JD.com Advances to 46th on 2022 Fortune Global 500

Posted on by Vivian Yang

by Vivian Yang

JD.com has ranked 46th on the 2022 FORTUNE Global 500 list released on August 3rd, moving up 13 places from last year and making its debut among the Top 50 biggest listed companies in the world.

JD.com reported net revenue of RMB951.6 billion (about US$149.3 billion) in 2021, an increase of 27.6% from 2020. This strengthened its position on the revenues-based annual ranking and maintained its upward positional trajectory since it was first included on the list in 2016 at position 366.

In the past six years, JD.com has transformed from an e-commerce business into a supply chain-based technology and service provider. It also emerged resiliently from the COVID disruptions with a strong sense of responsibility to create not only business and industrial values, but also social values with its infrastructure and digital know-how, contributing to society’s higher efficiency in production, circulation, consumption, services and more. In doing so, JD.com has been devoted to the knitting and fusion of three networks with partners across a variety of industries that are conducive to the development of the real economy.


 

First is the Network of Products. Today, JD.com is running a pool of over 10 million self-operated product SKUs while also managing to cut its inventory turnover days close to 30. In order to create a premier shopping experience for JD’s over 580 million active users, enabling them to buy whatever they want and whenever and wherever they want it, JD has opened its products’ supply chains to millions of brick-and-mortar stores in over 300 cities across China and partnered with more than 150,000 offline stores for on-demand delivery services—in addition to JD’s own online and offline stores. Take Walmart for example: In the past two years, all of Walmart’s supermarkets in China have set up their online shopping portals on JD.com and adopted crowdsourced delivery services powered by Dada Group, a JD-backed on-demand delivery platform. These efforts assisted the established retailer in achieving double-digit YoY growth in terms of both overall fulfillment efficiency and the average work efficiency of goods pickers.

 

JD’s omnichannel retail in collaboration with Dada’s crowdsourced on-demand delivery service 

Second is the Network of Warehouses that covers almost the entire Chinese mainland. To date, JD Logistics is operating more than 1,400 warehouses with a combined floor area of over 25 million square meters, about 50,000 transportation lines, and six highly synchronized logistics networks including cold-chain, cross-border, last-mile delivery and more. In China, consumers can expect the same or next-day delivery service from JD.com regardless of where they live – in large cities or remote areas including 84 percent of towns and villages so far. In the meantime, JD is gearing up on building its international logistics network. Aiming to “sell and source goods in the whole world”, it currently runs close to 80 bonded warehouses and overseas warehouses, and its network spans nearly 230 countries and regions.

JD Logsitics’ highly automated warehouse

Third is the Network of Clouds, which has laid the technological foundation for the other two networks. It is estimated that over the last five years, JD has accumulatively invested nearly RMB 80 billion yuan on basic science and technology research and development. Under the brand of JD Cloud, numerous R&D achievements have been applied to real-world industries, providing digitally intelligent solutions in a variety of fields, including retail, logistics, supply chain, city planning and more. JD Cloud not only supports JD.com’s daily online operations including its retail, logistics healthcare arms and more, it has also successfully handled massive traffic surges in major events like the JD618 and Singles Day shopping festivals, as well as 69.1 billion interactions in JD’s App during this year’s Spring Festival Gala Show on national TV. Externally, it is providing services for more than 80 cities, 888 financial institutions, 1,821 large-scale enterprises and more than 1.95 million SMEs.

JD Cloud’s data center

 

(vivian.yang@jd.com)

Roger Vivier Joins Forces with JD for Online Store

Posted on by Doris Liu

by Doris Liu

French luxury designer brand Roger Vivier, renowned for its house signature of the emblematic buckle, revealed the opening of its flagship store on JD.com recently.

As “Qi Xi”, Chinese Valentine’s Day which falls on August 4 this year, is approaching, Roger Vivier presented a special edition of a jewel gift box, designed by Gherardo Felloni, Creative Director of the Maison, consisting of a curated selection of accessories including a pair of earrings and two hair clips. Another special edition to celebrate Qi Xi is a pair of Viv’ Go rhinestone buckle sneakers in technical fabric, with romantic color pairings of red, pink and white.Customers on JD.com can also find Love, Gommettine, Slidy Viv, Bikiviv and other shoes from Roger Vivier for various life scenarios including the daily commute, sports and leisure, weddings and dinner outings, etc.Roger Vivier’s timeless design with exquisite silhouettes has perfectly interpreted Parisian elegance with its footwear and bags.

Prior to Roger Vivier, Italian luxury group Tod’s has brought its namesake label Tod’s and the luxury sneaker brand Hogan on JD.com.

Due to JD’s robust supply chain capabilities, authenticity guarantee and full-process services, the number of luxury brands on JD Luxury, the dedicated channel for luxury products, has exceeded 300, aiming to bring more refreshing experiences and premium life quality to its customers.

 

(liujun215@jd.com)

JD.com Among Top 50 Kantar BrandZ Chinese Global Brand Builders 2022

Posted on by Yiming Yan

by Yiming Yan

JD.com was listed in the Top 50 Kantar BrandZ Chinese Global Brand Builders 2022 ranking by Google and Kantar on July 27. For the fifth year in a row, JD.com made the list and ranked No.44 this year, coming in as runner-up in the e-commerce sector.

In line with its mission of becoming “the most trusted enterprise in the world”, JD.com relies on offshore infrastructure, effective global supply chain solutions and technical innovations to empower its international business and global partners, setting up a new benchmark for Chinese products and services.

JD.com operates retail businesses in Southeast Asia and Europe, serving local consumer markets and cross-border trade by utilizing global supply chain capabilities and technical strength.

JD.com also actively assists more Chinese brands in entering the global market in addition to working to realize its own goal of brand globalization; and utilizes the integrated supply chain’s capacity to create a trusting relationship between Chinese brand merchants and international customers. JD.com has collaborated strategically with brands like Xiaomi, TCL, Haier, Hisense, and many other Chinese big names in exploring international markets.

The Kantar BrandZ China Global Brand list, which began in 2017, uses brand power scores as a measure of overseas consumers’ perception of Chinese brands and their ability to drive market share growth. In order to determine the final Top 50 brands, the study polled more than 1.17 million consumers in 11 locations around the world and compared 383 candidate brands across 18 categories with brands in the local markets.

 

(yanyiming1@jd.com)

JD Logistics Announces Supply Chain Decarbonization Initiative

Posted on by Doris Liu

by Doris Liu

JD.com’s logistics arm JD Logistics (JDL) and the Green Supply Chain Professional Committee of the All-China Environment Federation jointly released action guidelines on July 27 for achieving a more sustainable and low-carbon supply chain.

The Supply Chain Decarbonization Initiative, proposed at the second Sustainable Consumption Forum, which is part of the CICPE (China International Consumption Products Expo) held in Haikou, capital of Hainan province, is based on the belief that setting up a unified standard for calculating carbon emissions is the foundation of decarbonization to ensure accurate, fair and comparable results among companies. By focusing on technology and application, companies can achieve life-cycle carbon reduction goals through designing more sustainable products and services. Also, the initiative encourages the companies involved in the industry chain to share a common goal during collaboration to slow and eventually stop global warming. Previously, JDT has already committed to reducing carbon emissions by 50 percent by 2030 (starting from 2019).

“The ‘Supply Chain Decarbonization Initiative’ not only enables companies with relatively small carbon footprints to have the same significant impact globally, but also eases the cost investment for companies and provides a way for consumers to reduce carbon emissions by dispersing the decarbonization cost along the value chain,” said Wenming Zhe, head of the smart logistics park innovation department at JD Logistics.

In addition, JDL also announced that it will officially join the Global Sustainable Consumption Initiative with the commitment of always fulfilling “responsible supply chain” and promoting end-to-end green and integrated supply chain together with upstream and downstream partners as well as consumers.

As a leading supply chain solution and logistics service provider in China, JDL helps its partners cope with external uncertainties and promote high-quality development based on an agile, stable and sustainable supply chain, noted Yanping Su, Deputy General Manager of JD Logistics’ Southern China Branch, during the forum held on the sideline of the second China International Consumer Products Expo (CICPE).

The Global Sustainable Consumption Initiative was proposed a year ago at the first CICPE by China Sustainability Tribune together with companies that actively push forward green consumption. It advocates companies to provide sustainable products and services, conveying the concept of sustainability to customers and foster a sustainable consumption culture, etc. As of now, 12 renowned domestic and overseas companies and brands have taken part in the proposal.

 

(liujun215@jd.com)

French Brand Christian Louboutin Beauty Joins JD.com

Posted on by Xiaoqian Han

by Xiaoqian Han

The French luxury makeup brand Christian Louboutin Beauty opened its flagship store on JD.com on July 29.

Christian Louboutin Beauty is a luxury makeup brand under the PUIG Group. To some extent, the attributes of Christian Louboutin’s beauty products are reflected in the aspects of its clothing and footwear, which are distinguished by fun and creativity. With the approaching of Chinese Valentine’s Day “Qi Xi”, which occurs on August 4 this year, JD.com is introducing consumers to more beauty brands.

Christian Louboutin Beauty’s flagship store brings consumers a full line of goods such as lip, fragrance, eye shadow and pencils, cosmetic powder, mascara, etc. Nearly 100 classic products, new products, and Chinese Valentine’s Day limited gift boxes are available for consumers.

During the Chinese Valentine’s Day festival, the flagship store of Christian Louboutin will offer lipstick gift boxes, fragrance gift boxes, and make-up gift boxes to consumers to cater to consumers’ various needs. Additionally, JD.com has also introduced a specialized letter-carved service for beauty cosmetics, which can provide nearly 20 items at the Christian Louboutin Beauty flagship store.

According to JD.com’s data, the number of luxury beauty brands participating in this promotion on Chinese Valentine’s Day in 2022 has doubled from the previous year. For a long time, JD’s strong logistics and policy of zero-tolerance toward counterfeit goods have benefited its 580 million customers.

To date, JD Luxury is home to more than 300 luxury brands, covering such categories as bags, apparel, footwear, jewelry, and watches, among others. The number is expected to keep growing thanks to JD’s efficient ecosystem that enables both brands and customers to enjoy a premiere experience in online shopping.

 

(hanxiaoqian3@jd.com)

JD Pet Announced “Five S” Care Plan, Covering Over 120,000 Products

Posted on by Vivian Yang

by Vivian Yang

JD Pet announced its “Five S Pet Caring Plan” on July 23rd at “The One Pet Show”  in Hangzhou, focusing on five key service upgrades that make it a breeze for pet owners to find better pet food, products and medical support for their furry friends.

The five “S” stands for the following aspects respectively, most of which are trailblazing in the industry.

Safe food recommendation: JD Pet introduced a 3-in-1 quality label for pet staple food in combination with the standards from the U.S. European and Chinese feed control authorities, giving prominence to the best quality products on the platform. So far more than 400 pet staple food products from over 40 brands have been certified under this system.

Savings with 30-day price protection: For JD Pet’s self-operated products with the “30-day price guarantee” tag, consumers can claim the price difference correspondingly throughout the year, with no need to wait for the price protection privilege that is usually only offered during big sales.

Simple selection of the most suitable food: JD Pet is the first platform of its kind that offers a cross comparison tool for users to choose pet food. Factors included in the comparisons range from nutrition elements such as protein, fat, calcium, phosphorus and others, net weight, shelf life, service commitment, products ratings, positive comment rates and more. So far the tool has covered 120,000 kinds of baked, freeze-dried, fresh raw and other staple foods for easy comparison.

Stress-free product return procedure: For food products on JD Pet that are marked with “worry-free taste”, if pets do not agree with the new food within 15 days after receiving the order and the remaining food amount is still over 80 percent, the buyers can request a refund or change of products with no extra fee. So far over 8,000 kinds of products from more than 200 brands including Myfoodie, Orijen, Royal and more have participated in this program.

Service of 24/7 online pet health consultation: In addition to offering pet products, JD Pet created a dedicated team of vets to provide 24/7 free online consultation service. Customers can inquire about all kinds of pet care related questions on a daily basis in a timely manner. With a simple click on the App, pet owners can talk to certified vets on the platform to be guided on using the right products for treatment or advice on when it is necessary to go to an offline hospital.

According to the White Paper on Pet Consumption Trend in China 2021 released by JD.com and iResearch Consulting, China’s pet consumption market is developing rapidly with the size nearing 300 billion yuan by 2020. JD.com started business cultivation in this field across the industrial chain since 2019 and by now JD Pet has developed a partnership with more than 3000 + merchants in the pet industry and is serving more than 10 million pet owners.

 

(vivian.yang@jd.com)

 

Max Mara Opens Flagship Store on JD Luxury

Posted on by Doris Liu

by Doris Liu

Max Mara partnered with JD to launch an official flagship store on July 28, introducing its ready-to-wear garments such as the classic 101801, Manuela and Teddy Bear coats as well as other clothing from its autumn/winter 2022 collection.

Notably, a white oversized cotton T-shirt with contrasting lettering print “Fashion equals Max Mara” from the brand’s latest collection was released exclusively online via JD Luxury. The T-shirt’s rock ‘n’ roll aesthetic combined with unisex style interprets the feminist fashion of Max Mara.

“Max Mara’s cooperation with JD is a crucial complement to the brand matrix of our high-end women’s apparel category. With extensive experience in luxury brand operation, professional and diversified services, JD will tailor solutions to the brand and work together to meet the different fashion needs of female consumers,” said Kevin Jiang, president of International Business at JD Fashion and Lifestyle.

Max Mara has been in pursuit of Italian quality and craftsmanship since 1951, the year Achille Maramotti established the brand, with collections such as Studio, ‘S Max Mara, Cube and Leisure being developed to match modern classic women’s styles. The Max Mara Group operates over 2,600 stores in more than 100 countries and regions.

With a vast pool of over 580 million consumers, as well as JD’s unparalleled logistics and differentiated policy of zero-tolerance towards counterfeit goods, JD Luxury is home to more than 300 luxury brands, covering such categories as bags, apparel, footwear, jewelry, watches, among others. The number is expected to keep growing thanks to JD’s healthy ecosystem that enables both brands and customers to enjoy a bespoke experience in marketing and shopping respectively.

 

(liujun215@jd.com)

White Paper Released at CCFA Summit: How Business Thrives in On-Demand Retail

Posted on by Xiaoqian Han

by Mengyang He

Report provides an overview of on-demand retail’s open platform model for the first time.

A comprehensive practice guide with a development path and successful cases, for retailers and brands who desire to grow in the China market.

Shenzhen, July 27, 2022 /PRNewswire/ — Dada Group (Nasdaq: DADA)’s JDDJ and JD.com’s Shop Now showed up at the “2022 China International Retail Innovation Summit”. On-demand retail, as the megatrend in the retail industry as well as a new growth driver for retailers and brands, was the major topic and arose heated discussions among business leaders today.

At the summit, Dada Group released the “White Paper On Open On-Demand Retail Platform Model” in collaboration with China Chain Store & Franchise Association (CCFA) and JD.com’s Consumption and Industry Development Research Institute. The White Paper offers a panoramic display of the open platform model of on-demand retail for the first time in the industry.

Seize the Digital Opportunity

Decision makers, digital business leaders, and technology providers of the industry joined the management teams of Dada Group and JD.com to give speeches at the summit to elaborate their insights and predictions on on-demand retail.

Dr. PEI Liang, President of China Chain Store & Franchise Association, demonstrated: “On-demand retail is an important part of omnichannel retail. Not only does it leverage online traffic, but also, through the integration of existing offline resources, it enables the cooperation between platforms and offline retailers to achieve a 1+1>2 effect. Offline stores serve as the terminal for order fulfillment and the terminal for product storage, and, when empowered by the on-demand retail model, their value can be maximized.”

Philip Jiaqi KUAI, Founder, Chairman of the Board of Directors, and Chief Executive Officer of Dada Group stated that from long-distance, and short distances to macro-distance, China’s e-commerce has leapfrogged to set one new milestone after another. For offline stores, on-demand retail has greatly broadened the scope of their businesses; for brand owners, on-demand retail has built a digital marketing and operating ecosystem that connects online and offline channels; for consumers, on-demand retail services represent significant improvements in timing, efficiency, and the shopping experience.

HE Huijian, Vice President of JD.com and Dada Group; Head of the Intra-City Business of JD.com believes that the core of retail is efficiency and experience. Emerged from both the supply side and the demand side, on-demand retail is expected to grow into a trillion-dollar market in 3 to 5 years. JDDJ and Shop Now will continue to open our capabilities to the industry to expand the model to various types of offline retailers and brands via digital upgrades, operation optimization, and efficiency improvement, to bring consumers and partners a faster, better and more economical shopping experience.

Summit attendant reads the White Paper

Development path and successful cases

It can be seen from the discussions that the retailers and brand owners have similarities in terms of demands and challenges when adopting on-demand retail, which can be further categorized into two models – self-operated and open platform.

The White Paper finds out that players under the open platform model, are stronger in terms of breadth of product categories offered, as well as technologies deployed to empower the offline retailer partners, and drive the digital transformation of the real economy.

The Report also discussed the development path under the open platform model and some successful cases. It was a valuable guide for merchants who strive to seize the new growth opportunity in the Chinese market. For retailers, what is important to them is omni-channel connection and fulfillment; for brands, their focus is on interaction with the users and marketing.

Based on the number and growth rate of participating stores, the White Paper took Supermarkets, Fashion Styles and Home Appliances, and Consumer Electronics as three major examples to analyze their development paths from striving to thriving.

  • The focuses for supermarkets are traffic, delivery capabilities, and data integration from multiple channels. The traffic largely determines the potential size of the business, the delivery capabilities are correlated with order fulfillment, and integrating data and adopting automated management is the key to improving efficiency.
  • As for Fashion Style and Home appliances, besides traffic, the level of digitalization greatly determines how well the retailers and brands manage their stores and inventories.
  • Turning to Consumer Electronics, the products are with a high price tag, a long life cycle, and a low level of transparency, so the consumers depend more on the shopping guide and after-sale service. Integrating marketing approaches and services on- and offline will better satisfy customers’ expectations and become the key brand differentiators in the industry.

As the pioneers and leaders in on-demand retail, JD.com and JDDJ cooperated with various well-known partners such as Walmart, Vivo, and Unilever, and accumulated experiences and insights from the past 8 years’ practices. As the key driver for offline retailers and brands’ omni-channel growth, the cooperation with JD.com and JDDJ in on-demand retail has been recognized by partners.

Xiaojing Christina ZHU, President and Chief Executive Officer of Walmart China, says: “China is one of the largest, fastest-growing and most competitive consumer markets in the world. We expect on-demand retail to remain hugely popular here in the foreseeable future because it enhances the shopping experience for customers and fits modern lifestyles. As a leading omni-channel retailer with a ‘Customer First’ mindset, Walmart China continues to innovate with our partners around digitalization and end-to-end efficiency. We look forward to offering more value and a seamless shopping experience so that our customers can save money and live better.”

“Thanks to on-demand retail, the penetration rate, and sales share in categories such as healthcare, maternal and infant, are continuing to grow,” weighs Katy CHEN, Managing Director of Kimberly-Clark China, “on-demand retail has become a channel that Kimberly-Clark attaches great importance to, we hope to further optimize and improve our performance through cooperation and innovation, to promote and lead the development of personal care and hygiene products in the on-demand retail market.”

Based on the successful cases, the White Paper provides a methodological sum-up dubbed “On-demand ACE”, suggesting a route to success in on-demand retail. ACE represents the ability, creativity, and experiences required for a merchant’s development in early, evolving, and breakthrough phases.

About Dada Group

Dada Group is a leading platform for local on-demand retail and delivery in China. It operates JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The company’s two platforms are inter-connected and mutually beneficial. The Dada Now platform enables an improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol “DADA”.

About China Chain Store & Franchise Association

China Chain Store & Franchise Association (CCFA) is the official representative of retailing & franchise industry in China. Currently, there are over 1200 enterprise members with over 460,000 outlets, including domestic & foreign-invested retailers, franchisers, suppliers, and relevant organizations. The total sale of CCFA retail members (franchise and food service not included) was 4.5 trillion CNY in 2020, accounting for 11.6% of the entire social consumables retail sales. CCFA functions include: participating in policy making and coordination, safeguarding the interests of industry and members, providing a series of professional training and industry information and data for members, and establishing platforms for exchange and cooperation.

 

（hemengyang5@jd.com）