JD’s Supply Chain Solution Supports Xiaomi 10-year Anniversary Sale

by Ling Cao and Rachel Liu

On April 9th, JD Logistics, an important partner of Xiaomi, provided a smart and integrated supply chain solution to ensure orders for Xiaomi’s 10-year anniversary sales promotion. In addition to JD’s couriers, JD’s autonomous delivery robot will also deliver Xiaomi products in Wuhan on the second day following the official end of the lockdown in the city.

JD Logistics’ integrated supply chain capability is highly relevant for Xiaomi’s product ecosystem. Based on 5G, big data and AI, both companies are integrating smart logistics with industrial supply chain. Since 2017, JD Logistics and Xiaomi have cooperated in warehousing, delivery, cargo transportation as well as distribution, covering Xiaomi’s product lines including cellphones, laptops, TVs, air conditioners, routers, sweeping robots and more.

JD Logistics also provides tailored solutions for Xiaomi’s product lines covering small, medium-sized items and bulky items. From October 2017, JD’s fully-automated logistics park in Shanghai has played a role in the standard supply chain operations (from inbound to outbound) for Xiaomi’s small items such as cellphones. In addition, JD’s Tianjin Asia No.1 logistics park and Dongguan Asia No.1 logistics park help Xiaomi handle bulky items and medium-sized items, respectively.

On February 13th, JD worked with Xiaomi to hold an online conference for the release of the new Xiaomi 10, the company’s leading 5G product, via JD Live, given that brands are unable to hold offline press conferences due to COVID-19. Sales of Xiaomi 10 quickly surpassed RMB 100 million following the official launch of the product on February 14th. JD also provided contactless delivery service for customers and saw a JD customer in Beijing become the first Xiaomi 10 user in China.

 

(ling.cao@jd.com; liuchang61@jd.com)

JD Shares Insights on Coping with the COVID-19 during a Webinar

by Ling Cao

On April 7th, JD shared its insight about COVID-19 in China and how JD has responded during an online webinar hosted by LLamasoft, a leading provider of enterprise supply chain design and decision-making solutions, and one of JD’s strategic partners.

During the webinar, Alfred Yao, supply chain optimization director of JD Logistics shared how JD adopted systematic measures to ensure consistent operations of the supply chain during the epidemic, such as prioritizing employee protection, establishing an emergency response program coordinating policies and efforts across functions, and employing flexible methods to increase contactless delivery, as well as applying intelligent algorithms to enable smarter delivery routing, in order to circumvent bottlenecks, to increase efficiency, and to prioritize supply to where strategic resources are most urgently needed.

Lei Zhou, strategic planning director of JD Logistics explained that the strong logistics infrastructure and six major networks JD has had for years helped the company in the response. “Wuhan is the hub for JD’s Central China region, but with challenges (like route suspension) we managed to redirect the volume to other DCs(distribution centers) nearby, such as Nanjing,” he said. “We saw orders increase a lot during this period, but were able to handle them. That’s mainly due to two factors: Firstly, based on an AI-enabled system, we try best to forecast where demand will be. Secondly, we leverage our network to put inventory nearest to customers. In this way, we can easily re-plan the inventory to respond to the special situation.” Zhou added.

Alfred also shared ideas for global companies as to how to quickly adapt to emergencies, advising companies to accelerate the digitalization of the business, to further boost the level of automation, to perform supply chain scenario planning and to make stronger contingency plans, all of which makes the supply chain more flexible and robust. He also emphasized the importance of strengthening collaboration with suppliers, customers and other stakeholders to enable a global supply chain community.

As far as how JD has helped partners during the epidemic, Alfred explained, “A global Fortune 500 company procured 55,000 bottles of hand sanitizer from overseas, and asked JD Logistics to transport them from Singapore to Shanghai by air. JD Logistics managed to complete the DGs(‘dangerous goods, such as many types of disinfectant) packaging and certification, and secured in the cargo space amid massive reduction of flights, and completed the customs clearance in the fastest way possible to have the goods delivered to the customer.”

 

(ling.cao@jd.com)

JD.com Offers Customers RMB 1 Billion in Incentive Points

by Yuchuan Wang

JD.com announced on April 8th that it would offer RMB 1 billion in incentive points to drive nationwide consumption demand. All of JD’s registered users can exchange the points for coupons and redeem them on the e-commerce platform.

Also on April 8th, JD started round two of its “Buy Hubei Goods” campaign. Apart from the incentive points provided to customers, the company will leverage its marketing channels and tools including the JD Plus paid membership program, flash sales, and live streaming to continue supporting Hubei merchants and merchandise.

JD’s data shows that the first round of the “Buy Hubei Goods” campaign, held from April 1st to 7th, led to the sales of Hubei products increasing 106% compared with the same period in 2019, and 1,400 tons of fresh produce were sold during the campaign. Impressively, sales of potatoes, tea and smoked bacon increased 40 times, 21 times and 10 times as compared with the same period in March, respectively.

Brands from Hubei also saw a surge in sales online. Sales from snack brand Beststore and duck meat brand Zhouheiya (周黑鸭) increased 200% and 160% year-on-year. Cailinji (蔡林记), the 92-year-old Hubei noodle brand, saw an increase of 200% in sales on a year-on-year basis.

JD also announced on April 8th that it would invest more than RMB 6 billion in Hubei province over the next three years to support the recovery of Hubei’s economy and the development of local industry.

 

(yuchuan.wang@jd.com)

JD.com’s Robot Delivered China’s First Box of Zespri Kiwifruit

by Yuchuan Wang and Ling Cao

On April 2nd, China’s first box of Zespri’s SunGold kiwifruit this year was delivered by JD.com’s autonomous delivery robot to its customer Mr. Hu, in Jiading district in Shanghai. Mr. Hu is one of the 150,000 customers on JD to make Zespri orders this season.

“It’s amazing to see a robot deliver to my doorstep. It’s totally contactless and fast, even under the COVID-19 circumstance,” Said Mr. Hu. “JD is always my top choice for online shopping.”

Mr. Hu and his son holding Zespri kiwifruit in front of a JD autonomous delivery robot

Mr. Hu and his son holding Zespri kiwifruit in front of a JD autonomous delivery robot

Earlier in March, JD.com announced to become the world’s first online retailer to supply Zespri kiwifruit from the brand directly to consumers. Zespri’s sales on JD are expected to exceed RMB 300 million annually. On March 23rd, JD launched a pre-order campaign for the brand’s premium SunGold kiwifruit. According to JD’s data, as of April 3rd, JD’s customers have ordered 3.75 million kiwis.

The first shipment of Zespri kiwifruit landed in Shanghai on April 1st.

The first shipment of Zespri kiwifruit landed in Shanghai on April 1st.

During COVID-19, JD quickly deployed its autonomous delivery robots to provide contact-free delivery service. As early as on February 5th, the robot delivery was carried out in Wuhan to address unmet needs. The R&D for this technology is developed remotely by JD’s team in Beijing, and the company is able to provide this technology at just the right time because of its significant experience in autonomous delivering.

 

(yuchuan.wang@jd.com; ling.cao@jd.com)

JD.com to Invest over RMB 6 Billion in Hubei

by Tracy Yang and Rachel Liu

JD.com announced today that it would invest more than RMB 6 billion in Hubei province over the next three years, launching a series of initiatives to support the recovery of Hubei’s economy and the development of local industry. Areas of focus include new infrastructure, industrial and agricultural support, and poverty alleviation.

JD will help Hubei build next generation infrastructure, employing the fundamentals of smart supply chain and logistics, upgrade the logistics industry in the region building upon its successful and highly efficient Asia No. 1 in Wuhan, which was critical to ensuring the stability and livelihood of countless people during the pandemic outbreak.

JD will also support the construction of a series of smart city services, including Hubei’s emergency material management platform and digital media information service platform. Through this, public and private collaboration will leverage JD’s formidable strength in cloud, AI, big data and other areas of expertise to help the local government improve its emergency response capability.

Regarding industrial support, JD will continue to support local brands in Hubei province and local SMEs. JD has already launched a series of support measures to help local enterprises resume operations, including the “Spring Raindrop Plan” and “Buy Hubei Goods” which are acting to stimulate demand. From April 1st to the 7th, sales of fresh products from Hubei province on JD reached 1,400 tons.

On April 8th, JD also signed a partnership with the Hubei government to help build a fresh food industrial belt and create local brands. On April 1st, JD announced six additional support measures for Hubei merchants based on the previous ones. JD Health also worked with the local government to collaborate on Internet+ and the overall health industry. JD Health will also drive Internet hospital projects and smart medical insurance in Wuhan, enabling patients who suffer from chronic diseases to buy medicine online and enjoy door-to-door delivery service.

Lastly, JD will focus on facilitating the sale of agricultural products from poverty-stricken areas in Hubei, alleviating poverty through supporting the development of local industry, creating employment opportunities and offering financial support. The company will continue to build the fast track to help local brands that support poverty alleviation and the development of specialty stores.

 

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

Posted in ESG

JD Photo Gallery: Wuhan is Back

by Ling Cao

After 76 days of lockdown, Wuhan is back in business on April 8th. This photo gallery highlights JD couriers who are part of the action.

In January, a JD courier was driving his delivery vehicle on the empty streets of Wuhan. Now in April, the crowds offer a warm welcome back!

In January, a JD courier was driving his delivery vehicle on the empty streets of Wuhan. Now in April, the crowds offer a warm welcome back!

 

In February, a JD courier was delivering on the streets of Wuhan, equipped with protective clothing and goggles. In February, a JD courier was delivering on the streets of Wuhan, equipped with protective clothing and goggles. One morning in April, he donned a mask and visited a small restaurant which had just reopened. On March 23rd and 24th, Yong’en Huang, another JD courier got two days’ leave and slept for a whole day. He took a moment to send a message to his family in Xiaogan, which is 60 kilometers northwest of Wuhan, to tell them everything is alright in Wuhan.

 

JD’s robots joining couriers to work on the frontline. They normally work on the frontline, and are also considered heroes of the city of Wuhan.

JD’s robots joining couriers to work on the frontline. They normally work on the frontline, and are also considered heroes of the city of Wuhan.

 

Whishing past the small familiar convenience store.

Whishing past the small familiar convenience store. Long time no see!

 

Children have grown. Again, long time no see.

Children have grown. Again, long time no see.

 

(ling.cao@jd.com)

JD Brings Museum and Gallery Visits Online during COVID-19

by Rachel Liu

JD has worked with leading museums and galleries in China to bring cultural experiences online through live streaming while boosting sales of art objects sold in the stores.

Museums such as Guanfu Museum (founded by Chinese writer and collector Weidu Ma), National Art and Crafts Museum, UCCA Center for Contemporary Art and Song Art Museum have joined the project. On March 10th, the curator of Guanfu Museum held a live tour to introduce the museum’s china collections. The session attracted over 200,000 visitors in just two hours. Sales of the Guanfu Museum flagship store increased about 460%.

In the past seven sessions, JD has invited curators of the institutions to lead customers for online tours around the museums and galleries, and introduce the historical and cultural backgrounds of the collections. This form of live stream has attracted many people who enjoy art and culture, as COVID-19 has kept people from going for actual visits.

The experience provides customers a chance to listen to introductions from experts – something they may not have access to browsing the museum on their own. Conversion rates have been impressive: Sales of the UCCA store doubled during the live session compared with the day before. Sales of the Shu (Sichuan province) Embroidery Intangible Cultural Heritage Museum store were 60 times of the sales of whole month of February.

Beginning March 17th, following the success of the museum and gallery live stream, JD has also launched live streams for time-honored Chinese brands to improve the recognition of Chinese culture among customers and help brands boost sales during the pandemic. Over 10 time-honored brands have joined project, including silk brands Rui Fu Xiang, Beijing roast duck brand Quanjude, and Chinese pharmaceutical brand Tong Ren Tang. From April 1st-6th, the brands have held live stream sessions on JD every day to introduce historical techniques and products.

 

(liuchang61@jd.com)

BBC Praised JD Courier as a ‘Vital Lifeline’ during Wuhan’s Lockdown

by Martin Li

A  BBC report today on Wuhan lifting its lockdown said “delivery drivers became a vital lifeline” during the city’s lockdown, which ended on April 8.

The report highlighted the personal experience and perspective of Jia Shengzhi, head courier at JD’s Huangpu delivery station in Wuhan, who continued to deliver during the lockdown.

“During the past two months, almost no-one was on the streets,” Jia was quoted in the report. “We sometimes received phone calls from customers asking for help such as sending medicine to their ageing parents.”

Jia worried that such orders wouldn’t reach the customers in time if sent via the normal shipping methods.

“So, I rode on my scooter, went to the pharmacy, picked up the medicine and took it to his father,” he told the media.

Jia also encouraged all citizens to “continue protecting themselves by wearing masks, taking their temperatures, scanning the mobile health code apps, always washing hands and avoiding gatherings.”

For the full version of the BBC report: https://www.bbc.com/news/world-asia-china-52197054

 

(bjlihao3@jd.com)