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)

JD Digits Provides Digital Technology for Beijing’s Second Round of E-vouchers

by Ling Cao

On August 8th, Beijing customers may get another round of new consumption vouchers (e-vouchers) via JD’s app. The 2.8 million new e-vouchers will be offered on August 8th and 18th. Two million are for offline restaurants and 800,000 are for smart devices. JD Digits has played important role in attracting thousands of stores to join this initiative, and arranging trainings for merchants to ensure that the consumption process is convenience.

Since the “Beijing Consumption Season” kicked off in June, over 4,000 brands have joined the initiative, covering over 10,000 stores. JD’s platform has helped make several million e-vouchers available in a few days. Behind the scenes, JD Digits has guaranteed the system’s stability and safety.

During the whole process, JD Digits has provided financial services-level risk control to monitor e-voucher verification and order placement. Through real name authorization, JD Digits has helped monitor potential transaction-related risks using password protection, special verification and more to ensure a user friendly and secure process.

JD Digits has leveraged AI, big data and the deep insights on the industry to provide analysis, smart control, marketing and operation service for traditional business, such as those on Wangfujing street, one of the oldest and most popular business district in Beijing, in order to help them upgrade.

Since now, JD Digits has served hundreds of millions of customers, over 700 financial institutions and over 30 public institutions.

Shengqiang Chen, JD Digits CEO shared that in the future, “digital technology will be the driving force for digitalization for the physical world.” He said that 5G will accelerate digital technology to be used in more dynamic and complex scenarios.

 

(ling.cao@jd.com)

JD.ID Sees Robust Sales Growth since March

by Martin

JD.ID, the e-commerce joint venture of JD.com in Indonesia, has wintessed a growth of more than 50% in its overall sales since March this year, compared with the same period of last year.

March marks the start of the ongoing COVID-19 pandemic in the country. People are still encouraged to work either from home or on alternative days.

Likewise in the Ramadan period – from April 23rd to May 23rd – the overall number of orders  jumped by 25%, compared with the same period last year, according to company data.

“In both periods, the mom & baby category is one of the categories with the highest sales,” said Muhammad Imaduddin, head of the FMCG business unit of JD.ID.

“JD.ID sees and understands that the needs of consumers, especially mothers and children, during this pandemic period have increased quite significantly. In this case, JD.ID together with brand partners (suppliers) and seller partners will continue to strive to provide the best shopping experience to customers, one of which is by meeting their main needs,” said Imaduddin.

“We guarantee the originality of all the products we sell on our platform, both retail products and products from our seller partners. All products are authentic and well-curated… mothers no longer need to worry when receiving a package order at home,” he added.

In the latest partnership, JD.ID cooperated with mom & baby products brands to launch the Breastfeeding Virtual Fair from August 1st to 7th, in which the company offered discounts and free delivery vouchers.

The company also invited experts in the field of lactation to hold an online workshop to share knowledge of breastfeeding.

Among the other popular products were home appliance, home living products, computer accessories, laptops and luxury goods.

 

(bjlihao3@jd.com)

 

Kevin Jiang Shares Insights on Luxury Livestreaming

by Rachel Liu

Why livestreaming is attractive to Chinese consumers? Kevin Jiang, president of International Business at JD Fashion and Lifestyle cites two main reasons. The first is the massive lower-tier market in China, where the customers have a lot of time to spend, and sometimes even higher dispensable income than first-tier city customers. The second reason is that smart phones and 5G network expenses are affordable in China, enabling many customers to watch livestreams and short videos very conveniently. With the popularity of livestreaming, Jiang believes all luxury brands should be open to doing livestreams.

On August 5th, a webinar was jointly hosted by Jing Daily and Content Commerce Insider (CCI) titled, “Next-Level Livestreaming: How Luxury Brands Can Profit from China’s Top E-Commerce Trend”.

What should luxury brands be aware of when doing livestreaming? Jiang points out on the event that livestreaming is one of the key tools to increase customer awareness of a brand in China. Luxury brands also need to find the appropriate KOL with proper content to represent the brand and reach out to the right audience, and effectively handle customer inquiries to create conversions. Livestreaming on an e-commerce platform will greatly help brands convert consumers from being aware to making transactions.

Kevin Jiang, president of International Business at JD Fashion and Lifestyle

Jing Daily’s editor-in-chief Enrique Menendez moderated the conversation, Sky Canaves, editorial director of CCI, Masha Ma, owner and lead fashion designer of MASHAMA, and Anny Fan, a top luxury KOL in China also participated in the discussion. Nearly 600 people, primarily representatives from fashion brands, registered for the event.

The “Next-Level Livestreaming” whitepaper released by Jing Daily and CCI points out that the GMV of e-commerce livestreaming has skyrocketed from RMB 20 billion yuan ($2.8 billion) in 2017 to RMB 430 billion yuan ($61 billion) in 2019, representing almost 9% of all online sales and 1% of total spending on consumer goods. The COVID-19 outbreak has made livestreaming more important than ever. While many luxury brands have worked with major e-commerce platforms, it’s also necessary for them to catch up with the livestreaming trends on their own.

Although livestreaming is very important for luxury brands to build brand awareness and generate sales, Jiang also suggests brands “don’t put everything in one basket”. Livestreaming is only one of the many available tools, and building brand awareness requires a systematic approach including articles, short videos, advertisements and more.

JD is doing everything to help luxury brands who are interested in livestreaming to practice on the platform. JD Luxury has opened a livestream channel especially for luxury products on JD Live. For luxury brands, it’s important that customers can enjoy the same premium experience through livestreaming, and JD will help brands maintain a high standard for their live shows and protect their brand images.

 

(liuchang61@jd.com)