Jun 29, 2020| Executive Spotlights

Top Industry Magazine Highlights JD’s Anti-epidemic Efforts

Ling Cao

by Ling Cao

JD was highlighted in the June issue of Parcel and Postal Technology International, a London-based leading logistics magazine. The article focused on how major Chinese e-commerce companies like JD cope with challenges posed by COVID-19 by relying on “next-generation tech and community spirit”.

The article highlights that “delivery drivers have become a vital lifeline in the fight against Covid-19, and this could not be more true than for those in Wuhan, China, the epicenter of the epidemic.

Jun Fan, head of JD Express at JD Logistics, said in the article, “JD Logistics spared no resources to help livelihoods and transport medical supplies during Covid-19. Our couriers have been on the frontline during the entire epidemic. Ordinarily, they would deliver directly to customers’ doors. However, with the virus, in order to reduce human-to-human contact, we implemented numerous contactless delivery methods.” The article also highlights JD’s application of autonomous delivery robots in Wuhan to support last mile delivery, as well as prioritization of staff safety.

Post and Parcel Technology International also drew attention to the importance of demand prediction and scheduling in the supply chain to quickly adapt to changing needs. “JD scientists detected the path of the epidemic at a very early stage thanks to the integration of the SEIR (susceptible, exposed, infectious, recovered) disease model and demographic data in its supply chain management system. This enabled the company to ensure that medical materials were available to high-risk areas and to determine demand for specific products in specific areas,” writes the article. It quotes Fan: “To reduce delays at the peak, we leveraged our experience in logistics and our technology driven network to do rescheduling that ensured products were delivered in a timely manner.”

Supporting the community is also highlighted in the article as one of JD’s major efforts. “To cope with demand and instead of relying solely on the stock in JD warehouses, the company used its omnichannel fulfillment platform to calculate which brick and mortar store nearest to the customer had the items in stock, and then sourced the inventory from there instead. This has enabled JD to speed delivery and in some cases products arrived within 15 minutes of the order being made.” To further cope with demand for grocery delivery, JD launched a new service in early February, Mobile Fresh Basket. Fan explains that JD launched the service “to provide a convenient and reliable way for people in Hubei province to get fresh produce that was already around them instead of it having to come from elsewhere.”

Going forward, “JD Logistics is working hard to improve its AI and 5G capabilities in the future. “Bing Fu, JD Logistics head of strategy, affirms in the article, if there is one positive to come out of the pandemic, it is the impact it has had on the implementation of digital solutions. “While COVID-19 is not welcomed, it has promoted the digitization of consumption, which concurrently drives supply chain upgrade. Only by shortening and digitizing the fulfillment process can we increase efficiency and access customers faster with increased precision,” he explains.

This magazine, with its print and online versions, has 21,000 professional readers in 135 countries and regions worldwide.

(ling.cao@jd.com)

Apr 1, 2024| Executive Spotlights, JD Retail

JD Chief Economist: Tech-Driven Supply Chain Revolutionizes Gen-Z Consumer Engagement in China

Vivian Yang

At the inaugural FORTUNE Innovation Forum in Hong Kong on March 28th, Dr. Jianguang Shen, chief economist of JD.com, highlighted the transformative impact of tech-driven supply chain solutions in meeting the dynamic needs of Gen-Z consumers in China.

“Gen-Z consumers are very discerning and pragmatic,” said Dr. Shen. “They don’t care if the brand is local or global.” Dr. Shen began by discussing the increasing sophistication of younger Chinese consumers. “The rising popularity of local products can be attributed to China’s supply-side reform, which has enabled brands to provide lower-cost products with higher quality,” he said. Shen also emphasized the strategic advantage that brands can achieve by leveraging advanced digital supply chains, which offer deep insights into consumer behavior, thereby tapping into substantial market opportunities.

Joining Dr. Shen were industry leaders including Angela Wei Dong, Global Vice President China at Nike; Pontus Erntell, President and Chief Sustainability Officer at IKEA China; and Doreen Wang, CEO of Kantar China and Global Head of BrandZ. Together, they shed light on the shifting preferences of China’s youth towards quality, sustainability, and enhanced social engagement in their retail experiences, especially amid economic headwinds, prompting brands to adapt swiftly.

Drawing examples from JD.com’s platform, Dr. Shen discussed the rising popularity of eco-friendly mini refrigerators among Gen-Z consumers. These products, aligning with Gen Z’s penchant for tech-savvy and environmentally conscious offerings, underscore the necessity for brands to evolve and align with consumer preferences.

Furthermore, Dr. Shen discussed the positive impact of a new government policy encouraging trade-in of consumer goods, which is expected to boost consumption. Leveraging JD.com’s robust supply chain capabilities, customers not only can easily trade in old appliances for more modern and eco-friendly goods but also benefit from a suite of JD’s attentive services such as doorstep pickup, installation, and recycling.

The conversation also touched upon the strategic collaborations under the Consumer-to-Manufacturer (C2M) model between JD.com and numerous brands, aiming to streamline the journey from product ideation to distribution. This collaboration has welcomed over 4,000 brands to JD.com’s C2M platform, drastically reducing product research and market introduction times by 80% and 70%, respectively, thereby fostering a mutually beneficial ecosystem for brands, retailers, and consumers.

Dr. Shen concluded by emphasizing JD.com’s commitment to technological innovation, with its deployment of AI-driven chatbot customer service, highly automated warehouses, autonomous delivery vehicles, and integrated retail solutions that bridge both online and offline domains. These innovations are designed to meet the dynamic preferences of consumers, enhancing the overall shopping experience and setting a new standard in consumer engagement.

(vivian.yang@jd.com)

Mar 8, 2024| Executive Spotlights, JD Logistics, JD Property, JD Retail

JD.com’s Strategic Advancements in International Business: A Focus on Supply Chain and User Experience

Vivian Yang

During JD.com’s earnings call for Q4 and FY2023 on March 6th, Sandy Xu, CEO of JD.com and JD Retail, provided an update on the company’s strategy for international expansion. Xu emphasized the importance of a robust supply chain as the cornerstone of JD.com’s growth beyond domestic borders.

Xu noted that JD.com is always on the lookout for overseas opportunities and is taking measured steps to advance this process. Given JD’s business model and inherent strengths, the company’s approach to global expansion is uniquely tailored.

“JD’s business model is built on supply chain capabilities and centered around user experience. Based on the development of supply chain infrastructure overseas, JD’s business will continue to expand in areas with our unique competitive strengths in global markets,” Xu said. She also provided an overview of JD.com’s current international businesses:

JD Worldwide, the export and import facet of JD Retail, incorporates JD Global Sales, an emerging outbound e-commerce platform dedicated to helping Chinese companies and brands expand their overseas market. JD’s cross-border inbound business, JD Global Buy, has established three direct procurement centers worldwide to enhance cross-border supply chain efficiency. This allows consumers in China to access a wider range of imported products at lower costs while ensuring product safety.
JD Logistics has developed a robust global supply chain, beginning with warehousing and expanding to encompass comprehensive supply chain services. Currently overseeing nearly 90 bonded, overseas, and direct mail warehouses across almost 900,000 square meters, JD Logistics provides extensive support to a broad spectrum of clients, including international enterprises and Chinese brands expanding overseas.
JD Property is expanding its business in Southeast Asia and Europe, with a focus on markets in Vietnam, Indonesia, Singapore, the United Kingdom, and the Netherlands. Its clientele spans international logistics, FMCG (fast moving consumer goods) giants, as well as emerging Chinese companies venturing abroad.
Ochama is an omni-channel retail platform incubated by JD.com in Europe, which utilizes advanced automated logistics technologies and global supply chain capabilities to provide a superior shopping experience for consumers across 24 European countries.

With a focus on supply chain and enhancing the user experience, JD.com will continue to explore opportunities to expand its global footprint. Learn more about JD.com’s businesses with global reach here.

(vivian.yang@jd.com)