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JD.com Teams Up with Brands to Launch “Trade-in Alliance for Household Appliances and Home Goods”

JD.com recently announced the “Trade-in Alliance for Household Appliances and Home Goods” in collaboration with over 100 renowned brands. This initiative, unveiled on April 27, aims to expand and enhance trade-in services across China and has already been successfully implemented in 20 provinces and cities.

The Trade-in Alliance allows consumers to access JD’s trade-in services for an extensive range of products, covering over 200 subcategories including TVs, refrigerators, washing machines, air conditioners, and more. The initiative caters to a growing demand, with more than 16 million users leveraging JD’s platform since 2023 to exchange their old household items for new ones. This represents a 200 percent increase in first-time users year-on-year.

To further enhance the customer experience, JD.com has introduced the “Three Free & Four Unlimited” trade-in service. This service includes complimentary door-to-door pickup, disassembly, and handling of old goods. Additionally, it places no restrictions on the trade-in items regarding their original purchase channel, brand, age, or condition. With just four simple clicks on the JD app, users can receive generous discounts from their old goods and enjoy the convenience of JD’s one-stop trade-in services.

JD.com also utilizes its logistical strengths to extend these services to even the most remote areas of China. For instance, customers living in Tibet at an elevation of 4,300 meters can now easily access JD’s trade-in options, including doorstep delivery and recycling of old appliances.

The Trade-in Alliance is built on six foundational pillars: service capabilities, brand support, marketing initiatives, industry chain synergies, omni-channel development, and category cooperation. By fostering closer partnerships with leading brands in the household appliance and home goods sectors, JD.com is setting a new standard for hassle-free trade-in services, offering unparalleled convenience and value to consumers nationwide.

 

(vivian.yang@jd.com)

JD Logistics and MINISO Announce Expanded Partnership to Enhance Logistics Efficiency

JD Logistics (also known as JINGDONG Logistics), a leading global logistics provider, recently announced the expansion of its partnership with MINISO, the renowned household and consumer goods retailer. This collaboration, which began in 2022 with operations in Australia, now extends to MINISO’s network in Malaysia.

JD Logistics’ robust global supply chain infrastructure includes nearly 90 bonded, direct mail, and overseas warehouses across key markets such as the United States, Germany, the Netherlands, France, the United Kingdom, Australia, the Middle East, and Southeast Asia. Committed to replicating its proven supply chain management expertise from China in international markets, JD Logistics provides extensive support to a broad spectrum of clients, including international enterprises and Chinese brands expanding overseas.

MINISO’s diverse product range and rapid restocking requirements, combined with its strategic store locations in bustling commercial areas, present unique logistical challenges. These include critical delivery lead times and the need for off-hours operations to ensure uninterrupted customer experiences. JD Logistics has effectively met these demands through reliable and adaptable warehousing and fulfillment service solutions.

Notably, the trust built with MINISO has led some store managers to entrust their store keys to JD Logistics’ drivers to facilitate smooth and timely deliveries. Among them is JD Logistics driver Nick Yang, responsible for delivering goods to all MINISO stores in Sydney. Yang’s daily schedule involves commuting between JD Logistics’ warehouse and approximately 10 MINISO outlets throughout the city.

Over the next three years, JD Logistics will continue to develop its comprehensive global supply chain logistics network, which integrates overseas warehouses, international transshipment hubs, local distribution networks, and transnational transportation networks.

This partnership is not only a testament to JD Logistics’ proven expertise and global operational capabilities but also underscores the commitment of both companies to foster innovation in supply chain management for retail operations worldwide.

 

(yuchuan.wang@jd.com)

JD.com Debuts AI Digital Representative of Founder Richard Liu During Livestream, Drawing 20 Million Views in Under One Hour

During a livestream on April 16th, JD.com introduced an AI digital representative of its founder, Richard Liu (Qiangdong Liu), nicknamed “procurement and sales manager Brother Dong (采销东哥).” Liu appeared in both JD Home Appliances and JD Supermarket’s livestreaming rooms, attracting over 20 million views within the first hour and generating RMB 50 million in sales throughout the entire livestream.

The digital representative almost perfectly replicates Liu’s facial expressions, body language, gestures, and voice, capturing even the subtlest movements of his fingers. Behind this technology is JD Cloud’s ChatRhino, an advanced large language model (LLM) that brings the avatar to life.

Behind the Technology

The LLM precisely mirrors Liu’s distinctive expressions and movements, naturally weaving in his occasional finger twiddles while he speaks, accentuating points with hand gestures, and adding nods at just the right moments for emphasis, creating a natural and authentic representation. Perfecting the voice proved to be a greater challenge. Those who have heard Liu speak are well-acquainted with the distinct inflections of his Suqian accent—a characteristic touch from his small-town roots in Jiangsu province. Observers will note the brisk pace of his speech, lighter enunciation, and his tendency to meld words in a seamless flow. His “sh” sounds carry a nasal quality, and he often addresses people as “brothers” to boost morale.

While programming the standard Mandarin dialect is relatively straightforward, teaching the AI to adopt the nuances of the Suqian dialect and Liu’s unique vocal patterns required a precise level of customization from the ChatRhino LLM. For example, the LLM had to provide accurate judgments on when to introduce the nasal tonality or the specific moments to merge words, ensuring the AI’s linguistic output mirrored Liu’s signature speaking style authentically.

Beyond replicating vocal characteristics, the AI’s voice must also be suitable for the casual, dynamic atmosphere of e-commerce livestreaming, such as adopting colloquialisms like “xiong di men” — a phrase comparable to “folks” or “guys” in English — to create a friendly rapport with the audience. JD Cloud’s ChatRhino team fine-tuned the model to focus on sociable nuances. The initial dataset for the LLM consisted predominantly of Liu’s formal speeches—spirited and compelling, yet too ceremonious for the interactive world of livestreaming. To cultivate a more congenial and approachable persona, the team utilized Liu’s recent casual conversations as the primary source material, rich with personal anecdotes and travel tales. This approach shaped the AI’s voice into one that is that is not only natural and approachable but also genuinely engaging for the end user.

As a fully self-developed technology product of JD Cloud, the ChatRhino Digital Representative solution has already served over 4,000 brand merchants, contributing to a 30% increase in order conversion rate during idle hours and helping merchants reduce livestreaming costs, enhance operational efficiency, and optimize user experience. Equipped with 50,000 hours of voice data, this technology enables digital representatives to intelligently adapt to various livestreaming styles dynamically.

The AI is also adept at managing 70% of routine live chat inquiries autonomously without any manual intervention, while also optimizing its responses with a self-improving algorithm. For instance, digital representatives can autonomously fields questions using product details and scripts, and post-livestream, and assimilate new information. Mirroring the acumen of seasoned sales professionals, it boasts a 90% accuracy rate in offering tailored product recommendations when solicited by customers.

The recent introduction of a cutting-edge livestream control console serves as the “brain” for the digital representative solution. It diligently monitors real-time inventory, adjusting the showcased products in the livestream and tailoring the script to ensure relevance—sidestepping items that are out of stock and spotlighting those in high demand. It also gauges and fine-tunes the frequency and style of interactions based on live audience engagement. With this advanced platform, businesses managing multiple livestreams can effortlessly operate thousands of sessions concurrently via cloud services, bypassing the need for intricate local setups. This innovation yields a substantial cost reduction of 30%.

 

Human-Machine Synergy

The intention behind digital avatars is not to outshine or compete with human talent but to harness the potential of technology to work in concert with livestreamers, maximizing overall growth. Essentially, the digital representative solution serves as a tool for brands and merchants to leverage long-tail traffic once real livestreamers conclude their broadcasts. JD’s analytics indicate this strategy can boost order conversion rates by 30% during off-peak hours, such as late into the night.

Digital representatives also excel in specific product categories that require detailed explanations, such as health products like nursing beds, electric wheelchairs, and oxygen concentrators.  The solution can provide constant, round-the-clock guidance, adding substantial value to livestreams when traffic is typically lower.

Last week, JD.com announced an investment of one billion yuan into video content creation. This investment underscores JD’s commitment to leveraging the power of short videos and livestreams to transform the online shopping experience for its users and create new growth avenues for brand merchants.

 

(yuchuan.wang@jd.com)

JD.com Unveils Ambitious Plans for 618 Grand Promotion: Aiming to More Than Double High-Performing Merchants

JD.com is gearing up for this year’s 618 Grand Promotion with an ambitious goal: to more than double the number of merchants achieving sales over one million yuan on its platform. At the recent Conference of Merchants and Ecosystem Partners on April 18, JD.com introduced a range of supportive initiatives aimed at achieving this ambitious target.

Sandy Xu, CEO of JD.com, noted at the conference that the company will dedicate significant resources to bolster traffic support, incorporate advanced AI technology, and enhance service capabilities. These efforts are particularly focused on empowering third-party merchants, including small and medium-sized enterprises in its marketplace.

Key initiatives include optimizing the platform’s traffic distribution ecosystem to prioritize highly-rated stores and products and competitively priced products through enhanced search and recommendation mechanisms. Additionally, JD.com will continue to offer merchants free access to high-traffic channels, which include significant incentives such as the popular 10-billion-yuan discount and free shipping programs.

To engage more content creators, JD.com recently announced that it will allocate over one billion yuan in cash incentives and traffic resources. This investment aims to cultivate a vibrant ecosystem that supports merchants’ traffic, business growth, and innovation.

At the core of JD.com’s strategy is technological innovation, which involves integrating AI-driven solutions into merchant operations. This includes the deployment of JD’s proprietary large language model, ChatRhino, and an AI-empowered merchant operation platform that offers are variety of free AI applications, and more. These technologies streamline various operations scenarios, enhance efficiency, and reduce costs for merchants.

For instance, On April 16th, JD.com unveiled an AI digital avatar of its founder, Richard Liu, as a sales host on its livestreaming platform. This event attracted 20 million viewers in just one hour and generated sales exceeding RMB 50 million ($6.9 million). This AI-driven virtual host technology, developed by JD Technology, is now supporting over 4,000 brands on the platform. Additionally, merchants such as a sashimi knife seller can utilize JD.com’s AIGC content generation tool to quickly produce high-quality demonstration images, bypassing traditional costs associated with product photography.

JD.com also continues to enhance its service capabilities, particularly for small and medium-sized merchants. This includes personalized business guidance, comprehensive training programs, and upgraded after-sales services,  ensuring a seamless shopping experience for customers.

As of March 2024, JD.com has seen a significant increase in active third-party merchants on its platform, surpassing one million. This growth is a testament to the platform’s effectiveness and its appeal to both new and established merchants.

 

(vivian.yang@jd.com)

JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics

JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.

The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.

Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”

JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.

“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”

By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.

 

(yuchuan.wang@jd.com)

JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns

JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.

Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.

JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.

Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.

As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.

The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.

 

(vivian.yang@jd.com)

JD.com Bolsters Video Content Creation with One Billion Yuan Investment

On April 10, 2024, JD.com announced an investment of one billion yuan in cash incentives aimed at attracting a wider pool of video content creators and institutions to its platform. This initiative underscores JD’s commitment to leveraging the power of short videos and live streams in innovating the online shopping journey for its users and providing brand merchants with novel avenues for growth.

According to the “China Internet Audiovisual Development Research Report (2024),” 71.2% of surveyed users engage in online shopping through watching short videos and live streams, with over 40% identifying them as their primary channels of consumption. This trend underscores the growing influence of video content on consumer purchasing behavior.

Video content on JD’s app

JD’s approach to cultivating a vibrant content ecosystem is multifaceted. For individual content creators, the platform offers generous cash subsidies across more than 20 product categories, including electronics, home appliances, fashion, and health, to name a few. Creators who meet the platform’s recruitment criteria can receive weekly bonuses of up to 30,000 yuan, alongside additional incentives such as video playback subsidies and sales commissions.

On the institutional front, JD has established a separate five-million-yuan incentive program. Institutions that successfully onboard a significant number of influencers will receive generous monthly cash subsidies. JD will also provide one-on-one guidance and support to enhance these institutions’ operational effectiveness on the platform.

A key element is the prioritization of high-quality, original content. The platform intends to amplify the reach of such content through algorithms, traffic coupons, and other means, thereby ensuring a richer and more engaging shopping experience for its users.

In a bid to further elevate its content offerings, JD is also in the process of incubating top-tier influencers, with plans to cultivate 100 star influencers by year-end. This initiative builds on the substantial growth witnessed in JD’s content ecosystem over the past year, marked by a 300% increase for “trial + review” videos in key metrics such as orders, user base, and viewing duration. Notably, during the Singles’ Day Grand Promotion in 2023, JD’s video challenges initiative generated nearly 100 million yuan in transactions, showcasing the immense potential of content-driven e-commerce.

JD.com’s latest investment reflects its ongoing dedication to innovation and excellence in e-commerce. By fostering a dynamic and creative content community, JD aims not only to enhance the shopping experience for its users but also to empower creators and institutions with new opportunities for growth and success.

 

(yuchuan.wang@jd.com)

JD.com and Lenovo Form Strategic Cooperation to Drive AI Integration

On April 7, 2024, JD.com and Lenovo announced a strategic partnership focused on AI marketing, intelligent supply chains, and AI technology integration. The partnership positions JD.com and Lenovo as leading AI PC partners, with Lenovo targeting RMB 120 billion in sales across JD’s platforms within the next three years. The collaboration will be focused on accelerating the adoption of AI PCs and making smart devices more ubiquitous in households.

During the signing ceremony at JD’s headquarters, Sandy Xu, CEO of JD.com, highlighted the enduring collaboration between JD.com and Lenovo, predicting a surge in consumer demand and industry-wide innovation. Leveraging JD’s digital supply chain capabilities, the aim is to enhance consumer experiences for both individuals and enterprises.

Liu Jun, Executive Vice President and President of the China Region of Lenovo Group, underscored the significance of JD.com as a vital strategic partner in Lenovo’s AI-focused strategy. This collaboration intends to establish a comprehensive AI industry ecosystem, covering everything from AI PCs to servers and integrated solutions.

The partnership is structured around three principal goals: deepening collaborative efforts on Lenovo’s extensive AI products, solutions, and services; acting as mutual pioneers in the AI PC domain to encourage adoption via JD’s exclusive product launch deals; and working together to cultivate an AI terminal industry ecosystem that enhances the consumer experience.

In line with JD.com’s recently announced mission “Making Lives Better through Technology,”  the company is committed to providing robust supply chain technology, integrating AI into physical scenarios, and offering more convenient and affordable consumption options.

 

(vivian.yang@jd.com)