World Renowned Japanese Bookstore Goes Online at JD.com 

Posted on by Doris Liu

by Doris Liu

The J Shop, JD’s fashion and lifestyle business, welcomed world-renowned bookstore chain from Japan, Tsutaya, on August 26, showcasing a roster of books, tableware, stationery, accessories and more to add lifestyle aesthetics to Chinese consumers.

Tsutaya, whose Daikanyama T-Site in Tokyo is deemed one of “The 20 Most Beautiful Bookstores in the World,” provides an experience space that integrates reading, shopping for books and creative products, dining and enjoying coffee. With the aim of proposing a new lifestyle, Tsutaya has opened physical stores in Shanghai, Xi’an and Tianjin in China.

The collaboration with the J Shop helps enhance Tsutaya’s omni-channel retailing. Besides the online store, JD Logistics also guarantees smooth services for Tsutaya’s consumers. During the opening, Tsutaya offers options of “ordering online and picking up in store,” as well as “ordering in store with delivery to your door step” in some areas to explore the click-and-mortar model.

As consumers continue to expect more from shopping experiences and scenarios, the J Shop has introduced many well-known collection stores such as MUJI and NITORI to enrich the business layout and better serve consumers who are looking for lifestyle and quality consumption. JD.com and Tsutaya are expected to work together in the fields of product selection, marketing, services and omni-channel integration to lead lifestyle consumption with a focus on aesthetics.

 

(liujun215@jd.com)

JD Airlines Receives Air Carrier Certificate from CAAC

Posted on by Yuchuan Wang

by Yuchuan Wang

JD Airlines (Jiangsu Jingdong Cargo Airlines), an affiliate to JD Logistics, has gotten its wings—receiving an air carrier certificate from the Civil Aviation Administration of China (CAAC) on August 31.

Currently employing more than a hundred technical personnel, JD Airlines leverages Nantong Xingdong International Airport as its principal base. On top of meeting the needs of JD Logistics’ integrated supply chain service’s clients, JD Airlines is also opening up its capacity to the market. It now serves industries including high-end consumption, high-end manufacturing, medical, fresh produce and more. A single load capacity can transport as much as 23 tons.

JD Airlines will first develop its domestic air cargo around China’s three major economic circles of the Yangtze River Delta, the Bohai Sea and the Pearl River Delta, with a focus on the cities of Nantong, Beijing, Shenzhen and Wuxi. It will soon extend its reach to cities in the middle reaches of the Yangtze River, then Chengdu and Chongqing, and will gradually cover nationwide major cities and Southeast Asia, Japan and Korea and later in Europe, Middle East and North America by the end of 2025.

JD Airlines aims to improve the industry standards for air express service, and has already achieved a coverage rate of more than 95 percent for its air express delivery service among multiple cities in China.

JD Logistics began developing its air cargo business with airline companies in 2017. The establishment of JD Airlines will facilitate JD Logistics building a more flexible, stable and controllable supply chain ability.

 

(yuchuan.wang@jd.com)

Another Luxury Swiss Watch Brand Launches Flagship Store on JD.com

Posted on by Doris Liu

by Xinyi Guan and Doris Liu

The Hamilton Watch Official Flagship Store celebrated its grand opening on JD.com on August 30, bringing together a number of its classic watch collection and personalized services such as customized carving service on watch straps to provide a better shopping experience for consumers.

Notably, a triangular shaped timepiece with a futuristic legacy of the new Ventura XXL Skeleton Auto made its first launch in the store to celebrate the 130th anniversary of Hamilton.

Hamilton was founded in 1892 in Lancaster, Pennsylvania, USA. Hamilton watches combine the American spirit with the unrivalled precision of the latest Swiss movements and technologies. Known for its innovative design, Hamilton has a strong foothold in Hollywood, with products appearing in more than 500 films. The brand also boasts a strong aviation heritage. Hamilton is a member of the Swatch Group, the largest watch manufacturer and distributor in the world.

Prior to opening its own official flagship store on JD, Hamilton had already begun the watch business on JD.com in proprietary mode in 2018 November. The two sides have carried out in-depth cooperation in various aspects such as sales and marketing, with joint launches of several limited editions to mark the movies TENET, The Matrix Resurrections, the ubisoft game Far Cry® 6, and more.

As of now, JD’s annual active user accounts are over 580 million, with JD PLUS paid membership enrollment surpassing 30 million. As both the customer pool and brand matrix on JD.com have expanded rapidly with high quality, both consumers and brands can benefit each other in a healthy and positive ecosystem.

 

(guanxinyi3@jd.com; liujun215@jd.com)

JD Accompany Plan Supports Better Growth for Baby Brands  

Posted on by Doris Liu

by Doris Liu

JD Accompany Plan, JD.com’s parenting ecosystem integrating shopping with services and education, released the 2022 Maternal, Baby and Parenting Industry Refined User Operations Insight Report recently to interpret refined user operation by baby’s month age as well as revealing in-depth insights, operation practices and trends of the industry.

Consumers of the maternity and baby industry show characteristics of fast iteration and short consumption life cycle, forcing brands to review and strengthen their ability in refined operation based on a deeper understanding of customers.

 According to the report, 31.2 percent of parents of babies under 1 year old believe that since the children are too young to clearly express their needs, they can only guess the product suitability by trying different products for the babies. In addition, 38.2 percent of parents of children between 7 to 12 years old think that their children have personal preferences and self-awareness. The inconsistency between shoppers and actual users makes it hard to match needs, and the fast growth of babies also sets a challenge for families to match products in time. The report says 26.4 percent of parents of babies aged 4-6 months show the most shopping anxiety as they almost have no idea what to buy.

Refined user operation by baby’s month age is urgently needed. In order to upgrade the solutions accordingly, JD Accompany Plan launched specific parenting columns for 0-6 months, 7-12 months, 1-3 years old, 3-6 years old and above to segment parents’ needs in knowledge, products and services. In addition, the plan optimizes the shopping efficiency through recommending more relevant products to different groups of consumers.

The plan’s registered members can also receive special discounts, samples, health services and more to help parents reduce the cost of raising children, and the 30 million members under the plan have achieved an active participation of more than 88 percent with average revenue per user (ARPU) three times higher than non-members.

Benefiting from the plan, brands can adjust traffic in a dynamic manner and receive suggestions from JD.com for sustainable growth and refined operation. For example, a baby skin care brand collaborated with JD Accompany Plan for its new product launch. As a result, the new customers brought in by the plan accounted for 90 percent of the brand’s total newly joined customers, with a conversion rate of 25 percent and a transaction volume of RMB 502,000 yuan on a monthly basis.

Launched in 2016, JD Accompany Plan has accumulated extensive experience in precise marketing and user operation, with a belief of “growing up with consumers and creating value for brands.” The new approach of managing consumers based on each baby’s month age will help JD explore the main market of family consumption in the long run.

 

(liujun215@jd.com)

JD Health Interim Financial Report: Focus on Two-Wheels-Driven Growth

Posted on by Vivian Yang

by Vivian Yang

JD Health announced its interim results for the six months that ended June 30th, 2022 on August 23rd, which beat both topline and bottom line expectations. Highlights in numbers include:

  • Net revenue of RMB 20.2 billion yuan, an increase of 48.3 percent YoY;
  • Non-IFRS net income of RMB 1.21 billion yuan, up by 82.0 percent YoY;
  • Annual active user accounts reached 131.3 million, representing a YoY net increase of 22.7 million;
  • The number of warehouses increased to 20 medicine warehouses and over 450 non-medicine ones;
  • JD Pharmacy’s self-operated cold-chain fulfillment operation covered more than 240 cities across China, and offline Direct-to-Patient (DTP) drug stores extended to 26 provincial-level administrative regions;
  • The average online healthcare consultation volume exceeded 250,000 per day;
  • 27 online specialized medical centers have been established.

According to the report, during the reporting period, merchandise sales accounted for over 80 percent of net revenues, while that of services contributed nearly 15 percent. Despite this disparity, Enlin Jin, CEO of JD Health reaffirmed the company’s “two-wheels-driven” approach that focuses on both product supply chain and services.

While the “left-wheel” of online retail is generating stronger growth momentum now, JD Health is and must gradually pivot to the “right wheel” of service offerings, especially online healthcare services for greater and long-term development, Jin noted.

This June, JD Health upgraded its medical services and launched three new online consultation services: “Expert Consulting”, “Instant Consultation with JD Doctor” and “Nighttime Consultation” to further address users’ diverse needs. The “Expert Consulting” service cooperates with leading physicians from multiple “3A” (the top tier) hospitals in China; the “Nighttime Consultation” service arranges on-duty doctors to provide consultation services available overnight; and the “Instant Consultation with JD Doctor” service provides users with standardized medical consultation services through carefully selected in-house and external physicians.

In addition, JD Health released its “Enterprise Health Strategy” in June, offering corporate clients a full range of customized online and offline employee health management and medical services, covering multiple solutions including corporate emergency rescue management, employee weight and mental health management.

In the meantime, JD Health is leveraging its technological capabilities to empower medical institutions on digital transformation including operation models, supply chain management, healthcare service upgrading and more.

 

(vivian.yang@jd.com)

The J Shop Sees A Flying Start in Q2 2022

Posted on by Yiming Yan

by Yiming Yan

In its unaudited financial results for the second quarter of 2022, JD.com reported a record net service revenue of US$6.2 billion, up 21.9 percent year over year (YOY). The J Shop had experienced impressive growth in the second quarter, as part of JD’s upgrading of its Fashion and Lifestyle business.

Q2 coincided with two major promotions, the 520 Festival (Chinese Valentine’s Day) and the 618 Grand Promotion, during which The J Shop also saw a concentrated soaring sales after the upgrade.

In this year’s 618 Grand Promotion, the number of participating merchants in The J shop surged by more than 50 percent YoY, and there were up to twice as many products available. The sales of 9707 brands and 531 J-shop categories had 100 percent year-over-year growth during the 618 Grand Promotion, while the sales of its omni-channel business saw an 83 percent year-over-year growth.

In addition, The J shop also saw a flurry of international brands on board during the quarter, including CELINE, Maison Margiela, Maison Kitsuné, Moose Knuckles, etc., while almost 300 premium brands launched official flagship stores with The J Shop. The array of cosmetic brands in The J Shop has been enhanced by the opening of official flagship stores such as LA MER, ARMANI, Jo Malone London, Shiseido, M.A.C., and so on.

Faced with sporadic COVID shutdowns during the quarter, The J Shop has played to its strengths to help merchants overcome supply chain challenges and support the industry’s high-quality growth, by using digital technology to help merchants shorten production cycle time and ease inventory strain. In order to assist the brands in clearing out their inventory during the 618 Grand Promotion, The J Shop offered a sell-out rate of over 90 percent for clearance items from brands including HLA.

In May of this year, in order to further strengthen the omni-channel layout, JD Fashion and Lifestyle business was officially upgraded to The J Shop by launching a new online channel on the JD app and opening offline physical stores in Xi’an, Shenzhen, Chengdu, Beijing and other cities. The J Shop integrates JD’s digital intelligence supply chain advantages and omni-channel capabilities to improve user experiences. Online orders for store delivery can be made in as fast as one hour.

 

(yanyiming1@jd.com)

JD.com Named among 2022 FORTUNE China ESG Impact List

Posted on by Vivian Yang

by Vivian Yang and Xinyi Guan

JD.com has been named among FORTUNE China’s “2022 China ESG Impact List” released on August 23rd , together with 39 companies. This is the first time FORTUNE has taken ESG performance a metric to review companies in China, in hopes of honoring the vanguards and raising awareness of the ESG concept in China’s business community.

The list is conducted through a number of surveys, case studies, company interviews and also takes into account the finalists’ ESG information disclosure completeness and their comparative status in respective industries based on Retinitis’s data.

JD.com’s efforts in delivering essential supplies in the ongoing anti-COVID fights, its carbon reduction actions throughout the supply chain, and several governance practices are highlighted by FORTUNE China.

FORTUNE editor’s note:

JD.com’s “Green Stream Initiative” is exploring carbon reduction in every part of its supply chain ranging from packaging, warehousing, transportation, to product recycling and more. By the end of 2021, its “Green Stream Boxes” and other recyclable delivery packages have been accumulatively used 200 million times. Over the past five years, through close collaboration with partners from up and down-streams, the company enabled tens of thousands products to be delivered with original packages, saving the industry 10 billion disposable packages which equal to 20 million trees. JD Logistics is the first company of China’s logistics sector to join the Science Based Targets initiative (SBTi), committing to cut total carbon emissions by 50% from its 2019 level by 2030.

In March to May 2022, during Shanghai’s COVID-19 outbreak, JD summoned over 5,000 couriers and sorters from around the country and put in over RMB 2 billion yuan to ensure essential goods supply and support the livelihood of local people. On company governance, JD has included anti-corruption and other ESG-related targets into employees’ assessment, and in its board of directors, the percentage of independent directors has reached 66 percent.

While ranking the “biggest” companies on its the Global 500 list, FORTUNE also believes that it is equally important to identify those “respectable” companies who are pursuing heart-warming values beyond financial numbers, by improving the environment, protecting their employees and supporting communities. Their on-going practices are positively redefining the meaning of businesses.

Earlier this month, FORTUNE released the 2022 Global 500 list, in which JD.com moved up to the 46th position, continuing to stay top among Chinese companies of the industry six years in a row. The company is ranked 7th on FORTUNE China 500.

This May, JD.com released its “2021 Environment, Society and Governance Report”, including a dedicated chapter for the first time on climate change-related opportunities and risks that aligns with the Task Force on Climate-related Financial Disclosures (TCFD). The report shows that in the past year, JD advanced its carbon-reduction actions on all fronts from daily operations, supply chain management to sustainable consumption promotion and more. Meanwhile, JD has been supporting over 27,000 new, leading and specialized SMEs that are recognized at the provincial level. JD’s rural revitalization initiative, known as the “March to Rich Plan” has driven China’s rural areas to achieve an output value of RMB 320 billion yuan. On employment, by the end of 2021, the total number of JD employees including listed and non-listed companies exceeded 420,000, with 80 percent of its frontline staff coming from rural areas.

During the fight against COVID resurgences in China this spring, JD Logistics delivered more than 150,000 tons of essential goods to affected people, including staple food, medicines, infant and maternal products and more. Over 5,000 frontline workers were dispatched to Shanghai where they went up and beyond to ensure local people’s livelihoods, such as setting up more than 1,600 contact-free delivery stations in the neighborhoods. Incomplete statistics showed that the company has put in a total of RMB 2 billion yuan in supporting the fight against the pandemic in Shanghai, Beijing and other regions with outbreaks this year so far.

Positioned as a new type of real economy enterprise with both real economy DNA and attributes, and digital technologies and capabilities, JD.com attaches great importance to its social responsibilities since day one. On occasions of floods, pandemic outbreaks and other disaster alleviation events, the company can always be seen in the frontline and spare no effort to support the society. At the same time, the company continues to build and integrate its “Responsible Supply Chain” and its “Three Networks” of merchandises, warehouses and tech-driven services, which go beyond enhancing the stability and reliability of its own supply chain. By opening these infrastructure and technological capabilities, JD is also enabling more and more enterprises in its industrial ecosystem along the supply chain to accelerate their digital transformation and help them improve cost and efficiency, thus contributing to the smooth and high-quality growth of the real economy.

 

(vivian.yang@jd.com)

Posted in ESG

JD Logistics Interim 2022 Financial Results Show Strong Growth

Posted on by Yuchuan Wang

by Yuchuan Wang

JD Logistics released its interim 2022 earnings results on August 23, with revenue increasing by 20.9 percent to RMB58.6 billion yuan, a growth rate that is higher than the industry’s average.

External factors including the pandemic have posed challenges to the global logistics industry, while JD Logistics’ continuous investment in supply chain infrastructure and intelligent technology empowers the company to leverage flexible and resilient integrated supply chain solutions. In the second quarter of 2022, JD Logistics’ revenue from external customers increased by 27.7 percent YoY to RMB18.2 billion yuan, accounting for nearly 60 percent of total revenue for the quarter, thanks to the company’s tailored supply chain solutions and products for customers from various industries including FMCG, home appliance, apparel, 3C, automotive, fresh produce and more.

Jd Logistics Put Battery Swapping Vehilce in Use

At the same time, JD Logistics keeps expanding its logistics infrastructure at home and abroad. As of June 30, 2022, JD Logistics operated over 1,400 self-operated warehouses and over 1,700 owner-operator cloud warehouses under its Open Warehouse Platform, with an aggregated floor area (GFA) of approximately 26 million square meters. Same-day or next-day delivery service covered China’s 94 percent counties and 84 percent towns and villages.

In June, JD Logistics launched the first automated warehouse in the United States, “Los Angeles No.2”, enlarging its self-operated warehouses in the country reaching an area of approximately 1,000,000 square feet. Since 2020, JD Logistics has launched self-operated overseas warehouses in the United States, Germany, the Netherlands, France, the United Kingdom, Vietnam, the United Arab Emirates, Australia, Malaysia and so on, representing the company’s initial milestone achievements in its global network expansion plan. As of June 30, 2022, JD Logistics operated approximately 90 bonded warehouses, international direct mail warehouses and overseas warehouses, covering an aggregate GFA of approximately 900,000 square meters with an over 70 percent increase year-over-year.

JD Logistics has been investing in smart technologies regarding warehousing and delivery. JD Logistics had applied for over 7,000 patents and software licenses, among which more than 4,000 are related to automation technology and unmanned technology. As the first company in China to apply autonomous delivery vehicles commercially on public roads, JD Logistics now deploys over 400 such vehicles in more than 25 cities including Beijing, Tianjin, Changshu and more.

Additionally, JD Logistics is deeply aware that the future of the company is closely tied to the environment, society and the industry. In May, JD Logistics published its first ESG report; and in June, JD Logistics and partners jointly released the “Carbon Neutral Guide for Logistics Parks” and took the lead in presenting a comprehensive solution for carbon neutrality in logistics parks. JD Logistics also released the industry’s first Delivered with Original Package (“DWOP”) green packaging certification, and joined hands with many partners to set the new goal of green packaging, aiming at achieving more than 80 percent of e-commerce products support DWOP by 2030.

 

(yuchuan.wang@jd.com)