JDT Rolls Out Plans to Better Benefit Partners

by Doris Liu

“We will always hold an open and win-win attitude with the pursuit of long-term value, and work with each partner to ‘co-exist in the real economy and restart growth,’” said Peinuan Wang, Vice President of JD.com, at the first JD Technology (JDT) Partner Conference on July 12 in Beijing.

Traditional industries are confronted with issues of digital transformation and upgrading, which are key to the development of the real economy. To keep this in mind, JDT opens up the technical capabilities with 200 solutions to 12 vertical industries of retail, logistics, Internet, health, and agriculture, among others, satisfying the business partners’ different digital needs.

In order to be complementary in value for partners, the most crucial supply chain capabilities and ecosystem will be open, including a digitally intelligent supply chain open platform, open PaaS ecosystem Yun Zhu (云筑, meaning Cloud Building) plan 2.0 and four scenario platforms: industrial Internet platform, collaborative office platform, urban industrial service platform, and consumption promotion platform.

JDT shares the same philosophy on hybrid cloud and AI strategy with IBM, said Xuemei Pan, Technical General Manager of the technology department, IBM China. JD Cloud’s cloud platforms and technical R&D strength, combined with IBM’s overseas public cloud, enterprise storage services, intelligent operation and maintenance, iPaaS, SaaS, as well as IBM’s practices in serving global enterprises, will become a firm support to the digital transformation of Chinese enterprises, Pan added.

To further assist the development of business partners, the JDT PLUS Partner Select Program was released at the conference to provide an array of benefits to the member partners which are closely working with JDT.

JDT has established a unified ecosystem to divide partners into categories of market development, products and solutions, service delivery and distribution channels. Based on the partners’ business capability, scale and future cooperation mode and field, JDT will put them into different groups and provide corresponding rights and interests.

Here are some highlights of the JDT PLUS Partner Select Program:

1. JDT PLUS partners are given priority to participate in major business opportunities and projects, and can receive special support from JDT in products, solutions, sales and marketing, as well as the priority to join in JD’s essential marketing activities including co-branding.

2. JDT PLUS partners can enjoy all-round access and openness of JD’s resources and capabilities. JDT will open the most core supply chain capabilities, and connect partners with business resources such as JD Mall, JD Logistics and JD Health according to their needs.

3. JDT will prioritize JDT PLUS partners to jointly create products and develop niche markets.

Furthermore, a “10-billion Revenue Plan” was also announced on July 12, aiming to help partners earn more than RMB 10 billion yuan within two years through JDT’s sharing of technical capacities and business opportunities, with joint development of products and solutions, capital investment and so on.

After around 5 years of in-depth cooperation in urban digital economy, JDT’s business has been implemented in practice in over 80 cities with operation of over 70 industrial parks gathering some 5,000 companies.

To expand the market, JDT launched a “Doubling 100 Cities Initiative”, planning to bring in partners based on the existing in-depth cooperation with 100 cities, and together extend business in another 100 cities in the following three years.

The size of the digital economy is expected to exceed 60 trillion yuan by 2025, according to the China Academy of Information and Communications Technology (CAICT). In the digital growth space, business partners of JDT will be more focused on scenario innovation, effects and benefits of integration of technology and the real economy. Thus, with the long-term focus in JD’s DNA, JDT will step forward hand in hand with partners to boost professions and industries with digital intelligence and achieve sustainable value creation.

 

(liujun215@jd.com)

Maison Margiela Unveils Flagship Store on JD.com

by Doris Liu

French fashion house Maison Margiela, part of Italian fashion group OTB, launched a flagship store on JD.com on July 14, following the inauguration of the brand’s largest physical flagship store globally at JC Plaza in Shanghai last week.

The opening of Maison Margiela’s online and offline flagship stores not only offers a wide range of popular items including bags, ready-to-wear and footwear, among others, but also provides more shopping experiences.

Furthermore, the “buy online, pick up in store” model also enhances Maison Margiela’s omni-channel retail model. Customers can opt to place an order in JD’s flagship store online and pick it up at its store at Shanghai’s JC Plaza, providing both the convenience of online selection as well as in-location experiences.

Among the items available for JD’s customers are the Glam Slam bag with its iconic cloud shape, Tabi shoes inspired by the traditional Japanese split-toe sock and the latest autumn/winter collection of Maison Margiela. In addition, the brand debuted its first art collection of paper-made Replica sneakers in a limited edition of 150 pairs exclusively on JD.com, turning recycled cardboard into an artwork that conveys the concept of sustainability.

JD’s 3D shopping solution supported by VR technology is also expected to be rolled out soon, which will enable customers to virtually explore the newly-launched Shanghai flagship store with an immersive experience and make purchase decisions in the virtual store.

With more than 300 luxury brands running their official flagship stores on JD.com, JD’s luxury business is gaining recognition from brands and customers. The collaboration with Maison Margiela opens up a new space for omni-channel retail, and JD is always devoted to evolving the matrix of brands and improving the quality of services.

 

(liujun215@jd.com)

JD.com Ranks No.7 on 2022 FORTUNE China 500 List

by Vivian Yang

For the first time, JD.com ranked among the Top 10 on the list of  FORTUNE China 500, moving up 4 places to No.7, according to the 2022 edition of the annual list released by FORTUNEChina.com on July 12th.

JD.com is also the only private enterprise on the Top 10 list, which is dominated by state-owned enterprises. The top 10 on the list are Sinopec, CNPC, China State Construction, Ping An Insurance (Group), China Railway Group, CRCC, JD.com, ICBC, China Life and China Mobil.

The List measures the largest Chinese listed companies by revenue each year and reported a total revenue of RMB 62 trillion yuan from all the 500 companies in the past year. With net revenue of RMB 951.6 billion yuan in 2021, JD.com achieved a growth of 27.6 percent year over year, a  stronger rate compared to the 17.4 percent average growth rate of the 500 listed companies.

“JD.com’s self-operated B2C model gives it an advantage in revenue growth,” explained Anqi Yang, senior editor of FORTUNEChina.com in an online interview for the List’s release.

“[Compared with other platform companies] JD.com possesses more real economy attributes, including that the company runs its own logistics infrastructure, like warehouses and others,” Yang added. “That’s why we describe it as a new type of real economy enterprise.”

In the past three years from 2019 to 2021, JD.com has accumulatively put in more than RMB 2 trillion yuan in products procurement, infrastructure construction, R&D, logistics fulfillment, employee welfare, supportive measures for brands and merchants and more – all of which are integral parts for the development of the real economy.

At the same time, heavy investment and use of technology have played an increasingly important role in JD’s business growth. To date, the company’s intelligent and open supply chain system manages over 10 million self-operated product SKUs and more than 1,400 warehouses that provide a prime shopping experience to over 570 million customers, support the business development of hundreds of thousands of merchants and empower over one million offline stores. The company also serves over 8 million enterprise clients today and has established collaboration with over 90 percent of China-based affiliates of the Fortune Global 500 companies.

Amidst the continued fight against the COVID pandemic in the past two years, JD.com, which is positioned as a supply chain-based technology and service provider, has been going above and beyond to leverage its “Responsible Supply Chain” capabilities to support customers, merchants, local governments and society, fulfilling its social responsibility while bringing the value of supply chain to the whole society’s greater recognition.

 

(vivian.yang@jd.com)

Ice Cream Sales on JD Stay Hot amid Summer Heat

by Doris Liu

A summer heat wave in China has lifted sales of many food and beverage products such as ice cream, beer and coconut water, with more customers tending to select goods within a reasonable price range, according to JD’s recent data.

The average temperature in June across the nation hit the highest since 1961, the China Meteorological Administration reported earlier. Consequently, ice cream products rose 85 percent in sales volume based on data from the JD618 Grand Promotion from 8pm (BJT) on May 31 to midnight of June 18. Products priced at RMB 3-6 yuan went up in June by nearly 40 percent year-over-year (YOY) on JD Fresh, JD.com’s fresh food business.

On the Super Day of the ice cream category last week, a Magnum Matcha multipack of four sticks was among the best-selling, with a 42.1 percent sales growth . Matcha chocolate ice cream from Japanese brand Meiji was also a highlight, with sales jumping up 32.5 percent YOY.

In terms of cross-border products, Double Raspberry Magnum ice cream produced in Italy and Swinkels Family Brewers from the Netherlands respectively surged by 132 and 107 percent YOY in the first week of July, thanks to a campaign held by JD Worldwide to promote refreshing imported food and drinks in summer.

The country’s ice cream market size has been growing fast in recent years with the improvement of national living standards. From 2015 to 2021, the market spiked from less than RMB 90 billion yuan to RMB 160 billion yuan, a cumulative rise of more than 90 percent during the six-year stint, according to the Beijing-based consultancy Qianzhan Industry Research Institute.

JD’s cold-chain logistics, fast delivery and melt insurance services ensure customers to shop for frozen food on JD.com without worries. JD will also expand the product selection with a variety of promotions to cool down the summer heat with a smooth shopping experience.

 

(liujun215@jd.com)

JD Incubates New Professions: Robotics Technician, Digital Twin Engineer, Carbon Consultant and More

by Vivian Yang

As a company dedicated to supporting the real economy with its technology and infrastructure in supply chain, JD.com has become an incubator for many emerging professions across its diverse businesses, especially in line with the trends of digitalization and carbon neutrality.

China’s human resources authority recently announced 18 new professions for public summons including robotics engineering technicians, data security engineers, digital solution designers, carbon sequestration assessors and more, reflecting the country’s occupational development and aim to boost college graduate employment and encourage entrepreneurship.

Here are examples of these new positions from JD.com you may want to take a look.

1. Digital solution designer

Jin Zi is an expert of digital solutions for JD Retail’s intelligent supply chain. His work helps to ensure the company’s daily operation efficiency in managing a scale of nearly 10 million SKUs of all categories from electronics, home appliances, general merchandise to fresh food and more, as well as overseeing their optimal fulfillment plans.

By applying cutting-edge technology in inventory prediction, deployment, replenishment and more into a nationwide network of 1,400 warehouses, nowadays 85 percent of JD Retail’s procurement activities happen automatically, further driving down JD’s inventory turnover time to as low as 30.2 days, which is a world-leading performance especially given its size.

2. Robotics engineering technician

Cai Cai is a “trainer” of JD Logistics’ autonomous driving vehicles. She tests these robots not only on the computer for simulations, but also on the real road. New iterations have happened fast in the past few years, and now it is the fifth generation of the self-delivery vehicles. “Before I can follow them by walking, but now as they run faster, I must ride a bike to catch up,” she said.

JD.com is the first company in China to deploy autonomous driving into real logistics scenarios. To date, it is operating hundreds of the self-delivery vehicles on a daily basis in more than 25 cities in China. They also played an important role to perform contactless delivery work during COVID outbreaks in Wuhan, Shanghai and other cities.

3. Energy efficiency and carbon neutrality consultant

Ms. Shen is a building designer from JD Property, a subsidiary of JD.com focusing on developing and managing logistics infrastructures, manufacturing parks and more. Building with a low-carbon concept is at the core of her daily work. Last year, her team delivered a tailor-made BMW parts distribution center in the Central China region, which became the client’s first LEED-certified “green warehouse” in the country. The next such center in North China will also be finishing soon, further extending sustainable development in the entire value chain of the automotive business from production to the after-sales.

As of this June, JD Property has completed project designs for 135 JD Intelligent Industrial Parks, over 40 percent of which adopted the “sponge city” modern rainwater management system.

4. Technician for agricultural digitalization

As part of a new generation of farmers, Wen Ya’s job at JD Farm applies IoT, blockchain, AI and other technologies to the supply chain of agricultural industry, in order to make digitalized standards for farm production and management.

To date, JD Farm has rolled out over 70 projects on nearly 400,000 mu(1 mu equals to 666.67 square meters) of plantation bases in over 10 provinces, municipalities and autonomous regions across China, digitalizing the farming process of 13 produce categories including rice, millet, apples, citrons, Chinese wolfberries and more, and adding brand and marketing value for the produce such as promoting dedicated channels like JD Farm’s flagship online stores.

5. Digital twin engineer

Dr. Wang has been a fan of science fiction since childhood and was often fascinated with the idea of bringing people to life from still photos. After graduating from the field of AI generative modeling, he joined JD Explore Academy, applying digital twin technology to organize and present visual content in the digital world. “It is not only a dream come true to me,” he said. “More importantly, we can use these technologies to accompany and serve many people in need.”

JD Explore Academy’s multimodal super deep learning model, known as “Zeus”, has made a series of breakthroughs in the area of digital twinning and achieved first place in several public datasets on task generation in complex scenes.

6. Integrated energy service worker

Bo Wen works on the rooftops of JD’s warehouses, to ensure the stable operation of the photovoltaic panels built by JD Property to generate clean energy to run many of its intelligent industrial parks. He said he has climbed high to “plant the sun” in all weather conditions, and the rooftop view gives him inspiration for a greener future.

By the end of 2021, the first batch of JD’s 12 industrial parks had been installed with PV power generation systems. JD Property plans to build 1,000 megawatts of PV power generation capacity in the next three years, which will sufficiently cover energy use for 85 percent of its industrial parks. This March, JD’s Asian No.1 Logistics Industrial Park in Xi’an was certified to be China’s first carbon-neutral logistics park.

7. Business data analyst

Mr. Kong works for JD Retail’s private-label brand J.Zao. He acts as a “product doctor“ who examines and diagnoses market and consumption trends, identifies high-potential categories with the help of professional tools and experiences, and reviews users’ feedback so as to provide precise solutions for product R&D.

This systemized ability in generating acute product and category insights enables J.Zao to develop highly cost-effective products that meet customer demand better and faster. At this year’s JD618 Grand Promotion, a number of new J.Zao releases had achieved rapid sales growth month-over-month.

 

(vivian.yang@jd.com)

JD Worldwide Rolls Out 3rd Cross-border Experience Center in Xi’an

by Doris Liu

JD Worldwide joined hands with the Joy City shopping mall to launch a physical experience center specifically for cross-border products in Xi’an on July 1.

The 360 square-meter center is the third of such kind by JD Worldwide, JD.com’s cross-border e-commerce marketplace, following previous two in Yantai, Shandong province and Sanya, Hainan province. The center showcases food and wine, nutritional supplements, daily necessities and others.

With five experience areas featuring different themes, the center offers customers the chance to touch and try the displayed products and then make purchases online through scanning the code on product labels. All goods are supplied by JD Worldwide from domestic bonded warehouses directly to customers to ensure the authenticity.

“By actively promoting the integration of online and offline consumption, JD Worldwide has helped multiple brands and omni-channel partners realize the digital intellectualization of the whole chain, all users, and full scenarios across all categories,” said Yong Sun, head of the duty-free business of JD Worldwide. JD’s solid supply chain integration capability enables JD Worldwide to work with partners to push forward and improve online and offline cross-border consumption scenarios nationwide through a variety of formats, Sun added.

To date, physical stores of JD Worldwide have been in operation in the form of duty-free stores, cross-border experience centers and more across China, creating momentum and opportunities for a large number of overseas brands and merchants.

 

(liujun215@jd.com)

JD Deploys 100+ 5G-powered AGVs at Changsha Asia No.1

by Yuchuan Wang

Over 100 5G-powered AGVs (automated ground vehicles) have been deployed at JD Logistics’ Changsha Asia No.1 logistics park last month, while 5G technology further enhances the automated warehouse’s operation efficiency, and the AGV zone of the warehouse is now able to deal with more than 110,000 items a day.

“JD’s self-developed Dilang (ground wolf) AGVs have helped increase the moving efficiency of the park by 200 percent,” said a spokesperson from Changsha Asia No.1. “5G solves operation problems related to network delays, and better secures the order processing ability during peak periods of sales.” Data shows that compared with WIFI connection, 5G ensures “zero packet loss” for AGV communications and helps lower the average connection timeout occasions by 70 percent.

JD Logistics’ self-developed management system connects the 5G communication module with 5G logistics integration terminals, 5G private network and 5G application system. Relying on the open interface of 5G network ecosystem, the management system can be connected with external partners’ data, enable fully visual remote management, rapid notification of abnormal activity, and agile operation and maintenance, as well as continuous optimization and improvement of efficiency. The system can be replicated across JD’s logistics parks in China.

JD Logistics has also applied 5G in intelligent moving, storing, track and tracing, visual management and more in the process of handling inventory. In addition, by combining technologies including AI, big data and AR/VR, JD Logistics has developed systems for logistics park intelligent control, digital production, unmanned security and more to integrate 5G deeply into logistics application scenarios.

JD Logistics started to invest in 5G logistics in 2019, and has built China’s first 5G logistics park in Beijing.

 

(yuchuan.wang@jd.com)

JD Super Releases “JD618 Fresh Food Consumption Trends Report”

by Mengyang He

JD.com’s online supermarket business JD Super released the “JD618 Fresh Food Consumption Trends Report” on July 1, providing insights into trending products, consumption patterns, demographics, etc.

With the consumption upgrading, consumers have expressed a rising demand for high-quality fresh food. For example, imported steak, fresh milk, pure meat sausages, and premium dumplings were on the list. According to the report, the transaction volume of imported steak grew by 5.6 times YOY and pure meat sausages by 285 percent YOY.

In addition, meat, poultry, and seafood also recorded a sales bonanza. For example, the transaction volume of black tiger shrimp grew by 5 times.

Another consumption trend suggests that consumers are now more habituated to purchasing fruits, vegetables, and eggs online. According to the report, the transaction volume of fruits increased by 60 percent YOY, eggs by 33 percent YOY, mangosteen by 100 percent YOY, Zespri kiwi from New Zealand by 106 percent YOY, and durians from Thailand by 150 percent YOY.

During the summer time, certain products are a great fit, such as crayfish and ice cream. Their transaction volumes increased by 70 percent YOY and 85 percent YOY, respectively.

The report also reveals that most consumers who purchased fresh food were aged between 31 to 40, accounting for 43 percent, and female consumers made up 60 percent.

 

(hemengyang5@jd.com)