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JD Partners with Lenovo Image in Lower-Tier Markets

Posted on by Kelly Dawson

by Kelly Dawson

JD.com’s omnichannel JD Computer and Digital Products franchise stores are partnering with Lenovo Image to offer printer products and services to customers of the offline stores. Combining JD’s quality assurance and advanced supply chain with Lenovo Image’s high-quality products and comprehensive customer service experience, the partnership will offer customers on-site consultation, extended warranty and after-sales maintenance services, technical support, and one-hour express service delivery in some cities.

Additionally, staff at the stores will receive Lenovo Image’s service training and guidance to ensure the best possible customer experience.

Eighty percent of JD Computer and Digital Products stores are located in third- to sixth-tier cities, where consumers have been slower to warm to an online-only model for electronic devices, preferring to test products first before purchase.

JD opened the first computer and digital products experience store in 2018. Today, there are around 700 such JD stores across China, with 90 offline stores opened in April alone. Of these stores, 533 are in 3rd to 6th-tier cities, covering 30 provinces，municipalities and autonomous regions.

JD has previously partnered with Lenovo on C2M initiatives, including customized products for series including Lenovo’s AIO business-integrated desktop PCs.

Weichang Li, general manager of Lenovo’s PC consumption department, said that Lenovo’s cooperation with JD felt significantly more hands-on than with some previous partners.

“What we talked about the most with foreign supply chain partners was just the price, while the cooperation between JD and Lenovo has always focused on consumers’ demands,” Li said.

 

 

(kellydawson@jd.com)

 

JD News Roundup 2021 – Vol. 4 (Mar. 1-12, 2021)

Posted on by Ella Kidron

If you have any questions or topics you are hoping we will explore, please email ella@jd.com. 

Earnings

JD.com reported fourth quarter and full year 2020 earnings on Mar. 11. Among the financial highlights, the company saw accelerated user and topline growth. Accelerated user and topline growth: Annual active customers of 471.9 million, an increase of 30.3% from FY2019. Full-year net revenue of RMB745.8 billion (US$114.3 billion), an increase of 29.3% from FY2019. Net service revenues for the full year of RMB93.9 billion (US$14.4 billion) an increase of 42% from FY2019. Read the full release: https://ir.jd.com/news-releases/news-release-details/jdcom-announces-fourth-quarter-and-full-year-2020-results

Below is a quick snapshot of highlights:

JD Retail will continue focusing on the enhancement of its integrated supply chain and technology capabilities, ominichannel and online market ecosystem expansion, CEO Lei Xu shared during the call to discuss the earnings results. “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. Read more: https://jdcorporateblog.com/jd-retail-ceo-supply-chain-omni-channel-and-ecosystem-are-three-key-strategies/ 

BUSINESS HIGHLIGHTS

Retail

JD Super, JD’s online supermarket, is going to build an end-to-end, integrated supply chain for agricultural products from the initial planting stage, through transportation and sales.

JD’s third E-Space store will open in Xi’an, following the opening of the Chongqing store in 2019 and the Hefei store planned to open this year. The store’s claim to fame is the ability to experience virtually every product or service, making it not only a socializing destination but also a “third place” of sorts.

JD continues to build out its roster of brands on the platform. Recently APEDE MOD, a New York fashion brand which has gained traction in China recently, opened a flagship store on JD.

Health

JD Pharmacy, the pharmaceutical business under JD Health, has started providing O2O services for a new rare disease medication under Novartis, MAYZNT, which treats multiple sclerosis (MS). JD is the first online partner of the medicine. The news comes after JD Health launched its rare disease center at the end of February. The center provides rare disease patients all over China with access to a wide range of resources, including being able to consult medical professionals online thanks to telemedicine. This is an area JD Health will continue to develop.

Tech

JD welcomed two respected IEEE Fellows to its roster of tech talent. Dr. He Tian joins JD has vice president and the head of JD Logistics AI and Data Science, in charge of smart logistics algorithms, data products and map services. Dr. He’s team will build dedicated, intelligent algorithms and systems for supply chain and logistics scenarios. In addition, Dr. Dacheng Tao has been appointed the director of JD Explore Academy where he will lead the team to explore innovative AI applications which might drive JD’s business in the future. Dr. Tao is an internationally-recognized scholar in the field of AI and information sciences with a focus on machine learning, deep learning, computer vision and image processing. His papers have been cited nearly 60,000 times – a demonstration of how essential his research is to the field of AI. The addition of these Dr. He and Dr. Tao adds to JD’s growing list of IEEE fellows and reinforces the company’s commitment to tech innovation.

JD has launched a test run of DCEP, or the e-CNY, in Chengdu – the third city the company has participated in the rollout of the digital RMB for. Over 4.2 million customers participated in the lottery, of which there were over 203,060 lucky winners who received either RMB 178 yuan or RMB 238 yuan.

Logistics

Located in the southeast of Shenyang, Maizitun (literally means Village of Wheat) is a fast-growing logistics hub. After JD.com launched one of its “Asia No.1” logistics parks in 2010, a project aiming to build the largest scale and most advanced network of e-commerce logistics centers in Asia, more and more logistics companies have established their businesses in Maizitun. The area has become the logistics hub for the southern Shenyang area. Read more: https://jdcorporateblog.com/jds-asia-no-1-boosts-economic-development-of-rural-area/

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. Read about JD’s work to transport the vaccine leveraging its cold chain logistics infrastructure: https://jdcorporateblog.com/in-depth-report-the-developing-cold-chain-capabilities-of-jd-logistics/

International Business

JD CENTRAL is developing its business by adhering to three core characteristics: quality, price and service (QPS). Its recently announced QPS benchmark will help merchants on the platform continue to leverage JDC resources to improve their level of service, and contribute to the rising prominence of e-commerce in China. Read more here: https://jdcorporateblog.com/jd-central-in-thailand-sticks-to-doing-the-right-things/

Have a bit more time? Check out some of these reads:

The secret ingredient behind JD supermarket SEVEN FRESH’s menu? A world-class chef who previously cooked for Queen Elizabeth herself. Read his story here: https://jdcorporateblog.com/in-depth-report-seven-freshs-secret-ingredient-a-chef-with-royal-experience/

Periods should not be a financial burden. JD’s social e-commerce platform Jingxi plans to work with manufacturers to provide an economical feminine hygiene option without sacrificing quality. https://jdcorporateblog.com/periods-shouldnt-be-a-financial-burden-heres-how-one-retailer-is-helping/

When Qinran Liang 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. Read his story here: https://jdcorporateblog.com/in-depth-report-the-meaning-of-a-jder-in-the-eyes-of-a-long-serving-employee/

 

 

(ella@jd.com)

 

Read past JD News Roundups below

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Continue reading “JD News Roundup 2021 – Vol. 4 (Mar. 1-12, 2021)”

JD Opens Self-built Pharmaceutical Warehouse in Shenyang

Posted on by Yuchuan Wang

by Yuchuan Wang

JD has built a dedicated warehouse in Shenyang, Liaoning province to meet the increasing demand for the transportation of pharmaceutical products in the industry.

The 10,000-square-meter warehouse provides outsource operational logistics services (3PL or third party logistics services) for medicine and medical apparatus and instruments. It is equipped with multi-layer storage temperature conditions including cool, room temperature, refrigerator and frozen for various drug requirements.

According to the China Pharmaceutical Logistics Development Report released by China Federation of Logistics & Purchasing (CFLP), the market for pharmaceutical products circulation is growing rapidly at a rate of 8% and is believed to have surpassed RMB 4,000 billion yuan in 2020. Meanwhile, the industry still faces problems of high costs and lagging digitalization, with much room for development.

“Leveraging JD’s capacities in logistics infrastructure, technology and ecosystems, we hope to build a professional and wide-coverage pharmaceutical logistics network,” said a JD Logistics representative, “to continuously contribute to the optimization of the pharmaceutical supply chain.”

 

(yuchuan.wang@jd.com)

Photo Gallery: This Week at JD (January 1 – January 8)

Posted on by Yuchuan Wang

To celebrate the coming of 2021, JD Logistics partnered with Chinese movie “Warm Hug” to release special delivery boxes with its theme and set up a pop-up store in Beijing to bring the warm-hearted story to consumers. Each of the special designed delivery boxes can stretch out small hands to make a hug.

 

JD partnered with Sesame Studios to celebrate the coming of the New Year. The two parties released a video titled Joyous Surprise, which carries the theme of kindness and friendliness. JD and the studio also worked with Lego and Pop Mart to customize diversified Sesame Street-themed products like bags, yoga pads, mixed nuts, pullovers and mysterious gift boxes. In an offline campaign, JD has decorated the Light Rail No.2 in the mountain city of Chongqing in southwest China with images of Sesame Street characters and Joy, adding a festive touch to the city.

 

SEVEN FRESH, JD’s offline fresh produce supermarket chain, opened a new store in the Fangzhuang area of Beijing on Jan. 1, reaching many old residential compounds and elderly people. It can solve the problem by providing tailored services, such as doorstep delivery in as fast as 30 minutes, a special service section for elderly people inside the store, as well as teaching them to place orders online at their compounds.

 

JD.com and ThundeRobot, a leading Asian brand of gaming computers and accessories, sponsored an e-sports league, ACE College League (ACL), which concluded on Jan. 3 with Hainan University crowns champion of the two-day e-sports competition. JD is ambitious in constantly exploring the field of e-sports. In the PC gaming field, JDG has become one of the top teams loved by gamers, and it will be one of China’s representative teams to participate in the League of Legends World Championship 2021. In the mobile gaming field, JD was also the exclusive e-commerce partner for KPL Spring, KPL Fall, and the Honor of Kings Anniversary in 2019.

 

MAKE UP FOR EVER Launches Official Flagship Store on JD

Posted on by Hui Zhang

by Hui Zhang

LVMH’s cosmetics brand MAKE UP FOR EVER launched a flagship store on JD.com on Dec 10th 2020, bringing its 2021 limited makeup editions and a makeup set exclusively to JD’s over 441 million consumers along with JD super brand day on  Jan 11, 2021.

With the help of JD’s ecommerce and logistics advantages, the official flagship store of MAKE UP FOR EVER will directly supply products and be stored in JD’s warehouses. All the products will be delivered to consumers within 24 hours by JD Logistics.

To celebrate the store’s opening, JD and MAKE UP FOR EVER will kick off a super brand day on Jan. 11 to offer a MAKE UP FOR EVER 2021 new year global limited powder edition and a makeup set endorsed by Chinese singer and rapper Liu Yuxin.

“The collaboration with MAKE UP FOR EVER aims to convey global beauty trends to Chinese consumers while continuing to bring a wide range of high-quality beauty and skincare products to our consumers,” said Terry Wang, general manager of JD Beauty.

“We hope that through the cooperation with JD, we can make more Chinese consumers understand and love MAKE UP FOR EVER’s products, and open a brand new chapter of comprehensive development through the online market,” said Vincent Fu, general manager of MAKE UP FOR EVER China.

Founded in France, MAKE UP FOR EVER is the professional makeup brand performers turn to when they need makeup and tools to transform for the stage. The brand creates high performance products for professional makeup artists and makeup fans all around the world.

 

(zhanghui36@jd.com)

JD Holds Annual Grand Promotion Day for PLUS Members

Posted on by Ling Cao

by Ling Cao

JD is holding its annual grand promotion today (Jan 8) for members of JD PLUS, JD’s premium membership system. Benefits include the opportunity to use RMB 1.8 yuan to purchase cosmetics packages and handbags, as well as discounts to purchase a wide range of other products.

JD also offers a “super card” with eight integrated privileges for new members, including 2.5kg Chilean cherries, VIP membership for the platforms Tencent video, QQ music and JD Reading, as well as a special card for McDonald.

JD PLUS has already cooperated with over 800 brands, including Unilever, Siemens and Yili, with 720 brands providing 5% discounts for members purchasing products on JD. Members can also enjoy special prices for millions of products on JD.

Additional provileges include 12% discounts for ordering Didi, RMB 1 yuan to order a hamburger on Burger King, and RMB 9 yuan to buy a cup of COSTA coffee.

Chunhui Meng, head of JD PLUS said, “JD PLUS aims to create an integrated membership system with partners, which combines online shopping with a cross-border lifestyle, providing members with high quality products and benefits.”

 

(ling.cao@jd.com)

JD Empowers Duty Free Industry through Supply Chain and Digitalization

Posted on by Rachel Liu

by Rachel Liu

JD Worldwide, JD’s platform for imported products, opened a duty free store in Sanya, Hainan province on December 30th, 2020, together with a cross-border experience store through partnering with Hainan Tourism and Investment Development Co. Besides makeup products, fragrance and chocolate, which are common in many duty free stores, the JD stores also provide a wide range of electronics products, providing travelers with more choices.

By joining the duty free business, JD can benefit brands and traditional industry players with supply chain capability and digital tools.

According to research conducted by Industrial Securities, during July to October 2020, makeup accounted for 48% of total sales of offshore duty free products in Hainan province, with watches accounting for 14.7% and accessories 15.4%. The categories of duty free products are very limited. Although customers have the demand for a wider variety of  products, many brands do not have the ability or resources to get into the business.

With JD’s experience in logistics and finance, as well as its close connection with international brands (especially electronics brands), brands can get into the duty free business easily and quickly through cooperating with JD. With more brands joining, they will have more control over the product price and channels on the duty free market, thus making the industry more regulated.

JD’s participation will also help traditional duty free players with their challenges. In China, only five companies are approved to do duty free business, and they mostly focus on operating offline stores. As digitalization is the trend of the retail industry, JD’s joining could help them with digital transformation, such as more detailed and efficient customer operations, targeted marketing campaigns and more. Take customer operations for example: customers for duty free stores are usually travelers, which means they are not likely to revisit the stores frequently. JD’s digitalization capabilities can help the stores move the customers online and use LBS (Location Based Service), targeted advertisements and more to activate them.

JD’s store management tools, such as electric price tags, a smart advertisement board and customer road map, will bring customers a better shopping experience in the stores.

“With the change of policy on Hainan’s duty free business, both customers and industry players demand new experiences and opportunities. Instead of competing with existing duty free companies, JD’s joining can not only supplement traditional product categories, but also bring omnichannel experiences into the duty free industry, as well as making the industry more standardized and efficient,” said Mark Ma, operations head of JD’s duty-free business.

 

(liuchang61@jd.com)

JD Customers Stock up on Warm Goods to Fight the Cold in China

Posted on by Vivian Yang

by Vivian Yang

A massive cold wave is sweeping across China. On January 6, Beijing saw a drastic temperature drop to -17.1℃, the lowest since the 21st century.

China’s National Meteorological Centre (NMC) has predicted that from Jan. 4-13, the cold air will frequently grip the country in its southern provinces including Anhui, Jiangxi, Zhejiang, Fujian and Yunnan as well as many parts of North China.

As the outdoor temperature keeps plummeting, people’s shopping carts on JD.com are getting increasingly “warmer”. According to JD’s consumption big data, searches with “warmth”-related keywords have tripled in the past week compared with the same period last year, with radiators, heaters, kettles, heating furnaces, portable hand warmers and other products ranking high on the search list.

“Thermal underwear for -40℃” becomes the most popular search in the cold resistant outfit category. In addition to coats, boots, gloves, socks and hats for extreme weather, products with high-tech materials are a big draw for many consumers.

Search volume have multiplied for down jackets, vests and duvets as well as wool hats, scarfs, sweaters, pants, socks, insoles and more during this period of time.

“The coldness has been a reminder for many people to send love to their family members,” noted Yao Chen, researcher of JD Big Data Research Institute. “We found that a great number of warmth-related product orders made by customers from the big four tier-one cities in China, namely Beijing, Shanghai, Guangzhou and Shenzhen, are going to recipients living in different cities, which undoubtedly, in most cases, should be the senders’ hometowns,” Chen added.

 

(vivian.yang@jd.com)