JD.com Commits to Sell €2 Billion in French Imports as President Macron Meets CEO Richard Liu

Posted on by Yuchuan Wang

JD.com, China’s largest retailer, has announced plans to sell €2 billion of French goods to Chinese consumers over the next two years, and to purchase another €100 million in French industrial products.

With French President Emmanuel Macron on hand during his official state visit to China, JD.com signed an ambitious agreement in Beijing today with Business France, France’s official trade promotion agency. JD Chairman and CEO Richard Liu and Business France CEO Christophe Lecourtier were on hand for the signing. President Macron also met with Mr. Liu to discuss opportunities for more French brands reach JD’s 266.3 million customer base.

Separately, JD also signed an MOU with French industrial engineering giant Fives Group to purchase €100 million of Fives’ technology. Fives has been assigned by the French Government to lead the “Industry of Future” and “Made in China 2025” plans, and the company’s advanced sorting technology will be used in JD’s highly automated “Asia No.1” warehouse network around China.

President Macron also met with Mr. Liu to discuss opportunities for more French brands reach JD’s 266.3 million customer base.

The agreements come as JD launches its ‘Celebrate France’ sales promotion for French goods on its e-commerce platform, showcasing unique promotions and discounts on a range of carefully curated, high-quality French products from brands including Domaines Barons de Rothschild (Lafite), Remy Martin, Evian, L’Oreal, Lacoste and others. Such sales promotions are hugely successful for suppliers and brand partners, including brands that are lesser known in China but have significant potential on JD because they leverage the company’s immense marketing resources and consumer insights to reach new audiences, often achieving record sales.

JD is already a key channel for French products to reach Chinese consumers, and counts popular beauty brands L’Oreal, Clarins and Sephora as key beauty partners. In 2017, sales of fresh food from France on JD.com, including oysters and cod, increased 640% year-on-year. Sales of French brands on JD’s cross-border e-commerce platform, JD Worldwide, increased nearly 200% in the same period. In addition, JD is now the biggest online retail channel in China for Lafite. At the end of last year, La Poste jointly launched a La Boutique France flagship store on JD.com to promote more French products in the Chinese market.

JD and Business France will work together to hit the target of €2 billion in sales by the end of 2019 by building out a ‘one-stop shop’ solution for French brands and retailers to get their products to Chinese consumers quickly and conveniently.

In addition to access to JD’s unparalleled supply chain and logistics capabilities, quarter billion-plus customers, and marketing solutions, JD will offer education and training programs about the Chinese e-commerce market targeting senior executives across France. It will provide a dedicated express enrollment service for French companies to get them up and running on JD.com as quickly as possible.

Future collaboration is expected to include logistics support on the ground in France to facilitate the transport of goods from France to JD’s customers in China.

Saint Laurent Partners With JD.com’s TOPLIFE To Launch E-commerce Flagship Store in China

Posted on by Yuchuan Wang

Saint Laurent today announced a significant new partnership with China’s e-commerce giant JD.com to offer its iconic fashion choices to customers in mainland China. The Saint Laurent brand will be featured as part of JD’s recently launched TOPLIFE online luxury fashion platform, which brings high-end fashion and luxury items from around the globe directly to Chinese consumers and provides a curated, premium online shopping experience.

Consistent with Saint Laurent’s global omni-channel development and commitment to offer exceptional and consistent client service across all distribution channels, TOPLIFE offers Chinese consumers access to Saint Laurent’s full brand and shopping experience, including not only the Paris fashion House’s latest collections for both women and men, but also relevant videos, campaigns and news.

Saint Laurent will benefit from TOPLIFE’s state-of-the-art operations that include same-day delivery, the cleanest and most advanced warehouse facilities, 24/7 customer service and a large range of local payment methods. Clients from Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Guangzhou, Shenyang, Wuhan and Xi’an will be able to receive Saint Laurent products through Luxury Express, TOPLIFE’s unique suit-and-white-glove delivery service.

“Thanks to the sophisticated logistics network and the personalized platform provided by our partnership with TOPLIFE, Saint Laurent will be able to implement its omni-channel development in China, securing a top-level luxury journey to our clients,” said Francesca Bellettini, President and CEO of Saint Laurent. “This partnership will offer an exceptional, coherent experience across different distribution channels, maintaining Saint Laurent’s privileged relationship with customers.”

“We welcome the world-renowned Saint Laurent brand to TOPLIFE,” said Richard Liu, Founder and CEO of JD.com. “We launched TOPLIFE in October to provide a new type of online shopping experience specifically designed for luxury brands and their existing and new customers in China. The addition of the beloved Saint Laurent brand is sure to excite our more discerning shoppers and help TOPLIFE become China’s destination of choice for luxury e-commerce.”

JD’s 7FRESH Stores Launch Top-Notch Offline Food Shopping Experience

Posted on by Yuchuan Wang

JD is bringing a truly premium offline food shopping experience to China with the opening of its new 7FRESH stores.

One of the biggest factors that has driven the remarkable boom in China’s e-commerce sector, is the traditional weakness of the country’s physical store infrastructure. JD has become China’s biggest retailer by offering a superior customer experience online. Unlike in other markets where shoppers enjoy going to the supermarkets—especially upscale experience markets—in China, the only premium experience was online.

That’s all changing with the launch of 7FRESH.

Unlike any grocery experience in the country, the clean, spacious stores will be stocked with thousands of fresh products, including fruit, flowers, imported meat and freshly-caught seafood prepared and cooked on site. These stores create an offline experience that complements JD’s reputation for delivering the highest quality fresh food right to the doorsteps of its over 266.3 million customers.

“JD is uniquely positioned to bring this premium-quality offline shopping experience to Chinese consumers because of our supply chain technology and scale as the country’s largest retailer,” said Xiaosong Wang, CEO of 7FRESH and President of JD Fresh. “With the highest efficiency and the greatest knowledge of consumer preferences, as well as access to the highest-quality products, we can invest in a premium experience far beyond anything Chinese consumers have experienced before.”

7FRESH integrates several advanced technology elements to deliver a uniquely personal and educational hands-on shopping experience. For example, ‘magic mirrors’ that sense when customers pick up an item of produce, and automatically provide information on a screen about its source, as well as nutritional information, are now being tested. The stores will also soon feature smart shopping carts that can follow customers as they browse the aisles, allowing them to shop with children, hands-free, without having to fuss over their purchases.

Items can be scanned and bagged through traditional checkout or self-checkout. 7FRESH stores accept payment via cash, card or easy mobile payment using the 7FRESH app.  Self-checkout offers the option of payment using a facial recognition system connected to the 7FRESH app. Customers in the neighborhood can either take goods to go, or have them delivered to their homes in 30 minutes.

The meat selection at 7FRESH includes some of the finest Iberico ham imported from Spain. Fresh fish and seafood can be caught from the seas of Japan and delivered to the dinner table in just 24 hours. At an in-store bakery, skilled pâtissiers trained by a Meilleurs Ouvriers de France (M.O.F) craftsman offer fresh bread, cakes and other baked goods.

Stores will also feature a restaurant area, where consumers can choose from a wide range of food cooked on-site by the highest quality trained chefs. Consumers can also purchase fresh cut flowers provided by JD’s partner, the renowned Taiwanese florist Ching Kao.

The launch of 7FRESH underscores an ongoing revolution of traditional retail powered by e-commerce technology. With an innovative supply chain built from scratch and as the largest-scale buyer across many product categories, JD has the most efficient sourcing, storage and logistics operations in China. This efficiency enables the company to unlock shopping services and experiences like 7FRESH, and many others that were previously impossible to justify under traditional retail models.

JD.com has been offering fresh food online since 2012. In January 2016, the company launched JD Fresh as an independent fresh food business unit. With China’s largest nationwide cold chain logistics network—the only one in the world that is operated in-house by a large-scale e-commerce company, down to the last mile—JD Fresh is able to offer rapid delivery of tens of thousands of high-quality fresh fruits, vegetables, seafood, meat and frozen products sourced from over 2,000 partners.

In addition, JD is working with a growing number of partners to use blockchain to track every step in the supply chain, from production to delivery. Underscoring its commitment to food quality, JD recently partnered with Walmart, IBM and Tsinghua University to launch the Blockchain Food Safety Alliance, to enhance food tracing, traceability and safety in China.

Consistent with this mission, 7FRESH offers products directly sourced from top-quality suppliers who have been carefully vetted by JD, an important differentiator for Chinese consumers who are increasingly focused on food safety and produce supply chains.

JD.com and Meili Inc. Form New Joint Venture to Further Strengthen Social Commerce Experience

Posted on by Yuchuan Wang

In a move to make online shopping more fun, exciting and fulfilling for Chinese consumers, JD.com, China’s largest retailer, and social e-commerce leader, Meili Inc., today announced the formation of a joint venture to bring innovative social e-commerce features to shoppers and a vast set of tools to businesses that want to reach consumers through social media.

The new company will build and operate a social commerce platform leveraging JD’s current level-1 entry point on Weixin, the most popular social platform in China. This will enable the platform and its merchants to reach a broader customer base with innovative and interactive features.

The platform will help to attract more merchants and expand the selection of products available through JD’s Weixin shopping entry point, particularly in long-tail product categories, like apparel, where Meili Inc. excels. Merchants selling through the new platform will gain access to JD’s unrivaled logistics network and customer service offer, helping them both reach customers, and leave them satisfied at the end of the shopping experience.

“This new JV combines JD’s unequalled expertise in customer service, logistics, retail infrastructure, and its reputation for quality and authenticity with Meili’s clear social commerce leadership and its ability to reach female shoppers, particularly in lower-tier cities. The new platform will change the way that sellers are able to target and serve a wide range of underserviced consumers in China,” said Chen Qi, CEO and founder of Meili Inc., who has been named chairman of the new joint venture.

Established in mid-2016, Meili Inc. primarily targets female customers, and includes several different platforms under it, including MOGU Street and Meilishuo, among other popular shopping sites. As the leader in Chinese social commerce, Meili Inc. is experienced in integrating community, content and e-commerce and has already leveraged this strength to achieve significant success within the Weixin ecosystem in the last year.

The new platform is scheduled to launch before next month’s Chinese New Year. It is expected to revolutionize e-commerce by lowering customer-acquisition and service cost for merchants, especially small and medium-sized businesses, which will be able to leverage the huge volume of traffic coming through JD’s Weixin shopping entry point.

Derek Lam Makes China Debut on JD.com’s Toplife Luxury Platform

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Derek Lam is launching in China for the first time with a flagship store on Toplife, an independent online luxury platform operated by JD.com.

Derek Lam’s signature is American minimalism in its most refined form. His women’s fashion collections are known for their modern sensibility, calculated simplicity and thoughtful detailing. Celebrity clients include accomplished professional women such as Cate Blanchett, Michelle Obama, Kendall Jenner and Margot Robbie. Derek Lam’s Toplife store will feature the brand’s latest collections, including women’s clothing and shoes.

“Toplife is a truly full-service, end-to-end solution, unlike any other, that shows JD understands the needs of luxury fashion brands.”

—Jan-Hendrik Schlottmann, Chief Executive Officer of Derek Lam International

Toplife launched in October as a curated, full-price platform on which luxury brands can have complete control over customer experience. It is designed to wow shoppers from the time they’re browsing, through the purchase and until the product is delivered, with white gloves, to their doors.

“China has long been an important market for luxury, and is now also an important hub for design,” said Jan-Hendrik Schlottmann, Chief Executive Officer of Derek Lam International. “As China’s trusted source for authentic, branded and imported goods, JD.com is the perfect partner for our entry into the market. And Toplife is a truly full-service, end-to-end solution, unlike any other, that shows JD understands the needs of luxury fashion brands.”

“We are delighted to add Derek Lam to the offering on Toplife. Chinese consumers are increasingly discerning when it comes to quality, and want more variety to define their personal styles,” said Winston Cheng, President of International at JD.com. “That’s why it was important to create a new type of online luxury model. Brands shouldn’t have to make sacrifices in customer experience to embrace e-commerce.”

JD.com is China’s largest retailer, with more than 266 million customers. Fashion is one of the fastest growing categories on JD.

Derek Lam and other brands on Toplife get access to JD’s advanced marketing technology, including highly-targeted social media advertising through JD’s partnership with Tencent, which operates WeChat, China’s most popular social network.

In addition, brands on Toplife work closely with a team of luxury fashion specialists at JD.com, and have the option to store their inventory in a temperature and humidity-controlled luxury warehouse. Their products are delivered via JD Luxury Express, a delivery service for high-value goods staffed by a specially-trained team in electric vehicles and white gloves.

Other brands currently on Toplife include Emporio Armani, Tod’s and LVMH’s Rimowa.

JD Partners with Leading Chinese Real Estate Developer to Open Unmanned Convenience Stores Across China

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Smart tech is poised to make a trip to the local convenience store even easier. For shop operators, integrating technology into the procurement process will facilitate inventory management and daily store operations. JD.com, China’s largest retailer and a pioneer in smart store solutions, has linked up with leading Chinese real estate developer China Overseas Land & Investment LTD. (COLI) with the goal of opening hundreds of unmanned convenience stores leveraging COLI’s real estate resources across China.

JD began testing its unmanned convenience store solution at its headquarters in Beijing in October. The JD Unmanned Convenience Store, developed fully in-house by JD’s logistics innovation lab JDX is powered by JD’s own technology and algorithms. It offers a complete solution integrating various smart technologies such as RFID, facial recognition and image recognition. The JD HQ store’s first few months in operation have already seen average daily customer flow around 1,000 and repeat purchasing rate nearing 70%.

The space for the new stores across China will be provided by COLI, while JD will fully integrate its self-developed technology and provide support in operating the stores leveraging its expertise in supply chain and logistics.

Thanks to JD’s leadership in advanced technology and continued commitment to opening its technology to empower others, JD is well-positioned to support COLI to develop a smart city solution in China.  The smart city solution will integrate JD’s unmanned convenience store solution and an “automated pharmacy” – a vending machine that can hold up to 1,500 boxes of medicine and features smart inventory replenishment leveraging JD’s smart supply chain.

In addition, it is also expected to incorporate JD’s smart logistics solutions such as autonomous delivery vehicles for last-mile delivery. The vehicles have pre-programmed routes and secure lockers, enabling customers to select a preferred delivery time and location to easily retrieve their purchases.

Walmart, JD.com, IBM and Tsinghua University Launch a Blockchain Food Safety Alliance in China

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Collaboration to apply blockchain technology for food traceability to support offline and online consumers

Walmart, JD.com, IBM, and Tsinghua University National Engineering Laboratory for E-Commerce Technologies announced today they will work together in a Blockchain Food Safety Alliance that will kick off with a collaboration designed to enhance food tracking, traceability and safety in China, to achieve greater transparency across the food supply chain.

The four companies will work together to create a standards-based method of collecting data about the origin, safety and authenticity of food, using blockchain technology to provide real-time traceability throughout the supply chain. This will encourage accountability and give suppliers, regulators and consumers greater insight and transparency into how food is handled, from the farm to consumers. This has traditionally been challenging due to complex and fragmented data sharing systems that are often paper-based and can be error-prone.

Walmart, JD, IBM and Tsinghua University will work with food supply chain providers and regulators to develop the standards, solutions and partnerships to enable a broad-based food safety ecosystem in China. IBM will provide its IBM Blockchain Platform and expertise, while Tsinghua University will act as a technical advisor sharing its expertise in the key technologies and the China food safety ecosystem. IBM and Tsinghua will collaborate with Walmart and JD to develop, optimize and roll out the technology to suppliers and retailers that join the alliance.

As a world leader in global food safety, Walmart works closely with suppliers, regulators, industry partners and the research community around the world. In China, it invests heavily in food safety research through the Walmart Food Safety and Collaboration Center and has promoted food safety, both through its own supplier network, as well as working with JD, which has rich omni-channel food supply chain management experience. The two have been able to leverage JD’s expertise in the application of artificial intelligence (AI), blockchain, big data and other new technologies to protect consumers.

Following IBM and Walmart’s announcement in August of a new consortium to enhance food safety, this collaboration brings IBM’s blockchain food safety expertise to China. IBM, Walmart and Tsinghua University have piloted the use of blockchain to trace food items, including pork in China and mangoes in the U.S., as they move through the supply chain to store shelves. Recent testing by Walmart showed that applying blockchain reduced the time it took to trace a package of mangoes from the farm to the store from days or weeks to two seconds.

“As a global advocate for enhanced food safety, Walmart looks forward to deepening our work with IBM, Tsinghua University, JD and others throughout the food supply chain. Through collaboration, standardization, and adoption of new and innovative technologies, we can effectively improve traceability and transparency and help ensure the global food system remains safe for all,” said Frank Yiannas, vice president, food safety and health at Walmart.

“Partnering with IBM, Tsinghua University and Walmart, all global leaders in traceability, gives our customers and partner brands unparalleled accountability,” said Yongli Yu, President of JD-Y, JD.com’s supply chain research unit. “Throughout the world, and particularly in China, consumers increasingly want to know how their food is sourced, and JD is dedicated to using technology to promote complete transparency.”

“Blockchain holds incredible promise in delivering the transparency that is needed to help promote food safety across the whole supply chain. This is a fundamental reason why IBM believes so strongly in the impact this technology will have on business models,” said Bridget van Kralingen, senior vice president, IBM Industry Platforms. “By expanding our food safety work with Walmart and Tsinghua University in China and adding new collaborators like JD.com, the technology brings traceability and transparency to a broader network of food supply chain participants.”

“Tsinghua University is committed to in-depth research into food safety –one of the most important areas for improving quality of life in China and also around the world. We have already been working with IBM and Walmart to create a new model for food traceability, using blockchain to support supply chain transparency and auditability, and we see this new cooperation as an important next step in this endeavour,” said Professor Yueting Chai from the National Engineering Laboratory for E-Commerce Technologies, Tsinghua University.

The collaboration is designed to help ensure brand owners’ data privacy while helping them integrate their online and offline traceability for food safety and quality management channels. Companies that join the alliance will be able to share information using blockchain technology, and plans include them being able to choose the standards-based traceability solution that best suits their needs and legacy systems. This will in turn bring greater transparency to the supply chain and introduce new technologies to the retail sector designed to create a safer food environment and enhance the consumer experience.

The insights gained from the work in China will shed light on how blockchain technology can help improve processes such as recalls and verifications and enhance consumer confidence due to greater transparency in China and around the world.

JD.com Partners with Plug and Play to Nurture Startups in Silicon Valley

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China’s largest retailer, JD.com, today announced a partnership with the world’s largest startup accelerator and innovation center, Plug and Play, to foster the development of new technology to transform retail and logistics, among other areas. The partnership will cover a range of technologies, including, but not limited to AI, cloud, big data and smart supply chain. JD.com will be Plug and Play’s first Chinese e-commerce partner.

JD.com will be Plug and Play’s first Chinese e-commerce partner.

“We are thrilled that we are partnering with Plug and Play, the accelerator responsible for enabling some of today’s leading startups, as we look to deepen our support on innovation in Silicon Valley,” said Dr. Jianwen Liao, Chief Strategy Officer at JD.com. “JD believes that innovation should not only benefit new businesses, but also support traditional industries competing in today’s environment, and we look forward to identifying and partnering with like-minded startups in the US. Partnering with Plug and Play, we hope to unlock the potential of the next generation of companies, and help them succeed both in the US and China.”

As part of the partnership, JD and Plug and Play will jointly launch an accelerator program covering a range of areas and industries. Plug and Play will be responsible for project selection and mentorship while JD will offer its expertise and vast consumer insights, among other resources.

“JD has done an excellent job of building China’s largest online retail platform,” says Saeed Amidi, Founder & CEO of Plug and Play. “This partnership will create new opportunities for them to utilize startup technology in their business and improve customer experience. We are proud to have them join our platform.”

Projects resulting from the cooperation between JD and Plug and Play will be used directly by JD.com to further enhance its own systems, and teams supported through the partnership will be able to sell their products via JD.com’s e-commerce platform.