JD Data: Chinese Consumers Are Creating More Comfortable and Healthy Living Space

by Rachel Liu

JD Big Data Research Institute released its 2020 Consumption Trends of Home and Life Products Report, showing that Chinese consumers care more about the comfort level of their living spaces.

Data finds that consumers have more diverse ways of using their living spaces. Post-1995 consumers are becoming the new force for home and life products consumption. Male consumers are more involved in kitchens, and the “health” became the key demand of home decoration as a result of COVID-19.

JD Data shows that about 40% of customers choose to read on the toilet. About 46% of customers choose to put tissues by their bedsides rather than books. And 24% of consumers put storage boxes for jewelry and cosmetics on their desks instead of study materials and office supplies.

The report also shows that post-1995 consumers are paying more attention to their sleeping quality. The y-o-y sales increase of latex pillows, memory foam pillows and fiber pillows among the group are all over 40%, and sales of silk quilts increased by 109% y-o-y.

Male customers are more involved in kitchens., In kitchen gadgets, shelves and disposable items, sales of male customers are 9% higher than that of female customers. For kitchen storage utensils, sales to male customers are 22% and 11% higher than that of female respectively. Male customers are also buying more computer desks, office  and gaming chairs. In particular sales of gaming chairs increased by 370% y-o-y.

With COVID-19 consumers pay more attention to healthy products when decorating their homes. On March 31st, during JD’s annual promotion for home decoration products, sales of germicidal lamps was 5 fold of the same period last year.

 

(liuchang61@jd.com)

JD Health Joins Subsidies Project for Impoverished Households

by Tracy Yang

JD Health together with the online platform of Social Participation in Poverty Alleviation and Development of China and 11 pharmaceutical companies, launched the “Healthy China, Medical Subsidy Project” on May 9th.Targeted at government-designated poor households across the country, the project has provided by far the largest amount of subsidies and broadest coverage of any subsidy project for poor households in China.

The project is expected to cover more than 30 million people in the next three to five years, with the goal of substantially reducing the burden of medical expenses and on illness-driven poverty (or return to poverty). Under the plan, qualifying participants will each receive RMB 1000 to purchase drugs from a collated list. At present, the list already includes more than 350 drugs covering more than 100 diseases, including cardiovascular and cerebrovascular diseases, cough and cold, and gastrointestinal diseases. It will rapidly be expanded to include new special drugs and rare disease drugs.

Signing up for the program is simple. After confirming personal identification, participants can enjoy the subsidy either online, through JD Health’s JD Pharmacy or offline at a designated pharmacy pre-screened by JD Health. In principle there will be at least one designated drugstore in each town or village. The subsidy can be directly deducted when purchasing drugs in the catalogue through the designated channels, and participants can enjoy subsidies covering up to 68% of the market price of each drug.

Lijun Xin, CEO of JD Health said, “Through this joint effort with the online platform of Social Participation in Poverty Alleviation and Development of China, JD Health has the ability, responsibility, and confidence to collaborate with partners across the health industry supply chain to enable poverty-stricken individuals to reduce their expenditure on medical treatment and medicine purchase as much as possible as well as have the access to more high-quality medicines and services.”

Since signing the cooperation agreement on e-commerce precision poverty alleviation strategy with the Poverty Alleviation Office of the State Council in January 2016, JD.com has maximized its advantages in the fields of supply chain, logistics, finance, technology and services to sell more than 3 million different kinds of commodities from poor areas across the country online, sales of which reached more than RMB 75 billion and enabled 900,000 government-designated poor households to increase their incomes accordingly.

 

(tracy.yang@jd.com)

Posted in ESG

Photo Gallery: This Week at JD (May 4-9)

New Zealand Trade and Enterprise (NZTE) and JD.com jointly kicked off the “New Zealand National Products Festival

On May 9th, New Zealand Trade and Enterprise (NZTE) and JD.com jointly kicked off the “New Zealand National Products Festival”, creating a one-week shopping extravaganza for Chinese consumers to buy high-quality products from New Zealand. Clare Fearnley, New Zealand Ambassador to China, sent her greetings message through a video.

 

JD flew its first all-cargo aircraft, which is a dedicated freight Boeing 737-300F

On May 7th, JD flew its first all-cargo aircraft, which is a dedicated freight Boeing 737-300F, from Shenzhen to Wuxi. The aircraft is branded with the JD Express logo. The initiative will enable JD to provide faster and more reliable delivery service to customers in Yangtze River Delta and Great Bay Area of Guangdong-Hong Kong-Macao. Customers who place orders in the afternoon can receive them the next morning, expanding coverage at this speed by 300% to 24 cities.

 

JD Health and Allergan signed a partnership agreement

On May 6th, JD Health and Allergan signed a partnership agreement focused on the prevention and treatment of ophthalmic diseases covering Internet healthcare, drug purchase, disease management, patient education and more.

 

Soon Sze-Meng, President of JD Southeast Asia and Vice President of JD.com participated in Bloomberg’s “Sooner Than You Think: Hero Technologies”

On May 6th, Soon Sze-Meng, President of JD Southeast Asia and Vice President of JD.com participated in Bloomberg’s “Sooner Than You Think: Hero Technologies” virtual panel. He emphasized the importance of technologies in meeting consumers’ increasing demands for daily necessities during the COVID-19 outbreak in China and Southeast Asia. He also raised the role of supply chain, and the undeniable importance of trust in JD’s response.

 

JD data shows that delivery orders increased nearly 70% during May 1-5 holiday,

JD data shows that delivery orders increased nearly 70% during May 1-5 holiday, almost doubling the industry average. Orders in tier five and six markets increased nearly 80% and 100% respectively.

 

LG Electronics signed a partnership with JD.com to sell RMB 5-billion-yuan worth of products on the e-commerce platform.

LG Electronics signed a partnership with JD.com to sell RMB 5-billion-yuan worth of products on the e-commerce platform. LG will also invest in JD Home Appliance Stores and set up over 1,000 whole-house appliance demonstration stores, creating smart offline retail platforms in lower-tier markets.

 

JD CENTRAL, the e-commerce joint venture of JD.com in Thailand, has joined the Thai Fruit Golden Months initiative

JD CENTRAL, the e-commerce joint venture of JD.com in Thailand, has joined the Thai Fruit Golden Months initiative, to support Thai farmers who have been struggling with exporting their agricultural products during the ongoing COVID-19 lockdown.

JD Launches Cloud-based Blockchain-as-a-Service Platform

by Yuchuan Wang

Today, JD announced the release of a cloud-based BaaS (blockchain-as-a-service) platform jointly developed by JD Digits and JD Cloud & AI. The platform will reduce the barrier to entry for SMEs and other companies with the need of informatization, and provide more agile access for them to make use of JD’s blockchain technologies quickly.

SMEs lacking blockchain professionals and technology infrastructure will no longer need to be intimidated by the development and application of blockchain. They can now purchase underlying blockchain technology resources and services with one click. The initiative also supports immediate activation of consortium chain in seconds upon purchase. JD’s cloud-based BaaS platform will further lead the industry in the development of one-stop solutions that are easier for businesses to access, use, operate and maintain.

As a pioneer in the application of blockchain technology, JD.com initially introduced blockchain to track and trace the source and supply chain of products on its platform in 2017. As of the end of last year, JD has implemented blockchain to trace over 70,000 SKUs from over 800 brands. In 2019, the company opened its self-developed blockchain framework JD Chain to businesses, through which companies can build their own solutions from the ground up, starting from the underlying architecture, specifically tailored to meet the unique needs of their individual businesses, without relying on pre-built APIs.

 

(yuchuan.wang@jd.com)

 

 

JD Logistics Head of Strategy: Epidemic Situation Further Promotes Omnichannel

by Ling Cao

Bing Fu, JD Logistics Head of Strategy shared his insights on global supply chain trends. Bearing COVID-19 and the post-pandemic challenges in mind as well as his extensive industry experience, Fu said, “As the global supply chain is facing unprecedented challenges, omnichannel sales trends are appearing. New consumption demands are constantly emerging, and product lifecycles are shortening. Increased uncertainties caused by emergencies like natural disasters and pandemics even leads to supply chain disruptions.” Fu outlined his opinions at a Webinar held on April 24. Following are his major points.

Bing Fu, JD Logistics Head of Strategy shared his insights on global supply chain trends.

In recent years, the line between online and offline has become increasingly blurred. In fact, many new channels such as WeChat’s mini programs can’t be considered exclusively online or offline; omnichannel is the future trend.

During the coronavirus, customers would buy products in any way available. They would immediately turn to online if offline markets cannot meet their demand. “While COVID-19 is not welcomed, it promotes digitization of consumption, which concurrently drives supply chain upgrade. Only by shortening and digitizing the fulfillment process can we increase efficiency and access customers faster with increased precision.” Fu added.

Only by shortening and digitizing the fulfillment process can we increase efficiency and access customers faster with increased precision.” Fu added.

Fu summarized the following five supply trend trends for the future:

First, take an integrated inventory approach to manage all sales channels. This is essential to reducing inventory costs.

Second, integrated supply chain planning and optimization.

Third, leverage consumption data to help enterprises design a more efficient supply chain, helping products reach customers faster.

Fourth, leverage big data and smart algorithms to drive supply chain optimization.

Last, use a transparent parcel tracking system to satisfy customers’ demands for fast, precise delivery.

Fu also mentioned that JD is partnering with industry leading companies such as LLamasoft and Blue Yonder to provide merchants with end-to-end supply chain optimization services, covering fashion, consumer goods and high-tech.

 

(ling.cao@jd.com)

JD.com Holds New Zealand National Products Festival

by Yuchuan Wang

Today, New Zealand Trade and Enterprise (NZTE) and JD.com jointly kick off the “New Zealand National Products Festival”, creating a one-week shopping extravaganza for Chinese consumers to buy high-quality New Zealand imported products. Fifty brands join the promotion, offering nearly 300 products sourced directly from New Zealand including meat, wine, wellness products and fruits among many others.

New Zealand is renowned for quality agricultural products, and China has always been an important export market. The global outbreak of COVID-19 has severely impacted exports. Consumption and demand picking back up in China gives opportunities for New Zealand brands and manufacturers, and JD.com offers a superb platform for Chinese consumers to access New Zealand products.

JD.com offers a superb platform for Chinese consumers to access New Zealand products.

Many participating brands will introduce customized and exclusive products during this promotion period. Zespri, the world’s largest kiwifruit producer and iconic brand, will customize its products with special JD packaging. New Zealand apple brand, Mr. Apple, has designed a gift box for JD’s consumers while the brand Posy will introduce new apple products during the promotion.

To ensure product quality and freshness, JD also upgraded its global sourcing supply chain with brand partners. Earlier in March, JD announced it had become the world’s first online retailer to supply Zespri kiwifruit from the brand directly to consumers. New Zealand apple brands, Mr. Apple and T&G, also followed suit. This direct supply model will remove middlemen and benefit the end consumers, while ensuring sufficient product supply.

 

 

Clare Fearnley, New Zealand’s Ambassador to China, said: “New Zealand offers a world-class food production system and food safety quality control. We look forward to having more friends from China taste high-quality New Zealand food through this promotion with JD.com.”

Richard Dunsheath, Trade Commissioner at NZTE Shanghai also expressed, “We hope to collaborate with JD.com more in the future.”

New Zealand and JD.com have a long history of collaboration. Many of the country’s key products – such as kiwifruit, apples, cherries, meat and seafood – have sold well and are trusted by JD’s consumers.

 

(yuchuan.wang@jd.com)

JD SEA President: Innovation Integral to COVID-19 Response

As a panelist on Bloomberg’s “Sooner Than You Think: Hero Technologies” virtual panel on May 6, Soon Sze-Meng, President, Southeast Asia and Vice President of JD.com emphasized the importance of technologies in meeting consumers increasing demands for daily necessities during the COVID-19 outbreak in China and Southeast Asia. He also raised the role of supply chain, and the undeniable importance of trust in JD’s response. Check out the full video below:

JD.com Praised by Global Brands for Help during COVID-19

by Ling Cao

JD was praised by global brands for its support during the epidemic in recent letters of appreciation. These include Mengniu, China’s leading manufacturing and distribution company of dairy products and ice cream, MUJI, Japanese apparel and household goods retailer, as well as Midea, China’s leading electrical appliances manufacturer.

MUJI said in a letter to JD.com, “JD actively leveraged its resources to help us get our goods to warehouses in time, embodying a spirit of responsibility and demonstrating operations capability. We believe our collaboration will go further.”

Midea said in a letter to JD.com, “During the coronavirus, JD rapidly opened warehouses in Changsha and Zhengzhou for us, ensuring our orders reach our customers in time even while the warehouse in Wuhan was temporarily closed. We plan to expand our warehousing cooperation to more categories.”

JD received a new request from Mengniu to help them with B2C (business to customer) delivery services in response to new business demands. Mengniu representative said, “Our new business launched on February 15 during the peak period of the virus, when there was a lack of trucks and personnel in the market. Despite the challenges, JD helped us launch the business in just four days.”

 

(ling.cao@jd.com)