Balenciaga Partners with JD.com’s TOPLIFE

Posted on by Ling Cao

Balenciaga today announced that it has joined JD.com’s luxury platform, TOPLIFE. Through this partnership, the Balenciaga Collections will be available on TOPLIFE, complete with 24/7 customer service and support of a wide range of local payment methods.Balenciaga today announced that it has joined JD.com’s luxury platform, TOPLIFE.

TOPLIFE will provide Chinese customers access to all forms of Balenciaga’s creative expression, including campaigns and the brand’s latest social activation. Customers who purchase Balenciaga creations through TOPLIFE will also be treated to JD’s exclusive white glove delivery service, JD Luxury Express.

Cédric Charbit, Balenciaga CEO said in a statement, “This partnership is an important step for Balenciaga’s omni-channel strategy in China.”

Xia Ding, JD President of International Fashion and Head of TOPLIFE said, “Bringing Balenciaga to TOPLIFE helps further cement our position as the go-to platform for luxury shopping in China.”

JD.com Turns to High-Speed Rail for Delivery of Exotic Mushrooms

Posted on by Ling Cao

China’s largest retailer JD.com has launched a new initiative which combines the forces of China’s high-speed rail network and JD’s sophisticated cold chain technology to deliver matsutake mushrooms, a prized ingredient from Yunnan, to its customers.

JD’s use of high speed rail provides many advantages when it comes to minimizing travel time between the source of the food’s production and the customer’s door

The provision of fresh food to consumers is naturally a task which is highly time sensitive, and JD’s use of high speed rail provides many advantages when it comes to minimizing travel time between the source of the food’s production and the customer’s door. China is home to one of the most advanced high-speed rail networks in the world, with over 20,000km in high-speed rail lines designed for speeds of 250-350km/h – more than the rest of the world combined. The high-speed rail delivery service, which JD already uses for delivery of some high value and time-urgent products, like luxury products, will link up with the uber-efficient JD Logistics network and be taken from a special area within high-speed rail stations in major Chinese cities, directly to the customer.

The innovative new delivery service will begin in July, delivering matsutake mushrooms native to China’s southwestern Yunnan province to cities across China. Matsutake (also called ‘pine mushrooms’ or ‘songrong’ in Chinese) are a rare and expensive ingredient used in many east Asian cuisines and in Chinese traditional medicine. JD will supply matsutake to individuals as well as businesses, part of the company’s growing Retail as a Service, or RaaS business. The company will deliver matsutake to the high-end restaurants nationwide as it expands beyond the consumer retail business. JD is increasingly offering its technology and infrastructure to partners and shippers beyond its own platform, as part of its Retail as a Service (RaaS) strategy.

The mushrooms will be loaded into a special stocking area on the high-speed train in Kunming, Yunnan and delivered by rail to one of six Chinese cities: Beijing, Shanghai, Guangzhou, Wuhan, Nanjing and Chengdu. Thanks to the advantages offered by high-speed rail, JD will be able to guarantee delivery within 48 hours of placing an order. It is also environmentally friendly, fitting in with JD’s broader push to make commerce more environmentally sustainable.

“Consumers see JD.com as the optimum method of purchasing their fresh produce,” said Hui Wang, vice president of JD.com, head of the delivery department at JD Logistics. “This innovative combination of China’s ultra-efficient high-speed rail network and JD’s cold chain technology means we can now transport fresh food from wherever it is produced to the homes of consumers in record time, while retaining the food’s all-important freshness.”

The high-speed rail fresh food delivery service forms a new part of JD’s cold chain logistics network –the largest e-commerce home delivery service in China and the only one in the world that is operated in-house by a large-scale e-commerce company, down to the last mile. JD also built the first highly automated cold chain sorting center in Beijing this year, which can sort up to 108,000 orders per day.

Chinese consumers are increasingly turning to e-commerce for their fresh food needs. In 2017, the amount of fresh produce bought online was worth 140 billion RMB, an increase of 59% YOY on the previous year. To keep up with this demand, the number fresh goods available on the JD platform increased by 300% and the company’s specialized fresh food delivery service now covers over 300 cities across China.

JD Invests in Secoo

Posted on by Ella Kidron

JD.com continues to expand its presence in the fashion and luxury market with an investment in Nasdaq-listed Secoo, a major player in Asia’s online luxury market.

JD has made a big push into luxury, launching TOPLIFE, its independent luxury e-flagship platform, last fall. The company continues to add brands to the platform at a steady clip, and explore other ways to increase its traction among China’s growing luxury consumer base. JD has grown its reach into different segments of the apparel market through its own JD Fashion offer, partnerships with Vipshop, Mogu Street and Meili, and into the luxury market with the launch of TOPLIFE, and investments in Farfetch and Secoo.

Read more about the latest investment here.

New Hydrogen-Powered JD.com Delivery Trucks Emit Only Purified Water

Posted on by Ling Cao

Coinciding with JD.com’s 6.18 anniversary sale, which reached a record $24.7 billion in transactions, China’s largest retailer has introduced a fleet of hydrogen energy delivery trucks to greater Shanghai.

Vehicles powered by hydrogen fuel cells are often cited as an excellent alternative to traditional vehicles run on carbon-based fuel, but the new technology requires commitment and experience to utilize effectively. JD has put dozens of new delivery trucks to use with hydrogen tanks that take only three minutes to refill. They can travel for 300km per tank while carrying up to 3.5 tons of cargo, and the only emission put out by the new vehicles, which are also known to be extremely safe, is purified water.

The new fleet is the first sizeable commercial deployment of hydrogen-powered vehicles for logistics in China, and the latest expansion of JD’s ongoing effort to make the ‘last mile’ of the distribution process carbon-free. In early June, the company rolled out a fleet of 50 solar-powered delivery vehicles in Beijing.

JD.com evaluates all sustainability initiatives by their impact on the environment as well as their efficiency and operational sustainability. Upgraded models of its solar vehicles, for example, feature solar panels on the roofs of tricycles, and can travel 50% further on one charge than previous models. A fully-charged tricycle can now run 45 km, with increased battery life, allowing drivers to make more deliveries.

“The strength of JD sustainable initiatives shows that a green approach to logistics is beneficial for the environment, and much more. By investing in these technologies and encouraging partners to do the same, JD hopes to promote green logistics across industries,” said Hui Wang, vice president of JD.com, head of the delivery department at JD Logistics. “These first forays into the world of renewable energy are the beginning of what will be a complete overhaul of the way we deliver goods to JD’s customers across the country on a daily basis. It’s a very exciting time.”

JD has already established fleets of renewably-powered vehicles in major cities across China, including Beijing, Shanghai and Chengdu, and an incentive system will encourage JD’s third-party logistics partners to switch hundreds of thousands of their delivery vehicles to renewable sources as well.

The company also has many more initiatives aimed at reducing the environmental impact of the entire supply chain, part of JD’s “Green Stream Initiative.” Programs include the use of sustainable greener packaging within warehouses, through partnerships with brands such as Lego, Nestle, Unilever, P&G, and Wyeth, with a goal of reducing the number of boxes used throughout the supply chain by 10 billion by 2020. The company also aims for 80% of packaging materials to be recyclable, over 50% of plastic packages to be replaced by biodegradable material and 100% of logistics packaging to be composed of recyclable or reusable materials.

Meanwhile, JD’s Asia No.1 warehouse in Shanghai has a fully functional solar powered system installed on the roof of the facility, an initiative JD plans to expand to its other warehouses across the country. By 2030, JD predicts it will operate the world’s largest solar powered infrastructure system, with a projected total area of 200 million square meters of solar panels.

Read more about JD’s sustainable consumption initiatives in the Trends in Green Consumption Development report.

ReTo Eco-Solutions, Inc. and JD.com Partner in Sustainable Building Push

Posted on by Ling Cao

JD.com, China’s largest retailer, and ReTo Eco-Solutions, a leading provider of comprehensive eco-solutions and one of China’s largest manufacturers of environmentally friendly construction materials, are paving the way for more sustainable development in the country. The partnership announced today comes as the sustainability movement has been picking up steam in China in the last few years, and consumers are increasingly looking for ways to reduce their carbon footprints. Through the purchase of products such as ReTo’s signature eco-friendly paving tiles, businesses and individual customers on JD’s e-commerce platform will be able to minimize carbon emissions and ensure that their buildings are energy efficient.

JD and ReTo will collaborate on a range of strategic initiatives, including eco-friendly construction materials, eco-towns, and smart cities, among others. Working with the China Academy of Building Research, the two companies also committed to establishing a joint research program to develop and promote eco-friendly products and technologies.

“We could not have a better partner than JD in our ambition to ensure that the buildings of the future are more sustainable,” said Hengfang Li, Chairman and CEO of ReTo. “Access to JD’s vast user base of over 300 million customers means we can bring our eco-friendly innovations to more people than ever before. Tapping into JD’s advanced capabilities in AI and robotics will help further our development of ecofriendly building innovations.”

“Our research shows that customers are increasingly looking for ways to decrease their carbon footprint and to live more sustainable lives”, said Lijun Xin, President of JD Home and Life. “This new partnership with ReTo, China’s definitive leader in environmentally friendly manufacturing, allows JD to add significantly to our selection of sustainable products and to further our overall sustainability goals.”

JD has been increasing the range sustainable products available on its platform. Last year, the total volume of green products available on JD increased by over 54% and the total volume of green purchases made on JD increased by 71%, contributing to 15% of total sales on the platform during the same period. In addition, JD has been consistently reducing its own operations’ impact on the environment, initiating a companywide switch to electric logistics vehicles earlier in the year, among a host of other initiatives.

JD.com Launches Global Robotics Challenge

Posted on by Yuchuan Wang

As JD.com increasingly relies on automation to fulfill its promise of same- and next-day delivery to more than 300 million customers, the company is launching a new robotics challenge to find talented roboticists who can help advance the development of global e-commerce and logistics technologies.

With the scale of e-commerce increasing sharply, especially on Chinese shopping festivals such as JD’s 6.18 anniversary sale and Singles’ Day, the logistics industry deals with trillions of packages every year. From robots to drones, unmanned delivery vehicles and fully automated warehouses, JD.com is increasing efficiency and redefining industry standards for delivery times.

For JD, which is China’s largest retailer, online or offline, robots’ contributions in automated warehouses are invaluable. The smart machines quickly, tirelessly and efficiently complete mundane and repetitive tasks, such as picking a product from shelf and placing it in a basket. But it’s not easy. Picking things quickly, accurately and safely involves a complex system of computer perception, mechanical movement and manipulation, as well as AI decision making.

Designing robots that do this better is a priority for JD, and will be integral in the development of global commerce in the future. Worldwide sales of warehousing and logistics robots will reach $22.4 billion, while shipments of robots will reach 620,000 units per year, by 2021, as automation revolutionizes supply chains, according to Tractica Research.

Hosted by JD’s robotics research arm, JD-X, the JD-X Robotics Challenge will ask contestants to design a ‘picking’ robot that can accurately pick selected SKUs from a pool within a limited amount of time. The contest judges—a panel of leading technologists and industry experts, including world-renowned roboticists will focus on the attributes of the robotic arm, computer vision, route planning, and ontology design in evaluating contestants’ robots.

“We are confident the challenge will attract some of the best robotics talent in the world,” said Jun Xiao, head of JD-X. “Building an efficient picking robot is a highly complex problem requiring advanced technology and creative design. It’s a challenge that many robotics inventors are eager to tackle because it calls for the design of a practical robot that solves a real-world problem.”

The JD-X Robotics Challenge is open to university students and startups in China and overseas. The grand prize is RMB 500,000 with total available prizes worth RMB two million, and winners have the opportunity to apply for positions at JD.com, receive investment from JD in their startup, and see their winning robot at work in a real-life logistics scenario.

Anyone who wants to participate in the Challenge can contact jrc@jd.com to register. The entry form can be downloaded here.

JD Expands “Retail as a Service” Efforts with Better Life Initiative

Posted on by Yuchuan Wang

JD has announced a new initiative with Chinese retailer Better Life as part of the company’s Retail as a Service strategy. The cooperation further speeds up delivery for customers and integrates inventory across the two retailers by using technology to identify the most efficient way to source orders on JD.com, be that from JD’s own warehouses, or from Better Life stores.

Products sourced from Better Life will be delivered in less than an hour by Dada, China’s leading crowdsourcing delivery company. The efforts follow a cooperation with Walmart that uses a similar strategy of supply chain integration to increase overall efficiency and improve user experience.

“JD is uniquely able to improve our overall inventory management and reach a wider swath of customers more efficiently,” said Kevin Liu, Grocery Merchandising Director of Better Life. “As the retail landscape is rapidly changing, we see this initiative as a prime example of how offline retailers can not only remain relevant, but actually become even more relevant.”

“This marks another step forward in our Retail as a Service efforts, which leverage our vast resources to help traditional companies excel in a changing environment,” said Ting Qi, Director of User Experience, JD FMCG and Foods. “We are pleased that our customers will be able to get an even better shopping experience through this initiative with Better Life.”

The benefits for the customer, offline stores and JD of inventory integration are clear: increased sales, faster inventory turnover, improved cash flow and even faster delivery. JD is also exploring the option of integrating its online membership program with offline partner stores, so that offline stores can enjoy even more benefits from their partnerships with JD.

JD.com 6.18 Anniversary Sale Transaction Volume Reaches Record $24.7 Billion

Posted on by Ling Cao

Transaction volume on JD.com reached a record high of $24.7 billion this year during the 18-day June anniversary sales event. This marked the first major “6.18” anniversary sale in which the e-commerce giant combined online, offline and virtual shopping for a ‘boundaryless retail’ experience.

Tens of millions of consumers visited JD pop-up stores and experience centers around China over the 18-day sales period, sampling snack foods, testing home appliances and trying on clothes. The pop-ups gave 1,400 brands a space to showcase their products and interact with Chinese shoppers for feedback, fueling excitement for 6.18, now one of the biggest shopping events in the world.

The pop-up shops, which spanned 30 cities and received over 43 million visits, boosted sales for participating brands as well. After participating, Ocean Spray Cranberries Inc. sold 400% more bags of cranberries during the sale than during the same period a month earlier.

Through JD’s crowdsourced delivery affiliate JD Daojia, shoppers were also able to buy products from offline stores for delivery to their homes. Orders via JD Daojia from Walmart, JD’s strategic partner, quadrupled during the 6.18 sales period from the same period a year earlier. Sales from another JD partner, Century Mart, were seven times the amount last year.

Meanwhile, JD’s augmented reality technology also provided a better experience for shoppers who chose to stay at home. Data from the sale showed 70% of consumers who purchased color lenses first used JD’s AR Styling Station, a function in the JD mobile app, to test the look on their own faces. JD sold 52,000 boxes of Johnson & Johnson’s 1 Day Acuvue Moist lenses in only one day of the sale.

The mix of new online, offline and virtual shopping experiences are part of JD’s broader strategy to leverage its smart supply chain and advanced technologies to build a sustainable future for the retail industry. They complemented another booming sales period for JD, as products including giant TVs, mattresses, designer jeans and fresh crabs sold in record numbers—with many selling out just minutes after the sale began.

With more than 300 million customers, JD is China’s largest retailer, online or offline, and has already changed shopping habits in the world’s most populous country. It is the only e-commerce company in the world to operate a nationwide logistics network in-house, which can deliver over 90% of orders on the same or next day—including during this year’s sale, despite the massive increase in order volume. Following its recent international expansion, JD also worked with over 110 warehouses outside of China during this year’s sale.

For more data on the 6.18 sale, please refer to the graphic below:

Transaction volume on JD.com reached a record high of $24.7 billion this year during the 18-day June anniversary sales event.

* Transaction volume is calculated to include total value of all orders for products and services placed in the company’s online platform, regardless of whether the goods are sold or delivered or whether the goods are returned and shipping charges paid by buyers to sellers, and excludes products or services with list prices above RMB100,000 as well as transactions conducted by buyers who make purchases exceeding RMB1,000,000 in the aggregate in a single day (similar to the company’s major industry peer GMV definition)