JD and Leading Retail Research Firm IGD Release Report on JD’s Autonomous Warehousing

by Ella Kidron

On June 16th , JD and leading research firm, IGD, released a collaborative research report on JD’s autonomous warehousing. The report, “Demystifying JD.com’s Autonomous Warehouse” provides an overview of JD’s autonomous warehousing technology, its processes, proprietary software, the role of 5G and sustainability initiatives. In particular, it provides a spotlight on JD’s Asia No. 1 logistics park in Dongguan, Guangdong province (Read my colleague’s in-depth on this here)– the largest autonomous warehouse in Asia. JD’s Dongguan logistics park covers an area of 500,000 square meters and has 78 automatic stackers with a combined height of over 1,600 meters. It is able to handle 1.6 million orders per day.

During the height of COVID-19, JD’s autonomous warehousing capabilities and other smart logistics were essential in ensuring sufficient supply. Advanced algorithms capable of new route planning, vehicle usage optimization, and inventory forecasting, which are regularly used in JD’s operations, were key to this effort. From January 20th to February 13th , JD supplied 71,500 tons of rice, flour and grain, 27.25 million liters of cooking oil, 40 million bags of instant noodles, 50,000 tons of fresh produce, 3 million cans of baby formula, and 3.61 million bottles of disinfectant, among other products.

The report also looks at the important role of 5G in the future of logistics, especially in the realm of industrial Internet of Things (IIoT). JD unveiled the world’s first 5G-powered smart logistics park in Beijing in October 2019.

The full report can be downloaded from IGD at the following links:

  • For non-subscribers to IGD: https://bit.ly/3e9It39
  • For subscribers to IGD: https://bit.ly/2Y9GZAF

A more substantive summary of the report from IGD is available here: https://bit.ly/2AJUcan.

 

(ella@jd.com)

JD.com Launches “Bathroom Revolution” during 618

by Vivian Yang

Do you know that the average person spends over 30,000 hours in the bathroom in their lifetime? That almost 4 years in total! People in modern times would agree that the quality of one’s bathroom reflects one’s quality of life. According to JD’s recent survey, 63% of people take their bathroom as a space to relax and recharge themselves; 60% believe that the bathroom represents the owner’s personality and quality of life; while 32% are not satisfied with the current style and equipment of their bathrooms.”

As a result, creating more humanized, personalized, intelligent and quality bathrooms have become the four emerging trends in the home furnishing market.

During this year’s 618 Grand Promotion, JD Home launched the “Bathroom Revolution”

During this year’s 618 Grand Promotion, JD Home launched the “Bathroom Revolution”, an initiative that mobilizes all parties and brands of the supply chain from interior design, decoration, construction materials to furnishing, to provide plenty of product choices and services, and a one-stop home furnishing solution for customers who want to upgrade their homes, especially their bathrooms, this summer.

Over 1,000 independent interior designers have participated in this initiative and shared their works on JD’s platform, showcasing their creativity in space utilization as well as care reflected in bathroom design.

“For a long time, interior designers accumulated many good ideas for bathroom decoration, but it is difficult to realize them due to the lack of brands’ support. Thanks to JD’s initiative this time, our designers’ feedback can be integrated into the R&D and sales process of decoration products, which will generate far-reaching impact in this industry,” said Wei Wu, one of the interior designer in this initiative.

Bathroom design examples by interior designers on JD.com

Bathroom design examples by interior designers on JD.com

In addition to presenting over 1,000 examples of interior design suggestions, JD Home also collaborated with hundreds of well-known home decoration companies to offer construction plans. For example, JD and B&Q jointly offered bathroom renovation packages that include construction materials of selected international brands as well as products with standardized quality guarantees – a super easy home renovation solution that can spare customers from running around to purchase and select decoration materials as they had to do in the past.

At the same time, over 1,000 stores of 100 brands in bathroom, kitchen, and lighting products on JD Home have made a “Five Zeros” service promise, which includes free-of-charge on delivery and installation of new products; free-of-charge disassembling of old products; free testing and defect checking service for products purchased within 1 year and free maintenance service during the 3-year warranty period that covers all the products by different brands in the initiative.

A number of international and domestic brands introduced their cutting-edge products at competitive prices during 618. Sanitary ware brands include American Standard, GROHE, INAX, Roca, TOTO, Kohler, and Panasonic; Paint brands include Dulux, Nippon, and Davco; Lighting brands include NVC, Opple, Philips; and Smart electrics brands include Schneider, Delixi, and Chint.

With designers and brands ‘participation, JD Home also leverages AR technology to enhance the shopping experience – customers can use the real-time smart interior design software on JD.com to interact with designers and “move” their selected products into their virtual home spaces to find the best fit. This is helpful for customers to enjoy a complete home furnishing service from decoration consulting to product purchase.

 

(vivian.yang@jd.com)

JD Adds Air Cargo Route during 618

by Ling Cao

On June 16th, JD launched a dedicated freight Boeing 737-300F, from Tianjin to Wuxi, Jiangsu province. The first flight on this route follows an announcement about a route from Shenzhen to Wuxi. With the new project, JD can connect China’s three economic areas on air cargo flights among Beijing, Tianjin and Hebei, the Yangtze River Delta and the Great Bay Area of Guangdong, Hong Kong and Macao, accelerating the deliveries to customers there, as well as expanding air cargo service to lower tier markets.

The new flight is also part of a cooperation between JD and Zhejiang Loong Airlines

For example, one parcel sent from Beijing in the afternoon can reach Zhongshan, Gunagdong province in the morning the next day, improving fulfillment speed by more than 24 hours. The air transportation connected by the three regions can narrow the time of each fulfillment process, and can provide more flexibility for merchants to schedule their transportation. The new flight is also part of a cooperation between JD and Zhejiang Loong Airlines, and has 130 cubic meters of space per cargo flight.

Air cargo supply has been impacted by the epidemic since January, while since May, civil aviation has gradually resumed normal operations in China, with 228,000 tons of materials transported by all-cargo aircraft in May, an increase of 21.8% YOY.

Jun Fan, head of JD Express at JD Logistics said at the launching ceremony, “JD has continuously built its air cargo network in order to provide a superior, fast, accurate and stable delivery experience for customers and merchants. The new aircraft can ensure a more diverse services in our transportation network.”

JD has partnered with industry leading air cargo companies, such as China Southern Airlines, Air China Cargo, and China Eastern Airlines Logistics, with more than 37,000 air routes between cities, air delivery services can be operated in 157 cities.

 

(ling.cao@jd.com)

Lijun Xin Combines His First Livestream Show with a Plank Competition

by Tracy Yang

On June 10th, Lijun Xin, CEO of JD Health participated in a livestream show for the first time, along with executives from nutrition and health brands, including GNC, Swisse, and Nestlé, which drew attention of 3.18 million viewers.

In addition to recommending good nutrition and health care products, Xin also challenged other brand executives to a plank competition to promote a healthy lifestyle. Xin said: “Our brand partners are very supportive by offering high-quality products to consumers. I hope we will continue to strengthen cooperation, convey the concept of a healthy life and bring consumers high-quality products at competitive prices during JD’s June 18 Grand Promotion. ”

With the rise of national health awareness in the post-epidemic era, the focus of national health care has changed from “treatment” to “prevention”, and nutrition and health products have naturally become the best choice for consumers. At the beginning of JD’s June 18 Grand Promotion(618) this year, the performance of healthcare products sold on JD Health was impressive.

Data shows that from June 1st to June 9th, sales of cross-border imported nutrition and health care products increased by more than 100% compared with the same period last year. A number of nutrition and health care subcategories also staged strong performance. Sales of probiotics increased by 240% compared with the same period last year. Sales of products that can prevent hypertension, hyperglycemia, and hyperlipidemia increased by 140%. Sales of products that can nourish and protect the liver increased by 130% over the same period last year.

JD’s June 18 Grand Promotion(618) this year, the performance of healthcare products sold on JD Health was impressive.

JD’s June 618 is the shopping festival with the largest discounts, the best shopping experience, the strongest growth of brands and merchants and the largest number of new products. JD Health has worked with 2,500 health and nutrition merchants to offer more than 3 million units of health products, meeting the various demands for health, covering beauty, weight loss, bone health, immunity enhancing, sports nutrition and more. JD Health also launched online consultation services with nutritionists and dieticians to help users improve their health management capabilities and enjoy a healthy and happy life.

 

(tracy.yang@jd.com)

Changes in Consumption from COVID-19 Outbreak to Today

by Fei Lu and Vivian Yang

With the development of the COVID-19 in the first half year of 2020, Chinese consumers’ shopping behaviors have been affected and even transformed. The consumption trends can be categorized into four stages. We have identified some major ones in each stage based on the big data of JD.com.

 

1. During COVID-19:January – February 2020

  • Shift to online shopping: High-frequency shopping online (5-8 times/month) increased by more than 50%;
  • Changes on categories: Demand grew fast in home care, maternal and child, health, pets, household appliances, entertainment and other “off-season” categories;

High-frequency shopping online (5-8 times/month) increased by more than 50%

  • Growth in Certain Consumer Groups: orders from female new users between the ages of 46-55 grew 38%, that of over 56 females grew 54% year-on-year. Consumers under 25 were showing a growing sense of family responsibility, buying for others rather than just for themselves.This consumer cohort experienced the most rapid growth in the purchase of meat, eggs and fruits and vegetables.

 

2. Resumption to Work: March –April 2020

  • From WFH to Office: Resumption of work gradually started with telecommuting. As a result, the transaction amount of audio-video-related equipment (headphones, microphones, etc.) for conferences increased by nearly 20 times year-on-year; As people prepared to return to the office starting in March, related products such as office supplies, shoes, and raincoats increased by 57% month-on-month;
  • Surge of New Products Launches: New releases on JD in Q1 2020 are close to 50% of the 2019 total. New products that represent new technologies, new designs, new functions, new experiences and better profits will give brands an early start in the industry. More than 90% of the core brands select JD supermarket as the first platform for new products.

 

3. “May” be getting better: national holiday from 1st – 5th May

  • With the improved weather improving and loosened travel restrictions, consumption boomed. Especially because door to door delivery became possible, large appliances purchases began to bounce back. During the May-Day holiday, online consumption turnover increased by 45 percent compared with the same period in 2019.

Online consumption turnover increased by 45 percent compared with the same period in 2019.

 

4.  Mid-Year Shopping Festival – new trends found during 618

  • Continued consumption upgrade: According to KPMG’s latest report on May 28th, with the sustained economic recovery and resumption of work and production, the general trend of consumption expansion and structural upgrade has remained unchanged.
  • Revenge consumption; Livelihood demand strongest: Over 40 brands sold over RMB 100 million yuan on June 1st, indicating comprehensive recovery and a sharp rebound in some categories.
  • Online shopping behavior persists: in face of the epidemic’s uncertainty and driven by the 618 Grand Promotion, e-commerce platforms like JD.com continue to integrate with short video platforms, offline stores, and city consumption stimulus plans keeping consumers active online.

 

(Fei Lu is senior analyst of JD Big Data Research Institute)

 

(vivian.yang@jd.com)

JD.com and Kuaishou Roll out E-commerce Livestreaming Partnership

by Yuchuan Wang

Today, JD.com and Kuaishou, China’s leading video sharing and livestreaming platform, announced to officially kick off the two parties’ strategic partnership to launch the first big promotion event on Kuaishou on June 16th, when celebrities and over 100 well-known Kuaishou KOLs will promote the quality products via livestreams.

As a part of JD’s 618 initiatives, on May 27th, JD and Kuaishou signed a strategic partnership with a focus on supply chain. Kuaishou users will be able to purchase products provided by JD without leaving the Kuaishou app, and enjoy fast delivery and after-sales service provided by JD.

For the first promotion, JD will provide 100,000 iPhone 11s, 100,000 iPads, 20,000 bottles of Moutai, 20,000 Nintendo Switches, 20,000 Estee Lauder essence, 50,000 M.A.C lipsticks, among other products, with big discounts. Apart from celebrities and KOLs, all anchors on Kuaishou are able to sell the products in their livestreams and short videos.

The June 16th promotion marks the start of ongoing promotions through the partnership in the future. The two parties are keen to develop a healthy, open and sustainable e-commerce livestreaming ecosystem to satisfy diversified consumer needs.

 

(yuchuan.wang@jd.com)

JD Health: Demand of Nucleic Acid Testing on June 13th Increased by Nearly 5 Times Compared with the Previous Day

by Tracy Yang

Due to the sudden outbreak of COVID-19 in Xinfadi, the largest vegetable and seafood wholesale market in Beijing, demand for nucleic acid testing is surging and more and more people choose to purchase and book the service online. On June 13th, the number of users who followed or browsed the nucleic acid testing booking service on JD Health increased by 385%. On the same day, sales of nucleic acid testing services increased by 460% compared with the day before.

As China’s first platform to offer online nucleic acid testing booking services during the epidemic, JD Health rapidly responded to the needs of epidemic prevention and control work. At present, users can book appointments at nine nucleic acid testing sites in Beijing via JD Health.

In order to meet the needs of epidemic prevention and control work, as of June 13th, Beijing identified 98 institutions with nucleic acid detection capacity, with a maximum detection capacity of 90,000 people per day.

The nucleic acid testing services that can be purchased and booked on JD Health are all from officially designated institutions, which are announced by the Beijing Municipal Health Commission and provide COVID-19 nucleic acid testing to groups and individuals. Users can go to the relevant page by searching for “nucleic acid detection” in Chinese on the JD app, and purchase and make an appointment for testing services in advance. After the sampling is completed, the test results report can be obtained within 24 hours at the earliest.

In addition to the online reservation service for nucleic acid testing, JD Health has also made preparations for epidemic prevention and control in advance so as to ensure adequate supply of related supplies. JD Health has communicated with a number of mask manufacturers to increase the stock.

 

(tracy.yang@jd.com)

JD.com and Western Digital Target New Sales Record during 618

by Ling Cao

Western Digital (WD), the world’s leading computer hard disk drive manufacturer and data storage company, which is also a strategic partner of JD.com, is targeting new sales records during this 618 Grand Promotion. The company has already seen good sales performance on JD thus far.

On midnight of June 1st, WD’s hard disk was recommended during a livestream, which generated sales of 10,000 hard disks sold on JD in just 10 minutes. On whole day of June 1st, WD’s sales and total number of products sold on JD have both topped JD’s hard disk category, growing 240% and 170% YOY respectively, exceeding last year’s Singles Day (November 11th) sales. Page views increased 500% YOY, topping the hard disks category.

This success is not a coincidence. Both companies have continuously delivered innovative solutions to enhance customer experience. The “My Passport” white hard disk is an example. Through an IP partnership, the brand has used a Tianjin Museum-themed design on the packaging of the product, and made JD the exclusive channel for the product launch. After going on sale via JD’s platform on June 1st, the 5T product sold out in just two days.

Another example is the C2M initiative, which is also a trend in many industries. Last year, both companies designed a C2M product called “My Passport Ultra”. JD leveraged big data analysis and found that there was demand for a high-end hard disk, and innovatively connected this idea with its Plus membership as the target audience, as well as designed the product in a popular gold color, which has been exclusively sold on JD. To date, the series has 2.49 million customer reviews among which 98% are positive. Some of the popular comments are: read quickly; small and cute; stable operation; high-quality; and simple and fashionable.

Tao Ren, General Manager of JD Computers and Digital Products said, ”We will continue our strategic cooperation with Western Digital in sales, marketing and supply chain, bringing world-leading high-quality products to Chinese customers. We hope to hit new sales records during 618.”

Jerry Kagele, Senior Vice President, Global Sales & Marketing at Western Digital said, “As the e-commerce industry rapidly transforms, China continues to be more important than ever. China’s e-commerce industry serves as a key pillar for our global strategy to deliver the most innovative, technologically advanced products and service. I look forward to a new historical record on JD platforms during 618 shopping festival. ”

Stefan Mandl, Vice President of Sales, China & APAC region at Western Digital added, “We always value the seamless collaboration with our leading e-commerce partner JD. Their industry innovation paired with our world-class products has proven to be a winning combination. We expect to realize another e-commerce breakthrough in next phase. ”

Going forward, both companies also cooperate in omnichannel strategy, helping small and medium sized merchants expand their offline sales. During the epidemic, hard disk merchants also suffered from insufficient inventory given that most merchants didn’t have enough on hand. JD’s retail and supply chain capability have helped them solve this problem.

During January’s CES, the world’s largest consumer electronics show, JD was named Western Digital’s “Worldwide Most Valuable Partner” for 2019.

(The banner photo is taken at an award ceremony at CES 2020. Pictured are (from left to right) Tao Ren, General Manager of JD Computers and Digital Products, JD.com; Jerry Kagele, SVP, Global Sales & Marketing, Western Digital)

 

(ling.cao@jd.com)