Agility, a leading global logistics provider, together with its digital innovation arm, Shipa, has signed a memorandum of understanding with JD Logistics, an independent business group under JD.com, China’s largest retailer, to collaborate on logistics in fast-growing e-commerce markets. JD Logistics is the operator of China’s largest B2C e-commerce fulfillment network.

Agility and JD Logistics will work together to make it easier for consumers in some of the world’s fastest growing markets to get access to JD’s product range and products offered by JD Logistics’ merchant partners. The new agreement focuses on cross-border logistics, procurement and retail. It covers markets in Southeast Asia, the Middle East and Africa.

In Southeast Asia, Agility will act as a cross-border business-to-consumer (B2C) trunk service provider, utilizing its strong air freight capacity, and will also act a local business-to-business (B2B) warehouse provider. In the Middle East and Africa, Agility will act as JD’s primary logistics service provider and will handle terminal customs clearance and delivery services for its B2C line, helping JD Logistics improve its local logistics system and build a more complete transportation service network. Jointly, Agility and JD Logistics will build door-to-door cross-border and local B2C services.

In addition, Agility and JD will also cooperate in retail and procurement by promoting high-quality products made or assembled in the Middle East and Africa to Chinese sourcing merchants, and creating more sales channels for Chinese merchants. Agility will also help strengthen JD’s international supply chain. At the same time, JD will leverage its extensive logistics network and industry expertise to help Agility and its partners further enhance their footprint in the Chinese market, and increase overall operations efficiency.

Henadi Al-Saleh, Chairperson of Agility, said: “Agility has a long record of providing specialized services in emerging markets. By partnering with JD Logistics, we will leverage our respective strengths to make it easier to connect the businesses looking to tap the consumer demand in fast-growing markets such as ASEAN and the Middle East with the vast supplier base in China.”

Zhenhui Wang, CEO of JD Logistics said: “JD Logistics has developed advanced supply chain systems, technology and operations, and has extensive supply chain and logistics management experience. By partnering with Agility, we will provide customers with a variety of transportation services for ocean, land, air and rail transportation, helping us design the optimal logistics solution to reduce costs and increase efficiency for customers.”

The MOU was signed during JD Logistics’ 4^th Global Supply Chain Summit in Beijing. The summit focused on the impact of advanced technologies on the global industrial economy and examined how artificial intelligence, big data, cloud computing and blockchain will affect economic and social development.

JD.com today announced the launch of China’s first 5G-powered smart logistics park in Beijing, China. China’s largest retailer continually breaks new ground through its own logistics business, JD Logistics, to keep the customer continually at the center. Aligning with its Industrial IoT (IIoT) strategy, the park implements 5G networks at its Asia No. 1 Warehouse in Beijing.

The bandwidth offered by 5G will enable JD to dramatically increase the efficiency of its IIoT fulfilment capacities on a large scale, facilitating instantaneous communication between human employees and smart machines, while enabling holistic monitoring of the site’s operations.

The facility’s newly implemented monitoring system will detect and analyze any problems occurring in the warehouse in real time. The technology will enable real-time monitoring of location and routes for forklifts and pallets, and provide preemptive alerts if something abnormal arises. For example, the technology would enable provision of wrong parking location alerts and abnormal driving route alerts for the forklifts to ensure efficiency and safety. Mass pallet monitoring will significantly increase efficiency improvement over manual monitoring. The 5G system will also greatly improve the efficiency of operations within the facility through smart parking which guides incoming vehicles to the most appropriate parking space or docking bay, and digital docking bay which can do real-time monitoring the truck loading and uploading goods.

These innovations are just the beginning of JD’s plans to utilize 5G technology. In the future, 5G-powered IIoT will drive a range of further applications across JD’s logistics operations, improving efficiency throughout the supply chain.

“The launch of JD’s 5G-powered smart logistics park in Beijing – the first of its kind – is an exciting step in the realization of the Industrial Internet of Things at scale,” said Wenming Zhe, chief architect of logistics R&D, head of 5G-powered smart logistics park projects at JD Logistics. “The low latency, high speed and ability to support a broad spectrum of simultaneous connections provided by 5G networks creates an unprecedented level of real-time connectivity, significantly improving the efficiency of JD’s fulfilment operations, which is key to providing the best customer service in the business.”

JD’s 5G-powered smart logistics park is an important development in the company’s strategy to utilize 5G networks in the application of IIoT technology across the company’s supply chain operations. JD expects to apply 5G and IIoT throughout its network of logistics parks, allowing for reliable and dependable robot-to-robot communication that requires minimal human intervention.

Edible bird’s nest, a nourishing food long prized in Chinese cuisine, is being eagerly embraced by China’s younger generation. Recent data from JD.com shows that young people are now driving demand for this historically popular treat, which is believed to promote good health with particular benefits for the skin.

Data collected by JD.com shows that the average annual growth rate of bird’s nest sales on JD.com reached more than 50% over the past five years. It also reveals that consumption of bird’s nest is growing fast among the highly educated younger generation, particularly those born between 1985 and 2000. In fact, during 2019 over 60% of bird nest purchases on JD were made by those aged 16 to 35.

Analysis also indicates significant regional variations in bird’s nest consumption trends, with evidence of a stronger preference for dry bird’s nest in southern China and for pre-cooked bird’s nest in northern China. Beijing was the area which purchased the highest volume of bird’s nest, followed by Guangdong province from July 2018 to June 2019.

Young consumers in China are increasingly accustomed to making most of their purchases online, and JD’s reputation as the most reliable e-commerce platform in China makes it the natural choice for buying luxury items such as bird’s nest. Consumers also can enjoy the best prices on JD, as its cross border e-commerce maximizes cost savings by enabling products to go directly from host country to consumer without an intermediary.

According to JD.com data, sales of bird’s nest have seen strong growth during e-commerce shopping festivals such as JD’s 6.18 anniversary sale and Single’s Day, Chinese and Western Valentine’s Day and Double Ninth Festival, with significant growth in purchases by women.

JD.com is committed to providing high-quality products to consumers and its new partnership with Tong Heng, a leading bird’s nest manufacturer in Indonesia, positions it to fulfill this increasing demand. Indonesia is renowned among Chinese consumers as the source of some of the best quality bird nest worldwide.

“Our partnership with JD makes it more convenient than ever to purchase top quality birds nest in China,” said Usman, director of Tong Heng Bird’s Nest Factory. “For generations Chinese people have recognized the health benefits of edible bird’s nest, and data shows that it is an increasingly popular delicacy among China’s affluent young consumers. JD’s strength among this critical demographic and unrivalled data and analysis capabilities provides us an enormous advantage in reaching our target audience.”

“As a market leader in Indonesia, renowned in China for its top-quality bird nest, Tong Heng is the ideal partner to bring this time-honored delicacy to JD’s affluent younger users,” said Jing Xu, General Manager, TCM Nutrition and Health Management, JD Health. “Purchasing directly from a manufacturer in Indonesia allows JD to ensure all product meets the highest quality standards, creating the best possible value for consumers as well.”

JD Logistics, an independently run business group under JD.com, China’s largest retailer, is making good on its commitment to responsible consumption, with the announcement that it has signed onto the Science Based Targets initiative (SBTi), an ambitious global campaign aimed at driving corporate action on climate change. As part of its commitment to the initiative, sealed by a strategic partnership with WWF China and One Planet Foundation, JD Logistics plans to release comprehensive carbon emission targets regarding its operations. JD Logistics will the first business group joining the SBTi in the area of logistics in China.

The Science Based Targets initiative is a collaboration between CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and one of the We Mean Business Coalition commitments. The program’s aim is to increase corporate ambition on climate action by mobilizing companies to set greenhouse gas emission reduction targets consistent with the level of decarbonization required by science to limit global warming rise within 2 degrees Celsius or even 1.5 degrees Celsius. JD Logistics will provide an overview of its existing measures to combat climate change – including its self-developed “Green Stream Initiative” – as well as set new targets in accordance with SBTi’s goals, and explain how these targets will be met.

JD Logistics is one of the most important commodity distribution channels for many well-known brands and partners around the world. “WWF believes that JD’s initiatives to join the SBTi will also encourage e-commerce companies to pay more attention to green and sustainable innovation programs, leverage corporate leadership, and call for more industries to engage in climate action and work together to address the climate change,” said Weikang Wang, Director of Climate and Energy, Green Finance, WWF (China).

“In the fight against climate change, international co-operation and mutual engagement are of paramount importance, and JD Logistics is proud to support the aims of the Science Based Targets initiative,” said Feng Gao, head of Green Stream Initiative, JD Logistics. “The results of our Green Stream Initiative speak for themselves in terms of the progress JD Logistics has made in reducing the impact of our operations on the environment, but there is still more work to be done. We look forward to close engagement with SBTi to ensure we meet these new goals to ensure a better future for our planet.”

JD’s Green Stream Initiative, established in June 2017, has already been a resounding success across multiple metrics since its launch two years ago. In terms of reducing carbon emissions, JD Logistics has committed to upgrading its delivery fleet to clean energy electric vehicles, with over 5,000 already in use in nearly 50 cities across China. Green Stream Initiative programs have further reduced JD Logistics’ use of disposable packaging by 27,000 tons; seen the deployment of recyclable “green stream boxes” across 30 cities over 10 million times; and saved 500 million meters of adhesive tape by a switch to thinner strips of tape. JD Logistics’ efforts to save paper usage, achieved through paperless systems in warehouses, lightweight packaging and box recycling programs, have reduced the need for a total of 910,000 tons of paper.

JD is bringing art museums and Chinese consumer brands together to develop high-quality products adorned with the work of the world’s most renowned artists, allowing a new generation of Chinese consumers to enjoy aesthetic masterpieces in their daily lives.

The initiative comes as art is enjoying immense popularity in China, particularly amongst the younger generation. Recognizing this, JD launched JD Art, an exclusive channel for art purchases in March last year. JD Art customers are primarily born after 1980, with 66% of consumers aged 26-45. For many young Chinese, a key highlight of any museum or gallery visit is the gift shop, which provides the chance to take their artistic and cultural experiences back home with them. At Beijing’s Palace Museum, for example, sales of products including bags, cups, cell phone cases and even lipstick – exceeded RMB 1.5 billion in value during 2017.

To mark its Global Museums Day sales promotion, “Bring Art to Life” , on October 21, JD.com has partnered with four of the world’s finest museums to produce an array of well-designed consumer products incorporating elements of classic artworks from the museums’ collections. Consumers on JD can now enjoy 300 products from 50 brands decorated with works from the Metropolitan Museum of Art in New York, the Museum of Fine Arts in Boston, as well as London’s National Gallery and V&A Museum.

The vision behind “Bring Art to Life” is to provide consumers a way to appreciate these masterpieces in their everyday lives and foster a greater understanding of classic art among China’s youth. As such, the artworks have been integrated into the design of everyday products, rather than obscure luxury pieces to be placed on a mantelpiece. One highlight of the product range is a gift box manufactured by Chinese cosmetic brand Chando that is decorated to resemble a renowned book design by 20th century American illustrator Margaret Neilson Armstrong from the Metropolitan Museum of Art’s collection. Hygiene brand Tempo also brought pieces from the Met to life by integrating Van Gogh pieces “Wheat Field with Cypresses” and “Irises” and Henri-Edmond Cross’ “Landscape with Sky” into its product packaging.

“Our ‘Bring Art to Life’ collection of products brings some of the world’s most amazing artworks from museum walls into the homes of our sophisticated young Chinese users,” said Jing Li, Director of JD Brand Marketing. “The four museums we worked with as part of this initiative are some of the world’s most eminent guardians of culture. By combining the booming interest in classic artwork and JD’s commitment to high quality, unique products, ‘Bring Art to Life’ will introduce the works of artists such as Van Gogh and Monet to new and enthusiastic young audiences in China.”

The Met’s head of licensing and partnerships, Lisa Silverman Meyers said, “The Met’s unique products and educational content feature a global array of art from the Museum’s vast collection, which we hope will inspire, delight, and inform Chinese consumers. The Met is so pleased to collaborate with JD.com on this first-ever JD Global Museums Day.”

In recent years, more and more museums have turned to e-commerce as a channel for promoting classic artwork. Earlier this year, both the Met and the V&A launched stores on JD’s platform.

Beijing’s newly opened Daxing Airport is poised to bring the global travel experience to a new level. Behind the scenes, JD’s logistics capabilities are making sure travelers get what they need without a hitch.

For one, as the logistics service provider for the airport’s restaurants, JD Logistics will leverage its warehousing and delivery capabilities for the integrated logistics services including storage, transportation and delivery in the airport, for categories like fresh food and ice cream. This is made possible by a cold chain warehouse near the airport, and JD’s leading cold chain delivery capabilities to ensure quality. JD will handle warehousing and delivery for other businesses in the airport, including but not limited to offline stores of all shapes and sizes as well as vending machines.

What’s more, JD’s unparalleled logistics system will power innovative delivery services within the airport. For individuals, two conveniently located JD delivery stations will help travelers ship products from the airport to anywhere in China. This is particularly convenient if travelers realize that their bags have items that they can’t carry on at the last minute (like an oversized shampoo container) or if their luggage is overweight (and they don’t want to pay overweight fees). Furthermore, JD Logistics offers a special service to repackage luggage to ensure that fragile items in check-in luggage will not get damaged during a flight.

JD’s smart store offerings will also help enhance the shopping experience for travelers. Two JD Retail Experience Shops in the airport will offer products such as computers, cameras, and smart devices as well as cosmetics and personal care items. Leveraging JD’s omnichannel capabilities, the store will offer the option to take items right away or to scan a QR code on the products’ price tags to have them shipped via JD Logistics to an address of choice within China. Technology in the store includes things such as a smart shelf that will provide an introduction of the product when customers pick it up.

JD Digits, a leading digital technology company, will also help resolve a key hassle for flyers around the world: parking. JD Digits, in partnership with hardware provider Shougang Fund S-PARK, has implemented a smart parking system at Daxing airport. Once fully installed, the system will allow drivers to easily locate the most suitable parking space for their car via an app, while also providing convenient in-app payment.

“It’s our honor to leverage our capabilities for Beijing’s new Daxing airport,” said Zhenzhen Rao, Head of JD Retail Experience Shops, JD Retail Innovation. “Using our logistics and retail capabilities to enhance the travel experience is just the type of initiative that our opening up strategy was intended to service.”

 

Individuals and small enterprises can now store their goods in JD.com’s warehouses. The new initiative, which leverages JD’s capabilities to provide a professional storage solution in China, is the latest example of JD opening up its capabilities to parties beyond JD.

Using the service, customers are able to track every stage of the storage process from start to finish on their phones, via the JD Express Delivery mini-program on WeChat. JD provides a professional solution for every storage need, from short-term to long-term storage. Companies who need to store supplies for an event, or individuals who are in the process of moving house, be it college students needing to store things over the summer break to people who are renovating their homes, can all meet their short term storage needs with JD. At the same time, avid shoppers looking to put aside their out-of-season wardrobe, as well as people who want to store sports equipment like scooters, bicycles and other hobby related items, can opt for JD’s longer-term storage solution.

The new service has been launched in response to clear market demand for convenient and reliable storage services. JD has seen demand for storage solutions rise exponentially, particularly as rents in China’s first and second tier cites continue to increase every year. This is in contrast to many personal storage providers in China, which typically have to partner with third parties such as real estate companies, and therefore struggle to provide a convenient and high-quality service.

“JD is known among Chinese customers for reliability, trust and speed,” said Bing Fu, Head of Strategy and Innovation at JD Logistics, the independently run business group under JD.com responsible for this project. “This user-friendly and reliable personal storage solution is clear example of how our strategy to open up our logistics network to parties beyond JD is playing out. Initial customer feedback shows us that consumers are excited about this service, and believe it can fill an unmet need in the storage market.”

With over ten years of experience in developing its in-house logistics capabilities, JD Logistics has won the trust of both customers and enterprises, placing the company in good stead to bring this new value-added service to market. Since 2016, JD has expanded the range of logistics services it offers to third-party merchants outside of JD. With the company continuing to roll our innovative initiatives such as storage solutions, it’s increasingly clear how JD’s logistics capabilities can benefit not only JD’s own business, but also a range of other industries and merchants.

JD.com used AI to help Chinese hygiene products giant Vinda develop a package of paper towel that would directly meet consumer needs.

Through analysis of consumer data powered by AI algorithms, JD discovered that young people, especially female customers – the main users of this type of product – use paper towel not only to wipe counters and kitchenware, but also for handling food, indicating that food safety is a high priority feature to highlight. JD also found that consumers prefer paper towels packaged in soft packs rather than rolls because they are easier to grab.

Taking all of this into account, JD worked with Vinda to design a 2-ply paper towel package, clearly marked as food-safe, and packaged in a brightly designed package (rather than the brand’s traditional dark blue) themed with Summer Palace, given that bright colors have been shown to appeal to young consumers. JD also suggested the pricing strategy of the product, recommending a price between RMB 30 to 35. The new product, which was developed and brought to market within the span of three months, performed strongly after its launch. Sales of the product accounted for half of all new paper towel products across multiple brands from August to now.

As China’s largest retailer, JD’s consumer insights provide an invaluable resource to help brands bring new products to market that are directly tailored to consumer needs. Over the last few years, JD has worked closely with manufacturers to perfect its “Consumer to Manufacturer” – or “C2M” – process. C2M addresses one of the traditional pain points in retail. Historically, brands have reached out to consulting companies who conduct offline research for brands before they develop their products. But due to limited data, the consulting process cannot guarantee products will be appropriate for the market. What’s more, this process can be time-consuming, sometimes taking as long as 18 months – too slow for today’s fast-paced retail environment.

AI plays a critical role in JD’s C2M process, allowing the company to analyze consumption trends, consumer decision trees, which show consumer motivations for purchasing decisions, and more, based on information from JD’s over 320 million customer base.

A powerful combination of cutting-edge technology and incisive consumer insights allows JD to help brands develop new products – and the process can take as little as three months. JD provides support throughout the entire product lifecycle, from consulting, development and testing to sales and marketing. JD works with partners to roll out launch simulations including creating mockup pages on the JD app and obtain real customer feedback such as clicks, browsing duration and the rate at which products are added to the cart.

In another successful C2M partnership case, JD provided Chinese gaming computer brand Thunderbot with consumer insights and reached deep into the supply chain to help the brand design a new product. JD’s analysis found a potential market for a gaming laptop with a 16.6 inch screen – a significantly larger display area than the brand’s standard 15.5 inch model, but more portable than their hefty 17.3 inch laptop. Using this advice, Thunderbot’s screen suppliers were able to launch exclusive production lines to manufacture 16.6 inch screens for the new product. Today, the 16.6 inch laptop is one of Thunderbot’s best-selling products. JD has already worked with several brands to optimize gaming laptop specifications for its consumers. More than 30% of the gaming laptops sold on JD have been manufactured through JD’s C2M. Sales of HP’s OMEN Gaming PC series gaming laptops developed with JD’s C2M have exceeded RMB 1 billion yuan.

Longyu Zhang, Head of JD Supply Chain Innovation said: “Customers are increasingly demanding a more diverse range of products customized to their preferences, and merchants are seeking to get closer to consumers by tailoring their products for the market. JD’s Customer-to-Manufacturer initiative provides brands the perfect opportunity for brands to reach targeted consumer groups.”

“This trend also has significant implications for the back-end supply chain, as the center of the supply chain is shifting from manufacturer to consumer, and from managing goods to managing consumer needs.” Said Songtao Zhai, Head of JD Supply Chain Product during a media workshop hosted at JD’s headquarters in Beijing earlier this week. “JD’s assessment is that the ability to accurately analyze consumption data and determine trends and customer preferences will be key to the success of consumer brands over the next five to ten years.”