How Chinese are Spending during the Coronavirus Outbreak

by Yuchuan Wang

JD has continued its commitment to deliver products to Chinese consumers during the Chinese New Year, for eight years now. This year has been unique as hundreds of millions of Chinese choose to stay indoors because of the outbreak of the highly contagious novel coronavirus.

According to JD’s big data analysis, from this past Chinese New Year’s eve on January 24th to February 2nd, JD has delivered 19,000 tons of rice and flour, 5.9 million liters of cooking oil, 15,000 tons of fresh food, 15 million packages of instant noodles and hundreds of millions of medical supplies to consumers nationwide.

Sales of food products such as rice and dairy during this period increased 154% year-on-year (on the lunar calendar), with rice and wheat products increasing at 5.4 and 4.7 times, respectively. Compared with a year before, the consumption of cereals surged on January 25th, and on January 26th, sales was as much as 15 times compared with the same day on the lunar calendar last year.

Sales of instant food products increased 3.5 times year-on-year. Bottled water and cooking oil increased 1.54 and 1.43 times while dairy and seafood products doubled.

JD has delivered 19,000 tons of rice and flour,

Fresh food on JD saw an increase of 215% compared with the same period last year. After the outbreak of the epidemic, JD immediately launched the “fresh produce emergency team”. Procurement and sales personnel pay close attention to sales trends and established a daily mechanism to update inventory levels and production information, preparing countermeasures in advance. Sales of pork increased the fastest by more than 10 times y-o-y while sales of beef, mutton, poultry and eggs also increased 400%. Vegetable sales increased by nearly 450% compared with the same period last year.

JD has also implemented rigorous health and safety measures, including providing protective equipment such as masks and disinfection products to consumers. From January 20th to 27th, the sales of a series of cold and antipyretic drugs, such as Banlangen(a popular Chinese herbal medicine), vitamin C effervescent tablets, acetaminophen and others increased by 5.5 times over the same period in the previous month; sales of oximeters increased 18 times and sales of thermometers increased 11 times. At the same time, sales of sterilized alcohol increased 20 times compared with the same period a month prior. JD also supplied 3 million bottles of hand sanitizer, over 1.8 million bottles of disinfectant, over 700,000 bottles of germicidal detergent, nearly 400,000 bottles of clothing antiseptic, 290,000 bags of disinfectant wipes and 180,000 bottles of toilet cleanser to Chinese consumers.

Fresh food on JD saw an increase of 215% compared with the same period last year.

Immediately following the outbreak of the epidemic, JD urgently contacted key brand partners in various categories to integrate inventory to secure supply to consumers as well as frontline workers in Wuhan. As early as January 17th, JD transported 5 million masks to Wuhan, the epicenter of the epidemic (Read more about JD’s support in Wuhan: https://jdcorporateblog.com/jd-com-on-the-frontlines-to-support-wuhan-and-provide-coronavirus-aid/ ).

JD’s nationwide brick-and-mortar 7FRESH supermarkets also perform strict disinfection measures including implementing staff morning health condition examinations, random body temperature checks during work, strict implementation of a seven-step hand washing standard, providing masks to employees and launching clear procedures and standards for disinfection of public facilities, tools and tableware, amongst other actions.

JD.com has been doing its utmost to ensure not only adequate supply and timely distribution of anti-epidemic goods with the help of its leading supply chain system and efficient logistics network, but also has a mission to provide stable prices and quality service in extraordinary times, playing an important role guaranteeing people’s daily needs of life.

 

(yuchuan.wang@jd.com)

JD Retail ensures supply during coronavirus

by Rachel Liu

 

From January 24th to February 2nd, JD.com has sold 18,900 tons of rice, flour & grain; 15,000 tons of fresh food; 5.9 million liters of cooking oil; 1.8 million bottles of disinfectant solution; and 3 million bottles of liquid soap. During the same period, sales of rice on JD.com increased 5.4 times year-on-year, and sales of flour increased 4.7 times year-on-year. The supply of daily staple food necessities cannot be achieved without the joint efforts of JD’s sales and supply chain team.

Like previous years, JD.com has applied its technology and insights to beef up stock inventory prior to the festive celebrations this year. What was unexpected was how very quickly things would change for people in both the epidemic epicenter of Wuhan and around China.

The outbreak has changed the shopping habits of Chinese consumers during the holiday as more and more customers are shopping for daily products online instead of offline. As China’s largest retailer, JD.com is sparing no efforts to ensure supply of Chinese consumers’ daily necessities at this time.

JD’s sales team has worked actively with brand partners to ensure there is enough inventory for much needed daily products in JD warehouses. From January 1st to January 24th, there has been 1.9 million bags of rice and grain (around 10,000 tons in total) from Chinese rice brand Shiyuedaotian delivered to JD warehouses. From January 26th, Shiyuedaotian has delivered 500,000 bags of products to JD in just 4 days. From January 25th to February 1st, Chinese brand Yihaijiali has sent 1 million bottles of Jinlongyu cooking oil to JD. JD also actively worked with Safeguard on the supply of anti-bacterial liquid soap, and from January 20th to February 1st, there were over 270,000 bottles of Safeguard liquid soap in delivery to customers.

Since the coronavirus outbreak occurred during the Chinese New Year period, some brands and suppliers were not able to send their products to JD warehouses. To address this efficiently, JD leveraged JD Logistics to pick up the products directly from brand warehouses to ensure inventory. For example, as of January 31st JD has picked up 350,000 Welch products in two batches from its warehouses in Guangzhou, Kunshan, Tianjin and Chengdu. JD is also using this model to cooperate with brands including Safeguard, SC Johnson Wax, LION, and others.

JD’s sales team has worked actively with brand partners to ensure there is enough inventory for much needed daily products in JD warehouses

To protect consumer rights, JD also ensured that the product prices remain stable. Products from JD’s first party business will not experience price increases and JD is also rigorously regulating its third party platform to forbid unfair price hikes, with penalties to third party sellers if unfair price hikes are discovered.

Additionally, to help merchants with the operational challenges caused by the coronavirus, JD Retail announced 11 subsidy support measures to merchants, including expense reduction, finance and logistics support, traffic support, technical support and more, especially to merchants in Hubei province.

 

(Liuchang61@jd.com)

JD’s Robot Delivers First Order in Wuhan in Coronavirus Aid Support

By Tracy Yang and Rachel Liu

 

JD’s autonomous delivery robot successfully made its first delivery in Wuhan on Feb 6th, 2020. The robot departed from JD’s Renhe delivery station and delivered products to Wuhan Ninth Hospital, which is the designated hospital for the treatment of the novel coronavirus pneumonia in Wuhan. See the video below.

 

 

Recognizing the need to reduce human-to-human contact during the coronavirus, JD quickly mobilized to put its autonomous delivery robot technology to work in Wuhan. Upon the robot’s arrival at its destination, it will send a message to the customer’s phone with a collection code, which can be input to release the package.

“JD autonomous delivery robots can help reduce human-to-human contact making them an ideal solution for last-mile delivery solution in Wuhan during this unique time, protecting both our customers and our employees.” said Qi Kong, Head of Autonomous Driving at JD Logistics. “In addition to supporting coronavirus aid in Wuhan, our latest autonomous delivery solution is open for other partners to use to upgrade their technology capabilities.”

JD autonomous delivery robots began daily operation in Changsha and Hohhot in January 2019. Different from its standard operation, where the robots generally handle small and medium-size products, the products delivered in Wuhan are generally large-size products, including daily necessities bought by medical personnel and medical supplies donated by the public. In the future JD will add more robots with big boxes to support large-size package delivery needs in Wuhan.

 

Download the video here: http://t.cn/A6Pdjofl

Download B-roll here: http://t.cn/A6PdYoso

 

tracy.yang@jd.com, liuchang61@jd.com

Posted in ESG

JD tests robot and drone deliveries for coronavirus aid

By Tracy Yang and Ling Cao

 

To address last-mile delivery needs, JD is testing the use of its autonomous delivery robots in Wuhan. JD has also been making preparations for drone delivery of medical supplies in China.

JD is turning to its advanced technology to reduce human to human contact during the coronavirus while ensuring normal operations of its logistics facilities and last-mile delivery. This is part of JD’s larger effort to leverage all of its available resources to provide support to society in this time of need.

JD’s automated warehouses are able to work 24/7 to meet the demand for daily necessities from Chinese consumers during the Spring Festival, especially now, when online shopping is believed to be the safest way to get goods while protecting from the coronavirus. The number of daily orders processed by these automated warehouses on average has increased from 600,000 to 1 million between January 24 to February 2.

JD’s automated fulfillment centers are also helping the company process incoming orders from across the country.

JD’s automated fulfillment centers are also helping the company process incoming orders from across the country. JD operates automated warehouses, which are highly efficient fulfillment centers that integrate intelligent logistics technologies such as AI, deep learning, and image recognition, with over 70 varying degrees of automation, depending on need. The warehouses serve to increase efficiency and augment our highly capable workforce.

JD’s unmanned convenience store solution, the JDX Mart, is also offering consumers in Guilin, Shenzhen and Dongguan a seamless and contactless way to get their everyday convenience store products while reducing the risk of infection. Launched in 2017, JD’s unmanned convenience store solution enables consumers to enter the store by scanning a code, take the products they want to buy and exit without stopping at any checkout counter to make payment.

JD is a pioneer in developing autonomous delivery technologies, both to support its own business growth, especially in last-mile logistics, as well as to enable partners to increase efficiency.

 

tracy.yang@jd.com, ling.cao@jd.com

JD.com on the frontlines to support Wuhan and provide coronavirus aid

By Tracy Yang

 

JD Logistics’ Baofeng Road delivery station in Wuhan, is only 500 meters away from Wuhan Union Hospital. Fully equipped with prevention gear, JD delivery courier Liming Shang and his colleagues have spent several days making delivery runs of supplies sent by Internet users across the country to the medical staff at the hospitals.

JD Logistics opened a special channel for relief materials across the country to assist Wuhan on January 25th. As of February 2 at 6pm, JD Logistics had received a total of 600 donation transportation needs from public welfare organizations, enterprises and institutions, and had successfully transported more than 2.36 million medical and epidemic prevention supplies, including masks, medical gloves, goggles, disinfectants and others to major hospitals in Wuhan, Huanggang and other places in Hubei Province.

From early on, JD has stepped up to support Wuhan and the rest of China in its fight against the coronavirus outbreak. Not taking its responsibility to society lightly,  JD.com has leveraged the full strength of its capabilities, from logistics, to technology and more, to help those in need to weather this challenging time.

“During this unique time, my colleagues and I have spent most of my time running between the different hospitals,” said Liming Shang. “There are a lot of people who desperately need these medical supplies, and that could risk a great deal if we don’t. What we are doing may not be a massive heroic effort, but we’re doing what we can with what we have to help.”

Like Liming Shang, there are tens of thousands of JD Logistics delivery couriers across the country, who are still working to meet consumer demand in China for all sorts of products. Relying on the advantages of its nationwide logistics infrastructure, big data, supply chain and premium service, JD Logistics’ tens of thousands of front-line personnel are able to fully meet the needs of hundreds of millions of consumers in China.

To further ensure the safety of employees fighting on the frontlines, JD Logistics stepped up the allocation of emergency materials for epidemic prevention, such as masks, thermometers, protective glasses and clothing, disinfectant, and more. JD Logistics is also undergoing regular disinfection of its warehouses, delivery stations and vehicles. To ensure an extra level of protection for its employees on the frontlines during this time, JD has provided frontline employees with a supplemental coronavirus insurance plan, on top of their existing benefits.

Several other business groups under JD.com have also launched a series of measures to help the general public to overcome these difficult times. JD Health offers free online consultation 24/7 for people who suffer from coronavirus symptoms and gives them access to consult a doctor from the comfort of their homes. There is also a hotline for people who need psychological support. In addition, JD Health has invited respiratory and infectious disease experts and an academic to conduct free live-streams, offering an engaging opportunity for people to learn and ask questions.

JD’s AI powered sentiment-sensing customer service and JD Cloud video conferencing service is also open free of charge for enterprises and individuals in need.

Recently, JD.com announced 11 subsidy support measures for the 250,000 merchants on its platform. These measures include expense reduction, financial and logistics support, traffic support, technical support, health protection, and more.

  • JD Health will provide free doctor consultation services for enterprise employees.
  • JD Digits will launch an interest fee reduction and delayed repayment policy.
  • JD Logistics will provide one-on-one customer service for new merchants who use JD’s fulfillment services and 48-hour rapid contract signing, enabling them to get up and running on the platform hassle-free.
  • For the merchants in Hubei Province, JD.com will provide additional services, like waiving one month of fees, providing a maximum insurance premium of RMB 300,000, and providing one month of free operations, among others.

 

(tracy.yang@jd.com)

 

 

 

Posted in ESG

Photo Gallery-JD: Sparing No Efforts to Support Wuhan Coronavirus aid

JD is sparing no efforts to support the fight against the coronavirus in Wuhan by leveraging our capabilities in logistics, supply chain, technology and healthcare. With our couriers on the frontlines doing daily deliveries to hospitals and medical organizations as well as to regular customers, we are upholding our commitment to our customers to provide a trusted and reliable shopping experience, and to society as a whole.

JD supply chain and logistics support to date

We’ve been transporting medical supplies from all over the country to Wuhan by road, rail, air and other transport modes. As of 6pm on January 31, JD Logistics had transported more than 140 tons of prevention materials to Wuhan via rail.

 

As of January 30, JD Logistics had received requests by 450 institutions for delivery of material donations to support Wuhan. We leveraged our supply chain capability to deliver masks and medical materials from both business and society. 

 

As of January 30 at noon, we delivered a total of 12 tons and 70 cubic meters of bathroom construction materials – toilets, washbasins, and faucets – to the Wuhuan Huoshenshan hospital built remarkably quickly in response to the coronavirus.

 

As of the morning of January 27, through a 16-hour journey, JD Logistics shipped 16 tons of disinfectant solution via train K351 from Shanghai to Wuchang station.

 

On January 27, JD Logistics delivered over two tons of air sterilizers and hydrogen peroxide from Shanghai and Anhui to Wuhan, all provided to Wuhan hospitals and institutions.

 

On January 23, JD Logistics has provided health and safety protection for frontline couriers, including masks, vitamin C, and is conducting regular and comprehensive disinfection at delivery stations, ensuring safety throughout our operations.

 

Frontline couriers

A courageous JD courier and a local doctor work together to rush much needed medical supplies and daily food to hospital in Wuhan to support the fight against the coronavirus.

 

JD courier prepares to deliver much needed goods to hospitals in Wuhan to support orders from patients and doctors there.

 

Our couriers, our heroes in red delivering trust across the city of Wuhan.

 

Davos 2020: Trust in AI – The Economic Driver of the Intelligent Economy

Over the past few years, the discussion around AI has revolved around the way it is disrupting the world and redefining every aspect of our day to day lives. As a strategic partner of the World Economic Forum, JD.com hosted a panel discussion on the topic of “Trust in AI – The Economic Driver of the Intelligent Economy”.

Not only is AI pushing the technical boundaries of the possible, it is also pushing us to think about the implications it will have on us humans, the society, the world. In the past year the notion of Trustworthy AI has taken center stage across all major tech companies and national AI agendas. There is often debate as to whether the notion of trust differs based on differences in Western or Eastern values and principals. The question then becomes, how does this impact companies operating and delivering product and services on a global scale?

The panel included Dr. Daniela Rus, Director, the Computer Science and Artificial Intelligence Laboratory (CSAIL), MIT; Xue Lan, Professor; Dean, Schwarzman College, Tsinghua University; and Bowen Zhou, President of JD Cloud and AI, Chair of JD Technology Committee. Nicholas Thompson, Editor-in-Chief at WIRED moderated the discussion.

Watch the video here:

Trustworthy AI: Immense challenge, immense opportunity, and immense responsibility

By Dr. Bowen Zhou, President of JD Cloud & AI, Chair of JD Technology Committee, IEEE Fellow

Artificial intelligence (AI) has gained widespread attention in recent years. AI is viewed as a strategic technology to lead us into the future. Yet, when interacting with academics, industry leaders and policy makers alike, I have also observed some growing concerns around the uncertainty of this technology.

In my observation, these concerns can be categorized into three perspectives:

1) Many people lack full understanding of AI, and therefore are more likely to view AI as a nebulous cloud instead of a powerful driving force that can create a lot of value for society. 2) Some companies or individuals worry that they will fall behind as AI becomes more prevalent. 3) As often is the case with new technology, AI is increasingly in use despite policy and regulation not keeping pace.

It is understandable that people might have these concerns at this moment in time. We need to face these concerns. As long as we do, I believe we don’t need to panic about AI, and that society will benefit from embracing it. I propose we address these concerns as follows:

  • We should democratize AI:

Instead of writing AI off as too complicated for the average person to understand, we should seek to make AI accessible to everyone in society. It shouldn’t just be the scientists and engineers who understand it. Through adequate education, communication and collaboration, people will understand the potential value that AI can create for the community.

  • In AI no one will be “left behind”

What I mean by this is two-fold: 1) We should democratize AI, meaning that the technology should belong to and benefit all of society, and 2) We should be realistic about where we are in AI development. We have made a lot of progress in AI. But if we think of AI as a vast ocean, we are still only walking on the beach. Most of the achievements we have made are in fact only based on having a huge amount of (labeled) data, rather on AI’s ability to be intelligent on its own. Learning in a more natural way, including unsupervised or transfer learning, is still in nascent stages, and we are a long way off from reaching AI supremacy. From this point of view, society has only just started the long AI journey, and we are all pretty much starting from the same page. To achieve the next AI breakthroughs, we need the global community to participate, and to engage in open collaboration and dialogue.

  • We should take an agile approach to the governance of AI

We can benefit from AI innovation while we are figuring out how to regulate the technology. Let me give you an example: Ford Motor produced the Model T car in 1908, but it was actually not until over 60 years later that the U.S. issued formal regulations on the use of seatbelts. This delay, did not prevent people from benefitting significantly from this form transportation. At the same time, however, we need regulations so that society can reap sustainable benefits from new technology like AI. And, when it comes to these regulations, we need to work together as a global community to establish and implement them.

By addressing the aforementioned concerns people may have regarding AI, I believe that Trustworthy AI will provide great benefits to society. There is actually already consensus in the international community about the six dimensions of “Trustworthy AI”: Fairness, Accountability, Value Alignment, Robustness, Reproducibility and Explainability. While Fairness, Accountability and Value Alignment embody our social responsibility, Robustness, Reproducibility and Explainability pose massive technical challenges to us. These are the technologies we need, and these are core focuses of our research. As a technology and service company, JD is fully embracing Trustworthy AI. JD’s AI research is driven by real scenarios that focuses the robustness and reproducibility of AI; for example, our research in smart dialog systems for customer service stresses the importance of fairness and value alignment; at the same time, in our customer-centered approach, our research in Visual IoT is enabling AI to be explainable and accountable.

Trustworthy AI innovation is a marathon, not a sprint. But if we are willing to stay the course, and if we embrace AI innovation and regulation with an open, inclusive, principle-based and collaborative attitude, the value AI can create can far exceed our expectations. After all, I believe that the next generation of the intelligence economy will be forged in trust, and differentiated by perspective.