JD.com announced on March 9 that the company’s Xi’an Asia No.1 Logistics Industrial Park has been certified carbon neutral by China Beijing Environment Exchange and Centre Testing International Group. The park also marks the establishment of China’s first carbon-neutral logistics park.
JD’s Asia No.1 logistics park in Xi’an was put into use in 2019 and has deployed 100,000 square meters of rooftop solar PV to generate renewable electricity for the park’s operations. In addition to leveraging such green power, the park also constantly improves sorting and transportation processes, applies distributed air conditioning instead of traditional boiler rooms in certain areas, and widely uses new energy for special equipment and terminals. The outstanding emissions in 2021 were offset through CCER (China Certified Emission Reductions) with the support of China Beijing Environment Exchange.
A representative from Centre Testing International Group said that JD.com is leading the industry to promote dual carbon strategy and continues to contribute to sustainable development.
By the end of 2021, JD has completed installation of PV systems at 12 logistics parks. The company expects its PV system’s capacity to reach 1,000 MW in three years, aiming to provide green energy to 85% of JD’s intelligent industrial parks.
JD’s Asia No.1 logistics park in Suqian, Jiangsu province is actively promoting PV installation and comprehensive energy transformation, targeting to become carbon neutral in early 2023.
On March 10，JD Logistics (JDL) announced the first annual financial results since its IPO in 2021. With the total revenue reaching RMB104.7 billion yuan, representing 42.7% growth compared with 2020, the company’s revenue from external customers exceeded 50% of the total revenue for the first year, at 56.5%. As of December 31st, 2021, JDL operated over 1,300 warehouses, over 7,200 delivery stations and employed over 200,000 in-house delivery personnel.
Behind the strong results is JDL’s integrated supply chain solutions and high quality logistics services. In 2021, the number of JDL’s external integrated supply chain customers grew significantly and reached 74,602 with a year-over-year growth rate of 41.7%. In 2021, JDL served over 300,000 industry-leading customers such as Volvo Group, Xiaomi Youpin, Cheers, Shaanxi Coal, Chemical Industry Group and more, and has been customizing its solutions to also serve middle-sized clients in the industries of FMCG, apparel, 3C and eight other areas in total.
JDL’s integrated supply chain service is also blossoming in overseas markets. In 2021, the company opened automated warehouses in six countries including the UK, the US, Australia and the Netherlands, with a total number of bonded and overseas warehouses reaching to nearly 80. Its warehouse in the Netherlands served Hunkemöller, the eminent European ready-to-wear brand, covering the full range of B2B and B2C scenarios and fulfilling orders in the Netherlands, France, Belgium and Luxemburg via automated goods-to-person AGV（Automated Ground Vehicle） robots. It also launched cargo flights from China to Thailand, the US and the UK to provide as fast as 48-hour door-to-door transportation service.
Additionally, technology is a key differentiator for JDL, in that technological innovations are applied to all key stages of supply chain services to realize service automation, operation digitalization and intelligent decision-making. A total of RMB 2.8 billion yuan was invested in technology innovation in 2021, with a year-on-year increase of 37 percent. As of December 31, 2021, JDL had applied for over 5,500 patents and software licenses, among which more than 3,000 were related to automation technology and unmanned technology. 5G was piloted in Asia No.1 logistics parks in Changsha and Beijing, and a total of nearly 400 Level-4 autonomous delivery vehicles were put into daily operations for last-mile delivery in cities such as Beijing, Shanghai and Changshu.
These achievements are in great part thanks to JDL’s employees. JDL had over 300,000 front-line employees in 2021. The compensation packages for these front-line workers in warehouse management, sorting, picking, packaging, shipping, delivery and customer services increased by 37.3% from RMB26.1 billion in 2020 to RMB35.8 billion in 2021.With over 80% of the front-line workers from rural areas, JDL provides them with industry-competitive salaries, comprehensive benefits, and broad room for career development.
According to China’s State Post Bureau, JDL continues to maintain the best-in-class customer satisfaction ratings in 2021. Now, same-day or next-day deliveries via JDL have covered 93% of China’s counties and 84% of towns and villages.
The number of JD PLUS members has exceeded 25 million, and the average annual consumption is 10 times that of non-JD PLUS users, continuing to lead the rapid development of the paid membership field at the end of the fourth quarter.
JD.com released fourth-quarter and the year of 2021 earnings on March 10. Lei Xu, president of JD.com, said that “JD.com continued to outperform the industry and contributed to the high-quality expansion of China’s consumption and achieved a healthy profit growth in the quarter, due to improvements in efficiency driven by technology.”
With the rapid growth of its performance in the fourth quarter, JD.com’s user volume continued to increase. The number of active purchasing users, as of December 31, 2021, was around 570 million, a net growth of nearly 100 million in one year, with 70% of the new users have come from China’s lower-tier cities.
“We saw users’ shopping frequency, range of categories purchased, and average revenue per user (ARPU) all meaningfully improved in the fourth quarter. This was driven by our stronger user engagement and omnichannel initiatives,” said Lei Xu. “JD’s goal is not to chase high growth in any single operating or financial metrics; instead, we focus on the healthy and sustainable growth of our business as a whole.”
Additionally, new business Jingxi, which focuses on lower-tier markets, undertook a series of iteration and optimization measures to provide better services to customers in 2021. Since the second half of 2021, Jingxi has led the industry in proactively focusing on selected markets, as well as on efficiency and user experience, to drive local supply chain capabilities. As a result, Net Promotor Scores (NPS) for user experience and merchants’ satisfaction levels further increased.
“Through several economic cycles and COVID-19, JD’s business and investment strategies have always centered on users and business partners. This is the strategic determination and focus of JD.com.” president of JD.com, Lei Xu added.
Manage more than 10 million SKUs of self-operated products across computer digital, mobile phones, home appliances, consumer goods, fashion, home furnishing, fresh food, life services, industrial products, and other categories
Connected to millions of community supermarkets, vegetable stores, pharmacies, auto repair shops, flower shops, etc.
Cooperate on innovative digital mini-programs with LVMH covering Louis Vuitton, Berluti, Givenchy, Bulgari, Dior, Loewe, Celine, Rimowa, and Fendi
580m+ annual active customers and over 25 million users in the JD PLUS premium membership program
Higher penetration among affluent urban residents, and higher average basket size than the overall industry
Invested nearly 80 billion in technology research and development in the past five years
Research areas include artificial intelligence, virtual and augmented reality, automation, robotics, autonomous vehicles systems, and more
R&D is used for everything from intelligent pricing to inventory management and fraud detection
One of the first pilot technology companies to apply e-CNY in China
JD Explore Academy embraces world-class scientists for technological innovation
JD HEALTH
Listed on Hong Kong Stock Exchange (HKEX) with the ticker 6618.HK on Dec. 8 2020
JD Pharmacy is China’s largest online pharmaceutical retailer by revenue, with 19 medicine warehouses and over 400 non-medicine warehouses
More than 80% of self-operated medicines are delivered next day
45,000+ doctors with the level of deputy chief physicians or above registered online
The Family Doctor program is designed to provide professional and personalized health management services for users whenever and wherever needed
JD Pet Hospital has over 5,000 registered veterinarians to provide pet owners with 24/7 online healthcare consultation services
JD Health’s full-time telemedicine doctors at work
JD Worldwide
Local retail business in Indonesia, known as JD.ID, with 85 percent of orders delivered same or next-day and fast development of omni-channel outlets
Local e-commerce business in Thailand that covers all regions and 95 percent of orders in Bangkok delivered on the same day
JD Overseas is the cross-border e-commerce business dedicated to serving global Chinese consumers
JOYBUY is JD’s cross-border B2B platform mainly serving buyers including e-commerce marketplace sellers, DTC sellers and small and medium-sized offline merchants
Launched ochama, JD’s concept robotic retail brand, in January 2022—so far four ochama shops have been launched in the Netherlands, and it is the first omni-channel retailer in the country that offers both food and non-food in one shopping App
JD International Logistics is operating around 80 bonded and overseas warehouses and cargo flight routes between China and the US, UK and Thailand. Together with various shipping services by air, railway, sea and trucks as well as other cross-border services, overseas orders can be delivered from door-to-door as fast as 48 hours
JD’s highly automated warehouse in the U.S.
Green Supply Chain
Aiming to have CO2emissions peak before 2030 and become carbon neutral by 2060
Initiated the Green Stream Initiative in 2017 with an array of decarbonizing actions throughout the supply chain ranging from packaging, warehousing, transportation, recycling and more
Xi’an Asia No.1 Logistics Industrial Park certified as China’s first carbon-neutral logistics park
Launched the Green Impact Initiative in June 2022 to offer one million green-labeled products on JD’s platform to promote responsible consumption
JD’s recyclable delivery boxes, known as Green Stream Boxes
JD.com joined P&G China, the leading consumer goods company, and officially launched the “P&G CARE+ Accessible Shopping Assistant” on March 10, providing an array of solutions to the problems often faced by visually impaired consumers before, during, and after the online shopping process. The services aim to optimize the online shopping experiences through barrier-free consultation, home delivery, door-to-door pickup logistics services, etc.
P&G China staff testing the “P&G CARE+ Accessible Shopping Assistant”
Before sales:
JD.com will join P&G China and launch outbound voice calling services for businesses. After the visually impaired consumers turn on the screen reader, they can experience the barrier-free escort service by entering the key phrase “speed forward” in the customer service chat window of P&G China’s official flagship store on JD.com.
During sales:
JD.com will give full play to its advantages in logistics, and work with P&G China to track barrier-free parcels. With the services of JD Logistics, the parcels will be door-to-door delivered to ensure the implementation of barrier-free services.
After sales:
JD.com will work with P&G China in solving the after-sale service needs for visually impaired consumers, and support P&G China to initiate return visits.
According to China Disabled Persons’ Federation, there are over 17 million visually impaired people in China. Due to the challenge, visually impaired consumers often encounter difficulties in grasping product information, picking up deliveries and returning products. “In the future, we will continue to work with JD.com to continuously optimize technical support and provide special services visually impaired consumers,” noted Ella Lu, General Manager of Consumer Relations Communications at P&G Greater China.
JD.com reported its fourth quarter and full year 2021 results on March 10, recording full year net revenues of RMB 951.6 billion yuan (US$149.3 billion), with an increase of 27.6 percent YOY. Notably, JD.com saw a YOY growth of nearly 80 percent in its omni-channel transaction volume in 2021, further reiterating its commitment to on-demand retail through the omni-channel approach.
With consumers’ increasing need for on-demand consumption of different product categories, a variety of merchants have joined the initiative to deliver products within an hour, further expanding the on-demand retail business.
China Resources Vanguard (CR Vanguard), one of China’s largest retail chains, serves as an example of JD’s omni-channel capabilities. Last July, more than 1,800 supermarket stores of CR Vanguard settled on JD Daojia (JDDJ), covering all types of business models of CR Vanguard, all of which are accessible through Shop Now, which is a new business dedicated for JD’s on-demand consumer retail section jointly launched by JD.com and Dada Group in 2021. Last September, CR Vanguard recorded a fourfold increase of transaction volume realized through Shop Now services compared to six months ago in March.
A Dada rider standing in front of a CR Vanguard store
Zhijiang Xu, CMO of China Resources Vanguard, said “The cooperation between China Resources Vanguard and JD Daojia (JDDJ) in omni-channel fulfillment, products, users, marketing, and other aspects has laid a solid foundation for Shop Now. Deep collaboration and co-creation will enable both parties to better seize the opportunities of on-demand retail and have a win-win future.”
During the fourth quarter of 2021, JD.com reinforced its omni-channel innovation project through its collaboration with over 600 stores of CR Vanguard. JD.com leveraged the on-demand delivery and retail platform of Dada Group, which was recently consolidated by JD.com, to help CR Vanguard achieve a growth of over 400 percent YOY in transaction volume during 2021’s Singles Day Grand Promotion.
“On-demand retail is an important part of JD’s omni-channel strategy, which helps us expand our touchpoint with our customers and provides diversified shopping scenarios,” noted Lei Xu, President of JD.com.
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, providing consumers with on-demand shopping options through JD.com’s app, including the recently launched in-app tab “Nearby”, which gives customers access to JD.com’s one-hour delivery service in nearly 400 cities in China.
As JD.com continues to expand its omni-channel layout, brands, merchants and brick-and-mortar stores in various fields are leveraging JD.com’s omni-channel capabilities to accelerate digital transformation and high-quality development. JD.com has opened over 10,000 physical stores, such as JD Mall, JD Electronics Experience Store, JD Home Appliance Store, JD Computer Digital Store, JD Home, JD Pharmacy, SEVEN FRESH Supermarket, JD Convenience Store, JD Automobile Club, etc. In addition, JD.com is also providing services in product selection, operation, supply chain, logistics, and finance to 3.67 million pharmacies, specialty stores, supermarkets, convenience stores, automobile repair shops, and flower shops across China.
JD automobile repair shop
“JD.com’s open ecosystem and supply chain capabilities have improved operational efficiency and sustained high-quality growth to partners. JD.com’s long-term business strategy and investment outlook will always focus on creating value for customers and partners,” added Lei Xu.
In the field of home appliances, for example, JD.com launched the first JD Mall in Xi’an last year, bringing an immersive shopping experience that integrates online and offline to consumers.
JD Mall in Xi’an
Additionally, as of March 2022, more than 4,000 physical maternal and baby stores have settled on JD Daojia (JDDJ) and Shop Now. In 2021, the transaction volume of maternal and baby products through JD Daojia (JDDJ) and Shop Now increased by over 200 percent YOY. The data shows that more physical stores represented by maternal and baby stores have achieved better and faster growth through JD.com and Dada’s digital capabilities and on-demand retail solutions.
After Dada Group was consolidated by JD.com, the parties will deepen omni-channel cooperation, in which Dada will further undertake JD.com’s on-demand retail delivery business. The two parties will jointly enhance the consumption experience with continuous innovation, especially the convenient and efficient on-demand consumption experience.
“JD.com maintained a healthy growth momentum and continued to outperform the industry, contributing to the high-quality expansion of China’s consumption in a dynamic external environment.” Lei Xu, president of JD.com, said during a call to discuss JD’s Q4 and full year 2021 earnings on March 10.
JD.com recorded 23 percent year-on-year net revenue growth in Q4 of 2021 on a high comp, reaching RMB275.9 billion yuan (US$ 43.3 billion). Net service revenues for Q4 were RMB41.2 billion yuan (US$6.5 billion), an increase of 28.3 percent YoY. Net revenues of 2021 were RMB951.6 billion yuan(US$149.3 billion), up 27.6 percent YoY; and net service revenues were RMB135.9 billion (US$21.3 billion) with a rise of 44.7 percent YoY.
Amid the evolving macro-economic and competitive challenges, JD achieved an increase in both user volume and quality (as measured by spending power). The company’s annual active users reached 569.7 million in 2021, up 20.7 percent, with meaningful improvements in shopping frequency, range of categories purchased as well as Average Revenue Per User (ARPU).
“As China’s internet industry develops into a more mature stage, the traffic-driven growth model relied on subsidies is being replaced by a user quality and operating efficiency-oriented model,” Lei Xu said during the earnings call, adding that JD will explore and satisfy more user needs with higher standards and goals in 2022.
With direct management of nearly 10 million SKUs, JD further shortened inventory turnover days from 33.3 days last year to 30.3 days, the lowest level in the industry.
Facing the booming and fierce competition brought by live streaming e-commerce, Lei Xu said JD was less affected by its emergence as more customers choose JD for planned consumption.
“JD has complete capabilities of supply chain infrastructure, fulfillment, customer service, platform governance and so on,” Lei Xu said. “Compared with other e-commerce platforms, we can effectively reduce the circulation costs of the supply chain and have a greater differentiation advantage.” Operating with an open-minded attitude, JD is willing to strengthen cooperation with content platforms, and support merchant partners to better operate on these platforms, Lei Xu added.
It’s notable that the growth of third-party merchants accelerated to the highest level on JD.com in the past three years. Meanwhile, the number of new merchants added in Q4 exceeded that of the previous three quarters combined.
JD expects that third-party merchant business will grow faster than self-operated business in 2022 as the company has been optimizing the third-party ecosystem and merchant tools, said Sandy Xu, CFO of JD.com.
“The overall consumption in Q1 or even the first half of the year 2022, will be relatively conservative,” said Sandy Xu during the call. However, she was confident in JD’s performance this year: “Overall, although the retail consumption is currently under pressure to a certain extent, we will deliver higher growth than the industry average.”
On March 10th, JD.com released its fourth quarter and full year 2021 earnings results. Below is an infographic with the key highlights. The full release can be found here.
