Dr. Shen: Positive Consumption Growth is Important for China’s Economy in H2 2020

Posted on by Vivian Yang

by Vivian Yang

 

“Promoting consumption to achieve positive growth should be a key consideration in the second half of the year. The crux of the matter is how to enhance the income level of low-and middle-income groups, especially migrant workers, and to ensure the stability of employment and key market players,” said Dr. Jianguang Shen, Chief Economist of JD Digits at the China Wealth Management 50 Forum which is held online on August 3rd.

The Forum was under the theme of “Mid-Term Outlook: Current Macro Situations and Economic Trends”, with participants from the government, academia and business, to identify challenges and give policy advice on China’s economic development. Dr. Shen was invited to give a speech at this forum.

Based on JD’s big data on consumption, Shen pointed out three changes of lower-income people.

  • First, consumption data in June showed that people in higher-tier cities (1st to 3rd tiers) spent more than those from the lower-tier cities (4th to 6th tiers), which is a major departure from the consumption trend prior to the pandemic. This may be because under the impact of COVID-19, middle-and low-income people hired by SMEs were hit harder than high-income people who mostly work for big companies or high value-added tech industries.
  • Second, based on the population migration data, many migrant workers and rural labor forces from the lower-tier cities have not returned to higher-tier cities. People who moved out of the 1st tier cities to the 4th to 5th tier cities during the pandemic period account for more than 50% of total migrants.
  • Third, consumption data showed that expenditure of higher-income groups on consumer electronics increased during the pandemic and people purchase more telecommunications devices to work from home. But remote work is not an option for many lower-income people as they won’t spend or cannot afford to spend on these items.

Considering all of this, Shen suggested to increase income subsidies for migrant workers in the second half of 2020.

The China Wealth Management 50 Forum (CWM50) is a non-governmental and non-profit academic think tank based in Beijing. It is dedicated to building a premium platform for professionals who are interested in the Chinese wealth management industry. The platform aims to facilitate the exchange of theories, thoughts, innovations, and experiences.

 

(vivian.yang@jd.com)

Nearly 1,000 Class 2021 Graduates Received JD Offer

Posted on by Ling Cao

by Ling Cao

There are nearly 1,000 students majoring in technology in the class of 2021 received an offer from JD. In its commitment to talent recruitment and development, JD has launched a program to recruit R&D talent prior to graduation.

Data shows that JD has allocated in RMB 17.9 billion yuan in R&D, an increase of 47.8% y-o-y. JD currently has over 18,000 R&D personnel, among which 80% hold master’s or above degrees. In addition, several scientists have been selected as IEEE fellows. IEEE is the world’s largest technical professional organization.

Dr. Yuansheng Lin is the first one who joined JD’s postdoctoral program, which has been jointly set up by JD and Tsinghua University. He joined the program in May 2018, two months after it launched.

JD’s software architect Yuanqing Wu and Professor Qianchuan Zhao ofTsinghua University will be his mentors. Under the program, Lin has been doing research for JD’s intelligent risk cognition. “I have once again experienced how huge JD’s data and business, and the resources and advantages behind the scenes. I can find what I need easily, and the team is collaborative and creative, open and inclusive.”

He added, “There are a lot of things to do. My knowledge has been applied to JD’s real scenarios, brining value to the technology.” Shortly after he joined, Lin has created an algorithm which can quickly identify illegal accounts, protecting customers, clients, and JD’s information security.

JD has created free environment, personalized training mechanism and promotion resources for employees who were freshly out of college.

JD has a long-time commitment to employment and talent recruitment. During COVID-19, JD has provided 35,000 jobs by partnering with Dada Group.  JD’s customer service team has recruited over 1,000 part-time workers, 75% of which were unable to do their previous work at that time. In addition, JD customer service team recruited nearly 2,000 graduates in first half of the year.

 

(ling.cao@jd.com)

Posted in ESG

Italian Luxury Menswear Brand Zegna Joins JD

Posted on by Rachel Liu

by Rachel Liu

On August 3rd, Italian luxury menswear brand Zegna opened a first-party store on JD, bringing its F/W 2020 new products and classic collections to China’s elite male consumers.

In the Zegna store on JD, customers are able to shop for the brands’ iconic collections selected by JD buyers based on Chinese customers’ tastes and preferences, such as the Ermenegildo Zegna Modern Tailoring suit and PELLETESSUTA™ Special 30 bag. Zegna’s popular shoes and belts are also available through the store.

Italian luxury menswear brand Zegna opened a first-party store on JD

According to the 2019 China Luxury Ecommerce Report released by Yaok Group, over 50% of male customers prefer to buy luxury products on JD as they trust the platform more and enjoy JD’s logistics service. The trust of high-end male customers is one of the main reasons for Zegna to work with JD. All products in the Zegna store on JD are directly provided by authorized channels of the brand, and customers can enjoy JD’s premium JD Luxury Express service. Around 200 luxury brands have opened flagship stores on JD.

Zegna was founded in 1910 by Ermenegildo Zegna in the Northern Italian town of Trivero. The brand started by producing wool fabrics, then moved into ready-made clothes. Zegna’s premium quality, classic design and elegant style has made it popular among male customers globally.

 

(liuchang61@jd.com)

Technology Keeps JD Ranking High on Fortune China 500 List

Posted on by Vivian Yang

by Vivian Yang

The latest Fortune China 500 List released on July 27th revealed that JD.com remains to be the biggest “internet service and retail” company in China, ranked 13th, up four places from last year.

The list ranks revenues of all publicly listed Chinese companies for the previous fiscal year. High-quality growth in the retail business and the rapid growth of the service business are believed to be the main contributors to JD’s strong position. In 2019, net income of JD.com reached RMB 576.9 billion, up 24.9% from last year, significantly higher than the 11% average growth rate of the 500 companies. Net income from JD’s service business increased by 44.1% year on year, indicating that technology and services have become the new growth engines for the company.

Technology remains at the core of JD’s growth. The company identifies itself as “a supply chain-based technology and service company”. Leveraging JD Retail, the biggest retail platform online or offline in China, and integrating advanced technologies such as big data, digital and AI solutions, the company is expanding its business into digital technology (known as JD Digits), logistics (JD Logistics), health (JD Health), insurance (Allianz JD), cloud and AI (JD Cloud & AI) and more. The common goal of these businesses is to reduce industry costs and increase efficiency for the whole society, so as to create better user experiences and greater social value.

JD Digits is an AI-driven tech company that covers AI technology, AI robot, smart city, digital marketing, and fintech. The company is serving 400 million individual users globally,  more than 700 financial institutions, over 30 cities, and serval public service institutions. Meanwhile, JD Logistics is focusing on building the Global Smart Supply Chain (GSSC) together with partners around the world.

In May 2020, JD announced its new mission which is “powered by technology for a more productive and sustainable world”. During this year’s pandemic period, JD stepped up to support traditional industries, SMEs, and brand partners by shortening settlement cycles and offering a large number of advance payments, and at the same time empowering their digital transformation with technology to overcome the difficult time.

By December 31st,2019, JD had 220,000 employees, serving near 400 million global users together with 220,000 merchants, creating more than 15 million job opportunities for the upstream and downstream of the industry ecosystem.

 

(vivian.yang@jd.com)

JD Holds Its First Online Motorcycle Show

Posted on by Vivian Yang

by Vivian Yang

From August 1st to 3rd, the first “JD Online Motorcycle Show” was held in lieu of some offline motorcycle shows that are traditionally organized in Beijing during the mid-year due to the pandemic impact. The online motor show is co-hosted with a number of leading motorcycle brands such as Ducati, BMW, Benali, and Yamaha. Benali’s Leoncino800, the brand’s newest edition was released via livestream during the show.

A variety of vehicle models and a full range of categories were on display. Price-friendly models like TARO GP1 250R continue to enjoy wide attention. High-end products over RMB 100,000 yuan such as BMW HP4 RACE and BMW S1000RR greatly benefitted from the livestream platform.

Brands participated in JD's 1st online motorcycle show

Brands participated in JD’s 1st online motorcycle show

Besides motorcycle products, the show has also exhibited a variety of peripheral products for motorcycle riding, such as helmets, mobile phone brackets, and other cycling equipment and outfits, offering comprehensive protection and terrain types at different prices to satisfy the needs of consumers.

JD’s data shows that the post-90s generation is the rising group of buyers for motorcycle products. These young people would like to buy more personalized and fashionable cycling gear on JD, making online shopping and show-watching key ways for motorcycle brands to meet their customers.

JD has been playing an active role in supporting motorcycle brands’ digital transformation. Through organizing this first online motorcycle show, JD assists brands to launch new products and provides upgraded services such as exclusive sales in the post-COVID-19 period. It also creates a valuable opportunity to communicate and interact with a vast number of motor fans online.

The motorcycle market and culture are developing rapidly this year. During JD’s 618 Grand Promotion, sales of motorcycles on JD.com grew by 106% year on year. Sales of peripheral products continued to rise as well. Compared with the same period last year, motorcycle oil, helmets, and race refit supplies increased by 90%, 289%, and 91% respectively.

 

(vivian.yang@jd.com)

Over 10,000 Copies of Mo Yan’s New Book were Sold in 30 Minutes of Livestream

Posted on by Ling Cao

by Ling Cao

Mo Yan, winner of the Nobel Prize in Literature in 2012, joined JD’s livestream last Friday to discuss his new book A Late Bloomer. In only 30 minutes, over 10,000 of the books were sold. In about 10 minutes, the number of viewers surpassed 100,000. As of now, the book is ranked No.1 popular book of the week and most popular book of the past 24-hours on JD’s 1P book sales channel.

During the livestream, many audience joined activities to win prizes and left comments such as, “We are very much looking forward to Mo Yan’s new work.”

Jingze Li and Feiyu Bi, two famous writers have also joined Mo Yan for the livestream discussion. They gave advice to young audience, for instance, “The rich and vastness of life’s content is most important”; “Take the history as the present, and take the present as history, and understand the present by reviewing the past, then you will gain wisdom”; and “Become a late bloomer from tomorrow”.

Mo Yan defined a late bloomer as someone who “always seeks innovation and change, who do not want to rest on their laurels prematurely, and who wants to constantly surpass their old self.”

 

(ling.cao@jd.com)

‘Cool, Easy, Chic’ 3.1 Phillip Lim Hits the JD.com Runway

Posted on by Ella Kidron

by Ella Kidron

On August 3rd, 3.1 Phillip Lim opened a first party flagship store on JD.com. With the store opening, the designer’s new Fall-Winter 2020 items along with beloved classics have been made available to JD’s over 380 million customers in China.

The brand joins nearly 200 brands who have opened on JD.com this year, choosing to work with the online retail giant because of its guarantee of authenticity and quality. Customers who purchase 3.1 Phillip Lim products will have access to JD’s Luxury Express delivery, and supreme service thanks to JD’s strong supply chain integration capabilities. In addition, all flagship store products authorized by the brand are personally selected by JD’s luxury buyers ensuring that each piece is in excellent shape and that it resonate with Chinese buyers.

3.1 Phillip Lim Alix collection bag available on JD

Founder Phillip Lim said, “We hope to take advantage of JD’s supply chain integration, logistics capacity support and big data advantages to share the unique Phillip Lim experience with more Chinese consumers, reaching them outside of brick-and-mortar stores.”

3.1 Phillip Lim was founded in 1998 by the Chinese American designer Philip Lim and his friend Wen Zhou(周绚文), who immigrated from Ningbo, China to New York in 1980. Both of whom were 31 years old at the time. The designers were pioneers in the accessible luxury space, with the goal of bringing a ‘cool, easy, chic’ wardrobe to the modern global citizen. 3.1 Philip Lim is known for its practical, modern and elegant designs, and its scope has continued to expand, from covering womenswear to clothing, bags, menswear and children’s wear. The New York-based designer who was born in Thailand to Chinese parents has credited his Chinese heritage for influencing his designs.

Young People Are Keen Users of E-vouchers in Beijing

Posted on by Martin Li

by Martin Li

Young people have been playing a dominant role in using electronic consumption vouchers issued by the Beijing municipal government, according to JD statistics.

Starting June 6th, the municipal government issued e-vouchers via JD.com’s app in batches, in an effort to speed up the restoration of consumer confidence and promote the recovery of the consumer market.

Around 58% of young users spent the e-vouchers at offline catering establishments, and 69% chose to use them to buy smart products online or offline.

During JD’s 618 Grand Promotion period, which lasted from June 1 to 18, e-voucher users spent an average of RMB 3,638 yuan per order. This reflects consumption stimulus from the e-vouchers. Among the popular products purchased were smart phones, computers and digital products.

Over half of the consumers who used the e-vouchers at offline stores were female. The top five districts for offline consumption involving e-vouchers were Daxing, Chaoyang, Haidian, Xicheng and Changping.

The municipal government issued another 1.5 million e-vouchers via JD.com’s app starting July 26th, among which one million cover  offline catering establishments and 500,000 cover the purchase of smart products online or offline.

In addition, from early August, the government will increase subsides for merchants who accept the e-vouchers.

 

(bjlihao3@jd.com)