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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)

Dada Now Teams Up with Luckin Coffee to Deliver Outstanding Service; Tu Yanping Honored as “Gold Rider of the Year”

On March 29, 2024, Dada Now, China’s leading on-demand delivery platform under JD.com, secured two prestigious awards – “2023 Outstanding Delivery Partner” and “Best Operational Support Award” from Luckin Coffee, underscoring its exceptional delivery service and meticulous operational support. Central to this recognition is Ms. Tu Yanping, a delivery rider with Dada Now, who received the prestigious “Gold Rider of the Year” title from Luckin Coffee. She is one of only four national recipients and the only woman to be honored.

Tu, who has been with Dada Now for nearly two years, has served at various Luckin Coffee stores within the Haimen District of Nantong City in Jiangsu Province. Her commitment ensures that every cup of coffee is delivered promptly to eagerly waiting customers. To date, she has completed over 20,000 orders, maintaining an exceptional on-time delivery rate of 99.9%. Dada Now has a high-quality coffee delivery standard with a strict “30-minute delivery within 3 kilometers” guarantee.

“I always make it a point never to exceed the delivery time limit to ensure that the coffee’s taste is preserved,” Tu said in an interview. She recognizes that for coffee lovers, each cup of coffee represents a unique experience, and timely delivery is crucial for maintaining its quality. Additionally, after delivery, she offers thoughtful instructions to customers on how to enjoy their coffee at its best, immediately after delivery.

“While many riders can deliver quickly, Tu’s exceptional attention to detail sets her apart, ensuring she maintains exceptionally high customer satisfaction ratings,” said Juanjuan Shen, who oversees Tu’s delivery station in Haimen. In instances when customers cannot receive their coffee orders in person, Tu diligently takes and sends photos to provide reassurance. Moreover, in the event of mishaps such as coffee spillage, she promptly contacts the customer and arranges for the coffee to be remade and delivered. This meticulous service has consistently upheld her customer satisfaction at a remarkable level.

As a mother of three, Tu finds that her role at Dada enables her to balance her family duties with personal fulfillment. Her dedication demonstrates that women can thrive in the delivery industry and set a strong example for others.

Nantong is a prime example of the rapid growth in coffee culture among China’s second- and third-tier cities. The close collaboration between Dada and Luckin, along with other leading chains, supports this trend and contributes to the growth of China’s local coffee delivery market.

Tu’s accolade serves not only as a personal achievement but also as a validation of the collaborative efforts between Dada Now and Luckin Coffee. Looking ahead, the two companies are committed to furthering their partnership, aiming to introduce innovative solutions in the instant delivery sector and provide even more efficient and convenient services to customers.

 

(vivian.yang@jd.com)

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

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)

JD Super Partners with Quinta do Noval to Bring Premium Portuguese Wines to China

On March 22nd, JD Super, the online supermarket division of JD.com, and Quinta do Noval, a renowned Portuguese port wine producer, formalized a strategic cooperation agreement at the Portuguese Embassy in Beijing. The partnership is set to enrich the Chinese market with premium Portuguese port wines, marking a significant milestone in wine retail through direct procurement.

The Portuguese Ambassador to China, H.E. Paulo Jorge Nascimento, hailed the partnership as a gateway for Chinese consumers to explore Portugal’s culture through its wines. Quinta do Noval, known for its vintage port wines sourced from the Douro River region, is poised to captivate Chinese wine enthusiasts with its unique flavors.

Xavier Sanchez, marketing and sales director of AXA Millésimes, which includes Quinta do Noval in its portfolio, highlighted the winery’s rich history dating back to 1715. Renowned for its single-vineyard grapes, Quinta do Noval promises an authentic Portuguese wine experience.

JD Super, observing the heightened demand for premium wines among Chinese consumers, pledged to meet their evolving preferences through this direct procurement partnership. This collaboration broadens the diverse selection of Portuguese wines on JD Super’s platform, making high-quality wines more accessible to Chinese consumers.

The ceremony showcased Quinta do Noval’s flagship wines, including Fine Ruby Port, Late Bottled Vintage Port 2016, and 10 Year Old Tawny Port, all of which received acclaim from attending sommeliers. Edward Ragg, a China-based Master of Wine, and Mr. Lv Yang, the world’s first and only Chinese Master Sommelier, were present at the event to offer professional insights on the wines. The full range of Quinta do Noval wines will soon be available on JD Super.

JD Super’s overseas procurement team, known for its meticulous selection process, sources directly from key production regions to ensure the highest quality for consumers. Leveraging JD’s advanced digital and supply chain capabilities, JD Super and Quinta do Noval are set to enhance operational and marketing strategies, aiming to deliver an unmatched wine purchasing experience in China.

Looking ahead, JD Super is committed to expanding its presence in major wine-producing regions, leveraging its platform to maximize cost-efficiency, and delighting consumers with its commitment to quality and service.

 

(vivian.yang@jd.com)

JD Super Collaborates with Leading Industry Associations and Brands to Establish Healthy Food Industry Alliance

On March 19th, ahead of China’s National Sugar and Wine Trade Fair, JD Super, the online supermarket division of JD.com, joined hands with leading industry organizations including the China Light Industry Federation, China Association of Baked Food and Confectionery Industry, China Food Industry Association, Dairy Association of China, along with over a hundred renowned brands in the snack and beverage sector, to launch the Healthy Food Industry Alliance. This initiative aims to introduce more health-conscious food and beverage products into the market, encourage the industry’s high-quality growth, and safeguard consumer well-being.

The alliance underscores JD Super’s pivotal role in the healthy food sector. As a driving force behind the initiative, JD Super has committed to investing RMB 1 billion in resources to bolster the growth of twelve key categories of trending healthy food and beverage products. This investment will focus on product innovation, traffic support, conducting marketing activities, and providing consumer guidance.

JD Super was recently featured in JD.com’s “ 2024 White Paper on Trending Healthy Food and Beverage”, which delved into twelve trending consumer trends shaping today’s food market. These trends encompass medicinal and food homology, dietary fiber, high nutrient density, precise nutrition, diverse plant-based options, natural ingredients, low sugar or zero sugar alternatives, low GI options, hypoallergenic care, authentic ingredients, clean labeling, and children’s health. These insights not only reflect consumer preferences for healthier diets but also chart a course for the industry to adapt.

Over the past year, JD Super has seen a significant rise in the availability of healthy food SKUs, exceeding 10,000, with a 60 percent increase in transaction volume year-on-year. Through its partnerships with brands, JD Super has been instrumental in establishing health food recommendation standards, creating exclusive health food labels, and providing targeted support for new health-oriented products.

The formation of the Healthy Food Industry Alliance represents a significant step in JD Super’s mission to foster an ecosystem that brings together demand insights, product innovation, and consumer education. With the support of the Alliance, JD Super aims to develop custom support strategies for various product categories to address changing consumer needs and discover new opportunities for brands.

In line with consumer preferences, the alliance will focus on six key categories within the beverage and instant drink segment, including those that are low in sugar, GI, and fat, as well as those that are high in protein, calcium, and organic. For snack foods, priorities include high nutrient density, low sugar, low GI, zero trans fatty acids, connections between medicine and food, green and additive-free alternatives, and low-fat, low-calorie options.

Notably, JD.com’s white paper revealed that over eighty percent of consumers pay close attention to ingredient lists when evaluating the healthiness of products. In response, JD Super is dedicated to improving the transparency of product information, starting with detailed displays of ingredients, nutritional facts, quality standards, and certifications, enabling consumers to make well-informed decisions easily.

 

(vivian.yang@jd.com)