JD.com and OPPO Deepen Partnership

Posted on by Yiming Yan

by Yiming Yan

JD.com and OPPO announced that they have signed a new annual cooperation agreement on August 17, furthering their cooperation in supply chain and marketing to improve consumers’ shopping experiences.

Through this collaboration, OPPO will be fully settled in JD’s offline stores, while JD’s one-hour delivery service will also empower OPPO showrooms to enhance consumers’ shopping experiences by providing convenient and expeditious one-stop shopping in a variety of scenarios.

JD Cloud will also kick off a partnership with OPPO in technology cost reduction and marketing expansion. Leveraging JD’s supply chain integration tools and digital intelligence infrastructure, OPPO will get a boost in quality and efficiency.

JD and OPPO join hands to explore and innovate a future omni-channel retail model, which will help brands achieve even more tremendous sales growth while generating new incremental value for the mobile phone industry.

JD Communication and OPPO have long maintained close cooperation. In the first half of 2022, OPPO has been stationed in over 600 JD offline stores all around the country, contributing to the rapid sales growth of OPPO brands.

 

(yanyiming1@jd.com)

JD Worldwide Helps SMEs Thrive amid Challenges

Posted on by Doris Liu

by Doris Liu

JD Worldwide, JD’s cross-border ecommerce arm, has helped merchants and sellers remove barriers by lowering store fees by half with zero retention money and commission fee at most, with an aim to boost the trade capabilities of businesses amid pandemic-related uncertainties, according to a recent meeting between JD Worldwide and its merchants in the category of cross-border food and beverage.

A healthy ecosystem has been established by JD Worldwide, through developing advantageous categories, approaching high potential categories and jointly incubating exclusive products with merchants.

Since 2022, the number of import beverage stores covering 170 liquor brands on JD Worldwide has grown 154 percent year-on-year (YOY), while the number of food brands has doubled in the marketplace.

Small and medium-sized enterprises (SMEs) are confronted with challenges to acquire customers in a short time. JD Worldwide, besides fee exemptions, has also rolled out plenty of other support tools to help SMEs and brands expand in China.

“The operation team of JD Worldwide, after rounds of in-depth communication and surveys with us, tailored an operation plan based on the store’s situation,” said Hong Jin, operation manager of the Aidougou food store, which saw a growth rate of 10 times after joining the platform for only one year.

Aidougou specializes in imported milk powder, coffee and body cream, which are categories that are not easy to differentiate in the market. In the early stage, JD Worldwide suggested that the store could enrich product quantity and category to reach more customers, and then spotlight the most popular products to further stimulate sales.

During the 618 Grand Promotion this year, after noticing that Nestlé Carnation High Calcium Matrix Low Fat Milk Powder was experiencing high sales, Aidougou, with support from JD Worldwide, decided to set it as a featured product by driving more traffic resources, creating contents for various channels such as JD Livestream; Douyin and the social e-commerce app Xiaohongshu (“Little Red Book”) to interact with consumers with higher conversion rates. Sales for this milk powder rose by 4.3 times in June, hitting the top of the store’s products in 618 sales volume. The conversion rate rose from 3 to 14.5 percent and the transaction volume went up six times in just one year.

However, increasing product quantity and categories means high warehousing and low liquidity. JD Worldwide recommended holistic warehousing management that is part of the company’s digitally intelligent supply chain. As a result, this has enabled Aidougou to share JD’s inventory and delivery, rather than the store utilizing the traditional way of handling self-owned and suppliers’ inventories separately on its own. One important benefit of this system is that stores only need to pay for inventory when orders are made by customers.

Hong said the store will enhance collaboration with JD Worldwide in more categories and actively integrate into the merchant ecosystem to bring more international food brands to the Chinese market.

In addition to refining user operations, JD Worldwide also consolidates brands and merchants’ competitiveness by offering consumers services of authentication and traceability, as well as JD’s deeply rooted image of its commitment to authentic-only products, said Zhao Chunjian, head of 7-Plus liquor store on JD Worldwide. The store was launched in September of 2021 and saw a sales increase of 100 percent in June this year compared with that in May.

From sales to branding, JD Worldwide is always seeking opportunities to help merchants develop on a robust growth path. Imported merchandise is on the rise as consumers are also looking for more diversified consumption upgrade. By leveraging the advantages in supply chain, technology, logistics and marketing approach, JD Worldwide will better empower SMEs, while also serving customers as a bridge between global brands and the Chinese market.

 

(liujun215@jd.com)

UNFAO Representative Visits JD.com

Posted on by Mengyang He

by Mengyang He

JD.com welcomed the representative of the Food and Agriculture Organization (FAO)  of the United Nations (UN) to China, Carlos Watson at JD.com’s headquarters and Asia No.1 Intelligent Logistics Park in Beijing on August 16, with an aim to initiate cooperative work plans revolving around agricultural produce, products with geographical indications (GIs), rural development, and more.

Watson visits JD’s Asia No.1 Intelligent Logistics Park in Beijing

“JD.com has always been enthusiastically devoted to rural development,” noted Lizhen Liu, Vice President of JD.com, President of JD FMCG Omni-channel. “From poverty alleviation to rural revitalization, we deploy technology, logistics, and supply chain to solve outstanding issues in the circulation of agricultural produce.”

Watson said, “The FAO representation in China is committed to working with partners to serve China’s agriculture-related initiatives, including rural revitalization. We are delighted to see JD.com’s efforts in the realization of the Sustainable Development Goals (SDGs).”

Carlos Watson (left) and Lizhen Liu

As JD.com is firmly committed to rural revitalization, it implemented the “March to Rich Plan” initiative (MRP) in 2020, which has integrated and leveraged JD.com’s five core capabilities in supply chain, logistics, technology, finance, and service through five major projects. By the end of 2021, the MRP had driven villages to achieve an output value of RMB 320 billion yuan (about US$ 47 billion) and helped nearly one million farmers significantly increase their incomes. As of now, JD.com has connected over 1,000 agricultural product regions in China, directly benefiting a large number of farmers and local specialties in rural areas.

 

(hemengyang5@jd.com)

Posted in ESG

JD.com Deepens Cooperation with Tampax

Posted on by Mengyang He

by Mengyang He

JD.com recently initiated a consensus workshop with Tampax from Procter & Gamble, where the two sides set priorities and reached agreements on a series of common objectives, including the goal to realize a tenfold growth in transaction volume for the brand on JD.com within the next five years.

As a leading tampon brand, Tampax tapped into the Chinese market in 2017, and recorded a transaction volume of over RMB 25 million yuan on JD.com last year.

In the future, JD.com and Tampax will jointly roll out various marketing campaigns to further elevate the exposure of tampon products, educate consumers, and increase brand awareness with related content.

“We are delighted to see that lots of new users come from the Gen Z and student population, and we hope to expand the category and let more consumers know about the high-quality products,” said Xiaofeng Qian, head of feminine hygiene products for JD.com.

Because of existing consumption habits and a lack of product awareness, China’s tampon market is still in its early stage, with a user penetration rate of only 2 percent, a far cry from many other countries.

With more women joining a variety of sports activities and putting an emphasis on a healthy lifestyle, tampons are coming in handy and the market in China sees its potential.

 

(hemengyang5@jd.com)

For Each Trade-In Order of Electronic Products, JD Matches 1 Yuan to Tree Planting

Posted on by Vivian Yang

by Vivian Yang

JD.com and China Green Foundation jointly announced a charitable project on August 11th, through which the e-commerce company will contribute RMB 1 yuan to the Foundation’s tree-planting plan every time an electronics product is ordered via JD’s trade-in service, starting from the 15th this month.

Cell phones, digital, home appliances and other electronic products are all included in this campaign. Consumers can recycle used devices for new electronics at favorable prices through JD’s trade-in program, and the aggregate orders will become the sum amount of donation from JD.com, funding the next spring’s planting of wolfberry saplings in Ningxia Hui Autonomous Region.

Chinese wolfberries are a specialty in Ningxia in north-central China and can grow in local deserts to shield sands and tame desertification.

Recycling e-waste has become an imminent task in China. An alarming estimation by the National Development and Reform Committee said that the amount of electronic waste in this country averages 100-120 million items a year and it will reach a peak of 137 million in 2022. This “1 Yuan Green Initiative” is concrete action from JD.com, as China’s leading retailer of electronic products, to combat the challenge.

Statistics also show that the power use of household appliances account for 11.3 percent of the national electricity consumption, and about 30 percent of residents’ carbon emissions come from household appliances.

Trading in a refrigerator can cut carbon emissions by 30 kilograms, according to the Beijing Green Exchange. Meanwhile, a tree can absorb an average of about 10 kilograms of CO2 per year, meaning one such trade-in order can save the work of three trees for a whole year.

To encourage carbon reduction from the consumer end, JD.com also introduced the “Green Impact Initiative” this May in which one million different kinds of products on JD.com now have been screened for environmentally-friendly standards and green-labeled, making it easier for the platform of over 580 million consumers to reach greener products.

 

(vivian.yang@jd.com)

JD.com’s Sports Consumption Sees More Bike Lovers

Posted on by Doris Liu

by Doris Liu

JD.com and the Beijing Municipal Sports Bureau kicked off the 8.8 Beijing Sports Consumption Festival on August 8 under the theme of “Joyful Sports, Joyful Excellence,” adopting a variety of ways to ignite passion for sports.

The one-month festival added an offline carnival of sports experience scenarios this year, which are intended to complement the festival’s four thematic sections of “Buy Online,” “Race Online,” “Order Online” and “Learn Online”. The carnival provides the public photo-ready scenarios, camping and frisbee experience areas, as well as an interactive gaming area where people can have a ski adventure while wearing a VR headset.

By linking online shopping with offline scenarios, the J Shop, JD’s fashion and lifestyle business, managed to meet the personalized sports needs of customers. Since the pandemic has made people explore more non-social activities, cycling, swimming and camping have become more popular sports for outdoor relaxation and exercise, as shown by the sales data of the festival.

For instance, JD.com saw a threefold increase in sales of road bikes from August 1-8. From June, road bikes, city bikes, mountain bikes and folding bikes surged by 120 percent, 90 percent, 70 percent and 60 percent year-over-year (YOY) respectively in transaction volume. Sales of cycling equipment doubled while sales of cycling jersey and bike accessories increased 163 and 90 percent YOY.

Data from the J Shop showed that customers are willing to splurge on cycling, with the most sought-after road bikes mainly being priced above RMB 10,000 yuan and occupying 10 percent of the overall sales. The most popular traditional mountain bikes are RMB 1,000-2,000 yuan, while the prices for folding and city bikes are around RMB 500-1,000 yuan.

 

(liujun215@jd.com)

London Brand Palace Opens China’s First Digital Store on JD.com

Posted on by Doris Liu

by Doris Liu

Palace Skateboards, also commonly known as Palace, launched its first online flagship store in China on JD.com, dropping its latest autumn collection on August 6.

Available in the JD store, the brand’s iconic graphics can be found on the Polartec 1/4 Zip Jacket, Tabloid denim jacket, Palace Payne Shirt and the Palace x adidas capsule collection, alongside an extensive array of clothing and accessories.

The store will release new products every Saturday morning at 11am during the seasonal periods, enabling Chinese customers to catch up with the latest global drops.

Before the partnership with China’s leading e-commerce company, Palace used cross-border parcel delivery, which could take 1-2 weeks for customers in China to receive their orders from the official website. Now with JD’s authenticity guarantee and robust in-house logistics network, the period of delivery is significantly shortened.

Palace, the buzzy skateboarding and clothing brand established in London in 2009 by Levent Tanju and Gareth Skewis, has gradually carved out a niche in the streetwear market. With its signature triangle logo referred to as Tri-Ferg, the acclaimed skateboard brand has collaborated with Ralph Lauren, adidas, Reebok and many other leading brands across the fashion and sports universe.

With in-depth insight into the fashion industry and a trusted ecosystem, JD is home to a growing number of luxury, fashion and designer brands. To further capture Gen Z, brands such as Maison Margiela, AMI Paris, Stone Island, Yohji Yamamoto and Gentle Monster have opened flagship stores on JD.

 

(liujun215@jd.com)

JD Logistics Among World’s Top 10 Strongest Logistics Brands

Posted on by Yuchuan Wang

by Yuchuan Wang

JD Logistics, JD.com’s logistics arm, was named one of the world’s top 10 strongest logistics brands in the Logistics 25 2022 report released last week by Brand Finance, an independent brand business valuation consultancy.

The report highlights JD Logistics’ innovations in the supply chain sector, noting that JD Logistics has invested in cutting-edge technology and research to roll out an automated delivery service offering in selected cities in China. The company is also focusing on ESG projects such as establishing China’s first carbon-neutral logistics industrial park which aims to lower energy consumption. JD Logistics is making the supply chain more sustainable by employing green warehousing, reusable packaging and using more renewable energy.

Currently, JD Logistics operates a logistics network of approximately 1,400 warehouses and 200,000 in-house couriers. Its services cover almost everywhere in China with same- and next-day delivery service available in 94 percent of counties and 84 percent of villages. Its global supply chain includes approximately 80 bonded and overseas warehouses in Europe, the U.S., Southeast Asia, Australia, the Middle East and more.

 

(yuchuan.wang@jd.com)