Topic

STARBUCKS Launches Flagship Store on JD.com

by Hui Zhang

Starbucks, the world’s largest coffeehouse chain, launched a flagship store on JD.com on March 3.

The online store is bringing 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. In addition to physical products such as mugs, the store also sells physical gift cards, seasonal foods (such as rice dumplings and mooncakes) and their corresponding gift certificates, bringing more quality choices to JD’s  customers. A Super Brand Day will kick off on the store’s opening day to help promote sales for the newly opened Starbucks store.

Starbucks, the world’s largest coffeehouse chain, launched a flagship store on JD.com

JD’s consumers are a strong match with Starbucks’ target consumers, and JD’s nationwide logistics network will ensure high efficiency and speed of deliveries for consumers who purchase Starbucks products on JD.

“JD’s years of experience and good reputation in authentic products, logistics and after-sales services will also attract more international brands to cooperate with JD,” said a spokesperson from JD Fashion and Lifestyle.

 

(zhanghui36@jd.com)

IEEE & ACM Fellow Dr. He Tian Joins JD Logistics

by Yuchuan Wang

Dr. He Tian has joined JD.com as vice president and the head of JD Logistics AI and Data Science, in charge of smart logistics algorithms, data products, and map services. 

 

Dr. Hes team will build dedicated, intelligent algorithms and systems for supply chain and logistics scenarios, which will further digitalize JDLs current businesses and open up commercial applications for more external clients. 

Dr. He is a veteran in IoT (Internet of Things), an ACM (Association of Computing Machinery) Fellow, and an IEEE Fellow. He received a Ph.D. degree from the University of Virginia and a masters degree from the Institute of Computing Technology of the Chinese Academy of Sciences. He is the recipient of the National Science Foundation (NSF) CAREER Award and China NSF Outstanding Overseas Young Researcher. 

 

Dr. He has made pioneering contributions in the research areas of wireless networks, networked sensing systems, IoT, smart transportation, and logistics big data. He has published over 300 papers in premier journals/conferences and won seven best paper awards in seven international academic conferences. 

 

JD Logistics is entitled to over 4,400 patents and computer software copyrights, of which those related to AI span from warehousing to sorting and delivery. After joining JD Logistics, Dr. He will lead the team to explore the research and application of AI, focusing on the core technological breakthroughs in the fields of product digitalization, algorithm operation, time-series forecasting, large-scale scheduling, low-cost measuring, intelligent positioning, and more.

 

(yuchuan.wang@jd.com)

In-depth Report: The Developing Cold Chain Capabilities of JD Logistics

by Yuchuan Wang

As China’s homegrown COVID-19 vaccines require two to three doses per person, the country has seen a demand for transporting 2.8 to 4.2 billion doses on the market.

The enormous demand for the vaccine is accelerating the development of global cold chain logistics, especially in China where the infrastructure has relatively lagged behind developed countries. This development has acted as the catalyst to arm third-party logistics providers that previously played a smaller role when the industry was led by only a few vertical players.

JD Logistics (JDL), the logistics arm of JD.com, is currently transporting COVID-19 vaccines voluntarily in Beijing, with cold chain vans packed with domestic vaccines handling the last-mile delivery to designated vaccination points on a daily basis.

JDL was among the first batch of companies approved by China’s Ministry of Transport to ship COVID-19 vaccines across China, announced on Jan. 27, 2021. The company is expected to dispatch the vaccine to more regions nationwide.

 

The Last-Mile Transportation by JDL

Unlike genetic-modified mRNA vaccines which need to be stored at -20 or even -70 degrees Celsius, Chinese inactivated ones can be kept in a standard refrigerator at 2 to 8 degrees Celsius.

“But the transportation of vaccines still has one of the most strict requirements among all kinds of medical products,” said JDL’s Jinhua Zhao, who is responsible for the vaccine transportation project in Beijing.

In China, the government has required that all vehicles for COVID-19 vaccine transportation cannot transport any other products, even other type of vaccines or pharmaceutical products, out of safety considerations.

According to Yuming Qin, secretary-general of the Cold Chain Logistics Committee of China Federation of Logistics & Purchasing (CFLP), it is vital to make the whole process traceable and the temperature controllable.

 

Fully traceable process

Each of the 4.2-meter long JD cold chain trucks is equipped with six cameras, transmitting real-time video to the control-center in JD’s Northern China cold chain logistics park in Beijing.

“One camera is placed in the front of the van, one on the back, two inside the cab, and two in the refrigerator,” described Zhao.

JD cold chain trucks is equipped with six cameras, transmitting real time video to the control center

“One driver and one safety supervisor, who is also the operator, will be responsible for the delivery. They are bundled with the plate number, which means they cannot switch to drive other trucks,” Zhao adds. “There is a double-lock in the back of the truck that cannot be unlocked by only one staff.”

“We select staff from those who have worked at JD for at least one year with good performance track record.”

We select staff from those who have worked at JD for at least one year with good performance track record.”

To prevent the vaccines from contamination, operators must wear gloves when packing the vaccine. The cold chain vehicles will also be conducted with thorough disinfection before each transportation. Upon arrival, staff will need to print the full process temperature curve through a Bluetooth printer installed on the truck.

 

Full-procedure temperature control

The accuracy of the thermometer for the transportation of COVID-19 vaccines is required to be within ±0.5 degrees Celsius. To monitor the real-time temperatures, the trucks are equipped with three systems, namely the GPS, temperature monitoring and alarm system respectively.

Apart from the GPS which records location information, the temperature monitoring system records the refrigerator’s temperature every five minutes. If an abnormal temperature that is outside the programmed norms is detected, the checking frequency will be raised to every two minutes.

The alarm system consists of a sound alarm, system alarm and message alarm. “If an emergency such as temperature excursions occurs, not only the driver and the driver’s leader, but also JD’s quality control personnel and the transportation project leader will receive the message,” said Zhao.

In fact, the chance for such emergencies to happen is quite small.

First, each of the cold chain trucks is customized to be equipped with double refrigerators. When one of them happens to shutdown, the other is able to keep running even when the vehicle stalls.

Second, coolers, the insulated containers, form an additional temperature control layer for vaccines. JD has customized three different sizes of coolers: 56L, 70L and 97L. Taking the 56L one as an example, a cooler can be loaded with more than 400 doses of vaccines.

“Compared with ordinary coolers for fresh produce, the customized container can maintain its inside temperature between the range of 2-8 degrees Celsius in as long as 96 hours, while the ordinary packaging can endure only 48 hours,” Zhao explains. “In other words, the cooler can store vaccines for periods of up to four days when there is no external refrigerator.”

Each of the coolers has four layers: the outer box, the ice layer, the vacuum layer and the shipping packaging layer. A temperature probe is placed inside to monitor the real time temperature and display the degree information on the screen outside the cooler.

Each of the coolers has four layers: the outer box, the ice layer, the vacuum layer and the shipping packaging layer. A temperature probe is placed inside to monitor the real time temperature and display the degree information on the screen outside the cooler.

The vacuum has almost non thermal conductivity, and it is one of the best methods of insulating a system.

Coolers are key to the temperature control when the external environment shifts. “No matter if it is to load from the warehouse to vehicles, or unload from vehicles to vaccination points, vaccines are required to be carried by coolers, even it is just a few meters’ walk,” said Guiping Xu from JDL’s pharmaceutical cold chain team.

 

From Cold Chain to Pharmaceutical Warehousing and Transportation

Since 2014, JDL started building out its extensive cold chain logistics network and launched JD Cold Chain in 2018. As a leading F2B2C (Factory-to-Business-to-Consumer) service platform for cold chain warehousing, transportation and delivery, it aims to provide safe, secure and optimized logistics service that is time- and temperature- sensitive.

As of the start of 2021, JD’s cold chain logistics infrastructure for fresh produce and perishable products consists of 87 temperature-controlled warehouses and approximately 2,000 specialized vehicles with a network covering 31 provinces, municipalities and autonomous regions, serving both individual and corporate customers.

The company has also applied blockchain technology to trace the origin, production date, circulation information and even nucleic acid test result and disinfection information of fresh produce by scanning a QR code attached to products. Dedicated cold chain warehousing areas for imported products were also established to execute thorough disinfection and COVID-19 tests to secure food safety and increase warehouse efficiency in receiving imported produce.

As the demand for integrated supply chain logistics services in the pharmaceutical industry is expected to grow rapidly, JDL has been enhancing its pharmaceutical warehousing capabilities to meet the requirements brought by the wider use of biological materials.

According to the China Pharmaceutical Logistics Development Report released by the China Federation of Logistics & Purchasing (CFLP), the market for pharmaceutical products circulation is growing at an annual rate of 8% and is believed to have surpassed RMB 4,000 billion yuan in 2020.

So far, there are 20 JD warehouses designated for pharmaceutical products and medical instruments in China. Most recently in January, JD added a pharmaceutical warehouse in Shenyang, Liaoning province and is building cold chain sorting centers for pharmaceuticals in Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Xi’an and Shenyang.

JDL’s pharmaceutical warehouse in Shenyang

JDL’s pharmaceutical warehouse in Shenyang

Since the outbreak of COVID-19, JD has consistently transported nucleic acid testing kits, insulin and other medical supplies from medical institutions to cities in China. Last October, the company also inked a partnership with Hubei province based Humanwell Healthcare Group to help the healthcare solutions provider build an integrated smart medical supply chain management system.

In the future, JDL will further leverage its advantages in logistics infrastructure, network and capacity, apply advanced technologies and continue investment to drive innovation in this area.

 

(yuchuan.wang@jd.com)

JD Worldwide Holds Super Category Day for Imported Products

by Rachel Liu

JD Worldwide, JD’s platform for imported products, held a Super Category Day on Mar. 3. Imported products covering health supplements, electronics and digital products, food, fashion, skincare and more joined the promotion.

Hot-selling products including nuts from Kirkland (brand under Costco), chocolate from Lindt, infant milk powder from Mead Johnson, speakers from JBL, and health supplements from Swisse and GNC. On the evening of Mar. 3, Chinese rock star Wang Feng, who is also the Chief Livestreaming Officer of JD, joined a livestream show to recommend popular imported products to Chinese consumers.

“Besides the Super Category Day, we also held a series of activities for customers who like international products at the beginning of March,” said a spokesperson from JD Worldwide. “This March our theme is ‘Shining Season’. Besides sales promotions, we will work with ELLE to hold an online photography exhibition on Mar. 8, International Women’s day, to encourage customers to show their ‘shining moments’ and send surprising gifts.”

JD Worldwide, JD’s platform for imported products, held a Super Category Day on Mar. 3

Since launching in 2015, JD Worldwide has attracted over 20,000 brands and over 10 million SKUs to join its platform, covering maternal and baby products, fashion, sales supplements, personal care and skincare, electronics, food and home furnishing products. Customers can find products from over 100 countries on JD Worldwide including the U.S., Canada, South Korea, Japan, Australia, New Zealand, France, Germany, etc. JD has over 1,000 international transportation routes, over 110 overseas warehouses and over 10 bonded warehouse to provide cross-border logistics service for customers.

JD Worldwide hopes to provide customers with imported products from all over the world and become the gateway for international brands to enter China. To achieve this, JD Worldwide launched projects including the “World Fair” program to invite overseas companies to open National Pavilions for products from their countries; the direct-sourcing program which allows JD Worldwide orders to be sent directly to overseas retailers and the celebrity store program that invites celebrities to open stores on JD Worldwide. Any brands interested in building their business with JD in China can apply via https://www.jd.hk/cooperation_en, by emailing worldwide_BD@jd.com or by adding the “JDworldwideBD” account via WeChat.

 

(liuchang61@jd.com)

JD Facilitates Chengdu’s DCEP Test Run

by Ling Cao

Chengdu’s DCEP test run has received 4.2 million applicants from 8:00 am on Feb.24 to 00:00 o’clock on Mar. 3, and 203,060 lucky customers have won lucky draws. Of the winners, 138,805 people received RMB 178 yuan, and 64,255 people received RMB 238 yuan, totaling nearly RMB 40 million yuan. JD Technology has provided comprehensive support for the program, on areas including application, the lottery, and issuing envelopes. This is also the first DCEP consumption envelope test run in western China.

“I was so surprised that I got the envelope,” said one customer. “It was a big bonus for the start of the year!”

Some local residents enthusiastically posted lottery results in their WeChat moments, and described plans to make purchases online or offline.

Promotional posters are displayed in one JD 5Star store that supports DCEP payments

“We have showcased promotional materials in our store, explaining to customers how to use the money. With the help of JD Technology, we’ve also upgraded our cashier machine internally to be more efficient, while for our customers the payment process is the same as before, ensuring they can smoothly and easily purchase their beloved products,” said Xiao Chi, head of a JD 5Star flagship store.

One customer shows the red envelop page from her cellphone

Fei Peng, head of the DCEP program at JD Technology said, “By using frontier technologies, and through omnichannel, stable customer service capabilities, as well as application experience, JD Technology aims to contribute its efforts in the DCEP’s wallet ecosystem building, supporting local governments’ test runs, and exploring more real scenarios.”

JD Technology has already supported DCEP’s three test runs in Suzhou and Beijing, which have gained experience in operations and solutions, as well as offering new shopping scenarios for customers.

 

(ling.cao@jd.com)

JD Health Celebrates World Hearing Day

by Vivian Yang

To mark World Hearing Day on Mar. 3, JD Health is offering free online hearing tests and medical consultations on its telemedicine platform from Mar. 1 to 3. The company will hold a discussion with Prof. Yongxin Li, the chief otologist of Beijing Tongren Hospital via livestream to enhance the public’s awareness of hearing-related care.

Thanks to its online to offline (O2O) model and close collocation with hearing aid brands, JD Health users can screen their hearing ability and consult a doctor, and then, based on the result, decide to book more precise examinations from professional offline service outlets, and order customized hearing aids.

“JD Health’s O2O service aims to offer a more convenient and reliable hearing aid purchase solution for our customers to help them find the most suitable devices and save time on making multiple appointments and undergoing multiple examinations in-person,” said a representative of JD Health.

The portal for World Hearing Day on JD Health 

The portal for World Hearing Day on JD Health 

To date, JD Health has cooperated with more than 1,300 offline hearing aid service centers across the country on its O2O service, with 500 centers offering home services for testing and device matching.

According the advice from JD Health’s doctor, early examination is critical for the treatment of hearing problems. Especially in case of sudden deafness symptoms, it is best to intervene within 24 hours.

WHO’s statistics show that currently there are about 450 million people in the world suffering from hearing loss. The number is estimated to reach 900 million by 2050, which means 1 in every 10 people will suffer hearing disabilities. And among them, only a small portion will actively pursue medical intervention. This may lead to a higher risk of suffering from depression and Alzheimer’s disease.

 

(vivian.yang@jd.com)

 

 

Posted in ESG

JD Pharmacy Offers Online Buying and In-store Pickup for New Rare Disease Medication

by Martin Li

JD Pharmacy has started providing online purchase and offline pickup service for a new rare disease medicine.

Customers can buy MAYZNT, which treats rare disease multiple sclerosis (MS), on JD Pharmacy’s online platform and pick it up at the pharmacy nearest to their homes.

JD Pharmacy became the first online partner of the medicine after JD Health and  Novartis China announced a partnerhsip in Shanghai in September last year.

The service now covers more than 10 provinces and municipalities, including Beijing, Tianjin, Shanghai, Chongqing and Sichuan. More places are expected to be covered in the near future.

Novartis will continue cooperating with JD Pharmacy to expand coverage of the new medication, according to Novartis representative.

Enlin Jin, manager of the medicine unit of JD Health, said that the partnership is a symbolic step in JD Health’s exploration of self-owned cold chain service. The two companies will continue cooperating to improve patients’ convenience in buying medicine.

There are more than 2.5 million multiple sclerosis patients around the world. In China the number is around 30,000, according to statistics of neurology branch of Chinese Medical Association.

 

(bjlihao3@jd.com)

JD’s Duty Free Stores in Hainan Saw Booming Sales during CNY

by Rachel Liu

After a massive amount of Chinese customers rushed to Hainan province during the past Chinese New Year holiday, JD’s newly opened duty free stores there saw a fast increase in sales. The amount of customers and orders peaked from Feb. 13 to 15, with average sales per customer reaching about RMB 500 yuan.

“The most popular electronics products in our store are the personal care related products, such as hair blowers and shavers, which account for nearly 80% of total sales,” said a sales manager from JD duty-free stores. “In the cross-border experience store, we are happy to see that many senior customers who come to Hainan for travel choose to buy health supplements in the store. During this period health supplements accounted for 54% of total sales, with Swisse, Childlife and Puritan’s Pride becoming top 3 brands. Beauty products are popular among female customers, accounting for nearly 40% of sales, and facial mask is the most popular category.”

According to data released by Chinese media, sales of duty-free products reached RMB 1.5 billion yuan in the past seven-day CNY holiday, with average sales of over RMB 200 million yuan per day. A total of 4.58 million visitors came to Hainan from Feb. 11 to 17, and revenue generated by travel reached RMB 5.8 billion yuan.

Hainan increased its annual duty-free shopping quota to RMB 100,000 yuan per person and expanded the range of duty-free goods from 38 categories to 45 last July. JD Worldwide opened a duty free store and a cross-border experience store in the city of Sanya last December, focusing on electronics products and digitalized shopping experiences for customers.

 

(liuchang61@jd.com)