JD.com and China Eastern Airlines Announce Strategic Partnership

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Alliance to drive synergies through cooperation across key areas including logistics, marketing and cloud services

China Eastern Airlines and JD.com announced a groundbreaking partnership bringing together the top players in China’s e-commerce and travel industries. Featuring a multi-faceted cooperation across areas including logistics, branding, cross-membership promotions and cloud services, the agreement will provide customers of both companies with a wider range of convenient services at highly competitive prices.

“We’re very proud to announce this alliance with China Eastern Airlines, one of China’s most respected airlines,” said Zhenhui Wang, CEO of JD Logistics. “JD.com will benefit from preferential access to China Eastern’s extensive logistics network, allowing us to bring more top products from around the world to our users, faster and at lower cost. We also look forward to helping to enhance China Eastern’s business through cooperation in areas such as cross-marketing, e-commerce and cloud services.”

“As China’s trusted e-commerce leader, JD.com has the right combination of advanced technologies, data resources and online marketing expertise to help take China Eastern’s customer outreach to the next level,” said Zhao Xu, chief accountant of China Eastern Airlines. “Working together, I am confident that we will drive one-of-a-kind synergies across logistics, marketing, branding, and technology that will enhance the lives of our customers throughout China.”

A powerful logistics combination

Both JD and China Eastern Airlines are leaders in the world of logistics – with JD delivering millions of packages a day throughout China, and China Eastern Airlines with an airline network covering 177 countries and districts, and 1,062 destinations. Working together, the companies will combine their strengths to create a one-of-a-kind, global logistics platform on the ground and in the air.

JD Logistics, JD’s new business group, will provide last-mile delivery service for China Eastern membership cards, itineraries and invoices, and China Eastern will provide JD with the most competitive pricing options across its logistics services, including priority cargo pick up, transportation and delivery. Both companies will work together to improve delivery efficiencies by sharing physical resources, integrating company networks, streamlining security channels and establishing a shared air cargo operations network for both domestic and international routes.

The partnership currently covers 10 of China Eastern’s outbound logistics routes, and is set to increase to 20 by the end of 2017.

Engaging consumers through powerful cross-branding 

Already two of China’s most well-known and trusted brands, China Eastern Airlines and JD will embark on joint branding campaigns to bring their message to even more consumers.

China Eastern Airlines recently opened official flagship store on the JD platform is already creating greater visibility for the airline’s wide range of product offerings, including domestic and international tickets. As a core partner for China Eastern Airlines’ air ticket business, JD.com customers will have access to optimized China Eastern air tickets, including domestic and international routes, as well as exciting seasonal promotions and specially tailored products for groups such as students and senior citizens.

The partnership will also extend to cloud services and cross-membership promotions. China Eastern and JD will combine their big data resources to provide customers with improved services and new incentives to promote cross-platform loyalty, leveraging JD’s precision marketing capabilities to create an integrated platform covering tickets and other related products.

JD.com Sees Record Volumes During June 18 Anniversary Sale

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JD’s 2017 “6.18” anniversary sales event set a new record, recording $17.6B in transaction volume* for the first 18 days of the sale (June 1-18). Transaction volume increased well over 50% compared to the first 18 days of last year’s 6.18 event.

JD’s June 18 anniversary sale has become a massive mid-year consumer event in China. As its recognition in the market has grown, it has become a major event that drives new users to our site and helps participating brands build name recognition and loyalty. In particular, this year we saw categories that are traditionally bought by women gain strong traction, including fashion, luxury products and maternal products. The number of female first-time customers on JD during this year’s event was nearly double the number of new female customers during the same period last year.

We spread our major sales over a number of days in order to relieve pressure points to make it the best possible customer experience. By offering discounts for different categories over a period of days, with all categories on sale on June 18, consumers can make their purchases in a more relaxed manner. Meanwhile, by releasing some of the pent up demand in the days ahead of June 18, JD can help ensure that its famed same- and next-day nationwide delivery network can continue to meet consumer expectations, rather than causing the massive delays that have plagued major sales elsewhere in the industry.

As JD’s anniversary sale has turned into a national phenomenon, we have been surprised and flattered to see so many of our industry peers celebrating our 13th anniversary this year through their own sales activities.

For key data, please refer to the graphics below:

* 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)

JD.com Teams Up with Mobike to Turn Bikes Rides Into Prizes

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JD.com, China’s largest retailer, has partnered with Mobike, the world’s largest smart bike-sharing platform, to launch a special fleet of Mobikes in China for JD’s June 18th anniversary event.

From now through June 18, Mobike’s millions of riders across more than 100 cities in China using the app can participate in a special cross-platform promotion. Lucky riders will see “Treasure Bikes” marked “JD 618” that can be unlocked for a chance to win prizes.

Treasure Bikes” marked “JD 618”

Users will receive one of five stickers for each ride on a Treasure Bike, and those who collect all five will be entered to win prizes of RMB618, for a total of RMB2.2 billion in possible rewards.

During this period, Mobike users will also receive special promotions when shopping on JD, and JD users who register for a Mobike account through the JD mobile app will receive a seven-day-no-deposit riding voucher.

“Chinese consumers love the convenience of bike-sharing,” said Shunjing Zheng, Chief Marketing Officer of Mobike. “The phenomenon has completely changed urban transportation in China’s biggest cities. It’s only through a combination of JD and Mobike’s collective technologies—e-commerce, big data and artificial intelligence—that we can turn this social phenomenon into a unique new experience.”

 “Chinese consumers love the convenience of bike-sharing,

“Technology is changing the lives of Chinese consumers, from shopping to transportation,” said Jipeng Men, a vice president and head of marketing at JD.com. “Consumers love JD, and they also love Mobike, so we are excited to create this innovative way for them to enjoy both platforms.”

JD.com’s June 18 anniversary event has become a nationwide symbol of China’s mid-year shopping season. With special promotions every day from June 1-20, JD helps brands realize record sales and gain more attention in China’s massive consumer market.

How E-Commerce Companies are Shaping the Future of Logistics

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The following is a post by Zhenhui Wang, CEO of JD Logistics, a business group within China’s largest retailer JD.com Inc.

Knowing what China’s logistics infrastructure was like 10 years ago, it can be hard to believe that same-day delivery is now the norm, and that an e-commerce company—JD.com—would have the largest nationwide logistics network.

But it’s true. JD.com, China’s largest retailer, online or offline, has more than 236 million active customers and is able to deliver up to 92% of orders same-day or next-day. We use our own fleet for everything from long-haul to last mile. We own our fulfillment centers and delivery stations.

We believe there is more to be done, however, because Chinese consumers are evolving. Whereas they used to care more about price, they now care about quality. And though they used to prize speedy delivery, they want more personalization and better service. That’s why we’re launching two new services: scheduled delivery and white glove delivery.

Scheduled delivery isn’t entirely new to JD.com: since September 2016, we’ve offered it in select cities with two-hour delivery windows. It’s been popular among buyers of maternal and baby products, computer and office products, and for fresh food. Our own customer surveys have shown 98% of customers have a need for scheduled delivery services, and 30% are willing to pay extra fees for it.

With such overwhelming popularity, we got to work on improving our capabilities and I’m now pleased to say that we’re already able to shorten that window to one hour in most areas. We’re also testing 30-minute delivery window in Wuhan, Zhengzhou and Changsha.

As with all JD order fulfillment, execution of scheduled delivery begins further up the supply chain. Our smart logistics capabilities will first use predicitive analytics to ensure inventory is correctly placed in anticipation of orders, making it more possible to have orders ready for delivery within tight, scheduled windows. It also helps calculate the best routes for delivery.

Chinese consumers are evolving. Whereas they used to care more about price, they now care about quality. And though they used to prize speedy delivery, they want more personalization and better service.

Customers who choose JD Scheduled Delivery Service can choose time periods from 9 AM to 10PM in one week, paying less than $1 for the small and medium sized parcels. The exact fee will vary based on time of day; customers will pay less during off-peak hours, helping us further balance delivery volume. Oversize parcels will be charged up to $6.

Scheduled delivery, as many of my colleagues in the global logistics industry know, is not simple to achieve, especially when you’re working on a scale as massive as we have at JD.com, across a country as large as China. As an added layer of assurance deliveries will be on time, we’ll be tracking our scheduled-delivery team in real-time and send them alerts along the way so they can be sure to get to meet their deadlines.

For white glove delivery, we have begun delivering a select number of high-end products with a dedicated delivery team. They drive electric cars instead of tricycles, and are standing by to immediately deliver big ticket items to our luxury customers. They wear special uniforms with actual white gloves. We call this service JD Luxury Express.

JD.com is only able to do this because we have proven that investments in self-operated logistics capabilities are an asset, not a burden, in today’s retail environment. Because we are developing our own technology and mobilizing our own assets, we’re able to execute on concepts like scheduled and white glove delivery faster than any e-commerce company in the world. That’s also the reason why JD Logistics business group doesn’t see itself as a cost center within JD.com, but rather an engine that drives growth for JD.com’s retail and technology operations.

JD.com Announces Environmental Protection Initiatives

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The meteoric rise of consumption in China has helped drive the country’s economic miracle – and improve the lives of hundreds of millions of people – but it has also presented serious environmental challenges. As part of its dedication to tackling these challenges for the benefit of future generations, this week JD.com announced a donation of RMB 10 million to support a series of environmental initiatives in cooperation with World Wide Fund for Nature (WWF) China.

“The protection of our natural environmental is one of the most serious challenges facing humanity,” said Shi Wang, president of WWF China Board and chairman of board of directors of China Vanke Co., Ltd. “Maintaining current levels of consumption would require the natural resources of 1.6 earths – so a greater commitment to conservation and sustainability are crucial to preserving our planet. JD.com has been active in embracing environmental solutions, and these initiatives in cooperation with WWF will encourage more companies and consumers to join the cause of environmental protection.”

“Giving back to society has always been core to JD.com’s mission, and over the years we have been committed to providing support to disaster relief, education, and environment protection,” said Richard Liu, Chairman and CEO of JD.com,  “I am very excited to join forces with WWF, one of the biggest environment conservation organizations in the world, which will take our environmental protection efforts to the next level and further raise awareness of environmental issues to the general public in China.”

As a first step in its cooperation with WWF, JD.com will become the first Chinese e-commerce company to install large scale distributed photovoltaic (PV) power generation systems on warehouse rooftops. Covering a total of 1.5 million square meters, the project is expected to reduce the company’s annual carbon dioxide emissions by 150,000 tons – equivalent to planting 20 million trees or saving 60,000 tons of coal.

Reducing waste through smart packaging 

Another environmental problem that has emerged alongside China’s consumption boom is the massive amount of packaging material that is discarded each year – a trend that continues to accelerate. A look at the numbers gives a clear picture of the challenge: in 2016, China led the world with over 31 billion packages delivered –– a more than 20-fold increase over the past 10 years.

To help alleviate this problem, JD along with nine major brands, including Lego, Nestle, Unilever, P&G, and Wyeth, recently announced the launch of the Green Stream Initiative to promote the use of sustainable, “greener” packaging materials throughout the supply chain.

Headed by JD Logistics, the Green Stream Initiative is the company’s largest environmental project and a major focus for the next three years. By 2020, JD expects to reduce the number of boxes used throughout the supply chain by 10 billion – the total number of all boxes used in China in all of 2015. By working with the brands, the company expects that 80% of packaging materials will be recyclable, with over 50% of plastic packages replaced by biodegradable material and 100% of logistics packaging materials to be composed of recyclable or reusable materials.

JD is continually looking to leverage technology to create efficient e-commerce solutions that have a positive impact on the environment. In June, the company began operating its first fleet of clean energy delivery trucks in Beijing, Shanghai and Chengdu – becoming the first domestic logistics player to employ large-scale “green” delivery vehicles. The over 100 new energy delivery trucks are expected to reduce JD.com’s annual carbon dioxide emissions by over 584 tons! And since deploying its electronic invoice system in 2013, JD.com has issued more than 500 million electronic invoices saving over 216 tons of paper.

JD has long been dedicated to becoming the most trustworthy smart supply chain partner for its clients. Looking ahead, the company is committed to increasing its cooperation with brand owners, logistics companies and packaging companies to encourage recyclable packaging and the use of bio-degradable materials.

JD.com Launches White-Glove Delivery Service for High-End and Specialty Products

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E-commerce giant JD.com, China’s largest retailer, is launching a new luxury white glove service that will change the experience of shopping for high-end products online.

The service, JD Luxury Express, offers personalized delivery by specially-trained JD employees. Clad in distinct uniforms, complete with white gloves, they will deliver qualifying purchases to customers’ homes in electric vehicles rather than JD’s usual tricycles and scooters.

As consumers are increasingly buying new categories of products online, luxury brands have been concerned that the specialized retail experiences and high levels of service their clients expect are difficult to replicate through e-commerce. With its own self-operated logistics network, for which JD controls everything from the storage of products to last-mile delivery, JD is in the unique position of being able to control handling of luxury products from start to finish.

JD Luxury Express will give peace of mind to brands that their products and customers are getting the best possible buying experience, and JD customers who are already accustomed to JD’s authenticity guarantees, will be able to enjoy a wider range of products without losing the personalized service they’ve come to expect from high-end purchases.

“We are pushing the envelope because we understand that when it comes to the extension of luxury to online, existing delivery services don’t cut it,” said Xia Ding, President of JD Fashion. “This is just one step JD is taking to strengthen our partnerships with the world’s top luxury brands. We will continue to create new, exciting ways for customers to make luxury purchases, bridging the gap that still persists between online and offline luxury experiences.”

“Customers who buy premium products online deserve a premium service,” said Zhenhui Wang, CEO of JD Logistics. “JD is raising the bar for what consumers and brands will come to expect from a luxury e-commerce experience.”

The new service is launching initially in Beijing, Shanghai and Guangzhou, and is expected to expand significantly over the next few years, making JD the first e-commerce company to roll out this type of luxury service on a large scale. White glove delivery will be automatically included in the purchase of expensive, smaller items such as luxury watches and jewelry, which usually will be delivered the same or next day in those cities. The company will explore expanding the range of products, with luxury fashion likely to be included later this year.

As Chinese consumers become more discerning and conscious of quality, customers are increasingly turning to JD for high-quality, authentic products from fashion and apparel to electronics and fresh produce. As of the first quarter, JD had more than 236 million active customers. With JD Luxury Express, JD will extend its reputation as the single best source for anything and everything shoppers in China need and want.

JD.com Leads Way For AR/VR In E-Commerce

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JD’s lead scientist for augmented reality and virtual reality (AR/VR) technologies at the company’s fast-growing Silicon Valley R&D Center said June 1 that the company’s drive to offer the best possible shopping experience for its more than 236 million active customers will include greater use of those advanced technologies.

The scientist, JD’s Hui Zhou, told attendees at Augmented World Expo 2017 (AWE), the industry’s premier gathering in Santa Clara, California, that his team is working to build an e-commerce platform that will offer an improved, immersive shopping experience for customers and will offer partners a new range of innovative marketing tools.  He also described how JD is leading in China by establishing the first e-commerce AR/VR industry alliance to develop common tools and standards. The alliance already includes more than 30 companies.

The scientist, JD's Hui Zhou, told attendees at Augmented World Expo 2017 (AWE)

He also said that JD’s VR Shopping Galaxy app and the company’s AR-enabled app called JD Dream already allow shoppers to step into a complete virtual reality shopping experience to browse and buy a limited range of products on JD.com, or to preview how a piece of furniture, for example, would look in their own homes.

Hui said he envisions a time when every one of JD’s listed products, which today include more than 200 million SKUs, could become part of a virtual- or augmented-reality gallery that would allow customers to have a more satisfying and interesting shopping experience.  The company is actively pursuing new and advanced 3D-modeling techniques that would help accomplish this monumental task and make the vision a 3D reality.

Applying advanced AR and VR, Hui said, can transform the shopping experience from today’s standard 2D “WYSIWYG” (what you see is what you get) transaction to something closer to a “WYEIWYG” (what you EXPERIENCE is what you get) — a fully immersive, 3D experience.

For more about the AR/VR industry alliance visit vr.jd.com.

In China, It’s Time to Give Back

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To understand the culture of giving in China, one must understand its history.

China has come a long way in the last several decades to become the booming economy it is today, with megacities filled with skyscrapers. It wasn’t so long ago that I was growing up in the countryside of Jiangsu province where, like most people in rural China, my family had enough to get by and not much more.

Even by the 1990s, as Chinese cities were rapidly industrializing, people in rural areas still had much less. So when I managed to get into Renmin University in Beijing—something very rare for someone of my background—my entire village pooled its resources to help. They donated a total of 76 eggs and 500 yuan to send me off for the opportunity that changed my life. I knew then that given the chance, I would help other students do the same.

That chance has come. I founded JD.com, an e-commerce company that is now the largest retailer in China. With 70% of JD employees being from rural areas, fostering development for people in those regions is important to me. Since 2010, we’ve given at least hundreds of scholarships and grants to students from my alma mater, as well as to students in need from my hometown, Suqian. JD also partners with well-known colleges to provide bachelor’s and master’s degrees to employees who want to further their education. Over 2,000 employees have participated so far.

This week I have decided to donate 300 million yuan to Renmin University for expansion, scholarships, research and other initiatives, including primary and secondary educational outreach. Children who get opportunities at a young age are better prepared to achieve at the highest levels.

Of course, as the CEO of a company with nearly 10,000 engineers, I know that having a steady stream of highly trained and well-educated students will be good for the future of my own company. But that isn’t why I’m doing this—my plan, from the time I started JD, was to build an ethical business, selling authentic products, that would provide the best benefits possible to employees and the best experience for customers. Once successful, I wanted to give back to society. And I chose education as my cause because I firmly believe that it will benefit the entire country.

China’s philanthropic culture is still developing. I give back, and I urge others to do the same, because I remember my own struggle to pay for university and my neighbors who gave everything they could to make it possible. Most Chinese entrepreneurs my age or older grew up in a more difficult time and appreciate everything we have now. We know that we succeeded not only because of our own hard work, but because were helped along the way. Looking now at the smart and motivated students in China, I know what a huge difference they can make on society if given access to education. They will need opportunities like the ones my generation of successful entrepreneurs had. That is why we need to give back.