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JD.com’s JD Logistics Unveils World’s Largest Intelligent Logistics Park with Integrated Warehousing and Sorting Capabilities

Posted on by Yuchuan Wang

On June 14, JD.com announced that the company’s logistics division, JD Logistics, launched phase 2 of its Kunshan Asia No.1 Intelligent Logistics Park in Jiangsu province, China. With a floor area of over 500,000 square meters, combined with the existing phase 1, JD’s Kunshan Asia No.1 Intelligent Logistics Park now stands as the world’s largest intelligent logistics park, equipped with cutting-edge integrated warehousing and sorting capabilities. The facility is capable of sorting an industry-leading 4.5 million parcels per day.

JD Logistics Kunshan Asia No.1 Intelligent Logistics Park Phase 2

At the heart of the Kunshan Asia No.1 Intelligent Logistics Park is an automatic sorting center, boasting more than 80 state-of-the-art sorting lines and an expansive fleet of 10,000 intelligent sorting robots, which ensure an unrivaled sorting accuracy rate of 99.99%. During peak seasons such as JD’s 618 Grand Promotion, China’s largest mid-year shopping festival, the sorting center operates around the clock, processing over 4.5 million parcels per day. This five-fold increase in efficiency, compared to traditional methods, sets an industry benchmark, establishing the Kunshan Asia No.1 Intelligent Logistics Park as a global leader in logistics operations.

JD Logistics Kunshan Asia No.1 Intelligent Logistics Park

With the launch of Phase 2 of the Logistics Park, JD’s logistics network now ensures over 93% of JD’s retail orders from the East China region, spanning Jiangsu, Zhejiang, Shanghai, and Anhui can be delivered same-day or next-day, covering a population of 200 million people.

JD.com’s commitment to providing a premium shopping experience prompted the development of Asia’s largest and most automated intelligent logistics hubs, from which the “Asia No.1” moniker originates. In October 2014, JD.com inaugurated its inaugural Asia No.1 intelligent logistics park in Shanghai. Today, JD.com has established numerous Asia No.1 logistics hubs across the nation, forming Asia’s most extensive group of intelligent warehousing facilities.

Complemented by JD’s expansive warehousing network, consisting of over 1,500 warehouses, the company now proudly guarantees the “211” promise: orders placed before 11:00 AM will be delivered the same day, while orders placed before 11:00 PM will arrive the following day, to almost every corner of China.

Automatic sorting center at JD Logistics Kunshan Asia No.1 Logistics Park

On June 14th at 2:05 am, a box of freshly caught hairy crabs from Suzhou was shipped from the Kunshan Asia No.1, which became the 10 billionth parcel processed by Asia No.1 facilities.

JD Logistics’ technology products and solutions have also garnered significant acclaim among external clients across diverse industries, including electronics, industrials, apparel, medicine, and automobiles. Notably, during the first quarter of this year, JD Logistics experienced a remarkable 59.8% year-on-year increase in revenue from external clients, accounting for approximately 70% of its total revenue.

JD Logistics is also replicating elements of its world-class logistics operation overseas. In February 2023, the company launched its third warehouse in California, U.S., growing the company’s footprint to over 1.3 million square feet of warehousing space throughout the state. By bringing its expertise to international markets, JD Logistics aims to redefine global logistics standards and drive innovation in the industry.

 

(yuchuan.wang@jd.com)

JD.com’s 618 Grand Promotion Kicks Off, Record Number of Brands Reach 100 Million Yuan in Sales within the First Ten Minutes

Posted on by Yuchuan Wang

by Yuchuan Wang and Vivian Yang

On the evening of May 31, 2023, JD.com officially launched the 618 Grand Promotion, the largest mid-year shopping festival in China. In a phenomenal display of consumer enthusiasm, over 23% more brands achieved the RMB 100-million-yuan sales milestone within the first ten minutes compared to the previous year. Additionally, an impressive 60% of newly onboarded merchants soared past their daily average sales volume for May, and 50% of small and medium-sized enterprises (SMEs) reported their sales skyrocketing by more than 200%.

This year’s JD 618 Grand Promotion marks the 20th birthday for JD.com and offers more than ten times the number of items as those featured during the 10-billion-yuan discount program, which launched in March. The vast selection comprises over 200 of the most in-demand items and nearly ten thousand best-selling products spanning a diverse range of categories.

Upon the event’s opening, consumers in over 300 cities across the country received their pre-ordered parcels within a matter of minutes. JD.com’s dedication to excellent service, through its proprietary logistics network built since 2007, ensures the delivery of the same or next-day orders nationwide, affirming its “place an order in the morning and receive it in the afternoon” commitment. Today, the unmatched service covers 10 million products and to consumers nationwide.

JD’s on-demand retail service also showcased its advantages immediately. Within the first ten minutes of the promotion’s launch, customers in over 700 counties and cities throughout the country received their orders. The first on-demand delivery through JD Shop Now arrived at a customer’s doorstep in Changsha city within just nine minutes.

Data highlights from the shopping festival collected between 8:00 PM and 8:10 PM on May 31, 2023 include the following:

  • A 23% year-on-year increase of brands surpassing a transaction volume of over RMB 100 million within the first ten minutes of the 618 promotion
  • Apple’s transaction volume surpassed RMB 100 million in just one second
  • Nearly 50% of small and medium-sized merchants have seen their transaction volume increase by over 200% year-on-year
  • Transaction volume for home appliances and home furnishings exceeded RMB 5 billion
  • Transaction volume for durian increased by more than three times year-on-year
  • Transaction volume for men’s and women’s apparel increased by over 120% year-on-year
  • Transaction volume for road bikes and cycling apparel increased by over 100% year-on-year
  • Transaction volume for new energy vehicle tires increased by nine times year-on-year
  • Within five minutes, transaction volume of JD’s cross-border platform JD Worldwide exceeded the total sales of the first two hours from last year
  • A near 400% year-on-year increase in merchant usage of JD Cloud’s Yanxi Digital Human livestreaming service compared with the same period from last year’s Single’s Day promotion
  • A 100% year-on-year increase in transaction volumes for 150 skincare and beauty brands, including prestigious names like YSL, Helena Rubinstein, Shu Uemura, Proya, and Lancome
  • Transaction volume of luxury brands including Bulgari, Tiffany & Co., Bottega Veneta, and Givenchy increased threefold year-on-year.
  • Fifteen watch brands, including Longines, Tissot, and Mido, doubled their sales year-on-year
  • Entrepreneur and internet celebrity Luo Yonghao joined JD Livestreaming and sold an apartment at 61.8% of the full price, saving over RMB 1.2 million for the consumer
  • Electronic product services saw a transaction volume boost of 160% year-on-year
  • Trade-in services for home appliances and home furnishing products experienced a transaction volume surge of over 120% year-on-year

 

(yuchuan.wang@jd.com; vivian.yang@jd.com)

JD.com’s 618 Grand Promotion 2023: Industry’s Largest Investment, Record-High Merchants, Straightforward Discount Offering and More

Posted on by Vivian Yang

by Vivian Yang and Yuchuan Wang

JD.com has firmly committed to an unparalleled investment in this year’s 618 Grand Promotion, affirming it as the industry’s most extensive, according to Lijun Xin, CEO of JD Retail during a press conference on May 22nd in Beijing for the mid-year shopping festival.

Embracing the mantra of “Diverse Selection, Fast Delivery, High-Quality, and Cost-Effective,” JD.com is dedicated to providing consumers with a seamless, economical, and stress-free shopping experience throughout the festival.

As the first nationwide shopping festival in China post-COVID-19, the event is regarded a bellwether of China’s consumption market and a significant growth opportunity for numerous brands and merchants. JD has seen a record number of participating merchants both online and offline, all gearing up for the festival.

This year, the JD 618 Grand Promotion will kick off its pre-sale period at 8 p.m. on May 23rd, leading into full-scale campaigns commencing at 8 p.m. on May 31st.

Simplified Shopping with “Direct Discount”

It’s anticipated that JD’s “10-billion yuan discount” program via the JD App will feature ten times as many products compared to when the initiative was launched in March. The program now features over 200 highly sought-after items and approximately 100,000 bestsellers spanning all e-commerce platforms.

If JD users discover a product within the “10-billion yuan discount” program priced higher than on other platforms, they’re invited to submit a request to receive double the price difference as compensation from JD.

This year, JD will introduce the “direct discount” pricing mechanism, eliminating the confusion of coupon selection while stacking benefits for long-term users and JD PLUS members.

 A Growing Pool of Sellers Offering Diverse Products

Earlier this year, JD.com rolled out the “Spring Dawn Initiative,” attracting an array of new vendors, including farmers, designers, and artisans to join through a series of supportive measures. In the first quarter alone, the number of new merchants on JD’s platform soared by 240% compared to the same period last year.

This year’s festival boasts the highest number of online and offline participating brands and merchants, bringing increasingly diversified products to the platform. At the same time, high-profile brands that joined JD.com in the first half of this year, such as Tiffany, Bottega Veneta, and Tesla, will are set to contribute their most popular and high-quality items for the JD 618 Grand Promotion.

On the physical retail front, tens of thousands of JD’s self-operated stores and millions of partnering stores will participate in this year’s festivities. In addition, on-demand retail service providers, JDDJ and JD Shop Now, will collaborate with over 300,000 brick-and-mortar stores across China to organize an array of promotional activities.

Accelerated Delivery and Post-Sale Services

Launched more than 13 years ago, JD’s same- and next-day delivery service has set industry standards across hundreds of cities in China. For this 618 festival, JD Logistics will strategically place inventory closer to customers, enabling couriers to make doorstep deliveries minutes after an order is placed, with this service available in at least 300 cities in China.

Meanwhile, Dada has bolstered its delivery team for the shopping season, with millions of Dada riders standing by to provide one-hour delivery service for on-demand retail goods in more than 2,000 counties, districts, and cities. This speed also extends to customer service. For example, JD’s decade-old “Lightning-Fast Refund” service can process customer refunds within a second of the application.

JD Technology will exert efforts of its advanced digital infrastructure to facilitate business partners in improving cost and efficiency, including providing 24/7 livestreaming shopping guidance services for 4,000 key brand owners, and digital virtual livestreaming rooms and supply chain finance services for merchants.

Superior Quality and Services

JD.com has always adhered to authenticity since its inception, ensuring customers receive high-quality, guaranteed, and trusted products. Coupled with this commitment, JD.com continuously strives to enhance its after-sales service. Over the past five years, JD Retail has invested nearly RMB 80 billion in user services. Currently, the company offers more than 200 customized services, 80 of which are unique to JD. These include a 30-day price guarantee, hassle-free returns, 180-day exchange without repair, trade-in, 30-day free-exchange for apparel and shoes, 24/7 pharmacy consulting services, and more. Since the creation of the “price guarantee” service in 2008, JD has helped its customers save nearly RMB 8 billion.

During this year’s 618 Grand Promotion,  JD will extend its service length and include more categories. Innovative services such as “half-month free tastes” for food items and “half-year worry-free stock up” for home furnishing products will debut at the festival. Furthermore, JDDJ, JD’s on-demand retail platform, will join hands with household brands such as Midea, Gree, Philips, and Arrow to offer integrated delivery and installation services.

JD.com has always prioritized creating a comprehensive, rapid, high-quality, and cost-effective consumer experience.. This enduring commitment continues to shape JD.com’s original vision. Looking forward to the next 20 years, JD.com will continue to optimize and enhance the user experience around cost, efficiency, products, prices, and services.

From the onset, JD.com has dedicated itself to providing a “diverse, fast, quality, and cost-effective” shopping experience. The company will remain true to its business philosophy, centered around cost-efficiency, quality products, competitive prices, and outstanding services for the decades to come.

 

(vivian.yang@jd.com, wangyuchuan@jd.com)

JD Super Establishes Strategic Partnership with Prestigious European Wineries: Château Cos d’Estournel, Vignobles Bonfils, and Bernard Magrez

Posted on by Vivian Yang

by Vivian Yang

On May 18th, JD Super, an online supermarket business under JD Retail, announced strategic partnerships with three renowned European wineries: Château Cos d’Estournel, Vignobles Bonfils, and Bernard Magrez. Under the respective agreements, JD will collaborate with each winery to enhance cooperation in various areas, including branding, marketing, user operations, omni-channel sales, logistics, and more, thereby expanding their presence in the Chinese market.

The formation of these partnerships resulted from the efforts of JD Global Sourcing, a department within JD Super. Starting from mid-April, the team embarked on an extensive series of visits to Europe’s prominent wine-producing regions. Their journey spanned numerous locations,, including Toscana and Piedmont in Italy, Bordeaux’s Lafite, Margaux, Latour, Ausone, Cheval Blanc, Canon and more, as well as renowned Riesling wineries in Germany, ranging from basic-level to top-rated VDP wine producers.

“The trip helps us better understand grape varieties, winery regions, and styles, which enables us to select the most suitable high-quality wines at good prices and identify fresh and emerging brands and wine products for Chinese consumers,” said Yuxia Sun, a wine buyer of JD Super.

In addition to product procurement,  the JD Global Sourcing team will collaborate with winery partners on branding, marketing, and user operation in the Chinese market. This approach provides opportunities for wine producers to better understand their Chinese consumers and meet their needs while also promoting industry transparency for product quality guarantee and price competitiveness in the best interests of Chinese consumers.

By collaborating with local supply chain and processing partners, JD Global Sourcing will create JD’s exclusive wine offerings based on target users’ needs. Additionally, they will work with logistics partners to assist in transportation, customer clearance, and other processes to lower costs and improve efficiency to introduce more variety of overseas premium products to the Chinese market.

JD Super’s Global Sourcing covers multiple categories, including wine, fresh fruits, seafood, and meat, with a commitment to creating more value for upstream and end customers by increasing efficiency, lowering costs, and optimizing services.

 

(vivian.yang@jd.com)

JD.com Unveils Kazakhstan National Pavilion, with Kazakhstan’s President Kassym-Jomart Tokayev in Attendance

Posted on by Vivian Yang

by Vivian Yang

On May 18th, JD.com held the opening ceremony of the Kazakhstan National Pavilion in Xi’an. President Kassym-Jomart Tokayev of Kazakhstan attended the ceremony, making it the first JD National Pavilion launched in the presence of the head of state. It also represented Kazakhstan’s first venture into establishing a National Pavilion on a Chinese e-commerce platform.

President Kassym-Jomart Tokayev of Kazakhstan (middle) attended the opening ceremony of the National Pavilion of Kazakhstan on JD.com 

The newly launched National Pavilion features more than 20 specialty products that encapsulate the essence of Kazakhstan. Visitors to the Pavilion can explore and purchase an array of products from popular brands such as BAYANSULU’s imported candies and chocolates, Piala’s black tea, along with nutritious products like camel milk powder, safflower seed oil, and more.  This Pavilion represents a trustworthy and accessible platform for JD.com’s nearly 600 million JD users to experience the authentic, rich flavors of Kazakhstan.

JD’s vice president Wei Ye said at the opening ceremony that as China’s economy continues to grow and evolve, consumer demands for imported products are becoming more diverse and quality oriented. Through official authorization and support from institutions such as embassies, government organizations, and authoritative associations, JD.com is committed to employing its resourcefulness and supply chain capabilities to bolster the development of the national pavilion program. In concert with partners, the aim is to amplify the visibility and market opportunities for superior overseas products and brands within China.

Kazakhstan, the most populous and expansive country among the five Central Asian nations, is also the world’s largest landlocked country. It counts China as its largest export destination and second-largest trading partner. The establishment of the National Pavilion has benefitted from the robust support of the Embassy of Kazakhstan in China and the China General Technology Group, whose subsidiaries are orchestrating product imports and managing the national pavilion’s online operations.

Today, JD.com is proud to host 50 country-specific pavilions, making it the largest and most comprehensive country-themed import product retail program among all Chinese e-commerce platforms. This unique initiative offers an extensive range of product categories, from food and beverages — including fresh produce, wines, and spirits — to fashion, beauty, maternity and baby supplies, household items, and more. Each pavilion is dedicated to showcasing iconic, genuine, and specialty products, sourced directly from their countries of origin. Further enriching the consumer experience, the program also highlights cultural and tourism aspects from each participating country, fostering opportunities for cross-cultural dialogue.

 

(vivian.yang@jd.com)

JD.com Announces Debut of Bottega Veneta’s Online Flagship Store

Posted on by Yuchuan Wang

JD.com announced today that Bottega Veneta, the luxury brand known for fine Italian craftsmanship with creativity at its core, has launched its first-ever online flagship store with the company. To visit the store, shoppers can simply search for “BV” or “Bottega Veneta” on the JD app.

As the first luxury fashion brand from Kering Group to join JD.com, Bottega Veneta will introduce a comprehensive product line featuring over 2,000 items, encompassing bags, shoes, ready-to-wear, small leather goods, accessories, jewelry, and glasses. In future seasons, BV aims to further expand product offerings by catering to JD consumers’ needs. Additionally, they pre launched Wood Stitching collection via the JD flagship store, covering Cassette, Acro, Belt Cassette and new style Canette.

JD and Bottega Veneta’s collaboration will provide diversified products and quality services for Chinese consumers. Marking another breakthrough for JD.com’s cooperation with world’s top luxury brands, this integration ensures a seamless and enjoyable shopping experience.

JD will provide Bottega Veneta with comprehensive support for operations and marketing resources. The two parties will leverage key gifting moments, new product launches, and JD’s marketing tools to increase the interaction between consumers and the brand to identify more potential customers.

This exciting partnership comes as China is poised to become the world’s largest luxury market by 2025. With JD.com’s world-class supply chain and logistics capabilities, internationally recognized brands are increasingly partnering with the platform. By the end of 2022, the number of luxury brand flagship stores on JD.com had already surpassed 400.

 

(yuchuan.wang@jd.com)

JD.com Announces 2023 Q1 Earnings: Embracing Opportunities in the Post-Covid Era

Posted on by Vivian Yang

by Vivian Yang

JD.com released its 2023 Q1 financial report on May 11, which highlights the company’s commitment to agile management, everyday low prices, an open ecosystem, and objectives for the upcoming JD 618 Grand Promotion.

Key highlights:

  • Robust Revenue Growth:  JD.com achieved a 1.4% year-on-year increase in net revenues amounting to RMB 243 billion (US$35.4 billion) amid proactive organizational restructuring and other operational reforms.
  • Strengthened Service Revenues: Net service revenues increased 34.5% year-on-year, totaling RMB 47.4 billion (US$6.9 billion), constituting 19.4% of overall revenues. Notably, logistics and other service income accounted for nearly 60% of this segment.
  • Exceeded Profit Expectations: The non-GAAP net income attributable to ordinary shareholders reached RMB 7.6 billion (US$1.1 billion), resulting in 88.3% year-on-year growth. This performance surpassed market expectations, resulting in a net profit margin of 3.1%, marking the highest profitability level among Q1 performances.
  • JD Logistics Thrives: JD Logistics’ external customer income increased by 59.8% year-on-year, accounting for nearly 70% of its total income.
  • User Growth and Engagement: Users’ shopping frequency, average revenue per user (ARPU), and daily active users (DAU) all experienced high-quality growth. The number of JD PLUS members reached 35 million, with their annual consumption on the platform surpassing that of non-PLUS members by 8.4 times.
  • Dominant Market Shares: JD.com continued outperforming the industry average in various competitive categories, including household appliances, home goods, 3C, electronics, and more.
  • Rapid Growth of JD Shop Now: The gross merchandise value (GMV) of JD Shop Now, the on-demand retail program, grew by 60% year-on-year. This program has successfully collaborated with over 300,000 brick-and-mortar stores across China, providing a diverse range of products to more than 2,000 counties.
  • Flourishing Merchant Base: The number of new merchants surged by 240% year-on-year, driven by multiple merchant supportive measures such as the “Spring Dawn Initiative.”
  • Efficient Inventory Management: JD.com achieved a world-leading inventory turnover speed with 32.4 inventory turnover days, all while managing over 10 million self-operated SKUs.
  • Reduced Fulfillment Expenses: Fulfillment expenses accounted for 6.3% of net revenues, the lowest percentage compared to the same period in previous years.
  • Expanding Warehousing Capacity: JD Logistics now operates more than 1,500 warehouses, with an overall gross floor area (GFA) exceeding 31 million square meters. Additionally, its self-operated warehouses in the United States have surpassed 120,000 square meters in GFA.

During the earnings call, Lei Xu, CEO of JD.com, highlighted that 2023 is an opportune time for JD.com’s proactive adjustments, considering the fluid external environment and the emergence of new opportunities in the post-Covid era. These adjustments include streamlining JD Retail to a three-level reporting structure, optimizing product categories and channels, and fostering a level playing field for first-party businesses and third-party merchants.

Sandy Xu, CFO of JD.com, emphasized the company’s open ecosystem strategy as a crucial element for JD Retail’s supply-side reform. This strategy aims to provide consumers with a wider selection of price ranges, product categories, and an enhanced shopping experience. She further emphasized that JD.com leverages its supply chain advantages to achieve economies of scale and pass on the benefits to consumers. The company’s ability to offer “Everyday Low Prices” is rooted in its unwavering focus on “Everyday Low Costs.”

Looking ahead, Xu commented on the preparations for the upcoming JD 618 Grand Promotion. In light of insufficient consumption demand and the operational and inventory pressures faced by many merchants, the event will serve as a vital opportunity to restore confidence and accelerate growth. It is expected that third-party merchants on JD.com will experience accelerated growth during this year’s 618 event.

For more detailed financial information and a comprehensive overview of JD.com’s performance in the first quarter of 2023, please refer to the official financial report available on our website.

 

(vivian.yang@jd.com)

JD.com Announces First Quarter 2023 Results

Posted on by Yuchuan Wang

On May 11, JD.com, Inc. (NASDAQ: JD and HKEX: 9618), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the quarter ended March 31, 2023. Below is an infographic with the key highlights. The full release can be found here.