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JD Cloud Aims to Accelerate Industrial AI

by Doris Liu

“Only by integrating AI into the whole process of the industrial chain in a large-scale and systematic way to create industrial AI can a more leading industrial competitiveness be formed,” said Cao Peng, Senior Vice President of JD.com and Chairman of JD.com’s Technology Committee.

Cao made the remarks at the World Artificial Intelligence Conference (WAIC) 2022 in Shanghai, which was held September 1-3. He emphasized that JD Cloud’s Industrial AI capability is speeding up digital transformation of the upstream and downstream industries through accelerating their co-existence and opening-up by the integration of technology with the real economy.

JD’s AI technology was born within the company’s own businesses, with its industrial AI having been nurtured in the digitally intelligent supply chain. In the complex business scenarios of retail, logistics, services and more, JD.com has extensively applied AI to achieve an overall automation upgrade, cost reduction, efficiency and experience optimization.

For instance, as AI capability is applied along the supply chain, JD Retail is able to make precise predictions, make decisions intelligently and collaborate effectively among its 10 million self-operated SKUs under the scenario of uncertain supply and demand.

Furthermore, the procurement automation rate has reached 85 percent and the inventory turnover has been reduced to about 30 days, boosting the operation efficiency of supply chain to a world leading level.

In terms of JD Logistics, more than 400 autonomous delivery vehicles in over 25 cities across China have become a strong complement to JD’s last mile delivery. The automated ground vehicle (AGV) system called Dilang (Ground Wolf), which was developed in house, perfectly collaborates with employees in JD’s Asia No. 1 intelligent industrial parks, improving sorting efficiency by over three times.

As to services, the AI-generated marketing text function of the Yanxi (言犀) AI application platform currently covers more than 3,000 categories and subcategories, with a manual pass rate of 95 percent. The intelligent customer service system based on Yanxi’s AI capability can automatically answer 90 percent of inquiries.

The future industrial competition will not be based in one single business, but will be about overall industrial efficiency. JD Cloud also proposed the concept of the Industrial Metaverse this year, aiming to realize a full-chain integration of digital intelligence in the future.

 JD.com, a supply chain-based technology and service provider, has been devoted to the knitting together and fusion of three networks, including a transaction network that covers around-the-clock omni-channel shopping scenarios, a warehousing and distribution network that serves nationwide and extends globally, and a service network that is enabled by intelligent technologies. It will join hands with partners across a variety of industries to bolster the development of the real economy.

 

(liujun215@jd.com)

JD Releases 2022 Giftbox Consumption Trend Report

by Mengyang He

Ahead of China’s Mid-Autumn Festival, which falls on September 10 this year, JD.com recently released the “2022 Giftbox Consumption Trend Report,” revealing the overall consumption trend of giftboxes over the past three years from 2019 to 2021.

As JD.com’s omni-channel supermarket, JD Super has offered tens of thousands of giftboxes, ranging from fresh food, mother and baby products, alcoholic beverages, and more. According to the report, food and beverage giftboxes account for 80 percent, and the proportional growth rate of alcohol-related giftboxes is faster than any other category, topping 50 percent YOY.

Based on the report, the food and beverage category triumphs, reaching the No. 1 in transaction volume, followed by beauty and skincare, alcoholic beverages, fresh food, and home appliances.

Alcoholic beverages are the go-to giftboxes during China’s festival seasons, with the sales of baijiu giftboxes accounting for 75 percent of all alcohol-related giftboxes during last year’s Mid-Autumn Festival shopping season (August 26 to September 23, 2021).

During this year’s Mid-Autumn Festival, JD will provide over 30,000 varieties of baijiu giftboxes from 1,500 different brands, including those from the iconic baijiu manufacturers such as Moutai from Guizhou province and Wuliangye from Sichuan province.

The report also shows that female consumers purchased 2.6 giftboxes on average in 2021, marking 110 percent higher than their male counterparts.

Another observation drawn from the report is that most giftboxes were purchased by consumers aged from 36 to 45, with an average of 2.7 giftboxes each, and the most expensive ones were bought by consumers above 56 years old, with an average price of RMB 145 yuan.

 

(hemengyang5@jd.com)

BOBBI BROWN Officially Joins JD.com

by Xinyi Guan and Doris Liu

BOBBI BROWN, a premium beauty brand under Estee Lauder Group, kicked off business on JD.com recently, with an opening celebration on August 24 on JD’s Little Magic Cube, a marketing channel to promote new products.

During the opening period, the J Shop, JD’s fashion and lifestyle business, joined hands with BOBBI BROWN to bring high-value offers and provide consumers with 12 categories of beauty products covering base makeup, makeup remover, eye and lip products and more.

BOBBI BROWN is famous all over the world for its clean, fresh as well as fashionable nude makeup concept, and is deeply loved and sought after by Hollywood stars. In 2005, BOBBI BROWN brought the revolutionary trend of advocating the beauty of natural truth and diverse personalities into China, which has attracted and been recognized by female consumers in China.

“The presence of BOBBI BROWN has enriched the matrix of well-known cosmetic brands on JD Beauty,” said Terry Wang, General Manager of JD Beauty. “We hope to create new growth value for brand partners through JD’s authenticity guarantee, efficient logistics, full-chain service and immersive omni-channel experience, so that the two sides can work together to bring consumers a more diverse and high-end beauty consumption experience.”

The official arrival of BOBBI BROWN is the latest cooperation between JD.com and Estee Lauder Group. Previously, many brands of the Group have successfully launched on JD Beauty and achieved quality growth through various promotions.

With the unique mode of JD’s self-operation with brands’ official authorization, full-chain operation capability, and continuously upgraded personalized and exclusive services, JD Beauty has become a gathering place for consumers’ trusted beauty products.

At the same time, over 30 million JD PLUS members representing top-quality consumption power have also expanded new incremental space for upscale beauty brands such as BOBBI BROWN.

 

(guanxinyi3@jd.comliujun215@jd.com)

International Journalists Visit Headquarters of JD.com And Asia No. 1 in Beijing

by Mengyang He

In collaboration with the All-China Journalists Association, JD.com invited nearly 40 journalists from 24 international media outlets on a media tour on August 30, including those from Austria, Brazil, Germany, India, Japan, Kazakhstan, Pakistan, South Korea, Spain, Vietnam, and more. The visit showcased JD.com’s headquarters and Asia No. 1 Intelligent Logistics Park in Beijing, marking most journalists’ first encounter with JD.com. “The media tour was very informative and interesting to see the operations in real time,” said a journalist from Brazil. “We were able to have a close look at the complexity of JD.com’s supply chain system.”

Hui Liu, Director of Consumption and Industry Development Research Institute of JD.com, and Ping Zhao, Vice President of Academy of China Council for the Promotion of International Trade, were invited to share their insights into the development of China’s supply chain and the integration of digital technology and the real economy.

The visit at the headquarters

“The value of JD.com’s supply chain no longer resides in commercial or industrial aspects, as it has evolved into the societal level, where it empowers partners and the society especially in critical times through its responsible supply chain,” said Hui Liu.

Ping Zhao noted, “The synergy of partners from upstream and downstream has become crucial for the entire industry, and an integrated supply chain would come in handy for enterprises, especially SMEs, to lower costs and enhance efficiency.”

The visit at Asia No. 1 Intelligent Logistics Park in Beijing

As of June 30, 2022, JD.com has a total of 32 Asia No. 1 Logistics Parks in operation across China, each equipped with an independently built shuttle system, AGV (automated ground vehicles), and high-speed sorting system, which together represent the cutting-edge technology JD possesses in the process of fulfillment.

As of now, Die Presse from Austria and The RedaktionsNetzwerk Deutschland (RND) from Germany among others have published reports on the visit, showing some highlights during the media tour.

 

(hemengyang5@jd.com)

World Renowned Japanese Bookstore Goes Online at JD.com 

by Doris Liu

The J Shop, JD’s fashion and lifestyle business, welcomed world-renowned bookstore chain from Japan, Tsutaya, on August 26, showcasing a roster of books, tableware, stationery, accessories and more to add lifestyle aesthetics to Chinese consumers.

Tsutaya, whose Daikanyama T-Site in Tokyo is deemed one of “The 20 Most Beautiful Bookstores in the World,” provides an experience space that integrates reading, shopping for books and creative products, dining and enjoying coffee. With the aim of proposing a new lifestyle, Tsutaya has opened physical stores in Shanghai, Xi’an and Tianjin in China.

The collaboration with the J Shop helps enhance Tsutaya’s omni-channel retailing. Besides the online store, JD Logistics also guarantees smooth services for Tsutaya’s consumers. During the opening, Tsutaya offers options of “ordering online and picking up in store,” as well as “ordering in store with delivery to your door step” in some areas to explore the click-and-mortar model.

As consumers continue to expect more from shopping experiences and scenarios, the J Shop has introduced many well-known collection stores such as MUJI and NITORI to enrich the business layout and better serve consumers who are looking for lifestyle and quality consumption. JD.com and Tsutaya are expected to work together in the fields of product selection, marketing, services and omni-channel integration to lead lifestyle consumption with a focus on aesthetics.

 

(liujun215@jd.com)

JD Airlines Receives Air Carrier Certificate from CAAC

by Yuchuan Wang

JD Airlines (Jiangsu Jingdong Cargo Airlines), an affiliate to JD Logistics, has gotten its wings—receiving an air carrier certificate from the Civil Aviation Administration of China (CAAC) on August 31.

Currently employing more than a hundred technical personnel, JD Airlines leverages Nantong Xingdong International Airport as its principal base. On top of meeting the needs of JD Logistics’ integrated supply chain service’s clients, JD Airlines is also opening up its capacity to the market. It now serves industries including high-end consumption, high-end manufacturing, medical, fresh produce and more. A single load capacity can transport as much as 23 tons.

JD Airlines will first develop its domestic air cargo around China’s three major economic circles of the Yangtze River Delta, the Bohai Sea and the Pearl River Delta, with a focus on the cities of Nantong, Beijing, Shenzhen and Wuxi. It will soon extend its reach to cities in the middle reaches of the Yangtze River, then Chengdu and Chongqing, and will gradually cover nationwide major cities and Southeast Asia, Japan and Korea and later in Europe, Middle East and North America by the end of 2025.

JD Airlines aims to improve the industry standards for air express service, and has already achieved a coverage rate of more than 95 percent for its air express delivery service among multiple cities in China.

JD Logistics began developing its air cargo business with airline companies in 2017. The establishment of JD Airlines will facilitate JD Logistics building a more flexible, stable and controllable supply chain ability.

 

(yuchuan.wang@jd.com)

Another Luxury Swiss Watch Brand Launches Flagship Store on JD.com

by Xinyi Guan and Doris Liu

The Hamilton Watch Official Flagship Store celebrated its grand opening on JD.com on August 30, bringing together a number of its classic watch collection and personalized services such as customized carving service on watch straps to provide a better shopping experience for consumers.

Notably, a triangular shaped timepiece with a futuristic legacy of the new Ventura XXL Skeleton Auto made its first launch in the store to celebrate the 130th anniversary of Hamilton.

Hamilton was founded in 1892 in Lancaster, Pennsylvania, USA. Hamilton watches combine the American spirit with the unrivalled precision of the latest Swiss movements and technologies. Known for its innovative design, Hamilton has a strong foothold in Hollywood, with products appearing in more than 500 films. The brand also boasts a strong aviation heritage. Hamilton is a member of the Swatch Group, the largest watch manufacturer and distributor in the world.

Prior to opening its own official flagship store on JD, Hamilton had already begun the watch business on JD.com in proprietary mode in 2018 November. The two sides have carried out in-depth cooperation in various aspects such as sales and marketing, with joint launches of several limited editions to mark the movies TENET, The Matrix Resurrections, the ubisoft game Far Cry® 6, and more.

As of now, JD’s annual active user accounts are over 580 million, with JD PLUS paid membership enrollment surpassing 30 million. As both the customer pool and brand matrix on JD.com have expanded rapidly with high quality, both consumers and brands can benefit each other in a healthy and positive ecosystem.

 

(guanxinyi3@jd.com; liujun215@jd.com)

JD Accompany Plan Supports Better Growth for Baby Brands  

by Doris Liu

JD Accompany Plan, JD.com’s parenting ecosystem integrating shopping with services and education, released the 2022 Maternal, Baby and Parenting Industry Refined User Operations Insight Report recently to interpret refined user operation by baby’s month age as well as revealing in-depth insights, operation practices and trends of the industry.

Consumers of the maternity and baby industry show characteristics of fast iteration and short consumption life cycle, forcing brands to review and strengthen their ability in refined operation based on a deeper understanding of customers.

 According to the report, 31.2 percent of parents of babies under 1 year old believe that since the children are too young to clearly express their needs, they can only guess the product suitability by trying different products for the babies. In addition, 38.2 percent of parents of children between 7 to 12 years old think that their children have personal preferences and self-awareness. The inconsistency between shoppers and actual users makes it hard to match needs, and the fast growth of babies also sets a challenge for families to match products in time. The report says 26.4 percent of parents of babies aged 4-6 months show the most shopping anxiety as they almost have no idea what to buy.

Refined user operation by baby’s month age is urgently needed. In order to upgrade the solutions accordingly, JD Accompany Plan launched specific parenting columns for 0-6 months, 7-12 months, 1-3 years old, 3-6 years old and above to segment parents’ needs in knowledge, products and services. In addition, the plan optimizes the shopping efficiency through recommending more relevant products to different groups of consumers.

The plan’s registered members can also receive special discounts, samples, health services and more to help parents reduce the cost of raising children, and the 30 million members under the plan have achieved an active participation of more than 88 percent with average revenue per user (ARPU) three times higher than non-members.

Benefiting from the plan, brands can adjust traffic in a dynamic manner and receive suggestions from JD.com for sustainable growth and refined operation. For example, a baby skin care brand collaborated with JD Accompany Plan for its new product launch. As a result, the new customers brought in by the plan accounted for 90 percent of the brand’s total newly joined customers, with a conversion rate of 25 percent and a transaction volume of RMB 502,000 yuan on a monthly basis.

Launched in 2016, JD Accompany Plan has accumulated extensive experience in precise marketing and user operation, with a belief of “growing up with consumers and creating value for brands.” The new approach of managing consumers based on each baby’s month age will help JD explore the main market of family consumption in the long run.

 

(liujun215@jd.com)