A Honeydew Melon Bought on JD for RMB 5 Yuan is Sold for 30,000

by Ling Cao

In late July Qianghua Yuan, founder of Saomao fruit art, sold a single honeydew melon for RMB 30,000 yuan. He bought it on Jingxi, JD’s social e-commerce platform, for less than RMB 5 yuan.

Inspired by Duoping Zhao, one farmer in Minqin, Gansu province, who helped turn the desert into an oasis by planting honeydew melon, Yuan carved Zhao’s likeness on a honeydew melon as an artwork and posted it on his Weibo, China’s social media platform similar to Twitter. The story moved a netizen originally from Gansu, who bought the melon at a price of RMB 30,000 yuan.

Yuan carved Zhao’s likeness on a honeydew melon as an artwork and posted it on his Weibo, China’s social media platform similar to Twitter.

Because of the COVID-19, there is less demand from offline merchants to buy the local honeydew melon, and prices have dropped, making it challenging to sell the fruit. Jingxi has added an e-commerce sales channel.

During July 27th to 31st, Jingxi held an online event to gift customers one million melons (weighing 2,000 tons) from places of origin including Minqin and  Xinjiang, Yunnan, Shandong and Guangxi. Customers can also experience the farming process via JD’s livestream.

The Minqin honeydew melon is not only high quality, but also has helped turn 50,000 square km of desert land into prosperous farming land. 90.34% of area in Minqin county is desert land. In order to reverse desertification, local farmers have chosen to plant fruits like honeydew melon. Duoping Zhao is one of them. He joined the anti-desertification effort when he was 18 and has continued for the last 35 years. He will take care of every aspect of the process, from raising seeds, planting, pruning, watering and harvesting.

In recent years, with the help of e-commerce, local fruits have been given improved sales channels and better pricing, helping many farmers like Duoqing Zhao to free themselves from poverty. The local environment has also been improved.

 

(ling.cao@jd.com)

JD Targets Fathers for Maternal and Baby Market

by Vivian Yang

JD Super, JD.com’s online supermarket, kicked off the “Super Dad Festival” (奶爸盛典) sales event on August 3rd. The event will last the whole month with a variety of marketing activities, including 50% discounts and RMB 9.9 yuan prices for selected maternal and baby products, livestreaming with famous celebrity dads, IP collaborations, dedicated dad shopping and gaming activities and more.

Chinese dads are becoming more and more involved in childcare. This is not only because scientists have proven the health benefits of fatherhood, but more importantly, how a father performs in terms of childcare will be a big consideration for moms when considering whether to have a second child.

The first critical test for dads is the postpartum period, in which it is a tradition for many Chinese women to stay at home and recover from pregnancy and laboring with special care. As more and more Chinese families are in favor of professional postpartum care services in recent years, for the first time this year, JD Super launched a dedicated online sales event with postpartum care centers during the “Supper Dads Festival”, offering high-quality and good price choices to support new dads to prepare for their role as caretaker.

Earlier this year, most of the postpartum care centers were affected in China. The online promotional cooperation with JD enables them to demonstrate their services and reach a greater number of customers. The platform also facilitates families of expecting mom with access to more assuring services.

A wide range of material and baby product brands have joined the sales event, offering milk powder, baby food, nutritional supplements, baby appliances and all kinds of toys, an inviting territory for most dads.

This is the fourth year for JD Super to host the “Supper Dads Festival”. Through the event, JD continues to deepen its collaboration with the most trusted maternal and baby brands home and abroad to further engage with a wide range of Chinese families and offer them assistance and assurance through high-quality and safe products and services.

 

(vivian.yang@jd.com)

China’s Last Administrhttps://jdcorporateblog.com/wp-admin/admin.php?page=wpseo_dashboardative Village to Get Highway Access Receives its First Online Order Fulfilled by JD

by Yuchuan Wang

On August 5th, Abuluoha, China’s last administrative village to get road access received its first online order delivered by JD Logistics. JD.com is the first enterprise to offer delivery-to-door service in the village. The order symbolizes the fact that the deeply isolated village is finally connected with the outside world via e-commerce.

Abuluoha, which means a valley surrounded by rolling mountains and a less-traveled place in the language of the Yi ethnic group, which is one of 55 minority nationalities in China, with population over 8 million. Abuluoha is located in Butuo county in Liangshan Yi autonomous prefecture, Sichuan province, in Southwest China. The village is entirely isolated, surrounded by mountains on three sides and cliffs on the other.

At the end of June this year, the mountainous village was finally linked through a 3.8-km-long highway which has three tunnels and a steel bridge.

Qieshacier, the villager who made the order, bought a Hisense TV priced over RMB 1,000 yuan (US$143+). “I didn’t expect the TV I bought online would truly arrive. My kids are now able to see the outside world through TV,” he said.

Qieshacier family with JD couriers
Qieshacier family with JD couriers

Working in the mountains his whole life, the TV set is the first big item Qieshacier and his family have bought. In the early morning of August 5th, he was pacing around in front of his house, waiting to welcome JD’s delivery.

Yang Nige and Jia Li were the couriers from JD responsible for the delivery. It took them over four hours to arrive at the village from the nearest JD Home Appliance Store over 100 km away. The mountain road was difficult to navigate and some sections were still being reinforced. Yang also helped Qieshacier install the TV and taught him how to use it.

According to Rilise, head of the village, many villagers have never left the village, and shopping was not easy. Previously, the locals had to put what they purchased on their own backs or their horses’ backs. Now, they can buy whatever they want through e-commerce and at comfortable prices.

Abuluoha, China Village

The first order to Abuluoha is supported by the comprehensive logistics infrastructure built by JD Logistics. Earlier this year, the company announced to upgrade its lower-tier markets program to provide 24-hour delivery service in over a thousand counties and ten thousands of townships in China. The service already covers 90% of administrative counties and townships.

The efforts of JD in remote areas also help promote local employment. The couriers Yang Nige and Jia Li come from another isolated village – “Xuanya Village (cliff village)”, also in Sichuan.

“Connected by JD Logistics, mobile shopping, TV and internet will no longer be the exclusive to people in cities,” said Hexi Yang, deputy general manager of JD Logistics southwest region.

JD will further leverage its logistics infrastructure and help build smooth farm-to-table and delivery-to-village channels to help more villages in the Liangshan area make their fortunes, said a JD Logistics spokesperson.

 

(yuchuan.wang@jd.com)

JD’s Outbound e-commerce Platform Sees Robust Sales Growth

by Martin Li

JD.com’s outbound e-commerce platform witnessed sales growth of over 300% in the first half of this year, compared with the same period of last year.

The top five markets leading the growth were the United States, Taiwan, Japan, Canada and Hong Kong, according to internal data from JD Global Sales, which oversees the outbound retail business.

A double-decker with a JD ad in Hong Kong 

A double-decker with a JD ad in Hong Kong 

Among the most popular products sold in the first half of this year were office products like computers, smartphones, books, as well as digital products, food and beverages.

Health care products saw a sales growth of more than 760% during the period, driven by the COVID-19 pandemic.

“JD’s outbound e-commerce platform is committed to connecting Chinese brands with overseas consumers. Overseas consumers can have a care-free online shopping experience thanks to JD’s advantages in supply of authentic products, cross-border logistics, online payment and localized service. Chinese brands can also benefit from these advantages in their overseas expansion,” said Chris Cui, head of JD Global Sales.

In an effort to help Chinese brands develop abroad, JD has put in place measures including subsidies and support in strategy, logistics and traffic.

Drawing by an overseas child customer titled“JD in my eyes”

Drawing by an overseas child customer titled“JD in my eyes”

The number of users on the outbound platform increased by 256% in the first half of this year, compared with the same period last year.

“It surprised me when I received my deliveries within the three days after I placed orders on JD. The delivery is free and much faster than local e-commerce platforms,” said a customer in Hong Kong.

Chinese computer brands saw their sales up by five times from June 1st to June 16th, during JD’s annual 618 Grand Promotion, compared with the same period last year.

 

(bjlihao3@jd.com)

 

JD Wins Influential Domestic Auto-aftermarket Award

by Ella Kidron

JD Auto was awarded “Most Influential Supply Chain Platform” last week in Shanghai during the 2020 Summit of China Auto Aftermarket Channel and Supply Chain hosted by Aftermarket China (AC汽车), a domestic auto aftermarket media outlet. The award reflects the fact that JD’s updated positioning as a supply chain-based technology and services company has fully-infiltrated its auto business.

JD awarded Most Influential Supply Chain Platform by Aftermarket China (AC汽车)

JD awarded Most Influential Supply Chain Platform by Aftermarket China (AC汽车)

JD has continued to strengthen its position in the auto aftermarket by using its supply chain advantages to provide integrated services. In November 2019, JD Auto launched a network to optimize the supply chain of spare auto parts by helping match needs between manufacturers, brands and dealers. The alliance, called Yunpei Lianmeng (云配联盟), roughly translated as the Cloud Matching Alliance, currently covers over 7,000 registered merchants and has more than 50 core members. One of them, Sail, saw sales exceed the total annual performance of 2018, only two months after having joined. The products from the alliance are indicated by a Yunpei Youxian (云配优先) logo on JD’s app. Furthermore, the flagship store for Yunpei Youxian helps brands in the alliance increase their influence among car owners by relying on JD’s data advantages.

Earlier, in March 2019, JD released a series of products under the self-owned brand Jauto (Chinese name: 京安途). The series currently covers all categories related to the auto-aftermarket. It is the first such brand in the industry to cover engine oil, tires, accessories and more. The products are sold at nearly 500 dealers and serve over 10 million car owners. Again, JD’s supply chain advantages have helped to create a coordinated distribution channel mechanism from manufacturer to dealer (JD Auto Service, Chinese name:京车会) to car owner. Products are delivered to more than 1,000 JD Auto Service offline stores covering over 120 cities. At the same time, price synchronization online and offline forms a closed loop for transactions. Online, thanks to the traffic advantages of JD’s 80 million car owners, to promote purchases in offline channels.

JAuto product line

JAuto product line

With JAuto as the starting point, JD’s auto business has been able to establish a tightly controlled product supply chain system. Thanks to strengthening of its digital capabilities and advantages in purchase, sale and inventory management for core dealers and JD Auto Service stores, JAuto has helped partners maximize efficiency and reduce costs.

 

(ella@jd.com)

A JD Courier’s Simple Goodbye Letter Becomes a Phenomenon

by Ella Kidron

When Ma Hao (马浩) a JD delivery courier in Shanghai wrote a goodbye letter to his customers at the end of July, the last thing he expected was to become a phenomenon. He was just doing what he thought should be done, as he has always done.

Ma Hao dressed in his signature red JD Courier uniform standing in front of his delivery tricycle

Ma Hao dressed in his signature red JD Courier uniform standing in front of his delivery tricycle

For the last five years, Ma has serviced the Vanke Dream City (松江万科梦幻城) apartment compound in the Songjiang suburb of Shanghai. The apartment compound has 38 buildings, and nearly 2000 residents. Ma delivers 160 packages on average each day, all the way to customer’s doorsteps, as is required by JD. Ma knows 70-80% of the compound’s residents personally, and over 200 of them have exchanged WeChat contacts with him for ease of communication. A favorite among residents’ children, sometimes after he’s delivered a package and is preparing to leave, the kids will chase after him just to say hello.

Recently, he made a personal decision to transfer from Shanghai to Changzhou, Jiangsu province, which is his hometown. He left a note to his customers in his WeChat moments to let them know the news and thank them for their support and understanding.

As he expresses in the letter, Ma’s thinking in posting the letter was simple – he wanted to earnestly say goodbye to his customers, but he was worried about making too much of a fuss of his departure and disturbing them. It goes without saying, however, that he was also worried that the residents would mistake his behavior over the last five years as false enthusiasm and politeness, if he didn’t so much as say goodbye. Ultimately he made the decision to post a note to the residents on his WeChat moments, striking a balance between not saying goodbye, and avoiding feeling like he was being a nuisance. Although simple in prose, the letter reflects Ma’s true feelings towards his time with the residents, as well as the relationship he’d built with them.

Ma’s letter (left) and residents praising him in a WeChat group (right)

Ma’s letter (left) and residents praising him in a WeChat group (right)

Ma joined JD in June 2015 with the aspiration to provide a better life for his family and make good on his debt from buying a home. He hadn’t imagined forming a deep bond with the apartment complex residents as he did, and earning the nickname of “Brother Ma” (小马哥) as a result of his helpfulness.

Over his last five years of service, Ma has delivered nearly 200,000 packages, always taking care to remember each customers’ request and provide the best possible service. After seeing the letter, residents went out of their way to express their appreciation for Ma. In a WeChat group they conspired to provide an appreciation gift of their own, suggesting that they quickly come together and make a silk banner (锦旗) for him. One resident contacted JD PLUS’ customer service to praise Ma, emphasizing, “Be sure to pass on the message. For the last five years or so, all of family’s parcels have been delivered by him.”

Another resident recalls a time Ma went above and beyond to help her daughter who had diarrhea. She’d bought lactase medication, and given the urgency gave Ma a call. He immediately put down the packages he was sorting for the day’s delivery, found the medication and brought it to the resident. Several others remember that every time Ma is requested to leave a package at the door, he would call or send a WeChat message to the resident to remind them once it’s dropped off. Others remember that Ma knows which homes have infants and will take extra care to knock lightly so as not to rouse the sleeping babies.

Ma said of his behavior that he is just doing what he should do and he hoped the residents won’t spend a lot of money on him. In returning to work in his hometown, his greatest wish is to make up for the fact that he was not able to live with his parents when growing up (they left their hometown to work) by being with his family and providing his child a complete family. “People say where you can make money, you can’t afford to have a family, and where your family is you can’t make money. Now I believe I have made the right decision,” wrote Ma.

Ma is one of many JD couriers who live the JD ethos by going the extra mile, literally and figuratively, to service their customers. Oftentimes, they will get creative about placement of packages, to ensure convenience and security if residents are not home. Many consumers have come to regard their JD courier as a key fragment of their residential experience, with children getting excited when “brother/sister JD” comes to the door.

 

(ella@jd.com)

JD.ID Marketing Chief: Consumer Spending Patterns Went Through 3 Stages in Indonesia

by Martin Li

Consumer spending habits have gone through three stages during the ongoing COVID-19 pandemic in Indonesia, said Mia Fawzia, marketing chief of JD.ID.

JD.ID is the e-commerce joint venture of JD.com in Indonesia, which is combination of direct-to-customer and marketplace platforms.

“The three stages can be named adjustment, adoption and realignment through accepting the conditions under the pandemic,” Fawzia shared in the latest edition of Kompas Talks, which was hosted online by Indonesia’s national newspaper Kompas.

JD.ID marketing chief Mia Fawzia in Kompas Talks

JD.ID marketing chief Mia Fawzia in Kompas Talks

“During the adjustment phase in March-April 2020, there were large-scale purchases of health products including hand sanitizers, vitamins, and masks. Supply of these products is limited in the market,” said Fawzia in the online talk named E-commerce Strategy in the Pandemic Era.

“At the adoption stage, there was a significant increase in shopping activities via e-commerce platforms,” she said.

Since the end of Eid – the Islamic holiday ended July 31 – consumers in the country had adapted to pandemic conditions as reflecting by changes in spending patterns.

“One of these changes is that online shopping has become more commonplace,” she said.

JD.ID is committed to strengthening ties with consumers by maintaining product quality. In the long run, according to Fawzia, this strategy is more effective than using excessive discount promotion methods to increase the number of transactions on the platform.

Fawzia predicted that more than half of consumers won’t return to their old spending habits including shopping offline, even after the pandemic.

“Once consumers are satisfied with shopping on JD.ID, they will decide to continue and keep coming back. Even though we don’t have as many customers as other platforms, the increase in sales every month shows that our strategy is right, “she said.

E-commerce transactions in Indonesia would increasing by 400% from now to 2025, according to a report by Kompas on August 7, citing the country’s coordinating minister of economy Airlangga Hartarto.

The increase is mainly driven by the people who depend on online transactions during the COVID-19 pandemic, according to the report. The digital sector, valued at US$135 billion, is a potential growth engine for the economy in Indonesia in the future.

“I hope the digital sector will be able to support economic growth during the pandemic, especially in the third quarter of 2020,” the minister was quoted as saying in the Kompas report.

 

(bjlihao3@jd.com)

 

 

 

JD.com Ranks 102nd among Fortune Global 500, Rising for Fifth Year in a Row

by Vivian Yang

According to the Fortune Global 500 list released on August 10th, JD.com ranked 102nd, up by 37 places comparing with last year, marking the 5th consecutive year on the list as the largest “retail and internet service” company in China and the third largest internet company globally.

Over the past five years, JD.com has moved up 264 places on the list from its first appearance at 366th in 2016. In this period of time, the company has transitioned from being China’s biggest retail platform to a leading supply chain-based technology and service company with businesses ranging from retail, logistics, technological services, healthcare, insurance, property management, AI and Cloud, to international businesses.

In 2019, JD.com’s full-year net revenue reached RMB 576.9 billion yuan, more than tripling from five years ago. Net service income grew steadily at 44%, accounting for11.5% of overall revenue.

Over the years, the growth driver of JD.com has shifted from China’s huge e-commerce market size to the technology advantages. Technology is playing a key role in the company’s reform in terms of development and business structure. Relying on its continued development of supply chain-based technology, with growth of more than 3 times in terms of transaction volumes and doubling the number of warehouses, JD has managed to keep its inventory turnover at 35 days, the industry’s optimal level.

JD Digits, the digital technology subsidiary of JD.com, has been involving into an AI-driven technology company with a focus on providing industrial digitalization solutions that help various industries to reduce costs, improve efficiency and enhance users’ experience.

By opening its infrastructure and capacities, JD.com is currently collaborating with over 2600  global brands valued each at RMB 100 million yuan as well as hundreds of thousands of third-party merchants. The company is deepening cooperation with a number of partners such as Walmart, Game Retail, Five Star Appliance, Dixintong Technology Group (D.Phone), and Kuaishou to co-create a win-win business ecosystem based on trust and innovation.

Also in five years’ time, JD’s employees have grown from 100,000 to over 260,000,  and over 15 million job opportunities have been created in the associated industry ecosystems. Moreover, JD has further integrated itself into the global industrial chain. According to the recent “Development Report on China Enterprise Digital Purchasing 2019”, as of June 30th 2020, JD serves over 8 million active business customers, covering 91% of the companies on Fortune Global 500.

On July 27th, the Chinese edition of Fortune magazine released the Fortune China 500 List for the year 2020. JD.com moved up 4 places to 13th , remaining the largest Chinese company in the “internet service and retail” category.

 

(vivian.yang@jd.com)