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Supply Chain Chief Scientist, Dr. Max Shen, Unveils the Inside Story of JD.com’s Omni-channel Solution during COVID-19

Posted on by Ling Cao

“The biggest change in the retail industry is users shifting from a centralized platform to multi-end shopping scenarios,” said Dr. Max Shen, supply chain chief scientist of JD.com, during a keynote speech titled “Embrace the Change of the Digital World: Growing Omni-channel” at NAEOS20 on October 5th, which was held live online.

During his remarks, Dr. Shen introduced the structure and capabilities of JD’s omni-channel business solution, and put forward a theoretical framework of the future supply chain.

JD.com’s omni-channel solution

Dr. Shen explained that JD’s omni-channel business solution has grown with changes in the consumer market. In the past, consumers mainly shopped at offline supermarkets, stores or online centralized e-commerce platforms. Nowadays, shopping has expanded to various retail scenarios such as social e-commerce, content e-commerce, and live broadcast e-commerce.

“JD’s omni-channel solution links multi-end scenarios through its supply chain capabilities, commodity trading capabilities and member marketing capabilities,” he said. “By reconstructing the elements of products, places, and people, JD.com provides consumers with a richer product selection, more convenient shopping experience and delivery services to meet the omni-channel needs for consumers to shop anytime, anywhere.”

Products: Combine online and offline orders, inventory and fulfillment capabilities to achieve omni-channel fulfillment services 

JD’s omni-channel fulfillment service can undertake orders from multiple sources both online and offline, mobilize warehouse and store inventory, and distribute capacities of upstream suppliers and third-party delivery companies. Through optimizing the algorithm, a better fulfillment path will emerge with optimized cost, timeliness, and a better fulfillment experience. In the past, when a user placed an order of daily necessities on JD.com, the product had to be delivered to the user through a series of processes such as JD’s warehouse, sorting center, and delivery station. However, through an omni-channel solution, the system would use an intelligent algorithm when matching inventory on JD.com. The most cost-effective, geographically convenient solution will be chosen, and the package will be delivered to the customer within 20 minutes. Through this cooperation, JD.com and partners have not only reduced the cost of order fulfillment, but also improved the user experience.

Places: Strategic integration of online and offline data among millions of stores

JD.com has completed the integrated layout of online channels and offline business formats, including JD’s online app, JD’s offline home appliance， experience shop JD Home, SEVEN FRESH and more, as well as cooperative convenience stores. In these scenarios, JD can build a comprehensive user behavior path through online user big data and offline user behavior, and create a closed-loop shopping experience that combines both online and offline data.

Taking SEVEN FRESH as an example, the store has added easy-to-operate QR code payment, self-service POS and a smart replenishment system.

JD.com is providing consumers with a more convenient, comfortable and personalized shopping experience through strategic integration of online and offline data.

People: Precise marketing for all users

In terms of membership marketing, JD can help brand partners achieve global user precision marketing, including user identification, crowd insight, user benefit design, membership system construction, distribution and monitoring of marketing activities and more.

A peek into the future supply chain

The epidemic has pushed JD to think more about the future supply chain capabilities. “The supply chain of the future is a supply chain driven by demand, functions with open coordination and agile responses,” Dr. Shen said.  “JD.com will focus on strengthening the user insight capabilities, deepening the collaboration, and optimizing the efficiency between supply chain collaboration nodes. By seeking certainty out of uncertainty, JD.com aims to improve the efficiency and agility of the entire supply chain.”

In terms of strengthening user insight capabilities, JD.com has built a new C2M customization platform for new products. Based on JD’s massive user data, it has in-depth insights into user needs. Through new product development, industrial design, simulation trials, launch and precision marketing, this approach provides an innovative path for new product development. Compared with traditional methods, the JD C2M customization platform can reduce product demand investigation time by 75%, and new product launch cycles by 67%.

In terms of deepening collaboration, JD’s supply chain is not only connecting partners together, but also collaborating with upstream and downstream enterprises in related industries to achieve continuous business innovation through open data, open process and open capability.

Optimizing the efficiency between collaboration nodes through big data technology and artificial intelligence algorithms, JD.com aims to realize the digitalization of business processes, the automation of operation execution, and intelligent decision-making, so as to improve the efficiency of the supply chain.

The future omni-channel supply chain must be an open and collaborative supply chain. JD is actively working to open up various capabilities and cooperating with partners to build an omni-channel business ecosystem.

Consumers Stock up on Hairy Crabs, Outdoor Gear and Snacks ahead of National Day

Posted on by Ella Kidron

by Ella Kidron

With this year’s Mid-Autumn Festival and Golden Week (National Day) eight-day holiday being the first major holiday post the COVID-19 outbreak, mooncakes are just one of the many items in high demand. Hairy crabs, outdoor gear and snacks are also seeing significant spikes, according to data from the JD Big Data Research Institute.

Beijing and Jiangsu province customers are loyal fans of hairy crabs, having been top two in terms of sales for two consecutive years. That said, Guangdong, Shanghai and Shandong consumers are also a force to be reckoned with. Sales of hairy crabs in Guizhou, Hainan, Zhejiang and Tibet are also growing rapidly, demonstrating the potential of online channels like JD in helping brands increase their reach customers. Customers also have a wider range of choices no matter where they sit.

Selected data from JD Big Data Research Institute report on National Day consumption trends

Selected data from JD Big Data Research Institute report on National Day consumption trends

JD data shows that the 18-35 age group continues to be a strong driver of hairy crab purchases, while the proportion of 46 and up middle-aged consumers increased 37%. While younger consumers are well served in online, many older consumers are cultivating online shopping habits, which combined with the trust and guarantee of the JD brand and the speed of JD Logistics, are key reasons why brands turn to JD.

This year JD implemented a series of measures to address consumer pain points associated with buying crabs online. First, the platform’s professional aquatic product buyers work almost year-round to guarantee the quality. Each hairy crab on JD also has a unique tracing code. Among other attractive incentives to customers of hairy crab are JD’s policy that crabs are weighed without ties to ensure fair pricing. Additionally, JD also offers two live crabs in compensation for any dead one – the highest level refund in the industry; price protection through year-end, and more.

It’s not all about crabs though. Several other staples of family reunions have seen huge increases. Making up for lost time having not been able to go home for a while, consumers are stocking up on liquor and other beverages, snack food and more. Those opting for a holiday adventure or even time in the great outdoors are also getting geared up.

Consumption in the travel category also increased 64% ahead of the holiday, while the jewelry category increased 31% and outdoor sports apparel, shoes and bags saw an increase of around 30%, all YOY (on the lunar calendar). Many people are spending the holiday getting married, and as a result wedding gifts, gold ornaments and other precious metal sales saw growth of over 50% YOY. Meanwhile, ice sports, yoga, equestrian, cycling, fishing, roller skating and other hobby-related gear have seen rapid growth. One consumer left a comment saying that they missed out on spring but are determined to not miss on fall and bought new equipment just in time to go cycling at Qinghai Lake.

 

(ella@jd.com)

JDer Lab #7 with Helena Xu: Finding Fulfillment in the Everyday

Posted on by Kelly Dawson

JD.com’s more than 280,000 employees range from warehouse workers to nation-renowned doctors, with a wide range of backgrounds and areas of expertise. In the next installment of our JDer Lab series, we speak to another JDer about what it’s really like to work for China’s largest retailer.

 

 

For Helena Xu, Senior Business Development Manager of Cross Border Payment at JD Digits, job satisfaction isn’t necessarily pinned to the big “aha!” moments. Sometimes it’s the little moments that add up to a larger sum.

“Sometimes when I’ve had a long and exhausting day, I leave the office and look at the bright JD logo with the cute JD mascot dog, lighting up the night sky… and I feel a sense of fulfillment.”

Other days it might be in the moment when she hears about an exciting new business model that has the potential to reshape the entire industry—and knows she has a team of brilliant people and the resources to make it happen.

Although there are also those banner days that really do feel like mountain peaks, of course. Xu led one project to obtain an overseas financial license in order to establish a new business model, preparing meticulously over nine months in cooperation with a dozen JD departments. “Finally we made it,” she said. “And on that day, I was so happy. It was almost like giving birth to a baby. It was a marvelous day.”

Working with brilliant people certainly helps, she said. Many of her clients are pioneers in their own industries, so when they propose business ideas or encounter problems, it’s often uncharted territory. Xu’s team at JD Digits is able to respond fast and with a high level of professionalism.

“I am really proud of this, because we feel we are actually growing with our clients and making history together,” she said. “JDers come from different countries, regions and different industries, but they are all very young. When I talk about young, it’s not about physical age, but rather the kind of spirit that’s about people willing to share and take on new challenges. That’s something I love about JD.”

In fact, with time being such a rare resource for everyone these days, she thinks often about how both her teammates and the JD environment have impacted her life.

“There is a universal question of how to gain or obtain two days of efficiency or experience within one day,” she said. “Actually I think the answer would be working at JD because here the working environment is extremely intensive, dynamic and fast-paced. So your limit is surpassed and your capability is stretched…and finally, your horizon is expanded. As a result, you will find out your time value is doubled.”

Xu sees bright things ahead for JD.

“I feel JD is an exciting and fast-moving company, so I am really looking forward to leaving our footprints all over the globe, to connect, influence, and improve the whole world,” she said.

(kellydawson@jd.com)

JDers Awarded “Most Beautiful Couriers”

Posted on by Ling Cao

by Ling Cao

JD won two awards in the recent “Most Beautiful Courier” competition organized by China Post News and overseen by the State Post Bureau. The company’s Wuhan Asia No. 1 Cargo Fleet was among 5 courier teams industry-wide to win the award; and JD’s Pinglai Liu was among 14 couriers to receive the honor.

While the award title includes “beautiful,” it means beauty and warmth of heart.

The award ceremony was held on September 29th in Beijing, in recognition of the hard work of China’s over 4 million couriers, who deliver more than 200 million parcels per day. Their work was particularly meaningful during the height of the COVID-19 outbreak earlier this year.

As one of the select individual couriers to receive the award, Liu has been working in Zhaotong City, Yunnan province for over five years. During his time as a courier he has faced many different conditions, even navigating slippery mountain roads to send villagers to distant villages.

For example, he had carried elderly people across the river during flooding. Liu said

Because of his consistent doorstep delivery service, Liu has established closed relationships with local customers. “I remembered one snowy day, there was a vast expanse of snow and ice, and people were easily skidding on the road. My customer called me immediately and asked me to send the parcel on a later day after the snow had melted. I was so moved that customers care and understand us even though they normally hope to get the parcel in time.”

Nowadays road conditions have improved in Zhaotong City, and Liu doesn’t need to navigate treacherous roads for delivery. But he still provides help to others whenever he can. For example, he had carried elderly people across the river during flooding. Liu said, “This is not just an award on the surface. I want to provide the best service to local villagers so that they can enjoy the same type of convenience as people in big cities.”

As one of the 5 teams that won the award, JD’s Wuhan Asia No. 1 Cargo Fleet includes 99 couriers and drivers, who provided non-stop transportation and delivery service during the COVID-19 outbreak in Wuhan, ensuring the livelihood of many. In total, they delivered 6,000 tons of daily necessities to local people at the height of the outbreak.

As one of the 5 teams that won the award, JD’s Wuhan Asia No. 1 Cargo Fleet includes 99 couriers and drivers

One young driver from the fleet, Mingguang Yang, said, “We didn’t have time to think otherwise. We simply thought we could reunite with our families on next Chinese New Year’s Day. For this year’s Spring Festival, we had work to do to provide support during this difficult period.”

 

(ling.cao@jd.com)

 

JD Unveils Data-Driven Marketing Methodology

Posted on by Martin Li

by Martin Li

JD has unveiled a data-driven marketing methodology to help brands increase total customers.

The methodology is named JD GOAL, with G referring to the target group; O referring to osmosis, as in tapping growth potential in the target group; A referring to advancing customer value; and L referring to increasing customer loyalty.

The methodology is aimed at helping brands conduct more efficient marketing to achieve growth, with the help of JD’s rich data and insights on its over 400 million active users.

More than ten well-known brands have partnered with JD in applying this marketing methodology, including L’Oréal, Swisse, OLAY, Casino, Head & Shoulders, SK-II, Microsoft and OPPO.

More than ten well-known brands have partnered with JD in applying this marketing methodology, including L’Oréal, Swisse, OLAY, Casino, Head & Shoulders, SK-II, Microsoft and OPPO.

Unilever employed the methodology before JD’s super brand campaign in August, categorizing its customers into different groups, including young people and families in smaller towns and middle-class people in cities. Then it applied differentiated marketing strategies. As a result, its marketing ROI targeting core customers grew by 68%.

Chinese dairy product maker Yili’s Jindian brand used the JD GOAL marketing methodology in its campaign on JD Super in August, engaging customers via channels like campus, livestream and JD’s offline stores. The number of buyers increased by 77% during the campaign.

 

(bjlihao3@jd.com)

 

 

 

JD & South Korean Ambassador to China Promote Korean Products

Posted on by Rachel Liu

by Rachel Liu

The South Korean Embassy in China held an opening ceremony for the Online Exhibition of South Korean products at the Korean Cultural Center in Beijing on September 29th. JD Worldwide participated the event as a key invitee of the embassy.

Jason Jiang, director of merchant management and operations of JD Worldwide discussed in a closed-door session with the South Korean Ambassador to China, Mr. Jang Ha-sung, on introducing more South Korean products to China.

“The economic ties between South Korea and China have been affected by COVID-19,” said Ambassador Jang. “We hope to better support South Korean enterprises to enter the Chinese market through holding this event.”

Jiang introduced JD’s plan to better promote South Korean products on JD Worldwide

In the discussion, Jiang introduced JD’s plan to better promote South Korean products on JD Worldwide, JD’s platform for imported products, including promoting the brands through exhibitions during the upcoming Singles Day (November 11th) promotion and the co-building of the South Korean National Pavilion on JD Worldwide. JD will also work more closely with organizations such as the Korean International Trade Association (KITA) and Korea Trade-Investment Promotion Agency (KOTRA) to better introduce South Korean brands.

“Chinese consumers have always been very passionate about South Korean products, especially beauty products and snacks,” said Jiang. “JD Worldwide would love to be the gateway for South Korean brands to enter the Chinese market. We provide comprehensive support for brands from store launching, operations to marketing campaigns. JD’s customer insights will help the brands get a deeper understanding of the market. We hope to help the brands achieve healthy and sustainable growth on JD Worldwide.”

JD has been ramping up efforts to introduce more South Korean brands to Chinese consumers, especially after the outbreak of COVID-19. Many brands have developed successfully on the platform. Take popular beauty brand JM Solution for example: Since it joined JD in October 2018, the brand has accumulated over 1 million customers and sold 2.5 million boxes of facial masks. Even during Q1 2020, the height of COVID-19, sales of the brand still increased 83% y-o-y. The brand also debuted its new sleep mask on JD Worldwide. Ninety days after the product launch, sales on JD accounted for 93% of the total sales of the mask on all channels.

When COVID-19 caused difficulties for some overseas brands entering the Chinese market, JD adapted by taking business development events online for South Korean brands. On May 20th, JD Worldwide worked with KITA to hold the first-of-the-year brand recruiting conference to introduce the process and policies required for launching on JD Worldwide, and the support that the platform can provide. Over 250 Korean brands joined this online event.

On July 1st, the two sides joined hands with LG International, the company under LG Group that focuses on trade, to leverage their supply chain and logistics advantages to provide more convenience for South Korean brands to develop in China through JD Worldwide.

 

(liuchang61@jd.com)

In-Depth Report: The Secret Ingredients to JD’s 135% YOY Mooncake Sales Increase

Posted on by Ella Kidron

by Ella Kidron

Like everything in 2020, trends around mooncakes ahead of China’s upcoming Mid-Autumn Festival this year, are anything but ordinary. With Mid-Autumn Festival and the eight-day Golden Week holiday (National Day) happening concurrently this year, many consumers take a much-needed trip to their hometown for a family reunion after half a year in lockdown.

As a traditional Chinese food that symbolizes family reunions, mooncakes are an essential ingredient for the Mid-Autumn Festival celebration. This is the case not just in China, but around the world for overseas Chinese and others who choose to observe the holiday. According to a recent report, over the next five years the mooncake market will register a 3.4% CAGR in terms of revenue, and the global market size is estimated to reach $2539.6 million by 2025, from $2219.6 million in 2019.

Given the unique circumstances of this year, the mooncake market in China has seen some surprises. JD Big Data Research Institute has the low down.

First, mooncake sales on JD increased 135% YOY (Note: year-on-year from here on out refers to the lunar calendar), the largest amount of growth on record. Some of the reasons for this growth include purchases of gifts for families in preparation for the journey home, the movement of more consumption of mooncakes online, increased customization of products and packaging, and increased attention to quality.

Xiaojun Wang (王晓军), general manager of dry goods at JD FMCG Omnichannel who oversees the mooncake business had a clear strategy going into the sales season. “We have continued to vigorously develop exclusive C2M mooncake products, causing the proportion of C2M mooncake sales to continue to increase.”

Providing consumers more access to mooncakes through a multi-pronged approach is also important. He explained that this year the team has also carried out numerous omnichannel activities such as offline tasting promotions, joint marketing with JD New Markets, SEVEN FRESH, Yihaodian and other self-operated channels. “We have also integrated offline stores of suppliers such as Daoxiangcun(稻香村，literally means Village of Rice Fragrance), integrated supplier resources and implemented an omnichannel operations strategy to gain a larger increase.”

Selected data from JD Big Data Research Institute report on mooncake sales trends

Selected data from JD Big Data Research Institute report on mooncake sales trends

From local to regional

One famous Shanghai mooncake brand, Xinghualou (杏花楼, which literally means Apricot Blossom Tower) discovered that one of the many benefits of starting to sell online is that they can reach consumers far outside of the Shanghai region. The brand was surprised to find that through JD, besides Shanghai, their mooncakes sell best in Chongqing, a city about 2000km west. Despite the fact that Shanghai (known for light and sometimes sweet cuisine) and Chongqing (known for lots of spice) have very different eating preferences from a regional perspective, they happen to overlap in taste preferences for mooncakes. It might be near impossible for Chongqing consumers to find Xinghualou mooncakes locally, but they can access the real thing, just as if they were in Shanghai. Previous reports also indicate that the channels consumers choose to buy mooncakes from are becoming more and more diversified. Thanks for services like JD Logistics’ broad coverage network, many brand are observing similar trends. For example, consumption of Guangdong- and Beijing-style mooncakes by consumers in Northwest China has increased 160% and 190% respectively.

From standardized to custom

It is not enough to provide nice-looking traditional mooncake boxes anymore. Now it is all about appealing to consumers’ individual needs and preferences. This is where JD’s data-driven product development approach, Consumer-to-Manufacturer (C2M) comes in.

In fact, C2M products have accounted for between 60-70% of mooncake sales on JD this year. Through Big Data, JD is able to provide manufacturers with insights about specific tendencies from regional or economic status standpoint, all of which can help guide them as to packaging, price range, flavor and more.

As a result of making products that are suitable for JD consumers, sales have improved, as has customer satisfaction. Sales of mooncakes on JD have surged in the last few months. From July 21st to September 16th, sales of the Palace Museum (Forbidden City) themed mooncake gift box developed through JD’s Consumer-to-Manufacturer (C2M) initiative increased 143% YOY, and became the most popular mooncake gift box on JD. A custom mooncake box developed with Starbucks also saw sales increase among young customers. According to JD’s research, only 10% of consumers surveyed are aware of the concept of C2M. But 92% of consumers surveyed are satisfied with C2M products, whether or not they know how the product is designed.

To develop new products, JD mooncake buyers will spend significant time analyzing customer profiles and market trends. And, once a product is ready to go, they will do taste tests to ensure quality. One JD mooncake buyer even gained 20 pounds as a result of taste testing mooncakes in advance of sales season, all in the name of guaranteeing an unmatched customer experience.

JD’s C2M mooncake box in partnership with the Forbidden City

JD’s C2M mooncake box in partnership with the Forbidden City

Early this year, JD Super formed a mooncake alliance with famous Beijing snack brand, Daoxiangcun , Guangzhou Restaurant (广州酒家), traditional Peking duck chain Quanjude (全聚德) and other brands. Under the alliance, members have access to five major types of resources provided by JD, such as customization through C2M. Furthermore, on Sept. 28th JD Super kicked off its livestream for mooncakes in which executives of major mooncake brands, as well as industry experts discuss the Mid-Autumn Festival traditional and mooncake production process. On that day JD Live, the company’s livestream studio, attracted over one million viewers.

JD and brand partners launch alliance for mooncake sales

JD and brand partners launch alliance for mooncake sales

From a ‘good bargain’ to ‘good quality’

COVID-19 has brought significant unprecedented challenges to mooncake brands this year. According to industry experts, the main sales period for mooncakes kicked off late and is shorter than previous years. As a result, many mooncake makers were not optimistic about sales performance this year.

However, consumption demonstrates a positive upward trend. Not only has the number of consumers increased by a lot, but also a considerable number of new consumers come from lower-tier markets. Moreover, as consumers across the board pursue quality much more than last year, major brands with top-level mooncake boxes have seen good sales.

Owing to these factors the average price of mooncake products on JD has increased by more than 35% compared with last year. In addition to highly developed areas such as Beijing and Guangdong, the main driving force of the price increase actually comes from Northwest, Southwest and Central China. This sends a clear signal to the whole industry that consumers are moving from emphasizing price and convenience to focus on brand and value, including taste, safety, nutrition (a hot topic in the wake of COVID) and more.

Who is buying these mooncakes anyway?

By analyzing mooncake growth across tier 1-6 cities based on unit price, brand concentration, high education and age, JD Big Data Research Institute discovered that 70% of JD’s mooncake consumers have undergraduate or higher degrees. Sixty-five percent of consumers were born after 1990. In addition, consumption from the “small town middle class” is on the rise. These consumer groups are pushing the overall market from performance-to-price ratio to pursuit of brand and aesthetic.

One type of mooncakes, five kernel or mixed nuts (五仁), which have been shunned in recent years, surprisingly occupy first place in sales this year (although its overall proportion has declined). Five kernel mooncakes are traditionally from Yunnan province. The very first five kernel mooncake was born there in 1939, while the baking style is in fact Cantonese. The five kernels are apricot seeds, peach seeds, peanuts, sesame and melon seeds (or sunflower seeds).

One of the causes for concern around five kernel mooncakes is that the production process is quite complicated, and in the past some companies use peanut kernels to replace other nuts in an attempt to cut costs. The fact that these mooncakes perform well on JD, especially those from top brands, is testament to the extra mile JD and its buyers go to ensure that only the best of the market is made available.

What’s next?

With this year’s mooncake season nearing its end, Wang and the team are thinking about what’s next. “Overall, this year’s mooncake market presents the following characteristics – health and nutrition, tasty and fashionable, varied style and abundant flavors. Overall quality will see improvements.” He sees the proportion of online sales continue to expand. “Online will become a leader in development of the industry.” While the overall market may remain basically flat or even experience a slight decline, high quality brands and enterprises will maintain a stable growth trend.

 

(ella@jd.com)

JD Guarantees Authenticity of Yangcheng Lake Hairy Crabs

Posted on by Rachel Liu

by Rachel Liu

As autumn arrives, many people across China are craving a delicious seasonal treat: Hairy crabs. Often enjoyed during Mid-Autumn Festival with family, the delicacy is much beloved.

In China, hairy crabs from Yangcheng Lake, Jiangsu province, have a special reputation for premium taste, but customers can’t always be certain that the crabs they’ve purchased are in fact harvested from this lake.

Data shows that in 2017, the actual market value of crabs harvested from Yangcheng Lake was RMB 300 million yuan, but the sales of hairy crab featuring the name of “Yangcheng Lake” was up to RMB 30 billion yuan that year. That indicates that about 99% of hairy crabs sold as having been harvested from the lake were fake, intentionally mislabeled to dupe customers.

JD is determined to ensure the authenticity of hairy crabs sold through its e-commerce platform. Its professional aquatic product buyers work almost year-round to guarantee that customers can have peace of mind when they purchase the crabs from JD.

Though the hairy crab is a seasonal food during autumn, one of JD’s professional  buyers Jie noted that he and his colleagues begin visiting the farmers at the beginning of every year in preparation for the autumn sales. “We pick out the 30 best hairy crab suppliers from over 3000 ones to work with JD ,” said Jie.

To ensure 100% authenticity for Yangcheng Lake hairy crabs, JD adheres to the strictest standard in the industry, requiring merchants to submit six certificates before they can sell the crabs on JD under the name “Yangcheng Lake hairy crab.”

“If you don’t have all six certificates, your product page cannot have the words ‘Yangcheng Lake’, because we want to ensure authenticity during every process before the product is launched on JD,” said Jie.

What’s more, each hairy crab sold on JD has a unique trace code. Customers can scan the QR code to see the comprehensive delivery process of the hairy crab from fishing, packaging and through delivery.

JD buyers also have strict processes for preventing the crabs from dying during delivery: “First of all, we would carefully select the products with best quality, and JD logistics will use cold-chain throughout the whole delivery process,” Jie said. “In this way, the percentage of dead crabs can be lowered to 4%.”

JD buyers also conduct random inspections of merchant facilities. If they find a problem, the merchants will be fined for all of their orders in the prior seven days. Thanks to these strict rules, customers enjoy a higher quality experience.

As the Mid-Autumn Festival and National Day holiday approach, JD data found that sales of hairy crab have increased over 300% YOY in many cities. Sales of hairy crab from Beijing customers have ranked No.1 in the past two years, followed by Jiangsu province.

 

(liuchang61@jd.com)