JD Celebrates Third Anniversary for Its Green Stream Initiative

by Ling Cao

On June 5th, JD provided an update on its sustainable strategy, the Green Stream Initiative, which was launched three years ago.

This month,  the first demonstration park for trash sorting at JD’s Beijing Asia No.1 logistics park will be launched, including labels with trash disposal guidance for packages, and arrange a special area for trash sorting. The project serves as a trial at JD’s own logistics parks, as well as a way to educate customers when they receive orders.

JD's trash disposal guidance for packages

JD’s trash disposal guidance for packages

To date, JD’s Green Stream Initiative has partnered with over 200,000 merchants, and impacted hundreds of millions of customers, helping promote a green living philosophy. The company’s green recycling boxes have been used through supply chain 160 million times in over 30 cities around China, equivalent to every one of Chengdu’s 16 million residents purchasing on JD once and the boxes being used 10 times.

To date, JD’s Green Stream Initiative has partnered with over 200,000 merchants, and impacted hundreds of millions of customers, helping promote a green living philosophy.

JD also operates 5,000 new energy vehicles, which traveled a total of 810 million kilometers, saving enough gas to fill 54 Olympic-sized swimming pools. By using slimmer tape and lighter plastic bags, JD has prevented from generating 50,000 tons of plastic waste. The company has also reduced 1.3 million tons of paper waste by going paperless and using lighter and recycled boxes. JD also implemented a smart packaging recommendation system in its warehouses to provide technology-driven guidance on the best cardboard size for a certain parcel, while the accuracy rate is 96.5%.

JD’s new energy vehicles

JD’s new energy vehicles

Jie Ji, head of JD’s Green Stream Initiative said, “We celebrate three year anniversary of the launch of this project. Going forward, JD will continue to work with industry partners to promote sustainable practices.”

Other highlights of JD’s program include:

  • JD expanded doorstep box recycling program nationwide in 2019. A total of 5.7 million boxes and 3.5 million toys and books have been recycled.
  • In 2019, JD Logistics joined the Science Based Targets initiative (SBTi), an ambitious global campaign aimed at driving corporate action on climate change.
  • In 2020, the Green Stream Initiative was named one of the Lighthouse Projects by World Economic Forum.
  • In 2020, JD partnered with the World Wide Fund for Nature (WWF) for the third year to support the Earth Hour event and launch another round of its box recycling program.

As the 618 Grand Promotion is ongoing and expect to generate a massive amount of delivery packages, as China’s largest retailer, its JD’s responsibility to leverage its green strategy efforts to reduce waste and make the planet cleaner. This is the long-term strategy JD will continue to aggressively pursue.

 

(ling.cao@jd.com)

Posted in ESG

In the Wake of Shipping 5 Tons of Rice for 4000KM: JD Farm and Xinjiang Agriculture

by Ling Cao

Rukeyamu (Chinese: 如克亚木·麦提赛地), who is the great-granddaughter of Kurban Tulum(1883-1975) who was a legendary uygur,  visited JD headquarters in Beijing early this week.

Rukeyamu highlighted JD’s efforts in helping them transport five tons of rice they donated from Alaer, Xinjiang Uygur Autonomous Region, to a hospital in Wuhan in time during the virus two months ago. At that time, Rukeyamu and the Kurban Fund faced many logistics challenges. They tried commissioning a cargo flight or using their own truck, but all attempts failed in the complex situation.

Finally, they noticed a donation project on People’s Daily website and immediately contacted them about transportation. JD Logistics was connected to them and quickly deployed five trucks along the 4,000 km relay across Alaer, Aksu Prefecture and Urumqi in Xinjiang, Xi’an and Zhengzhou, before reaching Wuhan, the final destination.

“JD helped us transport the rice day and night, and it reached the hospital in Wuhan two days earlier than expected. The team’s passion and spirit impressed us.” Rukeyamu showed her appreciation to JD onsite.  “I, on behalf of the Kurban family, want to say thank you to JD,” she added.

While Rukeyamu was visiting JD, both sides discussed further potential cooperation opportunities in retail, logistics, agriculture and technology-driven poverty alleviation. The rice donated is Xinjiang’s local specialty called Suet Rice, which is famous for its rich outside appearance and delicious taste.  Since late last year, JD Farm has started to cooperate with the Kurban team on the special rice they produce with the aim of producing even higher-quality rice for customers, leveraging JD’s expertise in big data, AI and blockchain, as well as e-commerce.

“JD Farm is leveraging its capabilities in technology and e-commerce experience to help the traditional agriculture industry become smarter and more digitalized, and aims to help our partners in Xinjiang produce higher quality products,” said Zhiwei Qiao, head of JD Farm, when talking with Rukeyamu.

“We are hoping to work with JD on a long-term cooperation. JD is well-known for its expertise in e-commerce, logistics and technology, as well as customers’ trust,” said Wei Jiang, Executive Director of Kurban Fund, who expressed willingness to cooperate with JD further.

The popular Uncle Kurban had met Mao Zedong four times. Kurban himself and his great-granddaughter Rukeyamu both elected as deputy to the National People’s Congress.

 

(ling.cao@jd.com)

G-SHOCK and Hamilton Join JD for 618 Countdown

by Rachel Liu

G-SHOCK and Hamilton have joined hands with JD to set up countdown clocks for JD’s 618 Grand Promotion from June 1st at JD’s Beijing headquarters and Shanghai’s BenQ Commercial Plaza, respectively.

The G-SHOCK countdown clock in Beijing is designed from its 2020 Fluorescent Yellow collection – a new collection that JD wants to introduce to customers during this 618. G-SHOCK has debuted several new products on JD, including a cross-over collection with the Avengers in 2019, and its matte GOLD and BLACK collection in 2018.

Casio opened a flagship store on JD in 2017, bringing six of its sub-brands, including G-SHOCK, BABY-G, EDIFICE and SHEEN to JD customers. JD has large amount of sophisticated customers, and its ability to perform big data analysis on customer profiles have helped Casio gain insights into the Chinese market.

Hamilton’s countdown clock in Shanghai is in the shape of Hamilton’s new PSR watch, which will also be on pre-sale exclusively on JD in Chinese market. Hamilton joined JD’s first-party business in 2018 as the first brand to join JD through the retail giant’s partnership with China’s leading watch retailer Xinyu Group.

Casio opened a flagship store on JD in 2017, bringing six of its sub-brands, including G-SHOCK, BABY-G, EDIFICE and SHEEN to JD customers.

During last year’s 618 Grand Promotion, Hamilton debuted its Ventura “Spiderman” Skeleton Auto Limited Edition watch on JD. The new product was the No. 1 among Swiss watches in terms of sales on the debut day.

 

(liuchang61@jd.com)

Beijing Consumption Vouchers to Be Issued via JD.com App

by Yuchuan Wang and Ella Kidron

On June 3rd, Beijing municipality government announced at a media briefing on the “Beijing Consumption Season” that it will issue electronic consumption vouchers (e-vouchers) starting from June 6th to speed up the restoration of consumer confidence, promote the recovery of the consumer market, and drive high-quality economic development of the nation’s capital.

Starting June 5th, consumers in Beijing can book the e-vouchers on JD.com’s app. From June 6th, consumers who are in Beijing will be able to get the e-vouchers on JD app and use them with participating online and offline merchants. The issuing of the e-vouchers is expected to benefit tens of millions of Beijing inhabitants.

The e-vouchers will be distributed on a first-come-first-served basis. Special consumption subsidies will also be given to personnel on the frontlines of the fight against COVID-19 and low-income groups.

The e-voucher for use at offline catering and shopping establishments will be issued in four batches in June. The first batch of 2 million packages will be issued at 10 a.m. on June 6th, and the other three batches will be issued on June 13th, June 20th and June 27th, respectively. Each package will have a value of RMB 60 yuan and will be valid for 14 days. E-vouchers can only be consumed at participating offline establishments in Beijing.

E-voucher for smart products will be issued in two batches in June. The first batch, which includes one million coupons, will be issued at 10 a.m. on June 6th, while the second will be issued at 10 a.m. on June 18th. The vouchers target consumption in four areas: smart telecommunications, smart home, smart home appliances, and smart home furnishing. Consumers can enjoy a 10% discount on a single order of 2,000 yuan or more on top of existing discounts, up to a maximum discount of 400 yuan. Once claimed, coupons are valid for 14 days. Smart products coupons can be used on online platforms as well as offline brick-and-mortar stores when purchasing specified smart goods.  Additional batches will be distributed in accordance with the “Beijing Consumption Season” activity from July to October.

The announcement of Beijing’s consumption vouchers coincides with JD’s 618 Grand Promotion period, in which the company is providing 10 billion yuan subsidies and hundreds of billions of discounts. E-voucher plus 618 may form a strong stimulus package for the recovery of the normal consumption in Beijing.

 

(yuchuan.wang@jd.com; ella@jd.com)

JD Sees Fast Growth in Book Orders from North America and Japan

by Martin Li

JD.com’s outbound e-commerce platform saw a 20-time growth in book borders on June 1, the first day of the annual Grand Promotion.

The best sellers were children’s books, which accounted for around 70 percent of total book orders.

Buyers of children’s books were mainly Chinese living in foreign countries, including the United States, Canada and Japan.

“Chinese books are very popular with overseas Chinese, which reflects the importance they attach to children’s education,” said Chris Cui, head of JD Global Sales.

In addition, books related to traditional Chinese medicine and health care are also popular among overseas buyers.

Buyers also like original English-language books sold on the platform.

 

(bjlihao3@jd.com)

Big Shots from Lenovo and JD: One Show, One Hundred Million Yuan

by Yuchuan Wang

On June 1st, the first day of JD’s 618 Grand Promotion, JD held an executive livestreaming joined by Liu Jun, Executive Vice President of Lenovo Group and President of Lenovo China, Yan Xiaobing, Senior Vice President of JD.com and President of JD Electronics and Home Appliance and Wang Zijian, a Chinese actor, to promote Lenovo’s products on JD. The livestream attracted over 1.2 million viewers and achieved sales of over RMB 100 million yuan.

Yan Xiaobing (left), Liu Jun (right)
Yan Xiaobing (left), Liu Jun (right)

During the livestream, both executives turned into professional evaluators and introduced 20 products, including best-selling and new ones, for specific groups of customers including students, gamers and corporate office workers.

Leveraging livestreaming, customers now are able to experience products the same way as in brick and mortar stores, thus greatly improving the communication efficiency between brands and customers, and sales conversion rates.

Liu Jun says, “Livestreaming can not only help boost sales, it also enables us to hear and interact with our customers in real time directly. It is a process of building brand awareness.”

During this year’s 618 promotion, JD will host over 300,000 key livestreams. Last week, JD.com announced a strategic partnership with Kuaishou, China’s leading video sharing and livestreaming platform, to reach new users and push into new scenarios in the emerging e-commerce livestreaming market.

 

(yuchuan.wang@jd.com)

Sales of Michelin Tires Hit RMB 1 Million Yuan in 5 Minutes on Day 1 of 618

by Vivian Yang

Tire consumption soared during the 618 shopping festival. In less than 5 minutes at the launch of the promotion on June 1st, Michelin beat the sales record of RMB 1 million yuan (about US $143,000).

Other famous tire brands also experienced sales surges on the first day of the promotion: Sales of Continental AG rose by 350% compared with the same day last year, while Pirelli’s sales were up by 730%, Bridgestone’s 10 times, Dunlop’s 12 times, Goodyear 14 times, and Hankook’s 14 times. Total sales of tires on JD’s platform on June 1st alone increased by 231% compared with same day last year.

Demand for auto maintenance products was also up: total auto parts sales increased by 378%, Mobil engine oil up by 108%, Aisin Auto products up by 208%, NGK 165%, Ferodo 180%, and Osram 316%.

The rise of online tire shopping is boosted by the rapid emergence of the “Internet + Service” retail model in China by which customers can order automotive parts online and have them sent directly to designated offline stores for installation and maintenance. Data shows that over 80% tire buyers on JD.com also booked affiliated offline services at the same time as placing the order.

Take Michelin as an example. Based on a strong partnership with JD.com, customers who bought tires on JD’s first-party Michelin flagship store will be provided priority to choose high-end car service networks such as TYREPLUS, enjoying a one-stop premium service experience including tire shopping, delivery, installation and maintenance.

 

(vivian.yang@jd.com)

In-depth Report: Eight Important Post-Epidemic Trends Revealed on Day 1 of 618

by Ella Kidron and Ling Cao

As of 2:00 pm (Beijing time) on June 1st, the first day of JD’s 618 Grand Promotion, transaction volume had already increased 74% YOY. Growth in consumption has also accelerated recovery for merchants, further demonstrating that 618 is not only a shopping event, but also has a role in post-epidemic consumption. Forty brands individually achieved sales of over RMB 100 million.

Based on JD Big Data report, here are eight important consumption trends based on the first day’s data:

1. “Revenge Consumption”
There has been an all-around increase in electronics products, fresh food and household daily use products. The rebound of large household appliances once affected by the epidemic is quite apparent, among which the trend is most obvious in China’s central and southern provinces. Transaction volume has just about doubled in Guangxi, Jiangxi, Sichuan, Hunan and Hubei provinces.

At the same time, JD’s logistics capabilities have ensured that customers can ensure fast and high quality delivery at peak time. Data shows that as of 2:50 pm on June 1st, outbound orders from JD’s warehouses exceeded that of the whole day last year. This includes JD’s retail orders as well as external orders as JD helps merchants deal with fulfillment challenges during the 618 Grand Promotion.

In the realm of non-standard products and services, the migration of consumption and services to online has been further accelerated. Transaction volume of fresh products in many provinces have increased more than 100% compared with the same period last year, among which durian ranked first with a growth rate of 332%. The central and western regions, as well as lower tier cities, have already become the main driving force of growth.

2. Trade-in highlights “Economic” consumption
JD’s trade-in service (in which users can sell back their old products and get discounts and coupons towards new ones) and its full-price trade-in service (in which users can buy a product now, and trade it in for the newer product at a later date) is increasingly popular. The number of users participating in the program for air conditioners increased 390% YOY, while mobile phone trade-in users increased 170% YOY. More than 80% of consumers who bought iPhone 11 chose JD’s full-price trade-in program.

3. Rapid increase in value-protected goods consumption: Homes, Gold, Moutai
Data indicates consumers are more likely to buy value-protected goods which can “pay for tomorrow”. JD’s new real estate model launched at the end of May, and the associated 1000 properties on offer attracted a lot of attention during 618. Within the first hour of June 1st, there had already been 221 orders. Gold bars and gold jewelry transaction volume on June 1st was 100% that of the same period last year, among which 50-100 grams is the most popular purchase announcement. JD provided Feitian Moutai at a special price for JD PLUS users. Total 118 times more Moutai was sold this year as compared with the same period last year. In addition, the total amount of insurance provided by JD-Allianz exceeded RMB 4.5 billion yuan. The number of people buying insurance services increased by 109% compared with the same period last year, and the number of inquiries increased by 65% compared with the same period last year. A total of 5.64 million goods were insured.

4. Next wave of growth for international brands in China
International brands have actively participated in JD’s 618 Grand Promotion this year. Transaction volume of Apple products in the first hour on June 1st was three times that of the same period last year. In addition, L’Oréal, Lancôme, SK-II and other international brands firmly ranked in the top three on the day. Sales of international watch brands are particularly of note – year-on-year growth increased over 50%, further highlighting the opportunity for brands in China amidst global uncertainties.

5. On the Cusp of a 5G Revolution
This round of economic recovery, there is high optimism towards 5G, big data, and AI seen as representing the “new infrastructure”. 5G base station construction programs have been deployed in various places, and there is increasingly wider acceptance of 5G among consumers. As such, the 5G mobile market has seen significant activity. On Just 1st, sales of 5G mobile phones were 14 times higher than on the first day of the Singles Day (November 11th) shopping festival last year, among sales of which Xiaomi, vivo and other domestic brands were a highlight. Some brands even gave users unlimited 5G insurance coverage packages. Sales volume of 5G network cards has also increased significantly, with the most consumers located in Guangdong, Beijing, Shanghai, Jiangsu, and Shandong provinces.

6. “Hot Sale” of Products Indicate Recovery of Consumer Confidence
COVID-19 has drawn increasing attention to taking care of one’s health. On June 1st, transaction volume of health services increased by 128% compared with the same period last year; physical examination packages increased by 126%; maternity services increased 14-fold; nutrition and health products increased 135%, and cross-border imported health products increased 210%.

7. It’s all about Custom, Less “One Size Fits All”
While the epidemic has accelerated consolidation of production capacity resources in the industry, JD continues to promote customization to help better match consumers and goods. In just four hours on Just 1st, JD Super, JD’s online supermarket, sold more customized goods (defined as JD’s C2M, exclusive brand, new product debut, exclusive distribution and exclusive specifications) than on the whole day in 2019. Transaction volume of notebooks developed through JD’s C2M model increased 141% as compared with the same period last year. JD consumers are also seeking differentiate products. For example, sales of e-Sports displays increased 236% YOY, cooking items such as electric ovens, air fryers, multi-purpose pans and chef-style machines increased by more than 200% compared with the same period last year. Honor’s X1 smart screen TV sales exceeded 100 million yuan.

8. Young Consumers more Mature Post-Epidemic
Data indicates that young consumers are taking on more responsibility post-epidemic. Since the beginning of this year, more than 70% of post-1995 consumers have shifted from “buying only for themselves” to “buying necessities for the whole family”. At the same time, middle-aged and elderly female users have made a significant shift from online to offline. These trends were more pronounced during the 618 period. According to data from JD Super, youth have moved into the kitchen, driving a “kitchen economy” trend. Transaction of kitchen paper towel by young people has doubled compared with the same period last year. Awareness of the need to protect the family has also been strengthened – data shows a 34-hold increase in transaction volume of disposable cleaning products and a 340% increase in sterilization products YOY.

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