Other supplies and 200,000 RMB worth of masks in an hour

Dada Q3 2021 Earnings: Revenue Growth Accelerates to 86% YOY, Deepens Ties with JD.com

Posted on Nov 25, 2021Oct 13, 2022 by Mengyang He

by Dada and JD

On November 24, Dada announced its unaudited financial results for the third quarter ended September 30, 2021.

In this quarter, Dada’s total net revenues increased to RMB 1,686.8 million, which is above street’s expectation of RMB 1,625.0 million and the company’s high-end guidance of revenue outlook. Aligning the revenue recognition method of Dada Now last-mile delivery services to net basis, pro forma revenue growth would have been 86% year-over-year, which represents an acceleration compared with 81% revenue growth in the last quarter.

“Dada has always been committed to driving digital transformation in the retail industry and providing consumers with superior experience to meet the evolving demands,” said Mr. Philip Kuai, Chairman and Chief Executive Officer of Dada. “We are excited to strengthen strategic cooperation with JD under the omni-channel strategy to explore the enormous potential in the on-demand retail industry. We will continuously work together to create more value for retailers, brands and consumers and serve the development of the real economy.”

In October, Dada Group and JD jointly launched “Shop Now,” a unified brand for all on-demand retail services within the JD ecosystem. Through Shop Now, users can access on-demand services via multiple channels on JD, including the “Nearby” tab. Shop Now increases Dada’s penetration rate among JD’s vast user base, which should become a stronger driver for its long-term development.

As JDDJ expands merchant and category coverage, the platform is helping more offline retailers and brands build digitalization capabilities. It now has established partnerships with 82 of the top-100 supermarket chains in China. In the Q3, revenue from online marketing services on JDDJ grew by over 140% year-over-year, a significant acceleration from the previous quarter. Meanwhile, orders fulfilled by Dada Picking grew over 70% quarter over quarter.

Dada Now has rolled out a panorama of its on-demand order fulfillment, covering warehousing, picking and delivery services, to empower retailers in an all-process way. In this quarter, revenue from on-demand delivery services to chain merchants increased more than 110% year-over-year. Dada also provides third-party delivery service providers and merchants who deploy their own delivery fleet with a suit of digital tools to manage order dispatching and routing for omni-channel on-demand delivery orders.

Please find the full version of the financial report here

(press@jd.com)

JD Worldwide Pavilion of Imported Products Opens in Hainan

Posted on Nov 23, 2021 by Yiming Yan

by Yiming Yan

In cooperation with Boulevard Du Luxe, a subsidiary of Lagardère, and Mangrove Resort World, JD Worldwide Pavilion of Imported Products (JDPIP) opened on November 19 in Sanya, Hainan province. The pavilion, which combines products from both general trade and cross-border e-commerce, brings quality imported goods to consumers at a discounted price.

The JDPIP is divided into a display area and a prestige discount area. The display area showcases JD’s own cross-border goods, which can be ordered online by scanning the QR code; the prestige discount area features discounted luxury goods offered by Boulevard Du Luxe.

The project also embeds the experience of shopping in a hotel room. Each guest room in Mangrove Resort World contains a list of popular products imported by JD Worldwide, where guests can shop online or offline. For example, at the “chic lady” themed Queen Palm Mangrove Resort World in Sanya, the JDPIP introduces toiletries by “Laundry House” for women to try out.

By lowering the purchase threshold for duty-free goods, the JDPIP will attract both tourists and locals. Meanwhile, the cooperation between JD and Lagardère has brought into play the advantages of each other’s supply chain resources and marketing resources, in order to combine cross-border and general trade in one.

(yanyiming1@jd.com)

JD.com Sets to Open Hunan Province’s First JD MALL

Posted on Nov 23, 2021Sep 24, 2022 by Mengyang He

by Mengyang He

On November 22, JD.com and one of China’s top 7 real-estate companies, Excellence Group, signed an agreement and set to open Hunan province’s first JD MALL in Changsha, which is an upgraded version of JD’s E-Space omni-channel retail experience store. The JD MALL in Changsha will be part of Excellence Group’s business complex, with an area of 100,000 square meters.

According to Yu Chen, General Manager of Development and Planning for JD Mall, the JD MALL chain combines both online and offline experiences and offers an immersive omni-channel shopping experience to consumers.

As of now, JD MALL initially debuted in Xi’an, Shaanxi province in the end of September this year, and it accumulated a transaction volume of over 150 million within the first 7 days of operation. The JD MALL in Changsha is expected to become a regional business landmark in concert with Excellence Group’s additional projects, bringing technology, fashion, and art together.

(hemengyang5@jd.com)

Chengdu Becomes the Largest Imported-Wine Market in China: JD’s Data

Posted on Nov 23, 2021Nov 23, 2021 by Yiming Yan

by Yiming Yan

JD Supermarket has released an imported wine consumption trends report this week with insights from the Singles Day Grand Promotion, reflecting Chinese consumers’ enthusiasm towards imported wine. The western city of Chengdu pulled ahead of Beijing and Shanghai, two of China’s largest metropolitan areas, becoming the largest consumer market of imported wine, accounting for roughly 20% value of the country’s overall import wines during the grand promotion.

According to the report, the consumption of imported wine also showed a trend towards high-end brands, with deluxe single malt whisky increasing by 16 times YOY in the first 10 minutes of the promotion. In addition, sales of fruit cider increased by 24 times compared with last year during the shopping festival.

Among them, Martell, Rémy Martin, Jack Daniel’s, Hennessy and Johnnie Walker were the top 5 most popular brands among Chinese consumers. Rémy Martin Club Cognac 50cl, Jack Daniel’s Black Label Tennessee Whisky 70cl and Johnnie Walker Black Label 12-Year-Old Scotch Whisky 70cl were the bestsellers.

The demographic distribution of imported wine consumers is notable. Imported wine has become a newly emerging norm among the younger generation. Consumers under age 35 have made 62% of all imported wine consumptions. Furthermore, female consumers contributed up to one-third of the imported wine consumption.

Behind these phenomena, several co-brandings boosted the sales. For example, Casillero del Diablo with Manchester United, and Rio with Hearthstone, both gained popularity among young consumers.

(yanyiming1@jd.com)

JD Executives on Q3 2021 Earnings Call Highlights

Posted on Nov 19, 2021Nov 22, 2021 by Yuchuan Wang

by Yuchuan Wang

JD.com released third quarter 2021 earnings on Nov. 18. During a call to discuss the results, Lei Xu, president of JD.com, said that, “When the external environment shifts, JD is able to continue to outperform the industry with more certainty and stronger resilience.”

In the third quarter, JD.com saw a solid net revenues increase of 25.5% from the third quarter of 2020, reaching RMB218.7 billion (US$33.9 billion), despite macro and industry challenges. The growth of net service revenues was a highlight at over 43% year-on-year, compared to 23% growth of net product revenues. Net service revenues contributed a historical high of 15% to the total revenues.

Third-party marketplace also generated positive results. Lei Xu shared on the call that the number of third party merchants joined JD in Q3 tripled that of Q1 and Q2 combined, with apparel and home categories leading the growth. He said, “Going forward, we will leverage the healthier competition and development environment of the industry to continuously enrich our marketplace ecosystem, explore new models and formulate our differentiated strategic approach.”

JD’s continuous improvement in user experience has also resulted in stronger consumer mindshare, engagement, and the increase of purchasing frequency. The company’s annual active customer accounts increased by 25.0% to 552.2 million in the twelve months ended September 30, 2021. In Q3, JD’s mobile DAU (Daily Active User) grew faster than annual active users, accelerating to over 30% year-on-year in September. Average order frequency for all users increased 23% year-on-year, driven by both new and existing users. And total order volume sustained a year-on-year growth of about 40% in Q3.

“Within JD retail, the number of categories users purchased expanded to a historical high even in a low season,” said Sandy Xu, CFO of JD.com. “In particular, users who have stayed with JD for more than a year tend to double the number of the categories they purchase.”

Sandy Xu also shared insights in JD’s supermarket categories which were again the largest contributor of JD’s new users in the quarter. The average number of orders per user for supermarket categories continue to increase and reached its all-time highest level. Additionally, users are purchasing more high-frequent supermarket products on JD including food and beverage, fresh produce, and baby and maternity products.

In addition, JD made further progress in omni-channel retail. In Q3, GMV of JD’s omni-channel business grew by nearly triple digits year-on-year. ASUS, a global technology leader, launched more than 150 ASUS stores on JD Daojia (JDDJ) and “Shop Now”, JD.com’s new on-demand consumer retail section. In September, JD opened its first “JD MALL” physical store in Xi’an providing over 200,000 items from more than 150 brands, in categories including home, furniture, kids, smart healthcare products and auto accessories.

These omni-channel pushes “will serve as our second curve for growth to break the ceiling of JD’s long-term growth,” said Lei Xu. “The (omni-channel) strategy is also designed to facilitate further integration and digital transformation of China’s offline retail sector.”

Speaking of recent global supply chain challenges, Xu said that, “JD will focus on the core strength of supply chain, and this will give us a better position to work together with our partners. Our partners would also like to work more closely with JD to leverage our strengths to help them reduce cost and increase efficacy.”

(yuchuan.wang@jd.com)

JD.com Announces Third Quarter 2021 Results

Posted on Nov 18, 2021Sep 27, 2022 by Yuchuan Wang

On Nov. 18, JD.com released its third quarter 2021 earnings results. Below is an infographic with the key highlights. The full release can be found here.

JD Papers Accepted by World’s Leading AI Conference

Posted on Nov 18, 2021Oct 15, 2022 by Yuchuan Wang

by Yuchuan Wang

JD.com announced this week that two papers on automatic and intelligent content generation for e-commerce product recommendation submitted by JD Retail were accepted by the 36th Association for the Advancement of Artificial Intelligence 2022 (AAAI 2022) under the track of “Highly Innovative Applications of AI.” To be held in February in Vancouver, Canada, AAAI is one of the world’s most prestigious conferences in the field of AI. JD is the only company to enter two papers among the total of eight under this track for AAAI 2022.

Jointly researched by JD Retail and Singapore’s Nanyang Technological University, the two papers elaborate on innovative projects applied at JD to advance the automated recommendation and selling process, through Natural Language Processing (NLP), largely improving operations efficiency and saving labor costs.

JD’s paper “Intelligent Online Selling Point Extraction for E-Commerce Recommendation” introduces an intelligent online selling point extraction system (IOSPE), which uses NLP and in-depth generation technology to automatically generate selling points for recommended products. As of September 2021, IOSPE has become the core service used by JD.com for more than 60 key categories of products, covering more than one million products. So far, the system has generated hundreds of millions of selling points for products, helping merchants greatly improve the efficiency of promotion and reduce costs. IOSPE effectively increases the click-through rate (CTR) of products and the average stay time of customers on the product page, which is of great benefit to increasing the conversion rate of e-commerce.

The paper “Automatic Product Copywriting for E-Commerce” explains how JD’s automated product introduction copywriting generation system (APCG) works based on natural language generation (NLG) and model pretraining technologies. Since the application of the system on JD in February 2021, APCG gradually covered all product categories selling on JD, and also for merchants’ new products. By September 2021, it has generated 2.53 million pieces of product descriptions, and improved the overall average click-through rate (CTR), the conversion rate (CVR) and the accumulated gross merchandise volume(GMV) by 4.22%, 3.61% and 213.42% respectively, on a year-on-year basis. The system generates up to 209,000 pieces of descriptions of products weekly, equivalent to the workload of about 1,000 professional copywriters.

Thanks to more and more application of innovative technologies such as NLP and image processing in e-commerce search and recommendation scenarios, customers worldwide are enjoying a more and more convenient shopping experience online.

Founded in 1979, the AAAI is an international nonprofit scientific society devoted to promoting research in, and the responsible use of artificial intelligence. Last year, AAAI 2021 saw over 9,000 paper submissions, of which 1,692 were accepted.

(yuchuan.wang@jd.com)

JD News Roundup Vol. 24: Singles Day Wrap-up, Automated Warehouses in Europe and More

Posted on Nov 16, 2021May 10, 2022 by Vivian Yang

Welcome to volume 24 of our 2021 weekly digest. Here we consolidate a selection of JD news and give context on why it matters. If you have any questions or topics you are hoping we will explore, please email press@jd.com.

JD’s Winning Battles for Green Economy

JD.com has announced that it will reduce carbon emissions by 50% by 2030, comparing with 2019. At the same time, JD will collaborate with partners to build the largest rooftop photovoltaic (PV) power generation ecosystem by 2030. Find more about the company’s carbon emission reduction practices.

JD RETAIL

JD.com Posts over RMB 349.1 Billion Yuan Transaction Volume for Singles Day Grand Promotion 2021

JD.com reported a record-breaking Singles Day Grand Promotion on November 12, 2021, with transaction volume totaling RMB 349.1 billion yuan at the midnight of November 11, ending the 11-day promotion that started from 8pm on October 31. Transaction volume of 31 brands surpassed RMB 1 billion yuan with Apple surpassed RMB 10 billion yuan.

This year’s shopping festival saw a continued trend of high-quality products and services consumption by consumers in China, with growing demand from low-tier markets, especially in the categories of home appliances, medicine and home decoration.

MUJI and JD.com Join Hands to Launch Fresh Food Complex in Shanghai

Japanese retail giant MUJI launched a fresh food complex in collaboration with JD.com’s omnichannel supermarket SEVEN FRESH in Shanghai on Nov. 11, 2021. The complex marks the debut of MUJI’s foray in the fresh food industry in China and the first appearance of SEVEN FRESH in Shanghai. A wide range of meal solutions is offered in the store, including ramen, oatmeal, frozen food, ice cream, pizza and more that can be picked up in store or delivered in as fast as 30 minutes.

Danish Fashion Platform Miinto Launches Official Flagship Store on JD

Europe’s leading online fashion platform Miinto started its overseas official flagship store on JD.com on Nov 8, bringing its broadest and finest assortment of fashion clothing and accessories to JD’s over 530 million consumers.

Miinto joins JD through the Just-In-Time project, which enables cross-border merchants to synchronize products and orders via an integration system, and provides consumers with an upgraded shopping experience through access to trendy products.

JD TECHNOLOGY

This year’s shopping festival marks the first time JD.com accepts e-CNY during Singles Day Grand Promotion. In collaboration with China Construction Bank, JD users in 11 cities are able to purchase first-party products with e-CNY. According to JD Technology, over 100,000 customers used e-CNY on JD’s app during the promotion period.

JD LOGISTICS

JD.com’s international logistics team in Europe welcomed Philip Mountford, CEO of Hunkemöller, a Dutch-based international lingerie retailer for a visit to JD’s automated warehouse in Venray, the Netherlands. The two sides entered into cooperation this June with the shared vision towards cutting-edge technologies as key to driving B2C retail operation efficiency. It is estimated that JD’s tech-driven distribution center has shortened two-thirds of Hunkemöller’ s average daily order production time.

(press@jd.com)