JD.com CEO Richard Liu Shares Vision for the Future of Retail at World Retail Congress

Posted on by Yuchuan Wang

For JD.com founder and CEO Richard Liu, the future of retail is about enabling customers to buy whatever they want, wherever they want, whenever they want. Speaking at the World Retail Congress in Madrid, Spain, Richard stressed the company’s vision for the future of retail innovation. A 2018 World Retail Hall of Fame inductee, Richard explained that the focus of retail innovation should be on bringing more convenience, choice and peace of mind to customers, while leveraging the best in technological solutions to empower partners and suppliers.

For JD.com founder and CEO Richard Liu, the future of retail is about enabling customers to buy whatever they want,

“Building our retail business to reach nearly 300 million customers is just the beginning of the journey,” said Liu. “Now that we have scale we are helping society through programs like sustainable farming and recycling packaging. Our true legacy will not only be how many consumers we reach, but the overall impact we have on society.”

During the event, JD also announced several strategic partnerships to empower historic European brands with its enormous e-commerce capabilities and technological resources in China. To satisfy the huge growth in demand for the highest-quality wines on its platform, JD is working with many world-renown European wine producers to give them direct access to JD’s nearly 300 million customers. JD recently partnered with family-owned winery Peter Mertes to make the full line of Germany’s S.A. Prüm Rieslings available via JD.com, as well as several other mid-range priced offerings.

The company has already enabled the direct purchasing of many of the world’s premium wines via its platform. This includes Bordeaux wines from all 61 châteaus on the 1855 Classification list such as Château Lafite Rothschild, Château Mouton Rothschild and Chateau Latour, among others. European wine has become increasingly popular on JD – the company sold over 18 million bottles in 2017 alone. JD will leverage its big data analytics capabilities to help these brands identify new customers and achieve success online in China.

JD separately announced its collaboration with Osborne Group, a leading Spanish food and beverage group, to open a flagship store for its Cinco Jotas (5J) Iberian ham products on JD.com. Founded in 1879, Cinco Jotas produces 100% acorn-fed free-range Iberian ham through an artisanal process that has been passed down for generations. Iberian ham has recently become popular with Chinese consumers, with sales on JD increasing nearly 700% in the last two years.

Osborne Group opened its Osborne Wine & Spirits flagship store on JD in 2016, offering products such as Montecillo Rioja wine, Carlos I Sherry brandy and Nordes premium gin. The store on JD is a key pillar of Osborne’s omni-channel strategy in China. 5J ham has been sold on JD since last year, and the company recently brought its products to JD’s newly launched premium offline supermarket 7Fresh. The new addition of the 5J flagship store on JD.com will allow for truly seamless online-to-offline access to the brand’s products in China. The two parties also plan to implement a blockchain-based tracking solution, which allows customers to trace the entire cycle of 5J ham from production to delivery.

Over the past two years, the number of European brands on JD has almost doubled, with beauty and skin care products, home appliances, clothing, drinks and maternal and child care products performing particularly well. Earlier this year, the company launched its Paris office, and committed to sell €2 billion worth of French products on its platform in the next two years.

JD’s TOPLIFE Platform Launches Four New Luxury Brands

Posted on by Ella Kidron

JD.com, China’s largest retailer, announced today that it has added four top international brands to its luxury shopping platform, TOPLIFE. Luxury Italian fashion brand ANTEPRIMA, Scottish handcrafted knitwear brand Barrie, quintessentially British luxury lifestyle brand Mulberry and revered ready-to-wear couture brand Oscar de la Renta have joined the strong roster of brands that have already partnered with TOPLIFE.

Established last October, TOPLIFE has quickly become China’s destination for premium online luxury goods shopping. European fashion houses like Alexander McQueen and Saint Laurent, as well as American minimalism specialist Derek Lam, have chosen TOPLIFE for their first online flagship stores in China. The platform has also welcomed the likes of Escada, Swarovski, PERRIN PARIS, and others. Many brands have launched online in China exclusively through TOPLIFE, and several brands including PERRIN PARIS and Mulberry have worked with JD to launch special collections or products for TOPLIFE. Mulberry’s debut on the platform includes a gold version of its Amberley bag that is exclusively available on TOPLIFE.

“From having a separate app, to developing exclusive storage facilities specially designed for luxury goods, we developed TOPLIFE with luxury brands and consumers in mind from start to finish,” said Hu Shengli, President of Fashion and Lifestyle at JD.com. “We’re delighted to continue to build out the platform and bring the best of luxury fashion to Chinese consumers through our carefully-curated luxury universe.”

JD’s TOPLIFE platform completely redefines the luxury shopping experience in China. With access to unique warehousing and delivery options, brands on the TOPLIFE platform receive high-end logistics and marketing support, fully leveraging JD.com’s world class capabilities. In addition, TOPLIFE customers receive the same differentiated, luxury experience they would expect at a traditional brick-and-mortar store, with the added perks of premium white-glove delivery service and online fashion consultants available 24/7.

The four brand launches were announced at an event in Shanghai that also had guests from Cha Ling, Derek Lam and PERRIN PARIS, which are already on the site.

JD Cultivates New Smart Agriculture Push in China

Posted on by Yuchuan Wang

Committed to improving China’s agricultural infrastructure through smart technology, the country’s largest retailer, JD.com has launched the JD Smart Agriculture Development Community. The new initiative leverages smart technology to transform China’s agriculture industry. JD has teamed up with over 50 partners and several local government representatives to launch this initiative.

With crop protection as the first item on the Community’s agenda, JD has launched a new app to help farmers, cooperatives, local and national government organizations, companies and others use unmanned aerial drones for crop protection. The new app, “Jingdong Nongfu,” matches agricultural producers with carefully-vetted crop protection service providers and agricultural drone manufacturers, immediately addressing two major pain points for the agricultural industry.

First, the platform will allow farms to use cost-effective agricultural drones instead of manned aircrafts and manual field labor, saving growers money and reducing excessive pesticide use. Second, the app will make supply and demand information more transparent, allowing farmers to choose the appropriate service provider and the right time to begin crop protection, seeding, and fertilization.

In addition to increasing the efficiency of China’s agriculture industry, the JD Smart Agriculture Development Community will also help raise the overall level of food safety and quality. Historically, the industry has lacked clear standards regulating the amount of pesticides used in crop production in China and there has been little transparency. The Community, however, will work with partners including farms, drone manufacturers, service providers, and pesticide companies to create industry standards for crop protection services and reporting standards.

“We are delighted to play a role in transforming agriculture in China,” said Jun Xiao, Head of JD-X, JD.com’s logistics innovation lab. “Leveraging our vast resources, this initiative will both change the way the agricultural industry operates and give Chinese consumers even more peace of mind about how their food is sourced. We are excited be able to connect trusted farms with consumers on our platform.”

JD will partner with farm owners in an initiative called JD Farms to bring more smart technology to China’s farms. JD Farms will use advanced technologies including cloud computing, big data, and drones to monitor and analyze water, soil, pesticides, fertilizer, weather, diseases and pests; provide highly accurate estimates for pesticide use; and increase the traceability of agricultural products.

JD consumers will also gain access to a trusted and reliable “farm-to-table” sales channel. Integrated with the company’s world-class e-commerce and logistics capabilities, particularly in cold chain, JD Farms can ensure quick and reliable delivery straight from its partner farms to customers’ doorsteps.

JD.com Partners with WWF to Make Consumption More Sustainable

Posted on by Yuchuan Wang

E-commerce giant JD.com is working with the World Wildlife Fund and Tencent Foundation to participate in Earth Hour with the expansion of its ongoing efforts to reduce consumption-related waste and to make e-commerce more environmentally sustainable.

JD.com, which is China’s largest retailer, launched the fourth round of its clothing recycling program this week

JD.com, which is China’s largest retailer, launched the fourth round of its clothing recycling program this week, which has collected roughly 1 million items of clothing since it started in 2016. The company collects used clothing from customers using its in-house logistics network, and partners with organizations to either redistribute the clothing for reuse in impoverished areas of China or to recycle the fabric. In the newest drive, some clothing collections will also be donated to charity organizations to be sold.

JD.com, which is China’s largest retailer, launched the fourth round of its clothing recycling program this week

The company is also working with 83 suppliers, including Procter & Gamble, Unilever, PepsiCo and Haier, to develop more environmentally friendly products by using more recycled materials and reducing use of plastics. And JD is working with WWF to educate Chinese consumers on the rigorous certification process of the Marine Stewardship Council and Aquaculture Stewardship Council, for eco-friendly fishing practices and sustainable seafood. JD also has worked with 21 merchants to donate money directly when customers purchase orders on our platform beginning later this month.

“Earth Hour isn’t just about turning off the lights for 60 minutes,” said Libo Ma, head of CSR department at JD.com, who is also general secretary of the company’s charity affiliate, JD Foundation.  “It’s a reminder for us as both businesses and as individual consumers to always be aware of our impact on this planet. It’s a moment to look at what more we could and should be doing.”

The expanded programs come as JD, the only e-commerce company in the world to operate a nationwide, in-house logistics network, is in the midst of converting its delivery fleet to electric vehicles. JD is currently converting its fleet of 2,000 delivery vehicles to electric vehicles in China, and is working with partners to convert hundreds of thousands of others in the next three years, which would save several million tons in emissions per year.

The company is also researching biodegradable packaging, and is constantly looking for other ways to reduce e-commerce waste. Two years, ago, JD switched to thinner strips of tape, saving over 100 million meters of tape so far.

“The e-commerce revolution is changing people’s lives for the better,” Ma said. “But it is also an opportunity to change the culture of consumption.”

Earlier this year, JD released its Trends in Green Consumption Development report. Based on insights from JD’s hundreds of millions of customers, the report reveals increasing consumer demand for green products. JD has actively been introducing more green products on its platform to meet consumers’ broad range of demands and preferences. Last year, the total volume of green products available on JD increased by more than half (54.5%). The total volume of green purchases made on JD increased by 71%, contributing to 15.1% of total sales on the platform during the same period.  Find the full report here.

JD’s “Gipsy Joy” Rises Up in New Micro Movie for Pacific Rim Uprising

Posted on by Yuchuan Wang

JD has teamed up with Legendary Pictures ahead of the upcoming Chinese release of “Pacific Rim Uprising,” the follow up to the box office hit, “Pacific Rim.” JD’s own mascot Joy has been reimagined as “Gipsy Joy,” who will join forces with heroic PPDC jaeger, Gipsy Avenger in a micro movie released today. This is the fourth “Mission Red Series” micro movie JD’s Joy has appeared in to celebrate the launch of a film in China. JD previously released micro movies for Lego, Transformers and most recently Justice League.

Directed by Steven S. DeKnight who is making his film directorial debut, “Pacific Rim: Uprising” stars John Boyega, Scott Eastwood, Cailee Spaeny, Adria Arjona and Jing Tian. The film also features Rinko Kikuchi, Charlie Day and Burn Gorman who are reprising their original roles. The film is scheduled for release on March 23.

In addition to the micro movie, JD is also holding a special sales promotion day for “Pacific Rim” movie-themed merchandise on its platform a day ahead of the film’s release, to be known as “Uprising Day.” The JD.com homepage will be transformed with a “Pacific Rim” design and 1,000 limited edition Gipsy Joy action figures will be available for sale during the promotion.

DeKnight said, “We’re excited to partner with JD to drum up momentum for the film ahead of the release in China among its nearly 300 million customers and its brand partners.”

See a short clip of DeKnight introducing the Gipsy Joy action figure here:

JD Expands Its Smart Retail Vision with Connected Cars through Geely Partnership

Posted on by Yuchuan Wang

JD.com, China’s largest retailer, is extending its smart home platform, Alpha, to the auto industry, making it possible for drivers to control smart home devices and make e-commerce purchases directly from their cars. Through a partnership just inked, Geely’s 2018 Boyue SUV will be the first model to include JD’s Alpha-powered connected car solution. The solution leverages JD’s capabilities in AI, IoT and big data to provide users with access to services including location services, smart reminders, vehicle management, data analysis, voice control and other smart services. The 2018 Boyue SUVs that integrate JD’s technology will support the control of over 1,000 smart home appliances and devices such as smart air purifiers, air conditioners, lighting, and speakers.

The cooperation with Geely marks JD’s official entrance into the connected car market. The opening of JD’s Alpha platform to Geely and other partners will enable users to control various aspects of their car remotely and also open up on-board e-commerce capabilities. Once a car has access to JD’s Alpha platform, the car owner will be able to remotely check the status of the car, and even turn on the heat or air conditioning while still inside the house. In addition, JD will integrate a one-click e-commerce experience for vehicle owners to easily and conveniently buy auto supplies and other essentials directly from the screens in their cars on the drive home.

JD.com Vice President Dr. Kefeng Li said, “This partnership will bring unprecedented convenience to car drivers. As we continue to push the limits of retail, online and offline, by integrating new smart solutions and products, our advanced technology is making it easier and more convenient for our users to shop wherever and whenever they choose. In extending Alpha to cars, the sky is the limit in terms of other connected services we can offer drivers in the future. We look forward to continuing to work with our partners to realize this vision.”

JD has recently made several significant upgrades to its Alpha platform. Towards the end of last year, the company launched the JD Smart TV Screen Alliance to enable consumers to enjoy its convenient and personalized e-commerce experience right from their TV screens. Other products leveraging JD’s smart services platform include refrigerators, speakers, and smart home appliances such as air conditioners and air purifiers. The company also debuted its JD DingDong Play, China’s first large-display assistant, at the 2018 Consumer Electronics Show. JD DingDong Play, which features an Intel Atom® processor, is the first home personal assistant device to leverage facial recognition.

JD Leverages Omni-channel Capabilities to Grow Automotive Aftermarket Business

Posted on by Ling Cao

JD is taking advantage of its superior e-commerce capabilities and offline resources to expand into China’s rapidly growing automotive aftermarket for car parts and services. Recent trends show that Chinese consumers are increasingly embracing JDs omni-channel service that guarantees authentic auto parts online, with services provided through JD’s network of trusted offline stores.

As JD continues to develop its auto business, the company has built partnerships with top brands; ‘4S’ stores, which provide comprehensive automotive services including sales, service, spare parts and surveys and customer feedback; and other third party stores to provide a true omni-channel service. Currently, JD has partnerships with over 30,000 authorized offline stores. This strong omni-channel network is an important advantage for JD, which can recommend the nearest offline store within its network for installation or repairs to customers who have bought car parts online. JD’s network of high-quality stores ensures authenticity and reliability from end to end.

Committed to bringing its customers the highest quality products, JD has forged strategic partnerships with world-class auto parts brands such as Continental Tires, Goodyear and Shell, and top battery brand VARTA. JD’s partnership with Goodyear launched this past December will allow customers to purchase Goodyear tires on JD.com and have them installed offline, providing a seamless omni-channel experience.

Starting this month, JD.com and VARTA launched a quick installation service. The program enables users to buy VARTA car batteries through JD.com, and have them delivered to be installed within 30 minutes in several tier-1 and 2 cities across China by leveraging VARTA’s tremendous offline store network.

JD’s partnership with Shell includes a Shell flagship store on JD.com launched in January as well as deeper cooperation in direct sales including offering tailored products, collaboration on marketing, automotive aftermarket service and delivery for Shell products.

“JD.com has developed a strong network of high-quality offline stores, and we’re excited to be able provide a superior omni-channel solution covering the entire auto parts purchasing process,” said Yishen Tang, General Manager of JD’s auto accessories department. “As a growing number of Chinese consumers seek the convenience of purchasing auto parts online, JD is ideally positioned to provide them with the most seamless purchasing and service experience. Our recent partnerships with world-class auto parts brands are clear indications of their confidence in us to provide their customers with a premium end to end experience.”

According to industry projections, annual e-commerce sales in China’s automotive aftermarket are expected to reach RMB 100 billion by 2020. Today, auto related services is the fastest growing category within JD’s auto business, a testament to the convenience and peace of mind that JD’s omni-channel model provides consumers.

In recent years, JD has made great strides in developing its auto business. JD’s 2017 Singles Day sales event saw a staggering rise in sales compared to the previous Singles Day shopping period, with orders for JD’s signature “Product + Service” bundles increasing by 500 fold. Tires proved especially popular, with sales volume increasing by 256% over the previous year. The sales volume of Continental Tires alone increased 380% year-on-year.

JD Launches Global Center to Drive Smart Supply Chain Innovation

Posted on by Yuchuan Wang

Imagine placing an order on your commute to work and having it arrive at your doorstep before you even return home. This is an experience JD.com customers get every day. In fact, China’s largest retailer can deliver over 90% of all orders same- or next-day as standard – a level of service no other company globally is able to provide. Underpinning this delivery speed is some of the world’s most advanced logistics and smart supply chain management technologies. Using capabilities such as data mining, natural language processing, image recognition and machine learning to better understand, anticipate and plan for changes in demand in real-time, JD is at the forefront of e-commerce supply chain innovation. This enables the company to provide truly differentiated and personalized customer service.

JD has implemented auto-replenishment for the majority of everyday household products sold on its platform. The company is also using its smart supply chain capabilities to help its partners. By working with JD, Nestle was able to increase its available online inventory from 73 to 95%, contributing to an RMB30 million increase in annual sales of Nestle products on JD.

Now, JD.com is launching an initiative to promote the development of next-generation smart supply chain technologies.

JD.com is launching an initiative to promote the development of next-generation smart supply chain technologies.

JD’s recently launched Global Supply Chain Innovation Center (GSIC), is designed as an international hub for smart supply chain research and innovation. The Center will bring together global industry experts, companies, universities and other institutions, and will serve as a platform to share resources, expertise, insights, and technologies, and to work together on research projects focused on new technologies and processes, empowering more enterprises with smart supply chain capabilities. The GSIC will operate across six key international regions – China, Silicon Valley and Chicago in the U.S., Germany, the Netherlands, and Australia.

Commenting on the launch, Yu Yongli, head of JD.com’s JD Y business unit, which is focused on smart supply chain innovation, said, “JD.com has built up an incredible wealth of expertise and experience in supply chain management, including cutting-edge technologies like AI, big data, blockchain and Internet of Things. By sharing our resources with leading experts from academia and business, and supporting R&D of emerging technologies, we will empower the GSIC to develop the next generation of smart supply chain infrastructure. These technologies both enhance our own business and enable companies around the world.”

The GSIC will be overseen by an expert committee consisting of esteemed academics in supply chain innovation and management who will be responsible for guiding R&D efforts at the Center and will serve as mentors and advisors. Hau L. Lee, a member of the U.S. National Academy of Engineering and the Thoma Professor at Stanford Graduate School of Business, who will serve as the chairman for the GSIC, will lead the GSIC. Other key members of the expert committee include:

●    David Simchi-Levi – Professor at MIT; Supply Chain Designer for “Mars on Earth” Project; Former Chief Scientist at ILOG (IBM)

●    Xiande Zhao – JD.com Chair of Operations and Supply Chain Management; Professor at CEIBS

●    Yinyu Ye – K. T. Li Chair Professor at Stanford University; Winner of the John von Neumann Theory Prize

●    Michiel Steeman – Professor of Supply Chain Finance at the Windesheim University of Applied Sciences; Founder and Chairman of the Supply Chain Finance Community

●    Benoit Montreuil – Coca-Cola Material Handling & Distribution Chair; Professor and Co-Director, Supply Chain & Logistics Institute, Georgia Institute of Technology

JD also announced its inaugural operations research algorithm competition, which aims to bring together global experts in the field to foster supply chain innovation. The competition is expected to be launched later this year.