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Photo Gallery: This Week at JD (Mar. 8 – Mar. 12)

Dr. Dacheng Tao, an internationally recognized scholar in the field of AI and information sciences, has been appointed the director of JD Explore Academy, where he will lead the team to explore innovative artificial intelligence applications that drives JD.com’s business in the future. Recently he won the IEEE 2021 Computer Society Edward J. McCluskey Technical Achievement Award, which honors people who have made outstanding innovative contributions in the field of computer information science and engineering over the past decade.

 

Xiazhuang, a small village isolated by cliffs that is 437 kilometers away from central Chongqing, received the first e-commerce parcel delivered by JD Logistics on Mar. 8. JD is proactively penetrating China’s rural market, connecting rural areas with e-commerce and logistics services. The company has built out logistics facilities in more than 700 remote villages and townships.

 

New York fashion brand APEDE MOD launched a flagship store on JD.com on Mar. 8 to present its latest series of bags to Chinese consumers. To mark the store’s opening, APEDE MOD brings its classic Froggy bag, Le Book, and Deco Line, as well as its new series of gradient color bags.

 

In-depth Report: The Meaning of a JDer, in the Eyes of a Long-serving Employee

by Ella Kidron

When Qinran Liang (梁勤然) joined JD Logistics 13 years ago, he was brand new to the industry. Since then, he’s grown a lot—and so has the company, which at the time was a traditional logistics player in service of JD’s retail business. “The company has transformed, step by step, day by day,” he said.

Today, JD Logistics, operates a network of over 900 warehouses, according to JD.com’s latest earnings report released on Mar. 11. Five thousand robots have been deployed in 100 of the company’s warehouses. With this level of automation, 90% of first party retail orders are able to be delivered same- or next-day to consumers all across China. Liang has been there, every step of the way.

Liang in his early days at JD

Liang in his early days at JD

From Guangzhou to Dongguan, Traditional to High Tech

Liang, who is affectionately called “Brother Liang” (“Liang Ge”) by his colleagues, hails from Sulong village, Luoding city, in the southern province of Guangdong. He recalls, “When I first arrived, we handled all sorts of different tasks, from inbounding, shelving, picking and scanning to packing.” He was one of just a few colleagues in JD’s warehouse in Guangzhou, and was working with a relatively rudimentary system.

A “glass half full” kind of person, Liang recalls that even though it was tiring, the experience helped him get to know the ins and outs of working in a warehouse – something that has proven useful as he now finds himself managing the stereoscopic storage area (自动立库) at JD’s highly automated and intelligent Asia No. 1 logistic park in Dongguan, Guangdong province , and a team of several hundred people. Fully operational since December 2019, the warehouse is one of JD’s 28 Asia No. 1 projects.

JD’s highly automated and intelligent Asia No. 1 logistic park in Dongguan

Liang introduces Dongguan Asia No. 1

The construction area of 500,000 square meters is twice the size of the Olympic stadium (“Bird’s Nest”) in Beijing. The height when combining all of the 78 automatic stackers is over 1,600 meters, and is equivalent to two Burj Khalifa Towers (the world’s tallest building in Dubai). It can handle 2 million orders per day.

JD University – Unlimited growth opportunity

Having grown up with the company, Liang has celebrated a number of key milestones at JD. Barely 21 years old when he joined the company in 2008, Liang is now married, a father of three kids, a proud homeowner, and a college graduate, thanks to JD University and his own determination to get the job done. JD partners with several renowned universities in China in order to provide employees the opportunity to study while on the job, receiving a bachelor’s degree, or even a master’s degree. Liang explains, “This is not just a JD degree. It has recognition outside of the company” as any other bachelor’s from a reputable university would.” His diploma is from Renmin University of China, one of the best universities in China.

Liang’s primary motivation for studying is to keep up with the pace of change and contribute more to the company. “JD is developing so fast. You need to continue to challenge yourself and grow with the company. There are many opportunities to study; all you have to do is raise your hand.” His perseverance as a student as well as a manager has inspired those around him to also take the plunge. “Many others on my team have also gone on to study. JD provides this platform for development, and you can use it to continue to create more value for the company.” It is this hunger to create value which drove him to study early on, well before he officially went on to pursue his degree.

Liang and some members of his team at JD’s Dongguan Asia No. 1

Liang and some members of his team at JD’s Dongguan Asia No. 1

Early exposure to and fascination with tech

Liang can’t contain his excitement when he talks about how much things have changed since he first joined JD. He recalls as if it were yesterday the first time that he visited and was blown away by JD’s fully-automated warehouse in Shanghai. He was among the third batch in a program where employees spend time learning about how JD’s technology works.

“When you haven’t been exposed to this type of tech before, you think it will be complicated. You have to learn how to operate it.” Luckily there were “old masters,” to use Liang’s words, to show him the ropes. He was able to learn from tech experts in Shanghai. “No matter how many years you are at a company, you have to adopt the mentality that you’re an empty vessel and never stop learning.” No longer foreign vocabulary, JD’s suite of automated tech, including the stereoscopic warehouse, AGV (automated ground vehicle) and more, effortlessly rolls off Liang’s tongue like a to-do list.

“You need to set goals for yourself every one or two years and go study something. It’s important to be exposed to what’s happening outside. This is how you can create more value for the company.” He has gained a highly competitive skillset – there is a shortage of logistics talent in China. But he hasn’t questioned his decision to stay with JD. In fact, he plans to start pursuing his masters this year, and will focus on automation, logistics management and more. “Systems are constantly iterating. You need to research and understand them. It’s more than simple operations; you have to think about how to innovate.”

Living the JD Values

This attitude has not only influenced Liang’s direct reports, but also serves as an inspiration for his family. “Children have a strong ability to imitate,” Liang explains. His hunger to learn has rubbed off on his kids, especially his eldest son who is in fourth grade. “He looks at me and sees, ‘Hey, dad is still studying; he’s getting his bachelor’s. I’d better study too, just like dad.’”

In his downtime, Liang enjoys running and hiking with friends or family. He wakes up around 6 a.m. each morning in order to go for a run before starting the day. “We need to take care of our bodies in order to do good work.” His enthusiasm is palpable, and one can hear his smile in his voice as he speaks.

Liang, who has witnessed JD’s transformation, recognizes how the company has transformed his life and the lives of so many others. It is no coincidence that his two older brothers, one of whom started at JD just before he did, and another who started after, are all long-serving JD employees in different managerial roles, having put in a cumulative 40 years of service between them.

There are many other such stories of employees from rural areas of China who had their first exposure to tech with JD, and have since developed their careers in this direction. Dongguan Asia No. 1 is home to nearly 5,000 employees, of which more than 12% are locals. Among JD’s frontline employees across China, over 200 are from rural areas, and 80,000 have been able to work in their hometowns.

These JDers are not simply repeating some slogan they have memorized by heart. They embody a value that has been internalized since the beginning – to go above and beyond, to do the right things, the right way. In a letter to employees in 2018, JD CEO Richard Liu emphasized that JD’s inherent principle is not about just following the rules, but also setting high demands for oneself, setting high standards for self-improvement and being a model for the industry. It is the JD promise the company has made to customers, employees and shareholders since its very first day as a small kiosk in Zhongguancun. And it is also what keeps them going.

Liang sums it up best: “You create more value for the company, and influence others around you to follow suit.” This is what it means to be a JDer and live the JD principles.

 

 

(ella@jd.com)

 

JD Retail CEO: Supply Chain, Omni-channel And Ecosystem Are Three Key Strategies

by Martin Li

JD Retail will continue focusing on the enhancement of its integrated supply chain and technology capabilities, omini-channel and online market ecosystem expansion, CEO Xu Lei shared during JD.com’s fourth quarter and full-year 2020 earnings call on Mar. 11.

“What JD aspires to is a middle platform ability that can be applied in more diverse use cases and channels. With this goal in mind, we have been investing unswervingly in supply chain and technologies to help merchants – both online and offline, big and small, including brands and factories – to improve their operations efficiency, to enhance their customers’ experience, and to improve their risk-resistance capacity,” said Xu.

The above-mentioned effort will further diversify our revenue streams and drive our service revenue in the future, according to Xu.

By the end of 2020, JD managed more than 7 million direct-sales SKUs in its network of over 900 warehouses across China.

Speaking of omni-channel, Xu stressed, “our strategy aims to increase overall retail efficiency, to satisfy customers’ diverse needs, to provide people with immediate access to products and services, and to create value for merchants and customers.”

Omini-channel is not only a key strategy for JD, but also a new trend that all retailers must address. The penetration rate of this model is still quite low among offline businesses. “We believe that there is a huge potential to integrate omni-channel and on-demand fulfillment elements with many industries in the future,” said Xu.

“In 2021, we will expand our coverage to more retail verticals, and drive the quality growth of our omni-channel business. This will provide us with additional monetization opportunities,” he added.

Xu also sees great potential for JD to build an online platform ecosystem.

“We are pleased to see that the net promoter score (NPS) of our online marketplace continues to improve over the years. So far this year, our merchant renewal rate is much higher than in the past, reflecting a significant improvement in merchants’ satisfaction and recognition of our platform,” he said.

JD will continue to experiment with new models and strategies to find the optimal strategies for its online marketplace, according to Xu.

 

(bjlihao3@jd.com)

 

JD Enables Datong Residents Service Hotline with AI

by Yuchuan Wang

In February 2021, the smart residents service hotline (12345) for the city of Datong, a prefecture-level city in northern Shanxi province, was officially launched. Powered by AI solutions provided by JD Technology, the number of daily calls have increased 31.7% since then with a pick-up rate of 100%.

Datong’s residents service hotline handles an average of over 5,000 calls a day. Queries cover topics including pensions, quarantine policies and city operations problems among many others. Prior to the collaboration with JD Technology, the hotline mainly relied on traditional customer service, resulting in a large number of missed calls and vague answers as service staff would rely on standard replies, impacting efficiency.

With AI technology, inquiries from Datong residents are first handled by the robot customer service, and seamlessly transferred to human customer service as necessary. The hotline is also empowered to detect human emotions in real-time so that it can provide appropriate responses, making for a natural and efficient interaction. JD also customized the hotline to recognize local dialects accurately using semantic analysis technology.

JD also customized the hotline to recognize local dialects accurately using semantic analysis technology.

In addition, JD helped Datong build a big data analysis platform using the data from the calls to the hotline to provide real-time forecasts and early warnings for impending issues and emergencies.

Currently, Datong’s smart hotline can pick up as many as 7,000 calls a day, compared to the previous peak call volume of 4,000 before the system was put in use.

“The smart hotline has greatly reduced my workload. In the past, due to the massive volume of calls, I didn’t even dare to get up to drink water in fear of needing to the use the restroom,” said one of the hotline’s customer service staff.

 

(yuchuan.wang@jd.com)

JD Pioneer: Bringing E-commerce to Remote Grassland

by Yuchuan Wang

Aluo, an ethnic Tibetan living in Tianjun (which literally means “steep sky”), is the only JD courier in the county.

Located in the Haixi Mongolian and Tibetan autonomous prefecture in China’s Qinghai province, Tianjun has an average altitude of 4,000 meters. Spanning an area of over 25,000 square kilometers, which is bigger than Beijing, the county has only 20,000 residents and half of its area is grassland.

Three years ago, Tianjun was a poverty-stricken county with 50% of its population being herdsmen. In 2018, JD launched a “pioneer station” in the county, as part of a program started in 2014 to bring e-commerce to remote places in China. Aluo joined JD at this point and began to deliver parcels to local people.

Tianjun has an average altitude of 4,000 meters.

Tianjun county (Source: Tianjun government website)

Aluo recalls that when the station was initially set up, there were only three to four parcels a day, and now he handles the delivery of over 100 packages daily on average. Sometimes he needs to commute 160 kilometers for a round trip to deliver a single parcel due to the vast area of Tianjun.

Eight-five percent of the county’s population are minority groups, with many people who do not speak Mandarin and do not recognize Chinese characters. Some of the elder herdsmen don’t even use mobile phones, and have never heard of the word “e-commerce”. Aluo has become the spokesperson of online shopping in Tianjun, and teaches local people how to shop on JD. So far, he has helped over 1,000 people download JD’s app.

“For those who do not recognize Chinese characters, I would help them place orders or teach their children how to use JD app,” said Aluo.

Aluo joined JD at this point and began to deliver parcels to local people.

Aluo, JD courier

The majority of the orders loaded in Aluo’s van are mobile phones and home appliances. “There are few choices in the county and prices on JD’s app are transparent,” said Aluo. “To most of the residents here, delivering a TV set in 2 days to their doorstep is incredible.”

Aluo is a pioneer for JD, a pioneer for Tianjun and a pioneer in his own life. Like many people living in the region, he was a herdsman for 10 years after he graduated from high school. He chose to change the situation and move to the county to be a courier.

“I relied on nature to feed myself in the past, but now I rely on my own hands and I have managed to get a considerable and stable income,” he said.

Aluo is one of JD’s over 500 pioneer station heads nationwide. With the expansion of JD’s business in rural areas, one-person pioneer stations have often been gradually joined by more couriers to deliver to more customers. More remote areas like Tianjun are being connected with the nation, and the world.

 

(yuchuan.wang@jd.com)

JD Helps SMEs Make Bill Discounting More Efficient

by Ling Cao

JD has helped SMEs streamline the process of bill discounting, which is a trade-related activity in which a company’s unpaid invoices that are due to be paid at a future date are sold to a financier (a bank or another financial institution). For many SMEs, bill discounting is an important way to ease cash flow issues, and the traditional process has often been complicated and time-intensive.

Tong Zhang works for a Jiangsu-based manufacturer producing non-standard devices that faced financial difficulty paying suppliers and employees in 2020, due to the pandemic and a long R&D cycle for producing products.

With JD Technology’s help, Zhang solved this urgent problem by dealing with the process via JD’s bill discounting platform, ultimately processing an amount of RMB 300,000 yuan.

The experience was smooth and worry-free, Zhang said. “Previously we didn’t know which bank could help us with the business, and it was difficult to compare which banks had lower interest rates. All of these problems can be worked out on JD’s platform.”

In order to use the platform, clients need to provide company certificates and sign an agreement—with approval usually granted in only half an hour. Then, they can upload invoices to one of the banks, and the billing will be completed in as fast as ten seconds, with the process being fully automatic. In contrast, a traditional offline process normally will need five to seven personnel for one bank, and one case may take over 10 days.

JD Technology has cooperated with many banks on the service since it was released in June 2018. Today, the platform has served over 130,000 clients, most of which are SMEs. The minimum billing value it has processed is RMB 2,000 yuan, enabling smaller businesses to benefit too.

Hui Wang, head of the bill discounting department at JD Technology shared, “By using big data and AI in the financial industries, we can analyze the market in real-time, help clients easily solve the billing queries, and even help institutions build an anti-fraud model to prevent counterfeiting bills.”

 

(ling.cao@jd.com)

JD.com Announces Fourth Quarter and Full Year 2020 Results

On Mar. 11th, JD.com released its fourth quarter and full year 2020 earnings results. Below is an infographic with the key highlights. The full release can be found here.

JD.com released its fourth quarter and full year 2020 earnings results.

 

Disclaimer: In the case of any discrepancies, the original earnings press release shall prevail.

JD Cloud Drives Digitalization Of Pharmaceutical Company

by Martin Li

JD Cloud has helped Yipinhong Pharmaceutical Co, Ltd, one of the top 20 innovative medication developers and producers in China, develop Cloud solutions to meet the company’s demand for digital transformation.

The Guangzhou-based company focuses on medication for children and chronical diseases and spends around 10% of its revenue generated from self-developed medication on research and development each year.

Yipinhong's Headquarters in Guangzhou.

Yipinhong’s headquarters in Guangzhou.

JD Cloud’s solutions enable a fast and flexible deployment of the company’s different data systems, meeting its demand for digitalized IT infrastructure. The solutions can handle large volumes of information, and be deployed flexibly and securely.

“While pharmaceutical companies are rapidly moving towards digitalization, Cloud computing suppliers like JD Cloud work as a strong external supporter,” said a spokesperson of the information center of the company.

A solution architect at JD Cloud said that many traditional enterprises used to have a siloed IT infrastructure, in which different applications were not connected with each other, leading to a ‘data island’ and a waste of resources.

The company looks to continued partnership with JD Cloud in fields like enterprise informatization, smart logistics and digital medicine.

 

(bjlihao3@jd.com)