by Ling Cao

JD Industry, a division under JD that provides enterprise clients with industrial products and services, saw sales surge on June 1, the official opening day for JD’s 618 Grand Promotion (Jun. 1-18). Data showed that the number of clients who made orders increased 200% YOY, and overall order volume increased 210% YOY.

Over 600 top brands including ABB, 3M and Delixi joined the campaign, offering over 2 million products on JD Industry’s online platform. Additionally, nearly 5,000 offline hardware stores also joined the initiative.

Among them, pneumatic components manufacturer SMC saw sales increase by 163% YOY, and sales of 3M products increased by seven times, with product selections covering respiratory protection, radiation protection and high temperature protection. ABB and Delixi sales increased by 11 times and five times, respectively.

JD Industry also gathers offline stores in different industrial product chains across China to provide clients with products directly from manufacturers. As the place of origin for electric tools, Nantong, Jiangsu province saw sales of local brands in this field on JD increase 206% YOY.

“As an important aspect of JD’s plan of 618 , which is to expand the business base from individual customers to industrial clients, we will continue to provide new scenarios, and new services online and offline, joining hands with our partners to provide clients with superior procurement experience, and promoting economic growth,” said a representative from JD Industry.

 

(ling.cao@jd.com)

by Ella Kidron

JD.com’s 618 Grand Promotion (Jun. 1-18) officially began at midnight on Jun 1. Four minutes after paying the remaining balance on her pre-sale order, Ms. Wang, a resident of Changshu, Jiangsu province, received the skin care set she ordered, delivered by none other than JD’s autonomous delivery robot.

In Baiyin, a prefecture-level city in Gansu province, Ms. Fang received the face masks she ordered only five minutes after completing the payment, emphasizing the extent of JD Logistics’ network. With omni-channel across a bunch of categories such as fresh, FMCG, mobile phones, digital products, maternal and child, pharmaceutical, personal care, makeup and more, JD’s 618 covers 1,400 districts and counties this year with “delivery-in-minutes” service covering over 200 cities. This type of delivery speed is possible thanks to JD’s optimization of the logistics network over the pre-sale period to put products closest to customers before they’ve even completed payments.

JD Retail CEO Lei Xu said: “JD is in its 18^th year of establishment this year, and this 618 we welcome the company’s 18^th birthday. In 18 years, we have created a unique business model, with its core philosophy being the continuous pursuit of the optimal solution to efficiency, cost and experience.” According to Xu, this is JD’s core competitive advantage and what has allowed JD to stay tenacious all of this time.

In the first five minutes after midnight, JD Super, JD’s online supermarket, saw sales of coffee beverages, oat milk, fruit wine and other new products increase over 15 times. The transaction volume of food, baby and maternal, and alcohol surpassed RMB 500 million yuan in the first two minutes of the sale. Popular milk tea brand Yuanqisenlin (元气森林) was up ten times in the first 5 minutes on Jun. 1 while oat milk brand Oatly and meal replacement brand Wonderlab among others were up 15 times. Sales of products from industrial belts increased 300% YOY and nearly 100,000 kg of fresh agricultural products were sold on the Jingxi platform.

This 618 also demonstrates the importance of service in the context of the customer experience. In only 15 minutes on Jun. 1, JD’s “one hour” delivery service transactions increased eight times and the number of users of the service increased 6 times. Home and living products with the “hassle-free renovation” label saw sales up 260%.

In the first 15 minutes, health services such as medical checkups, cosmetic medicine, hair transplants, dental services, vaccines and hereditary tests increased 6 times; cosmetic medicine alone increased 15 times. Products eligible for JD’s service where pet food can be returned if the pet doesn’t like it increased over 200%. Sales of smart pet products increased 300 times and pet snacks and treats increased 28 times.

JD Auto Shops car maintenance packages increased 165% compared to the previous period while limited RMB 9.9 yuan car washing packages sold out in only five minutes. From May 24 to Jun. 1, the number of people buying cars on JD increased 127%. Within 10 minutes on June 1, motorcycle sales increased 103% YOY and helmets increased 150% YOY.

Domestic mobile phones are in high demand. In just 15 minutes, Huawei phone sales increased 120% YOY, vivo sales doubled and the number of One Plus phones sold increased five times. Sales of gaming phones (smart phones dedicated for gaming with specifications that suit mobile phone games) increased 300% YOY. Gaming PCs from the Asus Tianxuan series doubled. Partition washing machines increased 20 times.

International products are still in high demand. In only 10 minutes, products from 900 international brands from over 100 different countries more than doubled. In the first five minutes, health and nutrition products from brands such as BY HEALTH and Swisse as well as medical products from brands like Omron achieved transaction volume of over RMB 1 million. In the first 15 minutes, the turnover of nutrition and health care products intended to relieve fatigue increased by 500% YOY while probiotics increased more than 300%.

Technology also plays a critical role. JD Cloud provides an essential guarantee of the customer experience during the sale. In the early morning of June 1, the peak number of user visits per second increased by 223% compared with the same period last year. JD’s smart customer service already covers over 160,000 merchants participating in 618.

Xu said that JD Retail’s philosophy is to “sell all goods of the world” and “to sell goods all over the world”. He emphasized the importance of a supply chain intermediate platform in this effort including 1) connecting different scenarios and obtaining consumer insights through partnerships in different scenarios, 2) highly efficient supply and demand matching capability, 3) order and supply chain dispatch management, and 4) product and logistics management capability. Without the supply chain intermediary capabilities, it is impossible to realize this mission, according to Xu.

 

 

(ella@jd.com)

by Hui Zhang

JD.com and Chang’an Ford signed an agreement to further deepen cooperation on May 28 in Chongqing to ensure the supply of a full line of Chang’an Ford’s products through JD.com together with timely after-sale services.

Minxian Wang, general manager of first party automotive products, JD Auto, on the right; Huaicheng Tang, after-sales director of Chang’an Ford, on the left

The cooperation extends the two sides existing partnership, and will expand the product categories of Chang’an Ford products sold through its flagship store on JD.com. Since joining JD, Chang’an Ford has seen robust sales performance and continuous customer growth, thanks to JD’s strong platform capabilities and vast consumer pool. According to JD’s data, sales of JD’s Chang’an Ford flagship store increased by 30% YOY in 2020. The store also brought in nearly an increase of 50% of new consumers to its offline 4S stores.

In addition to product expansion, Chang’an Ford also promised direct supply of auto parts from its manufacturing factories with a bid to guarantee authenticity. Meanwhile, Chang’an Ford’s after-sales team will work closely with JD to provide both telephone and online after-sales services through JD.

To fulfill increasing demands from consumers during this year’s 618 Grand Promotion, Chang’an Ford has teamed up with JD’s offline self-operated car maintenance network, JD Auto Service, to increase the supply of auto parts products at the offline stores and ensure professional car maintenance services.

“Relying on JD’s image as a guarantee of authenticity, JD Auto will unite Chang’an Ford together with other auto brands in joint brand promotions, thus bringing more traffic to them. While promoting the growth of Chang’an Ford sales on JD, JD Auto will also further work to create a convenient and high-quality shopping experience for consumers,” said Minxian Wang, general manager of first party automotive products, JD Auto.

 

(zhanghui36@jd.com)

by Ling Cao

JD has unveiled a smart supply chain decision system for industrial enterprises. Announced on May 31^st, the system aims to solve clients’ pain points for procuring a massive amount of non-standard products.

Previously, due to inefficient fulfillment services and in order to keep the production line running smoothly, many enterprises needed to over-purchase materials, which resulted in a huge need for storage and a maintenance burden. Now, JD’s system combines clients’ digital procurement processes with a product pool that JD has developed, enabling them to easily find and purchase specific, non-standard products on JD— for instance, a very specialized screw.

In addition, based on clients’ different requirements for speed of delivery time, location, product selection and services, the system can provide tailored and optimized fulfillment solutions, including the ability to organize multiple orders into one and send to clients in one shipment. Ultimately, the system can shorten the middle process and increase the procurement efficiency.

JD also self-built infrastructure to improve the service quality, including specific transfer centers, forward warehouses and intelligent lockers.

“JD has built a product pool of over 50 million SKUs, so we changed the traditional procurement process from person-to-goods to goods-to-person in order to make it easier to find the best product for your needs. Because of this new service philosophy, our efficiency has improved compared with traditional suppliers,” said Deming Ding, general manager of JD Industry.

 

(ling.cao@jd.com)

By Vivian Yang

Besides car and motorcycle services, JD Auto is piloting efforts to help its customers learn to fly. On June 1, JD Auto announced that it will join hands with China’s leading driving and flight instruction school Eastern Pioneer to introduce flight training courses.

Eastern Pioneer’s official page on JD Auto currently offers both one-day and one-term flying courses. New learners can also book a flying experience class first via JD’s platform before making the decision to commit to all the hours required to become a licensed pilot.

Easter Pioneer’s one-term flying course on JD Auto

Eastern Pioneer and its subsidiaries can provide a number of options for airports and flight routes in Beijing, Shandong, Henan, and other provinces in China, and can offer high-quality fixed-wing aircraft training sessions for pilot licenses, recreational courses and flying club services — with rich aircraft options including Cirrus SR20, Beech Bonanza G36, Beech Baron G58，Tecnam P2006T，P92-JS, P2002-JF and more.

The bar for application and acceptance to flight instruction courses is not too high. According to China’s qualification rules for civil aircraft pilots, applicants above 17 years old who have graduated from middle school and acquired a C2 and higher-level driver license are able to register for flying classes. In order to receive a pilot license for private jets, they only need to pass tests administered by their flight instructors, without going through the trouble of theoretical and flying technique tests required by the Civil Aviation Administration to pilot commercial aircraft.

For those who’ve received their pilot licenses, congratulations! Next, JD Auction has got you covered with options for where to buy an aircraft. During the ongoing JD 618 Grand Promotion, two helicopters will be auctioned on JD’s platform with a super low starting bidding price of RMB 6,180 yuan each, or a little under US $1,000.

Two helicopters that will be auctioned on JD Auction 

Moreover, for those who bid successfully for aircraft on the platform, JD Auto is also partnering with Eastern Pioneer to provide hangar and maintenance services, paving a fast track for its customers to effortlessly realize their dreams of flying.

 

(vivian.yang@jd.com)