twelve months ended June 30, 2019. Mobile daily active users4 in June 2020 increased by 40% as compared to June 2019.

“Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “I’m grateful for the efforts of JD’s employees and business partners in driving another solid quarter of accelerated revenue growth, as our extensive product offerings and superior services continue to attract large numbers of new users.”

“Our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China’s economy emerges from the difficult pandemic period, and helped drive solid top and bottom line results for the second quarter,” said Sandy Xu, Chief Financial Officer of JD.com. “Our strong financial and operating performance form the basis for JD’s continued investment in innovative supply chain capabilities and a superior customer experience to support our long term growth.”

Business Highlights

Hong Kong Listing

  • On June 18, 2020, JD.com successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited under the stock code “9618”, with a global offering of 152,912,100 new Class A ordinary shares (including a partial exercise of the over-allotment option completed on July 15, 2020) (the “Global Offering”). The Hong Kong-listed shares are fully fungible with JD.com’s American depositary shares (“ADSs”) listed on the Nasdaq Stock Exchange, based on the ratio of two ordinary shares per ADS. The gross proceeds from the Global Offering, before deducting underwriting fees and the offering expenses, amounted to approximately HK$34,558 million. JD.com plans to use the net proceeds to invest in key supply chain-based technology initiatives to further enhance customer experience and improve operating efficiency.

Environment, Social and Governance

  • In response to the COVID-19 resurgence in Beijing in June, JD.com rapidly deployed prevention measures to protect consumers and employees while ensuring the steady supply of daily necessities. As the new outbreak was linked to a wholesale food market in Beijing, JD.com carried out virus screening on fresh produce. Contactless deliveries were made widely available in local residential compounds, and JD delivery staff, truck drivers and warehouse workers were all tested for the virus.
  • In the second quarter, JD.com continued to contribute to China’s poverty alleviation efforts, including joining a nationwide program to offer tens of thousands jobs in its logistic and retail operations and hosting live stream shows with rural counties to promote local specialties. JD Health and JD Foundation launched online purchase subsidies for low income families covering selected medicines, creating the largest health poverty alleviation project in China in terms of geographical coverage, population benefited and total monetary amount.

JD Retail

  • JD.com continued to attract premium global brands to its platform as a widely trusted retailing channel for high quality products. In the second quarter, brands including Prada’s high end footwear brand Church’s, London based innovative luxury fashion label Christopher Kane, well-known British furniture design brand Tom Dixon, Italian luxury shoe brand Sergio Rossi, Korean high street apparel brand SJYP and affordable Japanese cosmetics and drug store Daikoku, all launched flagship stores on JD.com.
  • In the second quarter, livestreaming continued to grow in popularity as a tool for suppliers and merchants to engage with customers. Ms. Dong Mingzhu, Chairwoman of Gree Electronic Appliances, booked a record-breaking sale during a three-hour livestream show, featuring pre-sale customer education and product recommendations. In order to diversify its user engagement channels and fully leverage its supply chain strengths, JD Retail announced a strategic partnership with Kwai, one of China’s leading short video platforms. The debut event, a one-day livestream show jointly held by the two companies, was a great success connecting Kwai’s large user base to JD.com’s broad selection of high quality products and superior online shopping experience.
  • In April, JD Retail launched “Instant Delivery” services for mobile products, with delivery of mobile phones in as fast as one hour through JD Daojia. The initiative applies its omni-channel strategies to more diversified categories and further improves customer experience. The service currently covers selected authorized stores as well as other partners within JD.com’s omni-channel ecosystem.
  • JD Retail continued to apply advanced technology to various consumption scenarios in order to facilitate online purchasing. Following the launch of its AR-based virtual shoe “try-on” service – the first for an e-commerce platform in China – JD Retail launched its AI-powered skin evaluation service in June, allowing users to upload images from their mobile phone for analysis and receive customized shopping guidance on suitable skincare and cosmetics products.

JD Health

  • On August 17, 2020, JD Health, a subsidiary of JD.com, entered into a definitive agreement with Hillhouse Capital for its non-redeemable series B preference share financing. The total amount expected to be raised from Hillhouse Capital is over US$830 million. JD.com will remain the majority shareholder of JD Health after the completion of this transaction, which is subject to customary closing conditions. The closing is expected to occur in the third quarter of 2020. Hillhouse Capital is a leading investment management company that has established a comprehensive ecosystem in the healthcare sector in China. By leveraging Hillhouse Capital’s industry expertise and resources, JD Health will further strengthen its pharmacy supply chain capabilities and explore additional healthcare services opportunities in the broader healthcare sector.
  • In June, JD Health unveiled its Traditional Chinese Medicine Consultation Center and Intelligent Otorhinolaryngology Services Center, each bringing together the country’s top specialists and providing online consultations and disease management programs for patients nationwide. With the addition of these two centers, the specialized virtual medical treatment centers within the JD Health app cover areas including heart disease, mental health, diabetes, kidney disease, pediatrics, oncology and maternity, among others.

JD Logistics

  • In the second quarter, JD Logistics launched a new Asia No.1 warehouse in Langfang, Hebei province, near Beijing, equipped with the first automated storage and retrieval system for bulky items in Asia’s e-commerce industry, greatly improving efficiency in handling items including air conditioners, refrigerators and furniture. Thanks to its continuous focus on technology innovation, JD Logistics maintained fast delivery standards during the June 18 Anniversary Sale as orders surged to record highs, ensuring that 91% of packages from its direct sales platforms arrived at consumers’ doorsteps same or next day throughout China.
  • As of June 30, 2020, JD Logistics operated over 750 warehouses, which covered an aggregate gross floor area of approximately 18 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.

Equity Investees Update

  • On June 25, 2020, JD.com announced that it has entered into agreements with JD Digits, pursuant to which JD.com will acquire a 36.8% equity interest in JD Digits by converting its profit sharing rights with respect to JD Digits as set forth in the Framework Agreement entered into between the two parties in 2017, and investing an additional RMB1.78 billion in cash in JD Digits to satisfy the minimum capital registration requirement under the PRC laws. Upon closing, the Framework Agreement, including the current profit-sharing arrangement between JD.com and JD Digits, will terminate, and JD Digits will become an equity method investee of JD.com.
  • Dada Group, one of JD.com’s important ecosystem partners, listed on the Nasdaq Stock Market under the ticker “DADA” on June 5, 2020. Upon its initial public offering (IPO), JD.com purchased additional shares as a cornerstone investor. As of June 30, 2020, JD.com is the largest shareholder of Dada Group with a 47.9% stake. JD.com has formed an extensive cooperation relationship with Dada, as its local on-demand delivery and retail capabilities support JD.com’s innovative projects and omni-channel strategy, together bringing consumers the most convenient and advanced shopping experience.

Operational Metrics Update

  • As of June 30, 2020, JD.com had approximately 240,000 employees excluding part-time and interns.

 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JD.com’s strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to JD.com’s industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.

JD and Friesland Target to Sell RMB 10 Billion Yuan in China in 3 Years

Posted on by Rachel Liu

by Rachel Liu

On August 12th, JD Super, JD’s online supermarket, and Friesland, a Dutch international dairy company, announced that they are eyeing a sales target of RMB 10 billion yuan in China in the next three years.

Friesland is the world’s largest dairy co-operative and one of the top five dairy companies in the world. The main brand under the company is Friso, which is one of the best-selling maternal and baby brands on JD. JD has been working closely with Friesland since 2010, and is the brand’s most important sales channel in China.

The two sides see five areas of potential cooperation:

  • JD will leverage its massive customer base and omnichannel advantages to expand the sales of Friso products, including through the cross-border model, third-party model and more.
  • The two sides will work together to build marketing solutions covering all shopping scenarios, and to cooperate more deeply on digital marketing and media resources sharing.
  • JD will provide customer insights and behavior analysis to Friesland to help the brand develop new products, and provide marketing suggestions after the new products are launched.
  • JD will help Friesland with CRM (Customer Relations Management) to develop brands’ members and improve the sales generated from members.
  • JD and the brand will integrate content management resources, such as livestreaming and KOLs, to create better content for JD customers.
  • JD will work with Friesland to explore trends in digital transformation of e-commerce.

During the epidemic, leveraging its advanced supply chain capabilities and logistics network, JD worked closely with Friesland to ensure the consistent supply of products to Chinese parents, which has largely improved the customers’ recognition of the brand. JD Super has become the first choice for international maternal and baby brands to develop in Chinese market.

 

(liuchang61@jd.com)