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JD Publishes Sustainability Report (2018-2020)

by Yuchuan Wang

JD.com published its Sustainability Report on Jun. 18 which disclosed the company’s efforts and achievements in the field from 2018 to 2020.

As a company with the mission “Powered by Technology for A More Productive and Sustainable World”, JD.com is committed in leveraging its smart supply chain to continuously create value for economy and social development, and environmental protection.

JD has been making efforts in promoting green logistics, procurement, offices and more to lead a low-carbon operation enterprise. The company’s self-built data center in Suqian, Jiangsu province has been recognized by the country as one of the “2020 National Green Data Centers” by departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission and Ministry of Commerce.

JD also innovates in transportation, storage, and packaging among many others of the supply chain to make its logistics fulfillment green. The company has been gradually replacing traditional fuel-combustion trucks with new energy vehicles since 2017 and reduces at least 120,000 tons of carbon dioxide emissions per year.

As said by Richard Liu, Chairman and CEO of JD.com, in a letter to shareholders on Jun. 18, “A company which stays in awe and stays enthusiastic should not pursue omnipotence in its industry. Instead, such a company should assume responsibility and create value for its users, partners, society, environment, communities and employees.”

 

Click here to read the report in Chinese.

 

(yuchuan.wang@jd.com)

Posted in ESG

JD Logistics Helps Xiaomi Youpin Build North China Center

by Yuchuan Wang

The Xiaomi Youpin North China Warehousing and Distribution Center powered by JD Logistics (JDL) officially commenced operations on Jun. 11. As an enhancement of the supply chain cooperation between the two parties, the center will provide Xiaomi Youpin one-stop logistics services such as storage and distribution covering all categories of products to its customers in north and northeast China.

During the trial operations at the beginning of June, Xiaomi Youpin’s products were delivered same and next-day to customers in Beijing and Tianjin – the same level that JD’s customers in these areas enjoy – thanks to JD’s advanced logistics management system.

“Our partnership with JDL not only accelerates the delivery of Xiaomi Youpin’s products, but also offers a better customer experience,” said Fang Bai, general manager of Xiaomi Youpin. “We look forward to collaborating with JDL to create the best shopping experience and establishing a new industry benchmark.”

Yunfeng Shi, General Manager of JDL’s North China branch said that the deepened cooperation will further stimulate the potential of technology-powered integrated supply chain services in the e-commerce industry, which will contribute to the reduction of logistics costs and the improvement of industrial efficiency.

JDL and Xiaomi Youpin plan to launch another logistics center in South China in the near future and will collaborate in national warehousing network design, order forecast, smart replenishment and more.

Xiaomi Youpin is a lifestyle e-commerce platform under Xiaomi. JDL started providing logistics services to Xiaomi Youpin since 2018, including opening up its nationwide transportation and delivery network to the brand.

 

(yuchuan.wang@jd.com)

JD.com Awarded as 2021 Low-carbon Model Company

by Yuchuan Wang

JD.com was granted the “Annual Model for Low-carbon in 2021” award at the 12th Forum of Green Development and Low-carbon Life held on Jun. 11 in Beijing. Ling Xu, vice president and head of strategy department at JD.com, attended the forum and made a speech on JD’s thinking and actions for sustainable development.

“JD has incorporated green and low-carbon operations into its corporate development strategy,” said Xu. “By advocating responsible consumption, we collaborate with partners and consumers to promote sustainable development through transforming processes from designing, marketing, to circulation and services.”

As a supply chain-based technology and service provider, JD is contributing to China’s carbon neutrality goal and global climate action by building a cleaner supply chain system with a lower carbon footprint.

In 2019, JD.com’s logistics arm, JD Logistics, became the first Chinese logistics company to join the Science Based Targets initiative (SBTi), with a commitment to reducing its carbon emissions by 50% between 2019 and 2030. In May, JD.com announced plans to cut carbon emissions by 5% during this year’s 618 Grand Promotion comparing with the same period last year.

Co-organized by China News Service, the National Development and Reform Commission, the Ministry of Ecology and Environment and city of Beijing, the 12th Forum of Green Development and Low-carbon Life attracted nearly a hundred experts and scholars.

 

(yuchuan.wang@jd.com)

Posted in ESG

JD Adds All-Cargo Aircraft Route from Shenzhen to Beijing

by Yuchuan Wang

JD Logistics announced adding a new air cargo route from Shenzhen to Beijing since Jun. 8, 2021. Using a Boeing 737 freighter, the all-cargo aircraft will help shorten fulfillment time in the Beijing-Tianjin-Hebei Area, and the Great Bay Area of Guangdong, Hong Kong and Macau.

Using a Boeing 737 freighter, the all-cargo aircraft will help shorten fulfillment time in the Beijing-Tianjin-Hebei Area

The new route is operated by China Central Airlines and travels between the two cities six times a week, enabling consumers in northern China to enjoy fresh fruit such as lychee from Guangdong province delivered to their doorsteps in 24 hours.

Since last year, JD Logistics has been deepening its all-cargo partnerships with airlines including Zhejiang Loong Airlines and Zhongyuan Longhao Airlines. The company also continues to leverage freight resources from China Southern Airlines, China Eastern Airlines and Hainan Airlines. JD Logistics has a total of over 100,000 air routes between cities and its air deliver services can be provided in 300 cities, as of this June.

A representative from JD Express, JD Logistics’ express delivery business, said that the newly launched route will also meet the increased demands from consumers and merchants during the 618 Grand Promotion.

 

(yuchuan.wang@jd.com)

KOLs from 13 Countries Visit JD.com’s Asia No.1 Logistics Park

by Hui Zhang and Yuchuan Wang

Sixteen international Key Opinion Leaders (KOLs) from 13 countries including America, Britain, France, Brazil, and Thailand visited JD.com’s Asia No.1 Logistics Park in Beijing on Jun. 9 and recorded the high advanced logistics experience through videos to share with their vast number of followers on social media platforms including Youtube, Facebook, Instagram as well as major Chinese social media platforms.

Group photo of KOLs

Group photo of KOLs

“To be honest, I got addicted to JD.com because they have fast services, and great after-sales and customer services. They have awesome products that you can order in the morning and maybe get the parcel on the [same] day,” said Jerry Goode, a Youtube Vlogger from South Africa. “It’s like a kid in a candy store. I really like seeing how these guys operate – the ideas, the initiative for the future to get packages faster and faster.”

Jerry Goode

Jerry Goode

The KOLs were invited by Beijing municipal government together with China Radio International (CRI), an international radio broadcaster of China to visit a series of companies to better understand the capital city’s strong technical capabilities and consumption power.

KOL livestreaming

KOL livestreaming

JD started building its first Asia No.1 logistics park in Shanghai in 2009. As the name indicates, the plan was to build the largest scale and most advanced network of e-commerce logistics centers.

By adopting automation technologies and robots such as shuttle system, AGVs (automated ground vehicles) and high speed sorting system, it enables the company to fulfill over 90% of JD.com’s retail orders from nearly 500 million active customers within 24 hours, a level that no other company in the world at the scale can match.

KOL taking video

KOL taking video

In JD’s Beijing Asia No.1 logistics park, 330 AGVs work collaboratively to pick up consumers’ orders, enabling individual pickers to each pick about 250 orders per hour, which is three times the efficiency of a traditional picking approach.

AGV in operation

AGV in operation

The company’s Shanghai Asia No.1 logistics park is able to handle as many as 1.3 million orders a day thanks to the application of such advanced technologies.

JD's Asia No.1 warehouse in Shanghai

JD’s Asia No.1 warehouse in Shanghai

“It’s my first time to visit such a big logistics park with front-end technology. I’m so impressed by JD’s Asia No.1 Logistics Park,” said Charunpumhiran Apinya, a Facebook influencer from Thailand.

Charunpumhiran Apinya

Charunpumhiran Apinya

“It’s amazing… It’s huge, massive and highly efficient,” said George Doupas, a photographer from Greece.

George Doupas

George Doupas

This automation is extremely helpful during peak periods such as the ongoing 618 Grand Promotion. By 5 pm on Jun. 1, the number of items which purchased on the day and had already been delivered surpassed that of the entire day of Jun 1 during last year’s promotion. As of now, the company operates a total of 32 Asia No. 1 projects, as a part of its 1,000 warehouses across China.

 

(zhanghui36@jd.com; yuchuan.wang@jd.com)

Sales of Emerging Brands Surge on JD Super’s Big Day

by Ling Cao

Sales of emerging brands surged on JD Super’s Big Day on June 7, which is part of JD’s 618 Grand Promotion from June 1 to June 18. Data showed that these brands under the liquor and fresh produce categories increased 22 times and 10 times YOY, respectively. The omni-channel business model also accelerated JD Super’s sales growth.

Emerging brands such as fast-moving consumer goods brands Yuanqisenlin, Liziqi and Saturnbird Coffee all run stores on JD Super. JD has been using marketing methods to help grow the business of over 30,000 new brands or stores, with nearly 2.44 million new products released on JD.

Additionally, JD also utilizes innovative marketing tools to promote campaigns, such as livestreaming with celebrities or brands’ executives. On June 7, sales contributed from the initiatives increased by 12 times YOY.

Other categories on JD also kept the growth momentum, with food and snacks, and baby and maternal sales increasing by 143% and 105% YOY, respectively.

JD’s Omni-channel Fulfillment program has grown sales by 17 times YOY, as well as attracted SMEs making orders, thus accelerating business-to-business sales on JD Super to increase over 300% YOY.

“We’ve seen the consumption trends of this year’s 618 from omni-channel, high-quality products to more customers with different age groups participating,” said Chenkai Ling, Vice President of JD.com and Head of Strategy, JD Retail. “The supply chain is also upgrading to intelligence and digitalization.”

 

(ling.cao@jd.com)

JD’s DC/EP Program Head Airs on National TV

by Ling Cao

“DC/EP (Digital Currency/Electronic Payment) program has accelerated the cycle for currency settlements, thus lowering a company’s operational cost,” Fei Peng, head of the DC/EP program at JD Technology told Chinese National TV, in an interview broadcasted on June 8.

“Because DC/EP is equipped with intelligent agreement for payment and settlement, the recipient can receive the currency in real-time,” added Peng.

The program reported that digital currency in China has expanded the application, such as payroll payment.

Beijing resident Mr. Liu shared with the program, “I felt very excited when I first received [the transfer], and quickly made a purchase via the digital currency.”

Besides payroll, companies are also able to make business-to-business payments via DC/EP.

Since cooperating with the Digital Currency Institute under The People’s Bank of China, China’s central bank, in Sep. 2020, JD has provided technology and service support for DC/EP trial programs in Suzhou, Beijing and Chengdu.

In January, JD used the solution to pay salaries for some of its employees, further exploring the application of DC/EP. JD also made business-to-business payments via DC/EP to Unis Electronic Business and Chongqing Xin Ririshun Electric Sales under domestic home appliance giant Haier; and helped facilitate the cross-bank settlement, when JD Retail’s DC/EP account with Bank of Communications made a transaction to Unis Electronic Business’ DC/EP Bank of China account.

 

(ling.cao@jd.com)

JD and Walmart Launch Omini-channel Marketing Model

by Vivian Yang

JD.com and Walmart launched their new omni-channel marketing model “Jing-Wo New Initiative” on June 7.

“Jing” refers to JD.com’s Chinese name “Jing Dong,” “Wo” is for Walmart in Chinese, and “New” represents the newly released products that will participate in this cooperation.

Based on this new marketing collaboration model, JD will make full use of its strength in omni-channel and supply chain middle platform to help brands integrate product launching resources across all channels, expanding new products’ touch points and exposure among customers; and helping customers enjoy the latest product offerings in a more convenient manner.

Walmart will leverage its 400+ stores across the country, its online stores including several Walmart’s flagship stores in first-party and third-party modes and its official overseas stores on JD and its mini programs to support the marketing campaign.

“The new initiative is an inevitable strategy for all retailers, brands and retail distributors who take an omni-channel approach,” said Carol Fung, vice president of JD.com and president of JD FMCG Omni-channel. “It can greatly help brands to incubate new products, identify their core customers and broaden the incremental market for more sales opportunities.”

Shiyuedaotian (十月稻田), a famous domestic rice grower and seller, became the first brand to join this initiative. Through the collaboration, the brand’s new customized rice product, which is co-branded with a popular Chinese TV series Country Love, simultaneously hit the market on all platforms including JD’s main site, other JD’s online selling platforms and JD’s dedicated site for new products, all of which count over 500 million active users, as well as all of Walmart’s online and offline channels.

 

(vivian.yang@jd.com)