JD Opens First Automated Storage System for Bulky Items in Asia’s E-commerce Industry

by Ling Cao and Ella Kidron

JD has introduced the very first automated storage and retrieval system (AS/RS) for bulky items in Asia’s e-commerce industry, located at the company’s Asia No. 1 logistics park in Langfang, Hebei province. The park in Lanfang is one of three new highly automated Asia No. 1 parks JD has put into operation during this year’s 618 Grand Promotion.

The park in Lanfang is one of three new highly automated Asia No. 1 parks JD has put into operation during this year’s 618 Grand Promotion.

With the automated AS/RS, automated storage and picking for items including furniture and home appliances is made possible at an efficiency three times that of traditional warehouses.

Data shows that from May 25th to date, even as outbound orders of air conditioners increased 300%, fulfillment efficiency in Beijing, Langfang and Baoding increased by around 15%.

JD has long been building up its bulky supply chain. With the company’s warehousing, delivery and installation services available all throughout China, JD’s Asia No.1 smart logistics parks have played a key role in ensuring efficiency and customer experience. Large volumes, heavy weights and inconsistent package sizes make bulky items logistics inherently challenging to automate as compared with standard size small items like cell phones, razors and snacks, while traditional bulky logistics place heavy demands on workers’ physical strength.

The AS/RS system at the warehouse can solve both problems. It consists of rows of steel shelves, and 10 stacker systems which travel freely among shelves to storage, inbound and picking. Every stacker is 22 meters high, which is more than twice the height of Optimus Prime in “Transformers” or slightly longer than the average bowling lane. There are tens of thousands of pallet positions and a high density pallet storage system, as well as combined cycle double depth stacker cranes, increasing storage efficiency by 150% as compared with traditional beam storage.

JD has long been building up its bulky supply chain.

JD’s Langfang Asia No.1 logistics park is less than 55 kilometers from JD’s Daxing Asia No.1 logistics park in Beijing, and less than 100 kilometers from JD’s Tianjin Dongli Asia No.1 park. Together, the three smart parks can cover the Beijing-Tianjin-Hebei region as well as other cities in North China. Efficiency gained by these parks is extended nationwide, making fulfillment more efficient on the whole. In addition, the Langfang park is also a key step in JD’s technology penetration in lower tier markets, and it lays a solid foundation for express delivery to the countryside.

 

(ling.cao@jd.com; ella@jd.com)

JD’s Outbound E-commerce Platform Sees Robust Growth

by Martin Li

JD.com’s outbound e-commerce platform witnessed a 742% growth in transaction volume on June 1st , compare with the same day of last year.

June 1st  marked the start of JD’s annual 618 Grand Promotion.

Within the first 20 minutes of June 1st , the transaction volume on JD’s outbound e-commerce platform exceeded the total of June 1 last year.

Office products like computers led the growth in transaction volume, increasing 812%  compared with the same period of last year.

Telecommunication products came in second, growing 421% YOY.

A double-decker bus decorated with JD advertising in Hong Kong.

Among the top five markets are the United States, Hong Kong, Taiwan, Japan and Canada. The number of customers in Hong Kong grew by 370% year-on-year, while transaction volume by 266% year-on-year.

 

(bjlihao3@jd.com)

JD Blockchain’s New Move in E-contracts, Commercial Secret Protection

by JD Digits

After launching the JD Blockchain Open Platform last year, JD Digits recently announced two groundbreaking applications of e-contract and commercial secret protection under the blockchain framework, which will enable enterprises to have more convenient, secure and reliable digital services.

Based on blockchain technology, JD Digits empowers businesses with transparency and verification of contract in case of forgery. Unlike traditional written contracts, e-contracts will reduce processing costs by consuming less resources and simplifying complicated procedures. A collaboration with the Internet Court of Guangzhou and Beijing, the e-contract platform shares data and statistics with these two parties in terms of justice service, which will shorten online arbitration from one month to one week. The commercial secret protection platform is also aimed at tackling problems of information leakage and intellectual property violations. These two applications will help JD establish a highly transparent and efficient blockchain ecosystem to enhance customer experience.

JD Chain provides the fundamental blockchain technology of JD Digits and helps improve the performance of five key technologies of blockchain including data ledger, consensus protocols, cryptographic algorithms, data storage and APIs. JD Chain can reach more than 10,000 transactions per second (TPS), and reduce the time required for the research and development of blockchain solutions and lower the threshold costs for using these technologies. To date, JD.com has already implemented blockchain tracing for more than 700 brands and 50,000 SKUs on its platform.

According to Xinlei Zhai, head of blockchain at JD, the mission of JD Chain is to create a secure, efficient and transparent system which will empower enterprises to leverage vast technological resources to develop individual blockchain solutions. Now JD Chain has made a great leap forward as a pioneer in the industry.

JD has widespread applications of blockchain technology in medicine tracing and pre-built APIs in businesses.

JD Digits is a leading Chinese digital technology company that connects the real economy through world-class digital solutions. First established under JD.com, China’s largest retailer, it later began operating as an independent business group in October 2013.

 

(yuchuan.wang@jd.com)

In the First Hour of 618, Chicken and Beef Sold on JD increased 34x and 12x

by Yuchuan Wang

On June 1st, JD.com kicked off its June 18th Grand Promotion (“618”). For the first hour on that day, transaction volume of JD Fresh, JD.com’s fresh food business, increased over 800% YOY, among which transaction volume of chicken and beef increased nearly 34 times and 12 times, respectively.

According to official data, China’s per capita chicken consumption is increasing year by year, and came to 12.01 kg in 2019, an increase of 14% compared with 2018.

On the one hand, affected by the rise in pork prices, there has been an increasing demand for chicken and eggs, which are considered as pork substitutes. On the other hand, increasing consumption of white meat and reducing red meat has become a trend worldwide.

But consumption of chicken per capita in China still lags far behind the US (46 kg), EU (22 kg) and Japan (40 kg). While the expanding market has made China’s broiler industry quite prosperous.

According to JD Fresh’s sales team for chicken meat, chicken wings and chicken breast are consumers’ favorites. Quality chicken breast is not only favored by consumers pursuing a healthy diet, but also by pet owners who will stock up during promotions.

JD consumers have commented on the customer review page for chicken products:

“This chicken breast is healthy and the key is it’s affordable when pork is expensive. Chicken breast is no doubt the best substitute for pork; it is nutritious and healthy and you will not gain weight…”

“I usually cook half for myself and the other half for my cat.”

At the same time, more and more Chinese consumers are choosing beef and mutton as main course staples. According to JD’s data, sales of beef and mutton in 2018 increased over 100% YOY.

As consumers are increasingly focused on product authenticity and safety, imported meat is continuously welcomed on JD. The most popular origins for beef and mutton are Australia, Brazil, New Zealand, Uruguay and Argentina.

As early as in 2018, JD teamed up with InterAgri, a leading exporter of Australian meat products, to bring premium Pure Black Angus Beef products to Chinese consumers for the first time. The two parties also worked on a blockchain trace and track system that will provide consumers with even greater transparency on where their beef comes from and how it has been managed at every step of the production process.

Relying on JD’s ability to source directly from the country of origin, during the 618 promotion this year, JD has prepared 50,000 kilograms of beef sirloin – about 50 truckloads – at very competitive prices.

 

(yuchuan.wang@jd.com)

JD Holds Second Wine Tasting and Evaluation Conference

by Rachel Liu

From May 20th-22nd, JD.com and the China Alcoholic Drinks Association jointly held its second Wine Tasting and Evaluation Conference in Beijing. Experts from the China Alcoholic Drinks Association and Chinese Grape Industry Technology System tasted and graded about 200 brands of wine that are selling on JD. Twenty wine won gold medals, 30 won silver and 32 bronze. The results of the evaluation will be shown on JD’s product page to help customers choose wine more conveniently. Cynthia Yang, JD’s professional wine purchaser/sommerlier and WEST Diploma candidate also joined the evaluation.

JD’s professional wine purchaser/sommerlier and WEST Diploma candidate also joined the evaluation.

In 2019, JD and the China Alcoholic Drinks Association held the first Wine Tasting and Evaluation Conference, and jointly released the China Wine Region Standards. The wine market in China is riddled with complexity and customers often want to have more guidance on wine selection. The China Wine Region Standards and its associated evaluation system can provide professional recommendations to Chinese consumers, helping them pick out high quality wine, and promoting the healthy development of the wine industry.

JD’s participation in the release of the China Wine Region Standards also targets to promote the development of China’s wine industry, as it sets a standard upon which to evaluate each wine based on appearance, fragrance, taste and overall quality. It can also strengthen the concept of wine regions and increase the popularity of the wine regions among customers, building a healthy environment for the development of Chinese wine industry.

 

(liuchang61@jd.com)

JD Super Hosts Minions BANANA Festival

by Vivian Yang

The minions are taking over JD Super on International Children’s Day! JD Super, JD’s online supermarket, has partnered with a number of toys and musical instrument brands join the lovely yellow creatures for a “Minions BANANA Festival” during JD’s annual mid-year grand promotion.

Authentic co-branded toys and their new editions have quickly sold out on JD Super as Minions fans are taking advantage of JD’s “buy RMB 199, take RMB 100 off” coupon to indulge their Minion mania.

Banana Minion Poster

Lego’s Minions set stood out as its “Minionized” bricks allow users to construct various Minions stories with freedom and creativity.

A girl playing with toy motorcycle

The Minions are easily adaptable to different products because of its “banana language” termed “Minionese” and expressive behaviors that don’t need any translation, making it easy to reach people of all ages and cultures.

In China, the majority of Minions fans, in fact, are adults in their 20s, known as the post-90 and post-95 generations. Minions answer to their tastes which are increasingly diversified, individualized and sometimes atypical. JD Super wishes to bring the joy of BANANA to more Minions lovers this summer.

 

(vivian.yang@jd.com)

JD Foundation Joins Charity Programs for Children

by Ling Cao

To mark the 71st International Children’s Day, JD.com and JD Foundation are partnering with China Charity Federation, China Red Cross Foundation, China Association for SOS Children’s Village, China Women’s Development Foundation as well as Biostime China Foundation for Mother & Child to launch special donation program to collect school supplies and daily necessities for poor children.

Customers can participate in the program via JD’s innovative online donation platform, which leverages the company’s e-commerce expertise and cutting-edge technology, as well as its logistics network to ensure transparency and efficiency in the donation process.

JD, together with China Charity Federation and Biostime China Foundation for Mother & Child, will launch another round of its clothing collection and donation program in 74 cities around China, including Beijing, Shanghai and Chongqing. For each item of clothing donated, Biostime China Foundation will match RMB 1 yuan to a fund for children with congenital heart disease. The China Charity Foundation will be responsible for tallying up the total quantity of clothing donated, while the China Red Cross Foundation will be responsible for the screening and treatment. The list of supported children will be announced on JD Foundation’s website. Donors can pre-order JD’s couriers to pick up clothing ahead of time.

Through the partnership with SOS Children’s Village, JD will collect supplies for 108 kids in Qiqihar, Heilongjiang province. SOS Children’s Village has helped many kids from poor villages to access education opportunities. Xiaojin, one former beneficiary of the program, is currently studying for his master’s degree. He said, “I’m a child from the countryside and lost my parents when I was only in third grade. The program gave me a second chance at school, as well as a family, bringing light to my childhood.”

JD Child foundation

JD Foundation’s partnership with China Women’s Development Foundation will collect medical supplies for children in Tibetan inhabitant areas of Yunnan province and urban and rural areas of Shaanxi province.

 

(ling.cao@jd.com)

Posted in ESG

Li Xiaobai: World Without Waste is Another Marathon

by Vivian Yang

When COVID-19 separated marathon fans from running together, some of them never slowed down in spreading their ideas. On May 28th, Li Xiaobai, seasoned Chinese marathoner, visited JD.com’s headquarters in Beijing and met with JD’s Chief Strategy Officer Jon Liao for a conversation on environmental sustainability

Li Xiaobai and Jon Liao, May 28, 2020

Li Xiaobai and Jon Liao, May 28, 2020

Li is the founder of the New Silk Road fashion organization, but he is more widely known as the first Chinese member in the Marathon Grand Slam Club which comprises finishers of 7 marathons on 7 continents in 7 days, plus the Arctic Ocean for the North Pole Marathon. Li was ranked as the No.1 Outstanding Marathoner in China in 2017.

To keep progressing on his 200+ marathon record during COVID-19, the 63-year-old is currently busy joining online marathons, including a virtual version of the 2020 Boston Marathon, which has been canceled for the first time in its 124-year history.

“It’s a very natural thing for humans to love running in nature, and it’s also a very natural thing for me to protect her while running,” said Li when talking about the famous photo which captured him picking up plastic water bottles scattered by other athletes during the 2017 Hood to Coast Relay in China.

Li Xiaobai, 2017

Li Xiaobai, 2017

The photo went viral and raised a heated discussion in the running community, making people think about environmental protection and self-discipline while completing more grand running challenges. Consequentially, some concrete waste control measures have since been carried out.

From both individual and business perspectives, CSO Liao seconded Li’s points. Liao also related Li’s action to JD’s current partnership with Coco-Cola to promote circular economy in China.

In supporting Coco-Cola’s World Without Waste initiative, JD’s Green Stream team piloted a recycling program for plastic beverage bottles in late 2019. Over 50,000 bottles collected from households in Shanghai were reused as materials that manufactured JD couriers’ uniforms and other lifestyle products. Li will work happily as a volunteer to promote the idea of World Without Waste, a program jointly launched by Coca-Cola and JD.com.

The partnership is the first attempt at cross-industry collaboration to explore a circular solution between an international company and the Chinese e-commerce company, leveraging the know-how, resources and operational excellence of the two partners.

Coca-Cola Chairman and CEO James Quincey(second left), JD Retail CEO Lei Xu(far right), JD Logistics CEO Zhenhui Wang(far left) with a model who wears a JD Courier’s uniform made by recycled beverage bottles, at World Economic Forum in Davos in January, 2020. 

Coca-Cola Chairman and CEO James Quincey(second left), JD Retail CEO Lei Xu(far right), JD Logistics CEO Zhenhui Wang(far left) with a model who wears a JD Courier’s uniform made by recycled beverage bottles, at World Economic Forum in Davos in January, 2020. 

 

“We believe that consumption is at the center of the overall environment. It does not only matter to the value chain. How to achieve responsible consumption in the areas of product design, marketing, transportation, purchasing and disposal will be critical to solving social and environmental issues,” said Liao. “We want to join hands with all stakeholders to improve this ecosystem together.”

In May 2020, JD.com announced the company’s updated mission which put sustainability as one of its three core development pillars: “Sustainability refers to our desire as partners… to protect the ecological balance, and to be a grateful and responsible corporate citizen, achieving a balance of people, planet and profit, and to do our part for the sustainable development of the world,” Chairman and CEO Richard Liu wrote in an internal letter.

“If you want to go fast, go alone. If you want to go far, go together.” It’s not a mere coincidence for both Li and Liao to have deep faith in this saying.

 

(vivian.yang@jd.com)

Posted in ESG