Sales of JD Super Doubled on Day 1 of 618, Year on Year

 by Tracy Yang and Rachel Liu

On June 1st , JD.com’s June 18 Anniversary Grand Promotion officially kicked off and the sales of the JD FMCG Omnichannel was impressive, in which sales of JD Super, JD.com’s online supermarket, increased by 100% compared with the same period last year. Sales of JD.com’s 7FRESH increased by more than 140% compared with the same period last year and JD New Markets grew by more than 100% year on year.

Despite the impact of the epidemic, consumers’ pursuit of quality life has not diminished. They not only look at the high quality of the medium-sized products themselves, but also pay more attention to the level of life represented by high-quality products. In the first hour on June 1st, sales of imported snacks in JD Super were seven times that of the same period last year.

Since the beginning of the epidemic, JD.com has made great efforts to stablize supply in the categories guaranteeing people’s livelihood, and has won the trust of a large number of consumers. Now, during 618, a large number of consumers have shown JD.com is best platform for purchasing daily necessities and hoarding goods. Compare with the same period last year:

  • On June 1st, sales of food categories in JD Super was three times.
  • Sales of baby and maternal categories increased by 100% .
  • Sales of pants-type sanitary pads in the individual care category and female care increased by 12 times .
  • Dental patches under the subdivision of oral care increased 19 times .
  • Sales of smart pet devices increased nearly 7 times
  • The two-hour sales of toys exceeded the all-day sales of last year.

On June 1st, JD.com’s customized products also witnessed explosive growth including C2M, exclusive brands, first sales of new products, underwriting of tail goods, exclusive specifications, etc., and in only 4 hours exceeded the all-day sales in the same period last year.

JD Super brand merchants and retailers made efforts to reach lower tier market. JD Super got off to a good start for 12 hours on June 1st. Sales in lower tiers market increased by 160% compared with the same period last year, and the number of users from lower tier markets increased by 83% compared with the same period last year.

 

(tracy.yang@jd.com; liuchang61@jd.com)

Sales of Luxury Products Increased 400% Y- on- Y in the First Hour of 618

by Rachel Liu

Luxury products have seen increasing demand after the epidemic, and sales on June 1st are a further indication of the trend. Sales of luxury products on JD increased 400% y-o-y. Five hugely popular Delvaux Tempete bags, which need to be reserved offline, were sold in just one hour. Sales of Ferragamo, Hugo Boss, Lancel and miumiu all increased over 300% y-o-y.

Customers can also enjoy the best shopping experience for luxury products on JD during this year’s 618 event. JD’s same-or-next day delivery service can ensure customers receive luxury products at an unparalleled speed. JD Luxury Express, which is also called “white glove delivery”, can extend the premium offline shopping experience to online shopping. JD couriers will wear formal attire, including white gloves, and drive electric cars to deliver products, adding a highly-personalized, intimate and innovative offline element to the e-commerce experience.

June 1st marks the kick off of JD’s 17th June 18th Grand Promotion (“618”), which is also the 17th anniversary of the company’s founding.

Below are sales highlights.

 

June 1st marks the kick off of JD’s 17th June 18th Grand Promotion (“618”), which is also the 17th anniversary of the company’s founding.

(liuchang61@jd.com)

JD Provides 50 Billion Supplies to “Spark” Growth of Local Stalls and Small Shops

by Ella Kidron and Yuchuan Wang

On June 2nd, JD launched the “Spark” economic support plan for small and medium enterprises, stall owners and shopkeepers. The plan is focused on three areas: ensuring supply, assisting operations and promoting employment. JD will gather approximately 50 billion quality goods, and provide each small shop with a RMB 100,000 yuan interest-free credit to make purchases. The program is expected to service millions of convenience stores and stalls, providing supply chain and service support for the employment of more than 5 million people.

Lei Xu, CEO of JD Retail said: “JD has already comprehensively accumulated rich experience in supporting the ‘stall economy’ and the ‘small shop economy’. The impact of the epidemic will accelerate the digital transformation of the real economy, and stalls and small shops are no exception. JD has both the ability and the responsibility to use digitization to support and make the economy of small stalls and shops more dynamic, helping to further invigorate the overall economy and stabilize employment.”

Lei Xu, CEO of JD Retail said: “JD has already comprehensively accumulated rich experience in supporting the ‘stall economy’ and the ‘small shop economy
Lei Xu, CEO of JD Retail

In terms of supply, JD New Markets, which provides support to offline shop owners in addition to other measures, will play pivotal role of its omnichannel supply capabilities and provide hundreds of millions of yuan in purchase subsidies, and work with nearly 10,000 brand manufacturers and more than 4,000 joint warehouses to provide offline retailers with quality supplies worth more than 50 billion, providing them easy access to low-cost, high-quality supplies.

As far as business support is concerned, JD New Markets will help offline retailers expand their online operations, bring in JD’s own platform traffic and help them break regional and special restrictions, helping them achieve customer flow and acquisition and income increases. At the same time, through financial, data, logistics support and diversified business expansion, provide meaningful support to a large number of small and medium offline players. In order to solve the cash flow problem of small shops, JD New Markets has also worked with JD Digits to provide each small shop with an interest-free credit of up to RMB 100,000 yuan.

In poor regions, JD will provide a number of flexible employment, work-from-home and farm-to-table opportunities including positions such as logistics order collection, warehouse management, inventory management and packaging. To help poor workers who are unable to go out to work, JD will provide work-from-home jobs, such as e-commerce tagging and part-time customer service. JD will also provide a number of start-up projects and support in the fields of catering retail, regional logistics agencies and freight transportation for poor regions. At the same time, JD will drive agricultural sales to help the poor workers increase income through e-commerce livestreaming, farm-to-table green channel programs, and setting up meetings to help match supply and demand.

JD will drive agricultural sales to help the poor workers increase income through e-commerce livestreaming,

JD.com has been supporting small and medium-sized enterprises, stall owners and shopkeepers through multiple initiatives. Over 3 years ago, JD began to help small brick-and-mortar stores expand their operations. In 2017, the first JD Convenience Store was opened in Renqiu city, Hebei province. Since then, JD Convenience Stores have sprung up all over the country. Last year, JD New Markets launched the “JD Collection” program – a series of fairs and caravans across villages and towns, helping shopkeepers attract huge traffic and efficiently boost sales. In addition, Jingxi, JD.com’s social e-commerce business, has launched a series of supportive plans to help offline merchants affected by COVID-19, connecting the merchants with consumers and providing them with related resources and omnichannel operations supports.

As of now, JD is not only the largest growth destination for global brands and merchants, it has also become the largest platform for the transformation and upgrading of a large number of small and medium-sized and micro businesses, stall owners and shopkeepers. JD’s data shows that, right before JD’s 618 Grand Promotion this year, the transaction volume of JD New Markets in Beijing, as well as Hubei and Anhui provinces has increased over 5 times. The number of orders placed on the JD Convenience Store Go mini program is over 10 times the previous daily average.

The “Spark” program will become a vigorous driving force in the growth of the consumption market, and will further help stall owners and shopkeepers do better business. The ongoing JD 618 will not only attract the active participation of all online brands and merchants, but will also attract vast number of offline retail entities.

 

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

 

Posted in ESG

JD.com and ExxonMobil to Deepen Cooperation

by Tracy Yang

JD.com and ExxonMobil announced a strategic cooperation in Shanghai on May 29th, 2020. The two sides will fully integrate in the areas of products, services, marketing and membership to create a new format of car maintenance and service in the digital era, and comprehensively enhance consumers’ experience.

The two sides will adhere to consumer demand-oriented innovation, jointly study and understand the needs of consumers for lubricating oil products, and provide a leading and high-quality product experience for JD’s users. The oil analysis service created by Mobil Laboratory and the new digital membership service platform launched by ExxonMobil will soon be available on JD.com to provide consumers with targeted car maintenance solutions and better membership services.

Chunyang Yue, General Manager and Director of ExxonMobil (China) Investment Co., Ltd., said, “Over the past few years, the cooperation between ExxonMobil and JD.com has gradually deepened. Through this strategic cooperation we achieve a strong combination of the pioneers of two industries. In the future, ExxonMobil will continue to strengthen cooperation with JD.com, integrate the superior resources of both sides, and let consumers enjoy high-quality car maintenance experience and lead the industry and the market to continue to move forward in the digital age. ”

Yanzhong Yao, President of JD Life Services said, “This strategic cooperation with ExxonMobil also enables JD to get involved in the upstream and downstream of supply chain in the automotive aftermarket. Through integrated online and offline operations, omnichannel implementation, and cross-links between the original factory and independent after-sales service system, JD can truly achieve full integration with manufacturers, channels, retailers and service stores. The deep cooperation with ExxonMobil demonstrates JD’s plan in the automotive aftermarket and is a step further into service-oriented consumption scenarios. ”

The full range of ExxonMobil automotive lubricant products are available on JD.com. Sales have reached record highs year after year, and ranked first in the automotive lubricants category from 2018 to 2019. Not long ago, Mobil became the first brand in JD.com’s oil category with more than 2 million followers(京东美孚自营专区).

As an important scenario for JD Life Services under JD Retail, JD Automobile covers the whole industry chain of automobile supplies, automobile aftermarket, vehicle sales and more. Now it has reached cooperation agreements with more than 5000 brands. Relying on the advantages of the platform and powerful data technology, JD Automobile helps brands perceive and predict the diversified needs of consumers, promotes optimization and digital transformation of brands and products, and contributes to the upgrade and transformation of the industry.

 

(tracy.yang@jd.com)

Vivo Phones can be Delivered within One Hour via JDDJ

by Martin Li

Vivo, one of the leading Chinese smartphone markers, has joined JD Daojia (JDDJ), a local on-demand retail platform on JD.com, to enable customers to receive products within one hour.

JDDJ’s one-hour smartphone delivery service covers over 3,000 smartphone stores in 126 cities, which means buyers of Vivo products can receive parcels within at most one hour.

Vivo, one of the leading Chinese smartphone markers, has joined JD Daojia (JDDJ

Since April, JDDJ has provided one-hour delivery service to telecommunications products buyers. Many large brands have a presence on JDDJ’s app and mini-program, including Huawei and Apple.

This is one of the latest collaborations between JD and Vivo to benefit customers during the ongoing 618 Grand Promotion, which started on June 1st  to mark the 17th birthday of JD.com.

Vivo and its subsidiary brand iQOO gave away RMB 200 million yuan worth of coupons and 10,000 gift boxes to customers on JD.com on June 1st.

In addition, buyers of Vivo’s 5G smartphones on JD can receive benefits like 30-day refund guarantee and extended warranty.

Sales of both Vivo and iQOO phones witnessed growth of over 200% on June 1st, compared with the same period of last year. It took only 20 minutes for iQOO to see its 5G model iQOO Z1 exceed 10,000 orders on JD.

JD is the debut platform for Vivo’s 5G smartphones.

 

(bjlihao3@jd.com)

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)