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JD.com 5G Logistics Park Becomes the Industry Benchmark Case

by Yuchuan Wang

JD’s 5G logistics park program has won top prize in the smart park category out of 4,289 applications in the 5G application contest held by China’s Ministry of Industry and Information Technology. In addition, JD’s automated warehouse and autonomous delivery robot projects won silver and bronze prize in the categories of industrial internet and smart transportation.

JD.com is a pioneer of 5G application. Its 5G logistics park integrates edge computing, big data, AI and SaaS in order to build a shared, smart and open platform. The company launched China’s first 5G-powered smart logistics park in Beijing in 2019 and partnered with China’s three leading mobile operators, namely China Mobile, China Telecom and China Unicom. So far, 28 JD Asia No.1 fulfillment centers are covered by 5G network.

This year, JD Logistics has built a “5G+Bluetooth AoA (angle of arrival)” indoor positioning system with an accuracy of 10 cm that can be used by logistics robots. In addition, the combination of 5G and IoT technology makes it possible for automated facilities to communicate with each other.

With the development of 5G technology, smart logistics parks will become standard and scalable thus bringing fundamental changes to the logistics industry. JD Logistics will not only apply 5G to its own scenarios but will open up its capabilities to lead the industry transformation.

 

(yuchuan.wang@jd.com)

Photo Gallery: This Week at JD (October 12-October 16)

JD Health held its 2020 China Medical Digital Marketing Conference in Shanghai on October 15th

JD Health held its 2020 China Medical Digital Marketing Conference in Shanghai on October 15th. Representatives from over 10 leading global medical enterprises and over 100 executives from medical supply chain companies joined the conference and discussed topics including new drug marketing, innovative marketing, payment methods, channel revolution and more.

 

JD announced that it will upgrade measures to help brands create an omnichannel marketing strategy

JD announced that it will upgrade measures to help brands create an omnichannel marketing strategy, including traffic and user management, at the JD Advertising & Marketing Summit held on October 15th, ahead of the upcoming annual Singles Day promotion.

 

JD unveiled a suite of supportive measures for partners including brands and merchants on its e-commerce platform

On October 14th, JD unveiled a suite of supportive measures for partners including brands and merchants on its e-commerce platform to achieve over two-time year-on-year growth in transaction volume during the upcoming Singles Day shopping festival.

 

JD Health welcomes Dr. Xuemin Shi, one of China’s most well-known acupuncture masters and an academician of the Chinese Academy of Engineering

JD Health welcomes Dr. Xuemin Shi, one of China’s most well-known acupuncture masters and an academician of the Chinese Academy of Engineering, to unveil its acupuncture center as part of its Traditional Chinese Medicine (TCM) services and become the head of the center on October 14th.

 

JD Super, the online supermarket of JD.com, kicked off its Pet Life Promotion Week starting with a series of pet products and services on sale

JD Super, the online supermarket of JD.com, kicked off its Pet Life Promotion Week starting with a series of pet products and services on sale, including the popular JD Brand Super Days. According to a Nielsen report on pet food trends in 2020, sales of pet food on JD Super increased sharply from January to July this year, far exceeding the average growth rate of other B2C platforms.

 

(yuchuan.wang@jd.com)

JD News Roundup Vol. 10

by Ella Kidron

CORPORATE HIGHLIGHT: SINGLES DAY PREPARATION

With Singles Day around the corner, JD has started to announce plans for the festival. This year, it will last nearly one month, and will consist of four key sales periods: pre-sales from October 21st to 31st, special sales from November 1st to 8th, peak sales from November 9th to 11th, and ongoing sales from November 12th to 13th. To guarantee that customers enjoy a good shopping experience during peak session, JD will introduce measures such as 15-day price protection, strict detection of artificial price reductions and refunds for delivery delays.

JD also unveiled a suite of supportive measures for partners including brands and merchants on its e-commerce platform to achieve over two-time year-on-year growth in transaction volume during the upcoming Singles Day shopping festival. Furthermore, JD Logistics will upgrade its merchant support measures in order to ensure seamless delivery to customers throughout the sales period. Some of the highlights of JD Logistics’ operational upgrades for Singles Day include intelligent warehouse management, over 95% stock forecast accuracy and more.

BUSINESS UPDATES

JD becomes first in e-commerce industry to apply creditability to third party store evaluation: Ahead of the annual Singles’ Day promotion, JD has updated its standards for third party store performance evaluation. In an effort to urge merchants to keep improving product offerings and services. To facilitate timely improvement, JD also provides an online performance monitoring system to provide early and real-time warnings to merchants at risk.

JD promotes 20 C2M products: This week JD announced a plan to channel key promotion resources towards 20 top home appliances developed through the company’s consumer-to-manufacturer (C2M) initiative. The highlighted products, which include 10 new products and 10 hot-selling products, span 11 categories such as refrigerators, TVs, water heaters and air conditioners— with 14 leading brands including Midea, Sony, Haier, Hisense and more. C2M has become a major focus of JD’s new products’ strategy this year, and this group of products adds to a list of over 150 C2M home appliances products unveiled on JD this year.

JD’s drones complete trial delivery in Japan’s mountainous region: Rakuten, Inc., a global leader in internet services, has completed a successful demonstration of delivering supplies via drone flight beyond visual range. The drone and technology were provided by JD.com, China’s largest retailer. This marks the first time in Japan that a drone was used to deliver supplies in a mountainous region where the difference in altitude between takeoff and landing locations reached approximately 1600m.

JD Healh welcomed Dr. Xuemin Shi, one of China’s most well-known acupuncture masters as the head of its new acupuncture center which is part of the company’s suite of Traditional Chinese Medicine (TCM) services. Dr. Shi and his team will cooperate with JD Health on multiple fronts including telemedicine, academic research, cross-cultural communications and more, jointly exploring how to enhance the development of TCM and let more people benefit from TCM treatment under the “internet + healthcare” model.

Have a bit more time? Check out some of our recent long reads, data reports and lighter reads here:

 

(ella@jd.com)

Collective Upward Trend for Textbook Sales in China on JD

by Kelly Dawson

Sales of primary and secondary education textbooks during the first seven months of 2020 increased by nearly 4% year-on-year; with university and adult education aides also seeing an increase of 3.72% year-on-year in the same period, according to a report released by one of JD’s research arms, the Jingkai Research Institute.

The report, which includes analysis for the secondary and elementary school education market, and the university and adult education market, found an upward trend for composition books, economics and management, and traditional cultural content such as ancient poetry.

According to JD’s data, the transaction volume of examination and certification training courses also increased by 9% year-on-year during the period of January to July. More specifically, training in financial topics saw a boost—among the related categories that grew in popularity were test preparation aides for registered tax accountant certification, accounting and other economics and management courses.

The self-improvement and self-education trend continued with adult English training courses, which increased by 280% year-on-year; and training for users’ skills like Photoshop.

The report also broke down the regions that enjoyed the highest sales across China. From January to July of this year, the highest proportion of users and transaction volume for primary and middle school teaching aides came from Central and South China; followed closely by Eastern China, with a difference of about 2%.

For college and adult education textbooks, Eastern China led transaction volume and proportion of users, but the gap was very small with the regions of Central South, North China, and Western China, which each accounted for over 20% of total sales.

According to the data, the five top-selling cities for primary and secondary school textbooks, and adult and education textbooks, were Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu. Of these, Beijing ranked first for both categories with more than 10% transaction volume, which was far higher than Guangzhou, which ranked second.

New first-tier cities like Chongqing, Xi’an, Tianjin and Suzhou also ranked top ten, with the report speculating that rising book sales could be attributed to an increase in economic development, a larger permanent population, higher levels of consumption and higher emphasis and demand for education.

As various categories demonstrate a collective upward trend, the consumption potential for the textbook market has yet to be fully tapped, the report concluded.

 

(kellydawson@jd.com)

Stubborn Flowers: A Couple at a JD Station in the Gobi Desert

by Kelly Dawson

At night the Gobi Desert of northwestern China can be cool like icy waters; at the height of day the heat can be scalding and relentless. Vegetation is rare, and one can drive for kilometers with little sign of life.

For many years, the area’s windy, freezing to blistering conditions made it a “no go zone” for express delivery. Then, in 2016, a JD Logistics truck arrived, announcing the opening of a JD delivery station here on the dusty outskirts of the city of Jiuquan, Gansu province.

Huang Yanhua was one of two original employees at the station. On that first day she accompanied the stationmaster on the maiden voyage to deliver packages. As they arrived at the final address that evening, they discovered that the information had been entered incorrectly. They were 60 kilometers away from the correct address.

Huang wondered aloud whether they might deliver the package the following day. As the stationmaster started the engine, his response was firm: “No matter how far away, the package must be delivered today.” True to his word, the final package was delivered around 11 pm.

Since then, the red JD truck has become a staple, picking up and delivering packages across the area night and day. Behind the wheel most days is Huang, who since the stationmaster’s departure now runs the station.

Since then, the red JD truck has become a staple, picking up and delivering packages across the area night and day.

Today Huang wears a thick coat, bundled for protection against the temperature drop of 20°C after sunset. Before departure, she sorts the nearly 200 packages according to the distance of the delivery addresses, and stacks them neatly in the back of the truck. As always, the stationmaster’s credo remains fresh in her mind. Whatever difficulties she may face—wind, rain, scorching sun, inaccurate delivery information, or more—she intends to deliver every package by night’s end.

Since Huang began working at the station four years ago, daily packages have risen from 30 to as high as 500 orders a day. That original JD truck has been upgraded, from 4 meters across to 9 meters. After the original stationmaster left and deliveries increased, Huang knew she needed an assistant—but job inquirers always disappeared when they learned the location of the station.

Eventually, her husband Wei Wei quit his job and joined her at the station as support staff. The couple’s son is taken care of by a grandparent when they are at work, and they are fortunate that the boy is obedient and appreciative of their sacrifices, Huang said.

While Wei Wei originally joined the team to simply support his wife, over time he began to truly believe in the value and function of the station, he said. Knowing that their delivery services improved the lives of locals living in the area was deeply satisfying.

“There is an old grandmother who likes to order snacks, and she always shares them with us. She likes to brag sometimes that she’s a JD Plus member,” Huang recounted, laughing. “Sometimes she feels upset that she gets to sit comfortably at home while we are out in the elements battling the weather each day and thanks us profusely, but we always tell her it’s our duty.”

Other locals have also expressed their appreciation for the couple. Huang described one customer who does scientific research in an isolated location. “He left us a message saying, “I finish work very late each night, and I feel like I’m in good hands with you, knowing that my packages will always arrive safely.”

Life in the desert can be eventful too, Huang said. Earlier this year as the pandemic receded in China, the nearby Jiuquan Satellite Base opened its doors to outdoor vehicles for the first time in months. During that time 2,600 packages for staff at the base had piled up at the JD station. With the stationmaster’s credo in mind, Huang and her husband worked late into the night, disinfecting each and every package with alcohol before delivering the items to each customer at the base, ensuring the highest safety standards.

This year Huang Yanhua and Wei Wei received the 8th JDL first-line award, officially recognizing their commitment to growing the distant JD station, which despite difficult conditions has flourished like a stubborn flower in the desert.

As Huang loads the truck tonight, she tells the story for which the city of Jiuquan (酒泉 literally means “Wine Spring”) is named. During the Western Han dynasty, a distinguished military general named Huo Qubing (霍去病,140 BC – 117 BC) won a battle in the Gobi Desert and was later awarded by the emperor with a jar of precious wine. The jar was not large enough to ensure that all of his men could have a taste—so he poured it into a creek, and he and the soldiers drank at the water’s edge together.

Locals tell this story often, Huang said. She loads the last of the packages, which will be delivered to residents across the area with care. Her work is also like fine wine, she says, poured on a barren expanse and shared by all who greet her on the journey.

 

(kellydawson@jd.com)

JD Logistics Ready for Upcoming Singles Day Grand Promotion

by Vivian Yang

JD Logistics announced on October 15th that it will upgrade operation measures to support merchants in preparation for the upcoming sales season, which is starting in a week’s time. Merchants have started to increase their stock at JD’s warehouses to respond to the expected shopping spike. It is estimated that over 1.2 billion commodities will be stocked with JD prior to the Singles Day (November 11th ) Grand Promotion.

To ensure smooth and highly efficient fulfillment operations during the event, JD Logistics is geared up to perfect each stage of its end-to-end supply chain process, to provide integrated logistics solutions to its merchants and unparalleled delivery services to customers.

JD Logistics' automated warehouse

JD Logistics’ automated warehouse

Highlights of JD Logistics operation upgrades for Singles Day Grand Promotion include:

Intelligent warehouse management: Currently JD warehouses manage more than 6 million SKUs that cover almost all the product categories on the market. At the same time, their inventory turnover rate remains above the industry average. This is realized through a system referred to as the “intelligent brain”, a comprehensive adoption of advanced technologies including intelligent operation scheduling, big data selection, AI-powered bookings for bulky goods delivery and more. The “intelligent brain” warehouse management system has been applied in every JD warehouse that can perform hundreds of millions of calculations within a minute.

Over 95% stock forecast accuracy: Based on more than a decade of experience with grand promotion events, system development, big data analysis and supply chain models, JD is able to accurately predict consumers’ shopping behaviors and respond with sufficient resource reserves such as storage capacity, manpower and system readiness.

Introducing fast track services to avoid warehousing jams: Similar to a highway’s ETC(Electronic Toll Collection) service, JD Logistics initiated fast track services to simplify the warehousing process for merchants during the commodities influx ahead of the grand promotion. Ninety-nine percent of commodities can be successfully stored in JD’s warehouses within 24 hours.

Leveraging pre-sales for peak load cutting: By putting predicted hot seller products in the front distribution centers and advancing sales of bulky items while they are in transit with suppliers, JD Logistics can help merchants shorten sales cycles and improve sales opportunities in peak times.

Loans support with storage pledge: Merchants can use their stock at JD’s warehouses as pledge for loans offered by JD, with an unlimited amount and real-time account transfers. This policy has provided critical cash flow support for hundreds of merchants during the pandemic.

Green and precise packaging: By virtue system of the “intelligent brain”, packages and orders in JD’s warehouses will be precisely calculated to find the most environmentally-friendly match, ensuring all kinds of materials and their sizes including carbon boxes, handbags, thin tapes, circular containers and more can achieve their maximum value with minimal waste and pollution.

 

(vivian.yang@jd.com)

JD Super Kicks Off Mead Johnson Super Brand Day

by Rachel Liu

JD Super, JD’s online supermarket, helped world-leading infant formula brand Mead Johnson to achieve high ROI and sales on its Super Brand Day on October 11th,when sales of the brand surpassed RMB 10 million yuan in the first 30 minutes, and reached 2.5 times of its sales on June 18th, the peak day of JD’s Grand Promotion.

Many Mead Johnson products achieved impressive sales. Sales of the Enfintar series was 21.8 times comparing with its average daily sales, and Enfa A+ series increased 200% compared with average daily sales.

An multichannel approach has been key to Mead Johnson‘s success on the Super Brand Day. In addition to JD’s several online channels, 59 brick-and-mortar JD Maternal and Baby stores in 25 provinces showcased the same products as the online stores creating a seamless promotion environment. QR codes for Mead John’s cross-border products were also placed in the store enabling consumers to conveniently place online orders while in the stores. Mead Johnson’s 1,979 offline stores in China also joined the campaign and saw sales reach 25 times that over average daily sales.

The move of consumers online during COVID-19 coupled with the resumption of offline shopping in the epidemic recovery period has made brands’ need to take a multi-channel approach to retail even more of an imperative. JD Super’s omnichannel marketing solutions have helped customers reach out to a larger yet more targeted consumer base to improve the efficiency of marketing programs.

 

(liuchang61@jd.com)

JD Health Holds China Medical Digital Marketing Conference in Shanghai

by Hui Zhang and Rachel Liu

JD Health held its inaugural 2020 China Medical Digital Marketing Conference in Shanghai on October 15th. Representatives from over 10 leading global medical enterprises and over 100 executives from medical supply chain companies joined the conference and discussed topics including new drug marketing, innovative marketing, payment methods, channel revolution and more.

Enlin Jin, general manager of medical products and head of strategic investment at JD Health shared the reason of holding the conference: “It’s high time for us to share more insights and medical marketing to better serve the industry the as medical industry and internet industry are getting closer every day.” He emphasized the importance of the whole industry participating in the conversation.

JD Health held its inaugural 2020 China Medical Digital Marketing Conference in Shanghai

In the session on the topic of new drug marketing, Yue Chang from JD Health’s Medicine Department said providing patients with an online platform integrating doctors, drugs and insurance, and continuously accumulating data outside hospitals is a new solution to solve obstacles faced in marketing new drugs. However, new drug marketing is only the first step in pharmaceutical marketing. According to Jing Fan from JD Health’s Medicine Department, pharmaceutical companies should take advantage of their own strengths, the convenience of the internet, and putting patients at the center to provide one-stop services covering disease knowledge sharing, diagnosis, treatment, disease management and financial services, as well as value-added services for pharmaceutical companies.

At the same time, new payment methods also present challenges and opportunities for pharmaceutical companies. In addition to considering payments by patients themselves, we should also consider taking advantage of the internet and expanding from solving the payment problems of individual patients to solving the problems of the entire family, according to Bo Gan from the Medicine Department.

In terms of sales channel revolution, Xinyuan Zhou, general manager of JD Health’s Channel Innovation Department and also head of JD Pharmaceutical Procurement Platform, called on all participants in the industry to utilize technology to construct a smart pharmacy, providing clear benefits to both patients and pharmacies.

Digitalization drive medical marketing

China’s medical marketing industry is facing major changes. Traditional medical marketing is mainly done through medical representatives and offline medical conferences. In recent years, the government has launched a series of new regulations concerning “Internet + medical health” model to improve digitalized marketing in the medical industry.

According to the 2020 China Medical E-commerce Development White Paper released by Yiou Think Tank this May, the scale of China’s pharmaceutical circulation and pharmaceutical e-commerce market increased year by year from 2013 to 2018. The Chinese pharmaceutical e-commerce market reached RMB 97.8 billion yuan in 2018, an increase of 32.7% compared with the same period last year. The internet has become an essential new scenario for medicine promotions.

According to the 2020 Digital Medical Insights Report released by BCG and Tencent, the average growth rate of digital health users in the past three years has reached 30%. By the end of 2019, the number of digital health users in China accounted for 70% of the total number of mobile Internet users, reaching 620 million. Among them, more than 60% of consumers learned medicine-related information such as health care and disease diagnosis and treatment online. The increasing number of online users is an indication of the more extensive role of medical marketing, covering not just hospitals and doctors, but also individual patients. More doctors are also signing up to provide services for internet hospitals.

 

(zhanghui36@jd.com, liuchang61@jd.com)