Jo Malone London Opens Flagship Store on JD.com

Posted on by Xiaoqian Han

by Xiaoqian Han

Jo Malone London, a fragrance brand under the Estee Lauder Group, launched a flagship store on JD.com on May 14, with over 30 items from three categories: scent, body, and home.

The launch follows the debut of brands including Estee Lauder, Origins, Clinique, LAB SERIES, and MAC on JD.com. To date, JD boasts 580 million active users and over 25 million Plus members, who are perfectly matched with premium brands such as Jo Malone London.

“Through this cooperation, and by means of the omni-channel supply chain capability and excellent after-sales service system of JD Beauty, we hope to promote Jo Malone’s British fragrance and elegant lifestyles to wider users,” said Hanfei Ye, vice president of Estée Lauder Group and general manager of Jo Malone London.

Jo Malone was founded in the UK in 1994. As a fragrance brand under the Estee Lauder Group, Jo Malone is highly sought after by modern men and women around the world for its high-quality fragrances and elegant lifestyle.

With the upcoming 520 Festival (Netizen’s Valentine’s Day), Jo Malone’s flagship store is offering fragrance series items, such as limited rose gift boxes, classic perfumes, home scented candles, car fragrances, shower gels, body lotions, and hand creams.

“I am delighted to welcome Jo Malone London, another significant Estee Lauder brand, to JD.com,” said Wang Tao, the general manager of JD.com’s retail beauty business department. “JD Beauty joined hands with Jo Malone to offer consumers a wider range of high-quality gift options during the upcoming 520 festival, so as to benefit customers with better choices.”

 

(hanxiaoqian3@jd.com)

JD Executives: Supply Chain Capability Drives Growth amid COVID Uncertainties

Posted on by Doris Liu

by Doris Liu

JD’s supply chain capabilities and resilient business model had helped the company achieve healthy and high-quality earning results amid external challenges, with an 18 percent year-on-year (YOY) rise in net revenue to RMB239.7 billion (US$ 37.8 billion) yuan in the first quarter, announced Lei Xu, CEO of JD.com, on a conference call to discuss the results of the Q1 2022 earnings released on May 17.

As a supply chain-based technology and service provider, JD’s supply chain capabilities are not limited to the physical forms of warehousing, delivery, fulfilment network, Xu said, but also the algorithm capability that has been accumulated for 19 years, the industry know-how, and the supply chain collaboration with some major brands, he emphasized.

“Facing the more transmissible Omicron variant, JD once again fully leveraged our supply chain and mobilized all of the group’s forces to fight the epidemic and ensure supply of daily necessities across China,” said Xu. “Our efforts and commitment to social responsibility enabled us to win society’s trust and resulted in stronger reputation and appreciation among our users and business partners. This is highly significant for our long-term development.”

JD.com generated RMB35.2 billion yuan (US$5.6 billion) in net service revenue, an increase of 26.3 percent from the first quarter of 2021. Income from operations went up to RMB2.4 billion yuan (US$0.4 billion), compared to RMB1.7 billion for the same period last year. Non-GAAP income from operations in Q1 increased by 32.8 perce to RMB4.7 billion yuan (US$0.7 billion) from RMB3.5 billion yuan for the first quarter of 2021.

Confronted with COVID resurgence and soft consumer sentiment, JD.com has further expanded its annual active users to 580.5 million in the twelve months ended March 31, 2022, up 16.2 percent YOY, with record-high accelerating growth in purchasing frequency and Average Revenue Per User (ARPU).

“We are encouraged to see user engagement metrics continue to improve, demonstrating our strengthened brand image and expanded consumer mindshare,” said Sandy Xu, CFO of JD.com.

JD’s retail business, its largest division by revenue, brought in revenue of RMB217.5 billion yuan in the first quarter with a 17 percent YOY increase. As the mid-year shopping festival JD 618 Grand Promotion approaches, merchant registration and engagement are seen to reach a higher level than previous years as brands and merchants are eagerly looking for sales growth in the complex epidemic situation and macro economy.

Revenue of JD Logistics reached RMB27.3 billion yuan, up 22 percent YOY. The growth of JD Logistics’ revenues from external customers accounted for a record high of nearly 60 percent of total revenues in Q1. Meanwhile, the strengthening of logistics infrastructure is also progressing, with approximately 1,400 warehouses being operated by JD Logistics.

 

(liujun215@jd.com)

 

JD Worldwide Launches Fresh Supermarket for Imported Merchandises

Posted on by Doris Liu

by Doris Liu

JD Worldwide, JD’s cross-border e-commerce business, recently launched its Fresh Supermarket, offering customers fresh products from overseas including the United Kingdom, Germany, France, the United States and more.

A significant portion of those brands are sold for the first time through China’s online channels, such as American ice cream brands Ben & Jerry’s and Klondike, as well as Iceland, a British supermarket chain with an emphasis on  frozen foods.

JD Worldwide has reached cooperation with Iceland Foods Ltd to jointly explore a more efficient and innovative cross-border e-commerce cooperation model, so as to enhance the overall richness of fresh products on JD Worldwide. The goal is to offer customers the quality consumption experience of “shopping around overseas well-known supermarkets without leaving home and buying all imported fresh food in one stop”, said a spokesperson of JD Worldwide.

Relying on JD’s advanced capabilities, JD Worldwide shares efficient and comprehensive integrated supply chain solutions with global fresh food brands. Cross-border fresh products have stricter requirements for supply chain and logistics technology due to their short shelf life and high loss rate. With JD’s nearly 80 bonded and overseas warehouses across the world and logistics services reaching over 220 countries and regions, the Fresh Supermarket on JD Worldwide is able to achieve direct sourcing from places of origin to guarantee product quality, and deliver the products from other countries to China’s bonded warehouses, then to consumers with full cold chain delivery.

Any international brand interested in building their business with JD in China can apply via https://www.jd.hk/cooperation_en or by emailing worldwide@jd.com.

 

(liujun215@jd.com)

JD Supports Trade-in Service of Appliances in Drive Greener Business

Posted on by Doris Liu

by Doris Liu

As a steadfast promoter of green consumption, JD.com has secured a leading position of home appliances in China not only by providing a wide range of products with superior full-service capabilities, but also by helping push forward the recycling economy in the form of trade-in services and more.

According to the National Development and Reform Commission, China’s household appliances ownership has exceeded 2.1 billion items, with an estimated scrappage volume of 200 million items in 2022.

A considerable number of families are still using home appliances that were bought during 2009 to 2011, when China had implemented trade-in policies to expand consumer demand and improve energy use efficiency. It is worth noting that air conditioners with a safe service life of 10 years are just entering the replacement cycle.

By replacing new energy-efficient products in a timely manner, safety hazards can be effectively eliminated and consumers’ energy expenses can be largely reduced as well. Data from the China National Institute of Standardization shows that the energy efficiency of air conditioners can drop by 40-50 percent after 10 years of use. Taking 1-HP inverter air conditioners as an example, new energy-efficient products can save nearly 40 percent of electricity compared with the old models which were manufactured 10 years ago.

JD has introduced a variety of stimulus steps to push consumers to replace appliances that are beyond their safe service life. For example, the trade-in service has been further simplified. Rather than following the industry’s valuation mechanism that is mainly based on product model and status, JD Home Appliances launched a one-price trade-in model in 2022, which allows customers to trade in their old appliances by selecting a specific product category. Each category has a fixed price, regardless of the product’s brand or status. The service has covered more than 95 percent of cities, counties and towns nationwide, and besides the subsidies for new purchase, customers also enjoy free dismantling and free transportation of the old appliances.

Promotions of energy-saving and emission-reducing products also help. Noting that the public’s consciousness of health and environmental protection has been strengthened with the demand for quality products, JD has also initiated rounds of promotions for energy-saving and innovative products.

The “2022 Air Conditioning Industry Trends Report” jointly released by JD Home Appliances and market consultancy All View Cloud shows that the domestic air conditioning industry retail sales in 2021 were down 1.2 percent year-on-year (YOY) at RMB 152.7 billion yuan, and the retail volume was down 8.7 percent YOY at 46.89 million items.

However, amid the overall decline, online sales of fresh air ventilation and air-conditioning integrated systems in 2021 rose 492.7 percent YOY at RMB 820 million yuan, said the report. JD.com’s sales of such products increased by more than six times YOY in 2021, as it had carried out an array of promotions and awareness-raising activities.

Through in-depth insights of the market, JD also provides brands with customers’ health needs to help the manufactures enhance R&D of the fresh air ventilation and air-conditioning integrated system, pushing for upgraded products.

JD Home Appliances has offered trade-in services since 2016, with more than 30 recycling categories such as large and small home appliances. According to the company’s calculation, the air conditioners, fridges and televisions with primary energy efficiency sold through JD.com in 2021 can reduce nearly 2 million tons of carbon emissions. Honored as the “Annual Influential Enterprise in Carbon Neutral Field” by domestic websites early this year, JD will continue to operate with the concept of cutting emissions through its businesses.

 

(liujun215@jd.com)

 

JD.com Announces First Quarter 2022 Results

Posted on by Yuchuan Wang

On May 17th, JD.com released its unaudited financial results for the quarter ended March 31st, 2022. Below is an infographic with the key highlights. The full release can be found here.

JD.com Rolls out Estee Lauder Group’s Makeup Brand

Posted on by Xiaoqian Han

by Xiaoqian Han

M.A.C, an Estee Lauder makeup brand, recently launched on JD.com, offering lipsticks, foundations, eye shadows, and other categories, as well as new summer items and a limited edition of 520 festival lipsticks.

The M.A.C flagship store debuts a gift package for the forthcoming 520 Festival (the Chinese pronunciation of 520 is close to “I love you”, hence the Chinese netizen invented this “Valentine’s Day on Internet”), and a range of hot-selling lipstick designs. Additionally, the store adopts environmentally friendly packaging, which not only meets the needs of beauty consumption but also fully supports green consumption.

Following brands like Estee Lauder, Origins, Clinique, and LAB SERIES, M.A.C’s flagship store is the latest cooperation between JD.com and the Estee Lauder Group. With JD.com’s genuine product guarantee, omni-channel supply chain capability, and after-sales service system, JD Beauty has long been regarded as a reliable source of beauty items.

The M.A.C. flagship store is part of a new format on the JD.com platform called “The J Shop. Upgraded from JD Fashion and Lifestyle business, the new format offers deep integration of commodity and service capabilities in omni-channel retailing for apparel, lifestyle, cosmetics, sports, luxury fashion, watches, and more.

The J Shop’s online channel, which is available on JD’s App, caters mostly to youthful consumers. It provides exclusive online scenarios complementing a fashionable lifestyle with a redesigned visual browsing experience, quality service, and interactive shopping.

 

(hanxiaoqian3@jd.com)

JD Fresh Drives Magnum Sales Through Cold Chain Logistics and Omni-channel Retailing

Posted on by Mengyang He

by Mengyang He

JD Fresh, JD.com’s fresh food business, initiated the Magnum Brand Day on May 14, aiming to further drive sales of the world-renowned ice cream brand Magnum through JD.com’s cold chain logistics and omni-channel retailing.

As a signature ice cream brand under Unilever, one of the world’s largest consumer goods companies, Magnum has been dedicated to fulfilling consumers’ diversified needs through its both delicious and visually appealing ice cream.

Propelled by consumption upgrading and increasing demand from consumers, the ice cream market in China is gaining momentum year by year. According to the China Association of Bakery & Confectionery Industry, China’s ice cream market grew from RMB 64.5 billion yuan in 2016 to RMB 72.4 billion yuan in 2020, and is expected to scale up by 22 percent each year leading up to 2025.

With JD Fresh’s cold chain delivery service powered by JD Logistics covering more than 300 cities across China, JD’s nationwide cold chain logistics network has ensured that Magnum’s ice cream products are delivered to consumers’ door steps frozen and safe. Due to JD’s omni-channel capabilities, consumers can readily have on-demand access to Magnum’s products through JD.com.

According to JD.com’s fourth quarter and full year 2021 results released on March 10, JD.com has successfully built collaborations with more than 370 supermarkets including Walmart and Yonghui, covering over 34,000 stores with over three million SKUs, and providing consumers with on-demand shopping options through JD.com’s app, which gives customers access to JD.com’s one-hour delivery service in nearly 400 cities in China.

 

(hemengyang5@jd.com)

JD.com Named in China’s 2022 Industrial Internet Platform Recognition List

Posted on by Vivian Yang

by Vivian Yang

JD.com has been named one of China’s 2022 cross-industry and cross-sector industrial internet platforms by the Ministry of Industry and Information Technology (MIIT) on May 12th.

The annual recognition list, which unveiled 14 new platforms this year, is part of China’s efforts to promote the integration of the internet and advanced manufacturing. It identifies those pioneering platforms that demonstrate comprehensive competencies in driving industrial IOT on a rolling evaluation basis. So far there are altogether 29 enterprises on the list or a so-called “national team”.

Positioned as “a new type of real economy enterprise”, JD.com has been deeply linked with both the consumer and industrial ends in the past years, allowing it to fully leverage its technology and know-how in the supply chain to support the digital and intelligent transformation of many industries, supporting them to improve production efficiency and synergy with sales activities.

JD Industry, the industrial development-focused technology and service provider under JD.com, provides its PaaS services, known as “Jing Qing Hu Lian”(京擎互联), to industrial clients in three main areas,  namely smart procurement, smart energy management solutions and smart O&M (operation & maintenance).

The PaaS platform is connected with an extensive range of equipment protocols and other production resources in the upstream, while also carrying up various business applications in managing supply chain, production, R&D and equipment, so as to realize the deep integration of IT and OT (operational technology).

“We will continue to give better ‘JD answers’ to the building of industrial internet along the way of our development,” said Fengwei Ji, general manager of IOT product department of JD Industry. “While diving deeper to understand the needs of industrial enterprises, we will give full play to JD’s technological advantages to deliver digitally intelligent solutions, setting good examples as a cross-industry and cross-sector enterprise to support the development of the industrial internet.”

 

(vivian.yang@jd.com)