GSSC: JD Logistics to Invest RMB 1 Billion for Green Supply Chain and Adopt Thousands of Autonomous Delivery Vehicles

by Yuchuan Wang

JD Logistics announced that it will invest RMB 1 billion yuan in “Green Stream Initiative,” its green supply chain project, during the sixth Global Smart Supply Chain summit held on Oct. 18. The company expects its carbon efficiency to be increased by 35% within five years.

As the first logistics company in China to join the Science Based Targets initiative (SBTi) in 2019, JD Logistics will halve its carbon emissions by 2030 as compared to 2019.

JD Logistics will halve its carbon emissions by 2030 as compared to 2019.
Yui Yu, CEO of JD Logistics

JD Logistics advocated during the summit to collaborate with up- and downstream partners to promote the application of more recyclable packages and new energy vehicles, and transform the supply chain operations and management with digital technology.

The company will also open its logistics material lab to the public to incubate innovative projects to drive the development of environmental protection materials.

During the summit, JD Logistics also announced the 5.0 version of its Level-4 autonomous delivery vehicle.

With a new design, the vehicle is equipped with an upgraded radar and a wider angle camera that can check the environment without blind area. Supporting IP67, the 5.0 version autonomous vehicle can run amidst rain and fog. Moreover, the speed has been accelerated to 5m/s from 3m/s, and can be managed, monitored and fixed remotely.

In the next two to three years, JD Logistics will apply thousands of autonomous delivery vehicles.

Yui Yu, CEO of JD Logistics, explains that JD Logistics’ integrated supply chain and logistics service will provide not only the solution for strategic planning but also execution, in addition to all the support for network building and operations.

As of June 30, 2021, the number of external integrated supply chain customers reached over 59,000. This August, JD Logistics began helping Volvo Cars to upgrade the auto aftermarket supply chain. Smart replenishment based on big data will be enabled for the streamlining of inventory management. Volvo’s spare parts warehouses will be extended from 4 to 8 after the upgrade, with an expected improvement of the delivery lead time to over 50% of its dealers.

 

(yuchuan.wang@jd.com)

JD.com’s Seven Ways to Facilitate Elderly People in China

by Vivian Yang

The Chinese “Double Ninth Festival,” which is observed on September 9th on the lunar calendar and falls on Oct. 14th this year, is the customary time when people go to see their parents and show respect to elderly people.

Ahead of this year’s Double Ninth, JD.com initiated a shopping festival featuring dedicated products and services for elderly people, which will last from Oct. 11th to 16th. Here are some glimpses of the plan:

  1. 100 million+ products

During the festival, JD.com will work with leading brands from home and abroad including Panasonic, BY-Health, Tong Ren Tang, Mengniu, Yili and more to offer an abundant  of products favored by elderly customers and to meet their demand, such as thermal underwear, smart toilets, tea set, gold jewelries and more.

Furthermore, JD has developed a number of customized elderly-friendly products based on the C2M (Consumer-to-Manufacturer) model in close cooperation with brands. These products include tailor-made cell phones and wearable devices, cooking oil, dairy and instant oat meal, etc that meets the dietary needs of the elderly, even countryside villas and more.

Some popular products among elderly customers on JD.com 

Some popular products among elderly customers on JD.com 

  1. Housekeeping Services

Besides products, JD.com has its self-operated home cleaning services based on an O2O model. During the festival, the service team will work with local residential communities across Beijing to provide free housekeeping services including cleaning their rooms, windows and household appliances.

A staff of JD Home Cleaning was praised by Mr. Ma, a Beijing resident for her cleaning service 

A staff of JD Home Cleaning was praised by Mr. Ma, a Beijing resident for her cleaning service 

  1. Healthcare Support

JD Health, the healthcare arm of JD.com offers a full range of medicines and healthcare products that elderly people need via its online platform and offline pharmacies. Additionally, it also provides easily accessible and affordable telemedicine services with a center specifically on geriatrics, attending to both their physical and mental health. During the festival, JD Health has planned several health knowledge sharing and online medical consultation activities to serve elderly people for free.

JD Health's elderly-friendly smart speaker that directly connects with its telehealth service

JD Health’s elderly-friendly smart speaker that directly connects with its telehealth service

  1. Pet Care

Pets are an indispensable companion for more and more elderly people. On Oct 8, JD Health and JD Pet jointly launched JD Pet Hospital, an internet-based platform to help users access vets and healthcare supports with 24/7 response online and easy connections to offline services. The service aims to bring more convenient, reliable and affordable pet care support for pet owners, relieving elderly people’s burden to take care of their pets.

  1. Customized Shopping App

This May, JD.com introduced an App version tailored to elderly users’ needs, featuring a simpler interface, larger font size and easier ordering process. Additionally, JD Logistics created a streamlined mini program that makes it easier for elderly users to send and track transportation information of their parcels.

  1. Service Corners in Physical Stores

Shopping in physical stores remain the primary way for elderly people to get their digital products. In JD’s offline chain stores selling home appliances, digital products and more, staff have set up special service corners for elderly people on product demonstration, selection and usage guidance.

A service corner for elderly customers in a JD home appliance store 

A service corner for elderly customers in a JD home appliance store 

  1. Smart Applications to Support Community Work

JD Technology is working with the local government in Tianjin to build digital systems including a database to better manage elderly residents’ information, a website to publicize relevant service information and a smart platform that can make phone calls to hundreds of elderly people daily so as to regularly check their status, send important reminder messages, detect risks and quickly respond to emergency alerts from elderly people’s homes.

According to the latest census in 2020, China has 264 million people aged above 60, accounting for 18.7% of the overall population. Among them, nearly 191 million are above 65, which makes 13.5%. In face of this fast-growing population, the consumption goods department of the Ministry of Industry of Information Technologies (MIIT) has been promoting the establishment of an industry system to produce more products that can satisfy the needs of elderly people in China. The shopping festival is the second annual edition JD has held under the guidance of the MIIT.

 

(vivian.yang@jd.com)

JD Rolls Out Shop Now, Moving From “Delivery in a Day” to “Delivery in an Hour”

by Mengyang He

On October 12, JD.com and Dada Group (Nasdaq: DADA) jointly launched “Shop Now,” a jointly built new business dedicated for JD’s on-demand consumer retail section, and it will more easily connect JD’s more than 530 million customers with products offering delivery within one hour.

Positioned in the core of JD’s omni-channel operation, Shop Now reiterates the company’s commitment to on-demand retail. “Shop Now integrates the omni-channel abilities and resources from JD Retail and JDDJ,” said Huijian He, Vice President of JD.com and Dada Group, Head of JD Omni-channel Home-Delivery Department. “The enhanced business will provide a comprehensive portfolio of one-hour, on-demand retail capabilities within JD’s ecosystem, bringing a faster, better and more economical shopping experience to both consumers and partners.” Products with the “Shop Now” icon on JD.com’s app will support one-hour delivery and even delivery within minutes, fulfilled by nearby physical stores with a radius of 3 kilometers.

Huijian He, Vice President of JD.com and Dada Group, Head of JD Omni-channel Home-Delivery Department
Huijian He, Vice President of JD.com and Dada Group, Head of JD Omni-channel Home-Delivery Department

In addition to JD’s first party B2C business model as well as its open platform, Shop Now ushers in a brand-new service model in on-demand retail, which would consequently boost JD’s omni-channel growth. The launch of Shop Now signifies great progress for JD’s retail business and serves as a token of the full-fledged development of JD’s supply chain layout, which consists of three comprehensive supply chain models, namely the B2C central warehouse model, the origin warehouse model, and the on-demand retail model.

Given the increased purchasing power from China’s middle class and the push from the pandemic, on-demand retail is gaining popularity and growing at a fast pace in China. According to the National Bureau of Statistics of China, the market size of Chinese local retail O2O platforms in 2020 reached RMB 150 billion yuan, and it is expected to soar as much as six-fold, making up to 900 billion RMB in 2024. Additionally, the penetration rate of O2O local retail is also estimated to mount from 0.6% in 2019 to 5.8% in 2024.

 

(hemengyang5@jd.com)

JD News Roundup Vol. 21: Telemedicine for Pets, Blockchain and More

JD News Roundup Vol. 21

(September 13-October 9)

Welcome to volume 21 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.

 

BUSINESS HIGHLIGHTS

 

JD HEALTH

Telemedicine for Pets

JD Health, the healthcare arm of JD.com, is extending its telehealth services from humans to pets. On October 8th JD Health and JD Pet launched an O2O healthcare service platform called “JD Pet Hospital,” which covers the entire lifetime of pets from disease prevention and diagnosis to comprehensive health management.

To date, over 3,000 veterinarians have registered on JD Pet Hospital. They provide 24/7 online pet health consultation services through text, images and video calls.

 

JD RETAIL

JD Mall 

In the next step for JD’s omni-channel expansion, the company launched the “JD MALL” brand, an upgraded version of its E-Space omni-channel retail experience store, on September 14th. The first location is in Xi’an, with an area of 42,000 square meters and offering 200,000 items from over 150 domestic and international brands.

In addition to being able to visit the store to experience products in person, consumers can place orders and arrange swift, convenient delivery through the official WeChat Mini Program by scanning QR codes on in-store items.

JD Welcomes Niche Fashion Brands

As youngsters account for more and more luxury consumption in China, JD.com has welcomed a series of niche fashion brands targeting this demographic, including WOOYOUNGMI, both, Etudes, and Guidi to open their flagship stores on JD.com.

Ruder Finn and Consumer Search Group’s China Luxury Forecast 2021 shows that GenZers have become the backbone force for luxury consumption in China. During JD’s 618 Grand Promotion in 2021, the number of GenZers that made purchases surged 231%.

 

JD LOGISTICS

JD Opens Xinjiang Logistics Park

JD Logistics launched an Asia No. 1 smart logistics park in Urumqi, Xinjiang on Sep. 29th. With an area of nearly 100,000 square meters, it is the autonomous region’s first and largest smart logistics park. The park is estimated to process as many as 1.2 million items daily, and will enable 80% of JD’s orders in Urumqi to be fulfilled within 24 hours.

 

JD WORLDWIDE

JD’s E-space Store Opens Doors in Jakarta 

JD.ID, JD.com’s e-commerce joint venture in Indonesia, inaugurated JD.com’s first overseas E-Space store, JD.ID Electronic Store, in Jakarta on September 14th. The nearly 1,300-square-meter store offers thousands of types of products from various brands of smartphones, gadgets, laptops as well as brands of home appliances, home living and furniture.

Additionally, the store provides experiential areas such as a gaming area and smart home area for consumers to enjoy various store and brand events.

JD Central Celebrates 3rd Anniversary

JD CENTRAL (JDC), JD.com’s e-commerce joint venture in Thailand, celebrated its third anniversary on September 28th. In 2020, JD CENTRAL saw an increase of 170% in terms of GMV (gross merchandise volume) compared with 2019, and in the past year has become the highest rated e-commerce app in Thailand on Google Play.

 

JD TECHNOLOGY

JD’s Blockchain-based Digital Contracting Services 

JD Technology kicked off a new round of promotion of its digital contracting services on September 17th, aiming to bring the blockchain-based technology to more SMEs and support them to go paperless in business operation.

To date, JD’s digital contracting platform has assisted on managing over 4 billion contracts for more than 500,000 enterprise users. If a contract uses 10 sheets of A4 paper on average, the platform has accumulatively saved 40 billion pieces of paper so far, which equates to the save of 13 million trees and reducing more than 4 million tons of carbon dioxide emissions.

 

 

(press@jd.com)

 

 

JD Launches Internet Hospital for Pets

by Vivian Yang

JD Health, the healthcare arm of JD.com, is extending its telehealth services from human to pets. A joint announcement by JD Health and JD Pet was made in Beijing today, Oct. 8, to launch an O2O healthcare service platform called “JD Pet Hospital,” which covers the entire lifetime of pets from disease prevention and diagnosis to comprehensive health management.

To date, over 3,000 veterinarians have registered on JD Pet Hospital. They provide 24/7 online pet health consultation services through text, images and video calls. The hospital now contains 7 departments, and mainly focuses on cats, dogs and some other common pet animals.  Services include medical advice, medicine prescription and ordering, physical examination report analysis and more.

The landing page of JD Pet Hospital in JD Health App

The landing page of JD Pet Hospital in JD Health App

“JD Health is committed to improving the quality of telemedicine so as to provide better and more convenient and affordable healthcare services, “said Enlin Jin,  CEO of JD Health. “The wellbeing of pets is closely related to the health of many Chinese families. Thus it is necessary and natural for JD Health to create high-quality healthcare services for this new group of family members.”

“We aim to bring a worry-free experience to help customers attend to their pets. By integrating support from both online and offline, JD Pet Hospital can provide a better and easier pet health service, which will be a valuable upgrade and extension to JD Pet’s one-stop service for pet owners,” said Simon Han, vice president of JD.com and who is in charge of JD Pet.

According to JD Pet Hospital’s plan, the platform will continue to grow and connect with more premier pet hospitals, doctors and other service providers, and will explore diversified services in the areas of health support for exotic pets, pet behavior training, pet diet, traditional Chinese veterinary medicine and more.

Xuepeng Cai, head of the China Veterinary Drug Association, said that JD Pet Hospital can play a positive role in offering more convenient and affordable pet health services on the market, and promotes standardized management and transparency of the industry. The association will also carry out cooperation with the hospital in multiple areas in the near future.

Wenbo Tong, Head of JD Health’s Medical Service Department for Pets, pointed out that JD Pet Hospital will leverage the strength of JD’s smart and connected supply chain and omni-channel resources to support practitioners in the pet health industry to better grow their business and serve pet owners.

“Pet owners tend to buy pet food based on their own preferences without means to communicate with their pets,” said Tong, “but if they can easily consult reliable pet dietitians before they make purchases, they will get better support to find the right food for their pets.”

Tong also mentioned that even in the early morning between 2 to 5 A.M., JD Pet Hospital can respond to online medical consultations within minutes, providing timely attention to the animals and peace of mind for their owners.

It is estimated that the population of pet cats and dogs in Chinese cities has exceeded 100 million by 2020, and their annual medical expenses have reached RMB 1,500 yuan per animal, making the industry a hundred-billion RMB market. But the industry is facing a handful of problems at the same time, given the lack of industry standards, price transparency and timely services, which are the pain points that internet hospitals including JD Pet Hospital are attempting to solve.

JD Pet has introduced a series of prime pet services including a quality certification program for pet food, a “taste first and free return” service, pet insurance and more.   Lu Liu, general manager of JD Pet, said that in the upcoming Singles Day Grand Promotion, the company will focus on promoting 200 novel and trendy pet products to customers in China.

 

(vivian.yang@jd.com)

JD Brings Smart Logistics Park to Xinjiang

by Yuchuan Wang

JD Logistics launched a smart logistics park, JD Urumqi Asia No.1, in Urumqi, Xinjiang on Sep. 29. With an area of nearly 100,000 square meters, it is the autonomous region’s first and largest smart logistics park. The park is estimated to process as many as 1.2 million items daily. This is the 39th smart logistics park run by JD nationwide.

This is the 39th smart logistics park run by JD nationwide.

Adopting automation and robotics, the logistics park will enable 80% of JD’s orders in Urumqi to be fulfilled within 24 hours, and overall orders in Xinjiang to be fulfilled within two days. That is a huge improvement for local consumers, who used to waiting up to a week for online orders to arrive. The logistics park stocks products including food, electronics, home appliances, apparel and more.

Adopting automation and robotics, the logistics park will enable 80% of JD’s orders in Urumqi to be fulfilled within 24 hours

Urumqi Asia No.1 is powered by the most advanced smart sorting system technology in China, in which a single sorting line can sort thousands of parcels in an hour with an accuracy rate of nearly 100%. “By using ‘ant colony optimization’ algorithm, the system will run like ants moving food, and there won’t be any collisions,” said, Chao Su, head of the logistics park.

In addition, the logistics park applies AS/RS (automated storage and retrieval system), shuttle system, automated ground vehicles, sorting robots and more, enabling the full intelligent process from goods receiving, stocking, packaging to sorting.

The second phase of the Urumqi Asia No.1 is currently under construction. Aiming to be put into operation in 2023, it will be equipped with 5G, IoT, AI and big data technologies.

As of now, JD Logistics operates a network of over 1200 warehouses and among which, 39 are mega Asia No.1 logistics parks.

 

(yuchuan.wang@jd.com)

JD CENTRAL Celebrates Third Anniversary

by Yuchuan Wang

JD CENTRAL (JDC), JD.com’s e-commerce joint venture in Thailand, celebrated its third anniversary on September 28th. In 2020, JD CENTRAL saw an increase of 170% in terms of GMV (gross merchandise volume) compared with 2019, and in the past year has become the highest rated e-commerce app in Thailand on Google Play.

To celebrate its birthday, JDC has doubled the marketing budget on giveaway activities alongside fun games through campaigns and promotions in September. In recognizing the challenging circumstances, a budget of over 100 million baht (about US$ 3 million) was earmarked for several campaigns to assist buyers and sellers.

JD CENTRAL (JDC), JD.com’s e-commerce joint venture in Thailand, celebrated its third anniversary on September 28th.

JDC began operating in Thailand in 2018. It differentiated itself from other platforms by emphasizing brand reliability and genuine products through the ‘Shop for Good Quality Products with 100% Authenticity Guaranteed’ strategy.

Cell phones, tablets, home appliances, computers and other high value products are the best-selling items on JDC. At the same time, since June this year, the number of new users of consuming products including fashion has increased by 130%, and the number of new users of health and beauty products has increased by more than 300%.

The fast growth is inseparable from JDC’s quality supply chain services

The fast growth is inseparable from JDC’s quality supply chain services. In the past three years, JDC had built eight warehouses for small and middle size items, bulky items and more. Today in Bangkok, more than 95% of orders can be delivered on the same day and more than 85% of its orders nationwide can be delivered within two days. JDC also provides a series of services in addition to warehousing and delivery, such as after-sales and 24/7 customer service.

In terms of strategic planning, JDC will focus on adding new services, stores, and features to meet the needs of both buyers and sellers, including assistance with the official opening of a world-class electronics brand store, the launch of the new “Instant JOY” service to meet the growing need for on-demand delivery that demonstrates continued growth momentum, a guaranteed one-hour delivery service, e-vouchers for hospitals, restaurants, spas and life insurance companies, and the addition of internationally-recognized brand stores on the platform for customers hoping for more choice.

“JD CENTRAL continues to deliver joy to all our partners. We believe in prioritizing everyone in all sectors through our comprehensive plans to ensure that we can steadily grow together side by side. Although we only entered this market three years ago, what we have achieved and shown through these incredible figures proves to everyone that JD CENTRAL is the real deal – generating feelings of joy to everyone involved,” said Korlarp Suwacharangkul, Chief Marketing Officer of JD CENTRAL.

 

(yuchuan.wang@jd.com)

JD’s Digital Contracting Platform Save Resources Tremendously

by Vivian Yang

JD Technology kicked off a new round of promotion of its digital contracting services on September 17th, aiming to bring the blockchain-based technology to more SMEs and support them to go paperless in business operation.

To date, JD’s digital contracting platform has assisted on managing over 4 billion contracts for more than 500,000 enterprise users. If a contract uses 10 pieces of A4 paper on average, the platform has accumulatively saved 40 billion pieces of paper so far, which equates to the save of 13 million trees and reducing more than 4 million tons of carbon dioxide emissions.

A number of China’s well-known enterprises such as Xiamen ITG Group Corp. adopted the platform recently, and estimates show that the service will help them save 80% time in the work of contract processing, and lower costs of contract signing by 60%.

Enabled by digital certificates and blockchain, the service makes sure that all parties in a transaction can share the same view of a live contract, and every step and revision of the contract is recorded, creating a tamper-proof audit trail. The blockchain system can also enable hashlock on confidential contracts to ensure the safety of the original document and data privacy.

As a one-stop solution, the platform offers contract templates, digital stamps,  e-signing, archiving services and more. All data is strictly scrutinized before being connected to the platform, and will continue to go through rigid reviews in every step of data generation, transfer, storage and other actions to secure data authenticity. More importantly, the complete evidence chain is synchronized with courts, notary offices and other judicial bodies, ensuring contacts’ judicial validity and management efficiency.

Heavy technology aside, the platform is easy to use, as it supports multi-interfaces on computers, app, Wechat mini program and more, as well as simultaneous actions by different people.

New users of the platform will not only enjoy discounts and a service package for free, but also become a certified member of JD’s “zero-carbon enterprise” program.

 

(vivian.yang@jd.com)

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