JDT Chief Economist: Robust Exports Continue to Boost China’s Economy

by Vivian Yang

“China’s export growth will remain robust throughout the year, given stronger-than-expected stimulus in developed economies, the pandemic’s drag on global supply recovery, and China’s advantages in the global industrial chain,” wrote Dr. Jianguang Shen, chief economist of JD Technology, in an article published on May 20 in China Forex magazine.

With the overall improvement of the pandemic this year, China’s exports have expanded from pandemic prevention products to a growing number of products. The real estate market boom in the US increased demand for household products, fueling a rapid rise in Chinese exports of furniture and home appliances. Moreover, the exports of garments, shoes and boots, and baggage have also rebounded significantly, indicating that the demand for travel-related goods is gradually growing. In addition, goods less directly affected by the pandemic, such as cell phones, integrated circuits, automobiles and toys, have also seen strong growth so far in both US and European markets this year.

Dr. Shen pointed out that a widening supply-demand gap on the global level pushed up China’s exports. He listed three main reasons for the slow recovery of local productions, which include: 1) transnational supply chain has not yet recovered from the pandemic, as the Suez Canal blockage compounded worldwide container shortages and port congestion; 2) a lack of upstream and midstream supplies, notably the global shortage of chips that adversely affected automotive and electronics; and 3) the coexistence of a labor shortage and unemployment due to the lingering pandemic and generous unemployment subsidies.

On this week’s earnings call for the first quarter of 2021, JD Retail’s CEO Lei Xu also flagged to investors the impact of a global shortage of chips supplies. However, Xu believes that based on the company’s close collaboration with brands and suppliers on the deeper level of the supply chain, JD.com will be a less affected retailer.

As growth pressure eased with strong export performance, Dr. Shen suggested that China seize the opportunity to accelerate medium- and long-term reforms, especially exchange rate reform and capital account liberalization; encourage two-way capital flows; and promote the internationalization of the RMB.

 

(vivian.yang@jd.com)

JD Provides Delivery in Minutes in Over 200 Cities

by Yuchuan Wang

JD Logistics announced to offer its Delivery in Minutes service in over 200 cities during this year’s JD 618 Grand Promotion. The company will also leverage its strong technology abilities to support marketplace merchants to measure the biggest mid-year shopping festival in the world. The announcement was made at the kick-off event of 618 Grand Promotion held on May 20 in Beijing.

The swift delivery service relies on JD Logistics’ advanced technology. Through algorithms and supply chain planning, orders will be prepared and placed in JD’s front warehouses and delivery stations nearest to consumers. It is expected millions of SKUs (stock-keeping-units) covering almost all medium-sized product categories will be placed in advance and nearly half of JD’s delivery stations nationwide will participate to enable instant delivery.

JD Logistics will provide integrated services including big data, network optimization, intelligent forecasting and replenishment to help raise efficiency and lower costs through digitalized smart decisions.

This 618, JD Logistics will be operating over 1,000 warehouses in China. According to JD.com’s Q1 earnings, the company further lowered its inventory turnover days to a world-leading 31.2 days and delivered 90% of retail orders in 24 hours, thanks to advanced automation technologies.

From warehousing and sorting, to transportation and delivery, JD Logistics’ technology will play an important role in swift delivery to customers and securing stable operations for merchants and brands.

 

(yuchuan.wang@jd.com)

Photo Gallery: This Week at JD (May 15 – May 21)

JD.com held the kickoff event for its 618 Grand Promotion on May 21. The event gathered representatives from over a hundred brand partners. Awards were presented to the top 10 brands across 12 different categories. Chenkai Ling, vice president of JD.com, released seven consumption trends for 2021 during the event.

 

JD’s second E-Space store soft opens on May 19 in Hefei, the capital city of Anhui province. The store will be officially open on June 18th, the peak day of JD’s 618 Grand Promotion. The 40,000 square-meter store welcomes over 500 brands, and over 200,000 SKUs are available for sale in store.

 

On May 19, JD celebrated its sixth Employee Appreciation Day. On this day, JD specifically honors its long-term employees, who are often referred to with special designations: 5-year veteran employees are known as “Dalao” (big brother, or sister), and 10-year veterans as “Super Dalao.” There are over 40,000 Dalaos and Super Dalaos at JD now. Photo shows employees receive badges at JD headquarters in Beijing.

 

JD Logistics and China Railway Container Transport announced a partnership in intermodality on May 17 at JD headquarters. Both sides will utilize capabilities in integrated supply chain, rail cargo transportation, logistics information and technological devices, to develop domestic and international routes. Four executives, Jun Fan, vice president of JD.com, head of transportation resources platform at JD Logistics (second from left); Boling Han, general manager at CRCT (second from right); Yang Yang, head of rail transportation at transportation resources platform at JD Logistics (far left); and Jinhua Ge and deputy general manager at CRCT (far right), attend the signing ceremony.

 

China’s Ministry of Industry and Information Technology (MIIT) released the first winners for a national open AI competition. JD Logistics was awarded for its “intelligent logistics and warehousing equipment” project in the category of intelligent warehousing. The results were announced on May 20 at the 5th World Intelligence Congress held in Tianjin.

Livestreaming, Short Videos, and Graphics to Further Boost 618

by Hui Zhang

JD.com announced it will focus on livestreaming, short videos, graphics and tests to enrich its content marketing for the ongoing 618 Grand Promotion at a kick-off event on May 20 in Beijing.

JD.com will invite more than 300 celebrities, and executives from nearly 600 brand partners to participate in various promotions through livestreaming during the promotion. The company will also create social media hastags in accordance with latest public trends, and invite KOLs and celebrities to create short videos to assist promotion. More than 1,000 professional buyers or KOLs from different categories will be invited to share their favorite products to bring more traffic to JD.com.

JD will hold two galas through livestreaming inviting celebrities to bring consumers the festive atmosphere of 618. Meanwhile, JD Live, the company’s livestream platform, will select high-quality products from 100 industrial belts to bring local high-quality products to JD’s consumers. Leveraging JD and WeChat’s strength, JD will offer livestreaming through 10 WeChat accounts.

The company will also create over 100 social media hashtags, and invite over 100 KOLs and over 100 stars to create promotional short videos to assist consumers in decisions-making.

JD will invite more than 1,000 professional buyers or KOLs to recommend products to consumers through pictures and product sampling. In addition, JD will also cultivate more than 1,000 KOLs from ordinal content-creators through various of motivation solutions.

“Livestreaming is like trees, short videos are like the jungle, and graphics are like the grassland. JD is coordinating the three aspects of content to effectively recommend more high-quality content to consumers thus to assist them to make shopping decisions,” said Guowei Zhang, head of JD Content Ecosystem Department.

“Various content can also provide an immersive shopping experience to consumers while allowing them watch, buy and play at the same time.”

 

(zhanghui36@jd.com)

JD Cloud Provides Resources for Enterprises during 618

by Ling Cao

JD Cloud (JDC) will provide resources for enterprises during the ongoing 618 Grand Promotion. Announced on May 20, the sales promotion will cover May 21 to June 30, helping over 200,000 SMEs use cloud-based services.

The sales promotion will cover a wide range of services in cloud computing, including cloud-based hosting, database, storage, hard disk and security related products, as well as smart chatbot, SaaS service, enterprise finance and other smart devices. JDC will provide discounts and benefits for enterprises using JD’s cloud services.

Liqiang Gao, vice president of JD.com and president of JDC said, “JDC will continue to support SMEs to achieve digital transformation based on its capabilities of the best industry know-how, contributing to efforts for China’s digital economic growth.”

Lacheer, a domestic brand focusing on imported milk, is one of JD’s important partners. JDC used its RPA (Robotic Process Automation) services to help set 51 automatic processes for the brand during this year’s 618, with an aim to help them improve their operation efficiency by five times.

E-commerce is a key sales channel for Lacheer, which manages 10 online channels. Before working with JDC, the brand needed to manually look into relevant operation data across different platforms and to analyze that information individually. JDC’s RPA system can solve the problem by integrating all the platform data and conducting analysis directly, helping improve efficiency and lower the error rate. The system can view sales performance, traffic flow, marketing performance and even customers’ comments, cover all the key operation information.

Using the system, JDC also helped Lacheer integrate data from different departments, covering supply chain, finance, human resources and customer services, achieving  central management and storage for data asset. Based on AI, JD can then make further analysis according to demand.

Since the brand’s milk source is from Europe, the system can also help Lacheer solve challenges in transportation, matching the shipping information with precise arrival time, ensuring a smooth supply chain process.

A representative from Lacheer shared, “JDC has largely improved our working efficiency as well as customer experience, releasing the workforce to do higher-value work, such as decision-making and innovation, helping us enhance our products’ core differentiations in the industry. JDC also used two systems to help record our data in order to ensure high reliability.”

As one of the most thoroughly containerized cloud platforms in the world, JDC has the largest Docker and Kubernetes clusters in the world, which are able to support the successful completion of the company’s massive 618 Grand Promotion and Singles Day (Nov. 11) Grand Promotion. A recent Gartner data report unveiled that on the 2020 IaaS (infrastructure as a service) market, JDC is ranked fifth in China and is among the top 10 cloud providers globally in this field.

 

(ling.cao@jd.com)

JD 618 Grand Promotion to Mobilize Over 20 Million Workers along the Industrial Chain

by Vivian Yang

JD 618 Grand Promotion, China’s largest mid-year shopping festival will involve extensive participation of more than 20 million people along the entire industrial chain this year, supporting each of over 230 brands to achieve over RMB 100 million in sales and 120,000 mid-and-small-sized merchants to double their transactions, as released by Chen Lin, head of the ecosystem business of JD Retail at the shopping festival’s kickoff event on May 20 in Beijing.

Chen Lin, head of ecosystem business of JD Retail

A number of supportive measures with the aim to lower costs and improve operating efficiency will be provided to JD merchants to help them prepare for the upcoming sales season, including simplified store on-boarding processes, dedicated customer service solutions with doubled efficiency, omni-channel marketing incentives, livestreaming and other channel expansion support in nearly 200 industrial belts and more.

JD will provide traffic support and reduce costs of commercial tools on the platform. In addition, JD Could will offer multiple discounts and promotional activities targeting small-and-mid-sized merchants during the shopping festival, helping them to bringing down operating costs and improving digital operation capabilities.

JD will continue to push omni-channel participation by more and more merchants on the platform. During the shopping festival, brands that participate in its omni-channel plan will receive virtual rewards worth up to RMB one million-yuan, and traffic rewards up of to three million UV as an example.

According to Lin, over three million brick-and-mortar stores across the country will engage in the JD 618 Grand Promotion, enabling on-demand consumption available in 1,400 counties and cities. These include JD’s own offline businesses such as 7FRESH, JD super electronics stores E-Space, JD convenience stores, JD Auto Service, as well as a number of traditional offline merchants ranging from drug stores, convenience stores, and flower shops, to car maintenance stores and more.

To create a fair and transparent operating environment during the peak time, JD’s anti-counterfeit system has been providing support to more than 400 brands worth over RMB 100 million yuan on the platform. Meanwhile, JD’s operating risk prevention system provides real-time protection that has helped businesses avoid more than RMB 1.2 billion yuan of losses in the past four months.

 

(vivian.yang@jd.com)

Breitling Wins JD Sustainable Development Partner Award

by Rachel Liu

Breitling, a Swiss watch brand founded in 1884, won a sustainable development partner award at JD’s 618 Grand Promotion kick off conference held in Beijing on May 20.

“We are impressed by Breitling’s continuous support of sustainability and environmental protection, which resonates with JD’s value of promoting sustainable development,” said Belinda Chen, head of JD Watch: “We look forward to work with this time-honored brand on more activities to share our joint value and make the world a greener place.”

Jojo Guo (third from left), representative of public relations at Breitling receiving the award

Jojo Guo (third from left), representative of public relations at Breitling receiving the award

Breitling attaches great importance to sustainable development and decreasing the impact of its operations on the environment. Back in 2018, Breitling worked with U.S environmental organization Ocean Conservancy to support its work on eliminating ocean and beach pollution. In 2019, Breitling worked with sustainable clothing brand Outerknown to launch a watchstrap to show the two brands’ support of sustainable development. In 2020, Breitling also launched a watch box made of recycled bottles.

Breitling joined JD in mid-2020 under both the first party retail and third party marketplace models. During the 618 Grand Promotion (June 1-18) in 2020, sales of Breitling ranked in the top 10 among Swiss watch brands. The 2020 Singles Day Grand Promotion (Nov. 1-11) saw Breitling’s sales increase over nine times compared with the month before. This year, Breitling will also join JD’s 618 Grand Promotion providing discounts and coupons to customers.

 

(liuchang61@jd.com)

 

JD Earnings: The Long-Term Jingxi Opportunity

by Ella Kidron

JD.com announced its first quarter 2021 earnings on May 19. On the call to discuss the results, JD.com CFO Sandy Xu spoke to the potential of JD’s social e-commerce business targeted at China’s lower-tier markets, Jingxi, and provided some indication on future growth strategies.

Xu explained that the social group purchase model is a long term initiative, emphasizing the structural opportunity for JD to further penetrate lower-tier markets and provide consumers with products and services, particularly in the lower price range. She mentioned there is a strong desire to explore the market opportunity, adding that while most other players focus on traffic, “we believe the way to win the game is supply chain infrastructure driven by tech… we see this as a business heavily relying on supply chain”. This involves taking advantage of core capabilities to provide users with a high quality experience and better pricing.

JD has an inherent supply chain advantage through its long-established first party model and logistics business. Xu said the company could leverage its existing supply chain network, B2C experience and relationship with brands to provide a wider selection of SKUs. In addition, the local supply chain, especially in fresh produce is important. Xu reiterated that in developing Jingxi, JD will not compete with other players on speed but will instead take a long-term approach through investment in infrastructure, focus on building out teams and more, enhancing collaboration within JD’s various business lines to satisfy various shopping demands, and taking advantage of existing technology and infrastructure as much as possible.

In the future, the Jingxi business will depend on building capabilities and on whether it can provide users with an adequate level of customer experience .Where the existing infrastructure does not allow to meet the minimum customer experience, the focus will be on improving product quality.

Xu shared that Jingxi’s footprint already extends to 17 provinces and that the company is satisfied with the ROI thus far. JD previously announced plans for Jingxi to cooperate with more industrial belts; it already works with over 200 industrial belts across China.

 

 

(ella@jd.com)