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Enjoy a Cup of Zhejiang’s New Tea before Qingming, Thanks to JD

by Kelly Dawson

After the spring rain, tea farmers across China rush to harvest and prepare the leaves for a nationwide population of tea enthusiasts that drink nearly 40 percent of the world’s tea.  For Zhejiang province, which is the largest producer of green tea in the world, it’s a particularly hectic time, with some farmers sleeping only three hours a night until the leaves are harvested. In Zhejiang, tea harvested before  Qingming Festival (April 4 this year) is identified as high quality product.

In order to support these farmers, JD is participating in this year’s “Zhejiang has great tea” campaign, boosting efforts in marketing, logistics and more. The company recently sent mobile care vehicles to villages across Zhejiang with drinking water, bread and other energy-boosting snacks, along with a series of “love tea posts,” providing drinking water to farmers, couriers and other workers.

Additionally, JD has upped its logistics collection points from 7 to 38 while reducing delivery costs, enormously easing operations for local farmers.

“In the past, it used to be really difficult for us to send tea,” said one tea farmer in Meijiawu village. “We had to wait for a courier to come to the door, and that sometimes took several hours. Now that there are JD Express collection points, we can drop the tea off when it’s convenient for us, along with packaging, discounts and faster delivery to customers.”

Customers will also feel the impact of JD’s support, as delivery time for the tea will be shortened to under 24 hours for customers who purchase Zhejiang tea in the “Zhejiang has great tea” section of the JD app. Available tea brands include Zhenghao, Yifutang, Shifeng and other famous Zhejiang names.

This shortened delivery time is thanks to JD’s advanced logistics network, which enables teas from the region to be delivered directly from the origin—and also ensures that customers will be able to enjoy an ultra-fresh product.

As China undergoes a process of rural revitalization, JD’s ongoing efforts have already reaped massive benefits, with the turnover of agricultural products on JD exceeding RMB 580 billion yuan in five years.

 

(kellydawson@jd.com)

JD Super Aims to Build Full Supply Chain for Agricultural Products

by Rachel Liu

JD Super, JD’s online supermarket, announced today that it will build a full supply chain for agricultural products covering planting, transportation and sales, integrating upstream and downstream agricultural industry players through a products circulation middle platform.

JD Super will achieve this goal through a “1+1+N” model. “1+1” means that JD Super will work with leading companies in the industry such as Dili Group (地利集团), and “+ N” means that it will build a sample that excels in efficiency and cost management, and duplicate it to more agricultural areas. Besides, JD will also build digital and operation platforms to provide the areas with one-stop solutions for agricultural industrialization. In 2021, JD is expected to launch the solutions in over 30 key industrial belts nationwide.

In November 2020, JD announced that the new infrastructure for the next 10 years will be digital intelligent supply chain, referring to the use of digital and smart technology to optimize the production, transportation and service processes. To help rural areas achieve modernization is a key project for JD’s building of digital and intelligent supply chain.

JD has long been supporting the development of rural areas. As of October 2020, JD has sold over 300 million agricultural products to customers all over China, which increased the incomes of one million farmers. JD Fresh now has over 1,000 “Local Specialties Pavilions” supported by local governments, and over 600,000 agricultural products are being sold in those pavilions. JD has successfully explored innovative projects like “running chicken”, “swimming duck”, “flying pigeon” and “running mountain pig” with rural areas and industry belts.

 

(liuchang61@jd.com)

In-depth Report: JD CENTRAL in Thailand Sticks To Doing The Right Things

by Martin Li

Grand Mom Aead, a SME which sells traditional charcoal roasted cashew nuts in Thailand, has witnessed a robust sales growth on the online platform JD CENTRAL (JDC), JD’s e-commerce joint venture, thanks to diversified services provided by the platform.

“We regularly joined JD CENTRAL’s marketing campaigns to offer extra discount coupons. Our offers late last year received a very good response from customers,” said .Chonravat Ruengruchirah,Managing Director of the nuts seller.

Ruengruchirah said that the services provided by JDC are useful to help SMEs go online during the current pandemic in Thailand, which has taken its toll on offline SMEs and pushed more consumers to purchase online.

In response, the Thai government has been emphasizing the importance to promote SMEs and advocating for a range of measures to make it easier for SMEs to benefit from e-commerce and protect them from unequal competition, predatory pricing and to reduce tax burdens among Thai entrepreneurs among other efforts.

“JDC’s sellers and marketing teams provide strong support. Its frequent launches of marketing campaigns helped increase our sales opportunities. JDC’s store management system, pickup and delivery services with great attention from staff who always follow up on customers’ orders have made both senders and recipients feel more confident,” Ruengruchirah said of the most useful services provided by JDC.

Ruengruchirah added that marketing campaigns could help promote their products, and all the support provided by JD CENTRAL could allow them to distribute more products and generate more sales. “As a result, we really hope that JD CENTRAL will continue to lend a hand to sellers on the platform,” said Ruengruchirah

QPS core of retail

Grand Mom Aead is recipient of one of the 23 awards granted to top brands by JDC on February 25, during the first JD CENTRAL JOYFUL AWARDS, which aimed to underline the global standard and trust of partners and alliances. The awards spanned 9 categories, including fashion, health and beauty, home and appliance, 3C, FMCG and more.

Grand Mom Aead was granted the JOY Super SME Award for small business partners with highest sales who participated most regularly in JD CENTRAL’s campaigns and activities.

Among the other award winners are MI, Watsons, OPPO and Adidas.

JDC CEO Vincent Yang releases QPS in Bangkok on February 25.

JDC CEO Vincent Yang releases QPS in Bangkok on February 25.

“Our awards aren’t about which sellers sold the most products, but about how they performed in terms of QPS,” said Vincent Yang, CEO OF JDC, during the award ceremony. QPS stands for quality, price and service, and aims to set a new benchmark to enable sellers to grow sustainably. “This is what creates real value – it’s not pure reliance on traffic and subsidies,” Yang said.

“JDC is not a traditional e-commerce platform. Our mission is to build Thailand’s most customer-centric e-commerce platform together with our partners through technology and services. QPS is the core of retail. It‘s not about reliance on data and subsidies, which won’t create value,” said Yang.

JDC JOYFUL AWARDS

JDC JOYFUL AWARDS

This dedication to QPS is shared by the award winners. A representative for FOREMOST, a Thai ready-to-drink milk brand that also received a SUPER JOY AWARD for the brand/seller whose performance is excellent in all aspects, said of the brand’s goals on the platform: “FOREMOST is committed to continue providing our quality products made of 100% cow milk to JD CENTRAL’s shoppers at special prices to enjoy the best shopping experiences on the JD CENTRAL platform.”

Do the right things

Despite Thailand’s GDP taking a hit due to the pandemic last year, JDC achieved 169% growth in 2020, compared with 2019.

“The company’s average revenue per user (ARPU) and basket size continues to increase. Continued strong performance is attributed to an ongoing commitment to the essence of retail, which can be measured by QPS,” said Yang. Yang attributed the growth to doing the right things, which is JDC’s value proposition. JDC’s subsidies and support go to brands/sellers which share commitment to QPS, according to Yang.

Ruengruchirah of Grand Mom Aead said that the QPS-based award is increasing credibility of its online store on JDC and giving a boost to its sales growth. “We are full of hope to have continued support from JD CENTRAL in the future,” said Ruengruchirah .

Although the pendulum has increasingly swung in favor of e-commerce under COVID-19, e-commerce only accounts for roughly 5% of total retail sales in Thailand. This is not because of lack of internet access. The number of internet users continues to increase, reaching 48 million in 2020, according to a data report by the Office of the National Broadcasting and Telecommunication Commission.

“It’s not that consumers don’t have demand for e-commerce but that they have traditionally been a C2C market where trust remains a question. This has not changed the essence of Thai e-commerce,” said Yang. QPS is key to build such trust, according to Yang.

Launched in 2018, JDC is a combination of direct-to-consumer and marketplace businesses. Its self-defined role as a digital enabler differentiates the company from most e-commerce players in Thailand.

Brands on JDC

Brands on JDC

It is the first online shopping platform in Thailand to claim to provide 100% authentic products, echoing the “zero-tolerance to counterfeits” promise of e-commerce parent JD.com. Before JDC entered the market in 2018, Thailand’s e-commerce market was made up of consumer-to-consumer (C2C) players.

Regarding seller enablement, Yang said that consumer behavior in the country is changing rapidly, with the pandemic playing a major role in boosting online commerce in the first half of this year. Even so, sellers including brands and retailers have not been able to keep up with the digital transformation seen elsewhere. “You need to build the warehouses, logistics, and a huge system of solutions to help,” he said.

JDC has been actively using its resources to enable offline businesses that were impacted by the pandemic. There are more than 40 SMEs that use the e-commerce services provided by JDC, including product listing, data analysis, marketing, store design, customer service, and more.

 

(bjlihao3@jd.com)

In-depth Report: SEVEN FRESH’s Secret Ingredient: A Chef with Royal Experience

by Hui Zhang

After tasting chef Hongwei Wu’s Chinese cuisine while he was working in England, Queen Elizabeth herself arranged to have fresh vegetables from her personal garden sent to him as an expression of gratitude.

Now, 10 years later, Wu works at JD’s SEVEN FRESH in China as a food research and development manager mainly responsible for creation of new recipes in order to bring delicious cuisines to customers shopping at the supermarket chain—but his former experiences continue to inspire him every day.

Before joining SEVEN FRESH, Wu had worked abroad for seven years, gaining world-class experience serving not only the UK’s royal family but also world leaders in various countries including former American president George W. Bush.

Even though Wu cooked Chinese food while working abroad, he dedicated himself to fully learning the essence of Western cuisine. Today, as he creates new recipes for SEVEN FRESH customers, he feels empowered to make cuisine that blends Chinese and Western characteristics.

For example, the dish that inspired Queen Elizabeth’s gratitude is beef with dried orange peel (陈皮牛肉), which is created with world-class quality beef and tangerine peels that have been stored for years in preparation for cooking. Wu primarily uses traditional cooking ingredients, but has also introduced a twist on the recipe—using high-end Brandy, an effective innovation that makes this dish  tastier, and the beef incredibly tender and delicious.

“In my thinking, the chef profession is defined by a spirit of craftsmanship,” Wu said. “I have a dream to apply my knowledge and experience accumulated over many years around the world to my cooking, in order to make it possible for ordinary people to not only easily have a taste of Michelin-level cuisine, but to also eat healthy.”

Royal experience

Wu has long been devoted to the mission of spreading Chinese tradition and culture through Chinese cuisine.

In the earlier years of his career, he dedicated himself to studying the authentic Chinese regional cuisines, visiting many famous Chinese restaurants to learn various  styles of cooking, including Sichuan cuisine, Cantonese cuisine and more.

In 2006 he went to the UK to study nutrition at University of West London, which provided the western nutrition concept and philosophy for his later food research and development. He also studied medicinal diet with Tongrentang, a long-established time-honored brand of Chinese medicine with a history of over 300 years, and learned how to integrate traditional Chinese medicine recipes into dishes to make the food both tasty and healthy.

Wu has long been devoted to the mission of spreading Chinese tradition and culture through Chinese cuisine.

Hongwei Wu

Later Wu was authorized by the Chinese government to travel across the world as a cultural exchange ambassador, a role that took him to Europe, the Middle East, Central Asia and other places where he cooked for the dignitaries of these countries. As part of this program, he followed the Foreign Ministry to the UK to serve the royal family for more than a year.

“When I arrived at the UK, I found that most dignitaries and royals did not have a chance to try authentic Chinese food. The reason is that in addition to security concerns, the upper-class people generally do not go to small restaurants, and most Chinese restaurants at London’s Chinatown are small and inauthentic,” said Wu. It was during this time that he had the opportunity to serve Queen Elizabeth and the royal family.

When Wu was in Sweden in 2008, his craftsmanship with cooking was praised by Princess Madeleine of Sweden, who is the second daughter and youngest child of King Carl XVI Gustaf and Queen Silvia. Princess Madeleine extended invitation to him to cook for her birthday party, with a Chinese dish as the centerpiece of the meal, which was the first time a Chinese dish had occupied this position of an official banquet in Sweden.

Hongwei Wu and President and Chief Executive Officer for Hilton Christopher J. Nassetta in 2007

Hongwei Wu and President and Chief Executive Officer for Hilton Christopher J. Nassetta in 2007

He recalled another memory with UAE’s Abu Dhabi royal family, who loved his food so much that they tried to convince him to stay in the country to continue serving the royal family. Wu was dedicated to his journey as a Chinese cultural ambassador, so he politely declined the offer, but his cuisine clearly made an impact on the royal family. After his departure, the royal family looked for Chinese chefs for years, eventually finding a chef from Hakkasan, the world’s famous Chinese restaurant.

SEVEN FRESH: A New Stage

In 2018, Wu joined SEVEN FRESH, beginning a new chapter of his life that he believed could help him realize his dream of bringing high-level cuisine to all the people. As many people chose to stay where they work to celebrate the Chinese New Year (CNY) this year due to COVID-19, Wu and his team developed four different CNY meal packages which can cover families of 2, 3-4, 5-6 and even 10.

“The quantity and variety of dishes vary according to the number of diners. This year, we newly created a CNY meal package for families of only two, because there are a large number of such families. Our meal packages will not only provide cuisine for them, but also save their time,” said Wu.

The meal packages, ranging from 5 to 12 dishes, debuted in SEVEN FRESH for the first time this year

Hongwei Wu

The meal packages, ranging from 5 to 12 dishes, debuted in SEVEN FRESH for the first time this year. Among the options are different dishes such as Boston lobsters, steamed fish, as well as cooked king crabs from Chile. According to JD’s data, sales volume of CNY meal packages increased by 237% YoY during the CNY period. The top 3 dishes are steamed perch, Boston lobster cooked by various methods, steamed Turbot. Males for two and three-to-four are popular.

There is a saying that it is always better to teach a person who is hungry to fish than to give him some fish—which coincides with Wu’s belief. As the executive chef of SEVEN FRESH, he believes that he can bring more than just food to consumers. He and his team have recorded videos before the CNY holiday teaching consumers how to cook complicated dishes such as lobsters, crabs and others.

Starting from selecting fresh lobster to finally presenting the dish at the dinning table, Wu has found a new way to bring cuisine to consumers.

Hongwei Wu

“The lobster needs to marinate before cooking, and the king crabs need to be chilled after steaming so as to keep the fresh taste. If you skip these steps during cooking, then the taste will definitely be decreased,” said Wu.

Starting from selecting fresh lobster to finally presenting the dish at the dinning table, Wu has found a new way to bring cuisine to consumers.

In addition to developing new meal packages during CNY, wu has also created several new dishes such as bullfrog pot and warm salad, both of which were widely welcomed by consumers. The idea of creating warm salad came from his years of experience in Italy where salad tastes both warm and healthy. He noticed that quite a few female consumers, tend to give up cold salads during the winter time. Wu said Chinese people might have misunderstandings towards salad, believing that it needs to be cold all the time. Wu and his team did a survey around his working place, a SEVEN FRESH store in Beijing Yizhuang Economic Zone in southern Beijing, finding many female white-collars are the major consumption group for salads. However, cold weather has kept them away from salads during the winter.

The idea of creating warm salad came from his years of experience in Italy where salad tastes both warm and healthy

Warm Salad

Upon realizing this, Wu and his team selected the best quality of vegetables and meat together with his unique sauce made of avocado and basil leaves to bring consumers different flavors of warm salads, which have been a hit since launching. According to SEVEN FRESH, sales of the whole salad category in the SEVEN FRESH store in Yizhuang increased by 45% so far since its debut in November 2020.

Wu is dedicated to craftsmanship, and inspired by the task of making things with great care. This is Wu’s guiding principle, whether he is serving the royal families, or creating recipes for SEVEN FRESH customers. Recently he has begun studying combine ancient Chinese recipes into people’s daily meals.

Wu is just one of the experienced chefs hired by SEVEN FRESH. Different chefs have played different roles to bring authentic on-site cooked delicacies. One of these chefs is Wang Feng, who is mainly responsible for the research and development of stewed dishes. Wang comes from a family of gourmet chefs and his grandfather used to cook for the ex-royal family of the Qing Dynasty. Wang has learned not only the special cooking methods of various dishes from his grandfather and father, but also their persistence in creating excellent food.

The secrets behind SEVEN FRESH success in presenting delicious cuisine to consumers are chefs hired to ensure premium flavors and also its self-developed supply chain to provide high-quality ingredients. SEVEN FRESH is gradually distinguishing itself from traditional supermarkets by constantly bringing consumers the high and best-quality food which well suits their tastes.

 

(zhanghui36@jd.com)

Photo Gallery: This Week at JD (Feb. 27 – Mar. 5)

Starbucks launched a flagship store on JD.com

Starbucks launched a flagship store on JD.com on March 3. The online store brings Chinese consumers the brand’s new spring mugs, such as the Sakura Blossom Collection, together with its classic series, including the core classic series, and Starbucks Heritage.

 

IEEE and ACM fellow Dr. He Tian joined JD.com as vice president and the head of JD Logistics AI and Data Science

IEEE and ACM fellow Dr. He Tian joined JD.com as vice president and the head of JD Logistics AI and Data Science. Dr. He’s team will build dedicated, intelligent algorithms and systems for supply chain and logistics scenarios, which will further digitalize JD Logistics’ current businesses and open up commercial applications for more external clients. Dr. He received a Ph.D. degree from the University of Virginia. He is the recipient of the National Science Foundation (NSF) CAREER Award and China NSF Outstanding Overseas Young Researcher.

 

JD Health announced to establish the rare diseases care project

The band “8772” formed by rare disease patients performed at JD’s rare diseases project care press conference on Feb. 27. “8772” is the transformation of BTTZ, the initial letters of the Chinese pronunciation of “illness challenges”.

JD Health announced to establish the rare diseases care project on Feb. 27, ahead of the World Rare Disease Day which will fall on the last day of February each year. The project will first focus on the building of a Rare Disease Care Center under JD Pharmacy and the establishment of a dedicated fund for patients with rare diseases.

 

China Railway Express Co., Ltd. (CRE) and JD Logistics (JDL) announced the establishment of a joint stock company, China Railway JD Logistics Ltd.

China Railway Express Co., Ltd. (CRE) and JD Logistics (JDL) announced the establishment of a joint stock company, China Railway JD Logistics Ltd. (中铁京东物流有限公司), on Mar. 5. The company will focus on the areas of railway express, e-commerce logistics, logistics equipment and facilities and information service, and promoting technological innovations.

 

JD Cloud to Release Self-developed Server

by Ling Cao

JD Cloud released the new generation of its self-developed server on Mar 2, which will be officially put into use in April. As the important cloud based infrastructure for the industry, JD aims to continuously upgrade the product to support and drive business development.

The new server will not only help with JD’s internal applications, but also serve clients externally, which require high stability and flexibility at scale, as well as cost-effectiveness.

New generation of JD’s self-developed server

To achieve this goal, JD has adapted the product for multiple sectors, incorporating the latest processor technologies, solid-state storage, non-volatile memory and heterogeneous computing. For example, by cooperating deeply with chip manufacturers, the server’s application carrying capability has improved by over two times compared with standard servers at the same price.

In addition, the new server uses an integrated design for its cabinet, IT device and cables, which can reduce the tedious installation process associated with a traditional server, resulting in narrowed layout cost, as well as saving preparation time for enterprises.

A representative for JD Cloud shared, “JD Cloud is always exploring how to improve performance of the product, in order to achieve the optimized cost and efficiency. Going forward, JD will open these capabilities to outside partners, helping with the industry development as a whole.”

JD continues to do R&D in cloud computing, which has over 870,000 registered users, and over 40,000 enterprise clients. JD also holds one of world’s largest scale docker clusters and CPU clusters. It was also one of the technology providers to support the smooth operation for the Spring Festival Gala’s red envelope initiative. In February, JD released Jing Gang(京刚), which is a self-developed virtual and integrated software and hardware cloud based structure, allowing manufacturers to output cloud computing ability based on clients’ demands more efficiently.

 

(ling.cao@jd.com)

CRE and JDL Jointly Establish a Logistics Company in Beijing

by Yuchuan Wang

China Railway Express Co., Ltd. (CRE) and JD Logistics (JDL) announced the establishment of a joint stock company, China Railway JD Logistics Ltd. (中铁京东物流有限公司), on Mar. 5. The company will focus on the areas of railway express, e-commerce logistics, logistics equipment and facilities and information service, and promoting technological innovations.

The joint stock company will leverage CRE’s advantages in railway resources and JDL’s nationwide logistics network to increase the efficiency and lower the cost of logistics in society, and enrich railway express-related service offerings to provide the timely integrated logistics services.

A representative from JDL said that the industry’s potential will be further stimulated with the continuous innovation and integration of e-commerce, logistics and high-speed railway networks. CRE and JDL will collaborate to facilitate the convergence, and intelligent and digital transformation of the logistics industry, and enhance the service capability of integrated supply chain.

 

(yuchuan.wang@jd.com)

JD Survey Demonstrates Value of E-Commerce in Agricultural Products Boom

by Ella Kidron

JD.com kicked off its rural e-commerce strategy in 2015. Up to now, JD’s platform has realized RMB 580 billion in transaction volume of agricultural products. A JD survey published on Mar. 4 shows that procurement volume of agricultural product merchants has seen explosive growth with the help of e-commerce, growing 51% and 82% YOY in 2019 and 2020 respectively.

Furthermore, the survey also indicates that all types of JD agricultural products’ upstream merchants have driven an RMB 47,800 yuan average increase in local farmers’ income. The role of e-commerce in promoting rural growth has become increasingly prominent, increasing local employment in addition to incomes of farmers. Another important factor is the improvement of e-commerce related logistics infrastructure, something JD began talking about as a priority investment area early in 2014 ahead of its IPO on the Nasdaq on May 23 that year.

Promoting rural revitalization (乡村振兴) is not merely about bringing e-commerce to villages and enabling farmers to buy high quality products at an affordable price. It also doesn’t stop at livestream e-commerce for local products. Rather, it is a focus on enabling agricultural industry production and improvement in way of life through digitalization and information that brings real value. In essence, moving from “living” to “making popular”. Online retailers help address the problem that people living in poor areas often cannot sell their products at a favorable price, and that people in urban areas sometimes struggle to find environmentally friendly sustainable produce.

JD CEO Richard Liu previously said of JD’s support of poor farmers: “We want to provide a sustainable way to help people in poor areas… We’d rather teach them how to fish than give them fish.” This philosophy has guided the company’s approach. One representative example of this in action is JD’s “Flying Pigeon” project. JD launched the project in Fuping county, Shaanxi province and supported the breeding, marketing and promotion, and technology-driven traceability of the bird at every step. With the help of JD, a standardized brand and method that could be replicated in other areas was born. JD’s “Flying Pigeon” has a breeding cycle of over 60 days, which far exceeds the average 20-day breeding cycle ordinary pigeons. Its fresh and tender meat has made it highly popular among consumers. “Flying Pigeon” is part of a family of such projects which also include “Running Chicken” (which was selected as a World Economic Forum Lighthouse Project in 2020), “Swimming Duck” and “Running Mountain Pig”.

As of Sept. 30, JD has supported more than three million types of products, achieving poverty alleviation-related sales of over RMB 100 billion yuan, and directly led more than one million poor households to increase their income. In the field of logistics, JD Logistics will focus on distribution from 530 production areas to create a new logistics infrastructure that links agricultural products to last mile delivery. JD Logistics has covered more than 500,000 administrative villages across the country.

In a ceremony on Feb. 25, over 100 of JD’s partners in e-commerce poverty alleviation programs were honored for their contribution to China’s national poverty alleviation efforts.

 

 

(ella@jd.com)