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JD.com on how AI is Driving the Future of Ecommerce

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At the Rise Conference in Hong Kong in July, Eric Zhao, Vice President of JD.com, outlined how emerging technologies such as AI and automation are creating an entirely new shopping experience for consumers in China.

Zhao, who leads JD.com’s big data and search initiatives, told an audience of more than 200 tech and internet industry experts from around the world that JD.com is tapping into a vast trove of potential insights on consumer behavior. It now has more than 236 million active customers and processed over 700 million orders during its June sales event.

That means the team processes up to 15 petabytes of new information every single day – and they are now using these insights to generate unique new offerings for consumers and brands.

For example, every consumer who shops on JD sees a unique homepage showing an automatically curated selection of products tailored to their taste. Building on this, JD.com’s predictive logistics initiative can produce sophisticated portraits of consumer shopping habits down to the level of individual communities and local neighborhoods. This allows the team to anticipate demand before consumers even place their order and dispatch goods to local distribution centres in advance so that delivery can be made to consumers within minutes after they place their orders.

Zhao noted that when the iPhone 7 went on sale on JD.com, using predictive logistics the company was able to deliver the first phone to a consumer’s doorstep just 10 minutes after the order was placed – making ecommerce even faster than buying from a traditional retail store.

Brands are also benefiting from these insights – JD.com’s dynamic pricing initiative is using AI algorithms to optimize the pricing for more than 4 million SKUs stored in JD warehouse in real time, helping to maximize sales and profits– and significantly increasing the efficiency of the pricing process. Whereas in the past, the job would take up to 5,000 people – this can now be done by a small team of data scientists using sophisticated algorithms.

In the next phase of JD.com’s growth, JD.com aims to make more of these technologies available to more companies – not just those who sell their wares on JD.com.

The company is also using its AI and big data insights to develop innovative applications for automation technology. JD.com was the first company in the world to use drones to make commercial deliveries, and its fixed route drone delivery program for rural areas is rapidly expanding to more remote areas of China.  It is also now planning heavy-load drones capable of carrying up to a ton.

JD Announces Launch of Reckitt Benckiser’s Online Flagship Store

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As China’s largest retailer, JD.com is committed to offering consumers the most diverse selection of quality products from overseas. JD is delighted to announce that UK-based health, hygiene and home products leader Reckitt Benckiser (RB) has opened an online flagship store on the JD Worldwide, JD.com’s cross-border e-commerce platform.

Many of RB’s iconic brands are already big hits on JD.com, including Durex; anti-bacterial brand Dettol; leading dishwasher detergent brand Finish; French hair removal product brand Veet; foot care brand Dr. Scholl’s; and leading nutritional supplement brand Schiff.

Dr. Scholl’s; and leading nutritional supplement brand Schiff leading nutritional supplement brand Schiff

The launch of RB’s flagship store comes at an opportune time as women are increasingly driving growth in JD, especially in categories such as healthcare and hygiene. The outstanding performance of hygiene brands such as Veet – whose sales on JD grew four times from 2013 to 2016 – reflects the important trend. In addition, overall sales of healthcare products during JD.com’s most recent June 18 anniversary sale increased by 120%, compared with the same period of 2016.

The flagship store will feature some of the most trusted health and hygiene brands from the US, including Movefree joint supplements; Megared cardiovascular supplements; and Airborne immune supplements – all of which are leading brands in their respective categories – as well as names previously unavailable in China, such as Aerogard, Australia’s #1 personal insect repellent brand.

“In recent years, Chinese consumers – especially women – have shown more and more appetite for leading foreign healthcare and hygiene brands, greatly expanding the opportunities for cross-border commerce,”  said Kaisi Li, Deputy General Manager of JD Worldwide. “The RB family of brands is already highly sought after in China, and with the launch of its online flagship store on JD Worldwide, consumers will be able to purchase a wider selection of RB products with the convenience and peace of mind that they have come to expect from JD.”

“We are thrilled to deepen our cooperation with JD.com, China’s largest online retailer,” said Spin Liu, Director of RB Cross-border eCommerce. “RB’s wide range of top brands and JD’s leading e-commerce platform are a powerful combination in this fast growing market. We look forward to working closely with JD to further expanding RB’s relationship with China’s consumers.”

JD.com is already one of the largest retailers of RB’s Dettol and Durex brands in China. During JD’s 2017 “6.18” anniversary sales event last month, Durex brand alone saw 40 million items sold on JD.com with transaction volume increasing 125% YoY.

Canadian Brands Look to JD.com and Cash in on Chinese Consumer Boom

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Richard Liu welcomes delegation led by His Excellency the Right Honourable David Johnston, Governor General of Canada to learn more about the growing opportunity 

Fresh, live lobsters plucked from Canada’s cool, clean waters are prized throughout the world for their quality and taste.  Now, thanks to a new era of cooperation between Canada’s government and industry and JD.com, live lobsters can be delivered to the doorsteps of JD’s customers in China in as little as 48 hours from Canada.

Lobsters are part of a new, specially curated selection of Canada’s best products that will be available over time on JD.  At a meeting today at JD’s Beijing Headquarters to mark the cooperation, JD’s founder and CEO Richard Liu told David Johnston, governor general of Canada; John McCallum, Canadian ambassador to China; and other dignitaries from Canada’s government and private sector that Chinese consumers rightly associate Canada’s products with purity, quality and freshness.

Lobsters are part of a new, specially curated selection of Canada’s best products that will be available over time on JD. JD knows how to work with brands and producers and help them tap into the enormous potential of the Chinese market.”

“Chinese consumers truly appreciate Canadian brands and the freshness of their produce, and that means huge opportunities for Canada,” Mr. Liu told the Canadian delegation. “We sold an amazing 4.5 million Canadian shrimp during our recent anniversary sale, so the possibilities are immense. JD knows how to work with brands and producers and help them tap into the enormous potential of the Chinese market.”

As part of the event, Mr. Johnston witnessed an MOU signing between JD and Destination Canada. The two sides will work to promote Chinese tourism to Canada. JD and Air Canada announced that the two sides will offer discounted flights to fliers from Beijing and Shanghai to cities throughout Canada and other parts of the Americas.

Overall interest in Canadian products has grown in popularity among Chinese consumers and on JD.com in recent years. During JD’s 2017 anniversary sale in June, the 4.5 million shrimp sold made the product the number one imported fresh food during the event. Overall during the event, sales of Canadian fresh products increased 480% compared to a year earlier and for the full year of 2016, Canadian fresh product sales increased 400%.

Unthinkable only a few years ago, satisfying China’s hunger for fresh food and other imported products is possible today because JD’s advanced logistics capabilities now covers some 98% of China’s population and because its advanced cold-chain systems ensure items remain fresh from the point of origin to the customer’s home.

On Friday JD sold 140,000 live Canadian lobsters within 24 hours as it launched a special Canadian promotion today, significantly exceeding expectations. The impact on Canadian suppliers was huge.

“We sold half of our entire inventory of 1 to 1.25 lb lobsters, far more than what we anticipated, ” said Nathan Song, director at New Brunswick-based Bay Shore Lobster Ltd., which offered nine categories of lobsters, between 1-9 lbs, for the JD.com promotion. “It can be hard for people to understand just how much demand there is in China for fresh imported products. For some, it’s unfathomable. We originally expected our inventory to last through September, but we’ll sell out much sooner than that now. The industry will surely see prices go up.”

Beyond fresh products, JD.com customers are increasingly welcoming of imported apparel brands, particularly in the activewear and outdoor categories where Canadian brands excel. On June 18th, the culmination of JD’s anniversary sale, the company sold more than a million sports apparel and footwear items.

The event at the JD Beijing Headquarters marks a step in a larger effort by the company to help more Canadian brands seize on the tremendous potential of the Chinese consumer market. Later this month,  JD will be hosting business seminars   for Canadian brands and companies interested in reaching JD’s more than 236 million active customers.  Events will take place in Toronto, Montreal and Vancouver the last week of July. Brands interested in attending should contact: Worldwide@JD.com

In Japan Push, JD.com Expands Logistics Partnership with Yamato, Launches Flagship Stores for Three Leading Japanese Brands

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• Yamato and JD to work on initiatives to simplify cross-border logistics for Japanese brands selling to Chinese consumers

• Leading Japanese brands Akachan Honpo, Mikihouse and Omron announce new flagship stores on JD Worldwide

Tokyo, July 12, 2017 – E-commerce giant JD.com, Inc. (NASDAQ:JD), China’s largest retailer, announced the signing of a strategic MOU with Japan’s Yamato Group, one of Asia’s leading logistics companies.

The partnership will focus on enhancing operational efficiency, with a particular emphasis on building out a cold chain logistics network in China. Leveraging Yamato’s leading logistics technologies and extensive international logistics network, the partnership will makes it even easier for international brands to reach Chinese consumers. In addition, Yamato will take advantage of JD’s unparalleled nationwide logistics network in China to enhance its own last-mile delivery capability. The two parties will also cooperate on R&D programs in the areas of artificial intelligence and big data technologies.

The new MOU builds on the existing partnership between the two companies. In early 2017, JD.com formed a strategic partnership with Yamato to empower Japanese companies to access the China market quickly and easily. The two companies invested in e-commerce services provider Frank International, which offers a streamlined process for Japanese vendors to sell products directly to online consumers in China.

“We have seen a huge increase in demand from our consumers for Japanese products across every category because Chinese shoppers appreciate their outstanding reputation for quality,” said Richard Liu, JD.com’s Chairman and CEO. “This strengthened partnership with Yamato Group will give JD’s consumers even greater access to the highest quality Japanese and global brands. By expanding our cooperation into areas like cold chain logistics, and leveraging Yamato’s reach into other international markets beyond Japan, we are making it even easier for our international brand partners to sell to China and tap into JD’s base of 236.5 million active customers.”

“Our partnership with JD.com is already creating significant value for our partners in Japan, and this expansion is a show of confidence in JD’s capability,” said Kenji Minaki, Senior Managing Executive Officer, Yamato Holdings Co.,Ltd. “We look forward to working with JD on these new initiatives.”

JD.com today also announced that leading Japanese brands Akachan Honpo, Mikihouse, and Omron are launching flagship stores on JD.com’s cross-border e-commerce platform, JD Worldwide.

As part of the broad push in Japan, JD held a business conference at the Conrad Hotel in Tokyo, which was attended by business leaders representing nearly 100 leading Japanese brands across several categories. Speaking at today’s conference, Mr. Liu highlighted to attendees that demand from Chinese consumers for authentic, high-quality Japanese products is growing rapidly. According to Mr. Liu, JD’s data shows that:

• In 2016, total sales of Japanese products sold on JD’s cross-border e-commerce platform grew by triple digits.

• During JD’s recent June 18 anniversary sales, one of the company’s largest sales periods of the year, sales of Japanese imports grew dramatically compared to the 2016 sales event. Year-on-year, sales of imported Kose products were 11 times higher, Rakuten products were 10 times higher, and Shiseido products were 21 times higher.

• During this year’s June 18 event, female consumers significantly outspent male consumers for the first time in key categories like cosmetics, food and beverage, baby & maternal, and travel – unlocking a significant new opportunity for Japanese retailers targeting these categories.

Leading Japanese brands Akachan Honpo, Mikihouse and Omron announce new flagship stores on JD Worldwide

JD is already the e-commerce partner of choice in China for many of Japan’s best-known brands across popular product categories including beauty, maternal and children’s products, consumer electronics, and home and kitchenware. The company is already working with prominent Japanese companies such as KAO Group, Kose Cosmeport, Panasonic, Rakuten, TOTO and Unicharm Corporation.

Consumers Demand Supply Chain Visibility, and We Should Give it to Them

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The following is a post by Yongli Yu, president of supply chain research and development for JD.com, China’s largest retailer.

Where does my stuff come from? Consumers around the world increasingly demand to know the answer to this question, and are surprised to discover that many companies don’t have the full answer.

Where were the ingredients sourced? Who were they purchased from? Were they properly, and ethically, produced and transported? And the most important question: is it safe for me to consume this product?

In China, we have these concerns to the extreme. Product safety scandals were once so common it was hard to tell which were real and which were made up. In 2008, parents were horrified to learn that most milk distributed in China was tainted with melamine. So as Chinese consumers gained spending power, they have responded to this environment by looking for quality, trusted brand names and imported products.

The truth is, even trusted brands and imported products can offer more visibility into their supply chains to give consumers more of the peace of mind they want. As China’s largest retailer, online or offline, we believe we can use technology to achieve this, which is why we’ve been testing a block chain program with some of our vendors, the JD Tracing and Anti-Counterfeit Alliance. Joining the alliance are 27 brands, including Mars, Nestle, Evian and Huggies, who have worked with JD.com to enable more traceability for their products.

As an example of how it works, we partnered with Inner Mongolia-based beef and dairy company Kerchin to create a list of criteria we wanted to trace for all beef sold on JD.com. We generated serial numbers for every cow slaughtered at the very beginning of this supply chain, which enabled us to track where any cow was raised, all vital information, and how resulting beef was handled, checked for quality, and transported, up to the point it reaches customers.

Customers who want assurances that they are buying meat that has gone through this quality control process will see an emblem on the product page on JD.com, and can rest assured knowing there is total transparency in the origin of that product. If they choose, they can see all the information for themselves.

We imagine doing this for many products, far beyond food. Products like wine, baby care, or even luxury and fashion products, for which Chinese consumers are constantly concerned about authenticity. Our 236.5 million customers trust us for quality, which is rare in China. We want to take that to the next level.

Of course, this will be difficult to achieve because supply chains are complex. They span multiple countries across multiple continents and involve many vendors and logistics providers. It can be hard to change a well-honed process. But consumers expect better, and winning their confidence will be well worth the investment. This is the future in China and beyond.

Please contact us if you want to know more about the JD Tracing and Anti-Counterfeit Alliance: http://zhuisu.jd.com. Let’s make this vision a reality.

JD.com and China Eastern Airlines Announce Strategic Partnership

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Alliance to drive synergies through cooperation across key areas including logistics, marketing and cloud services

China Eastern Airlines and JD.com announced a groundbreaking partnership bringing together the top players in China’s e-commerce and travel industries. Featuring a multi-faceted cooperation across areas including logistics, branding, cross-membership promotions and cloud services, the agreement will provide customers of both companies with a wider range of convenient services at highly competitive prices.

“We’re very proud to announce this alliance with China Eastern Airlines, one of China’s most respected airlines,” said Zhenhui Wang, CEO of JD Logistics. “JD.com will benefit from preferential access to China Eastern’s extensive logistics network, allowing us to bring more top products from around the world to our users, faster and at lower cost. We also look forward to helping to enhance China Eastern’s business through cooperation in areas such as cross-marketing, e-commerce and cloud services.”

“As China’s trusted e-commerce leader, JD.com has the right combination of advanced technologies, data resources and online marketing expertise to help take China Eastern’s customer outreach to the next level,” said Zhao Xu, chief accountant of China Eastern Airlines. “Working together, I am confident that we will drive one-of-a-kind synergies across logistics, marketing, branding, and technology that will enhance the lives of our customers throughout China.”

A powerful logistics combination

Both JD and China Eastern Airlines are leaders in the world of logistics – with JD delivering millions of packages a day throughout China, and China Eastern Airlines with an airline network covering 177 countries and districts, and 1,062 destinations. Working together, the companies will combine their strengths to create a one-of-a-kind, global logistics platform on the ground and in the air.

JD Logistics, JD’s new business group, will provide last-mile delivery service for China Eastern membership cards, itineraries and invoices, and China Eastern will provide JD with the most competitive pricing options across its logistics services, including priority cargo pick up, transportation and delivery. Both companies will work together to improve delivery efficiencies by sharing physical resources, integrating company networks, streamlining security channels and establishing a shared air cargo operations network for both domestic and international routes.

The partnership currently covers 10 of China Eastern’s outbound logistics routes, and is set to increase to 20 by the end of 2017.

Engaging consumers through powerful cross-branding 

Already two of China’s most well-known and trusted brands, China Eastern Airlines and JD will embark on joint branding campaigns to bring their message to even more consumers.

China Eastern Airlines recently opened official flagship store on the JD platform is already creating greater visibility for the airline’s wide range of product offerings, including domestic and international tickets. As a core partner for China Eastern Airlines’ air ticket business, JD.com customers will have access to optimized China Eastern air tickets, including domestic and international routes, as well as exciting seasonal promotions and specially tailored products for groups such as students and senior citizens.

The partnership will also extend to cloud services and cross-membership promotions. China Eastern and JD will combine their big data resources to provide customers with improved services and new incentives to promote cross-platform loyalty, leveraging JD’s precision marketing capabilities to create an integrated platform covering tickets and other related products.

JD.com Sees Record Volumes During June 18 Anniversary Sale

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JD’s 2017 “6.18” anniversary sales event set a new record, recording $17.6B in transaction volume* for the first 18 days of the sale (June 1-18). Transaction volume increased well over 50% compared to the first 18 days of last year’s 6.18 event.

JD’s June 18 anniversary sale has become a massive mid-year consumer event in China. As its recognition in the market has grown, it has become a major event that drives new users to our site and helps participating brands build name recognition and loyalty. In particular, this year we saw categories that are traditionally bought by women gain strong traction, including fashion, luxury products and maternal products. The number of female first-time customers on JD during this year’s event was nearly double the number of new female customers during the same period last year.

We spread our major sales over a number of days in order to relieve pressure points to make it the best possible customer experience. By offering discounts for different categories over a period of days, with all categories on sale on June 18, consumers can make their purchases in a more relaxed manner. Meanwhile, by releasing some of the pent up demand in the days ahead of June 18, JD can help ensure that its famed same- and next-day nationwide delivery network can continue to meet consumer expectations, rather than causing the massive delays that have plagued major sales elsewhere in the industry.

As JD’s anniversary sale has turned into a national phenomenon, we have been surprised and flattered to see so many of our industry peers celebrating our 13th anniversary this year through their own sales activities.

For key data, please refer to the graphics below:

* Transaction volume is calculated to include total value of all orders for products and services placed in the company’s online platform, regardless of whether the goods are sold or delivered or whether the goods are returned and shipping charges paid by buyers to sellers, and excludes products or services with list prices above RMB100,000 as well as transactions conducted by buyers who make purchases exceeding RMB1,000,000 in the aggregate in a single day (similar to the company’s major industry peer GMV definition)

JD.com Teams Up with Mobike to Turn Bikes Rides Into Prizes

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JD.com, China’s largest retailer, has partnered with Mobike, the world’s largest smart bike-sharing platform, to launch a special fleet of Mobikes in China for JD’s June 18th anniversary event.

From now through June 18, Mobike’s millions of riders across more than 100 cities in China using the app can participate in a special cross-platform promotion. Lucky riders will see “Treasure Bikes” marked “JD 618” that can be unlocked for a chance to win prizes.

Treasure Bikes” marked “JD 618”

Users will receive one of five stickers for each ride on a Treasure Bike, and those who collect all five will be entered to win prizes of RMB618, for a total of RMB2.2 billion in possible rewards.

During this period, Mobike users will also receive special promotions when shopping on JD, and JD users who register for a Mobike account through the JD mobile app will receive a seven-day-no-deposit riding voucher.

“Chinese consumers love the convenience of bike-sharing,” said Shunjing Zheng, Chief Marketing Officer of Mobike. “The phenomenon has completely changed urban transportation in China’s biggest cities. It’s only through a combination of JD and Mobike’s collective technologies—e-commerce, big data and artificial intelligence—that we can turn this social phenomenon into a unique new experience.”

 “Chinese consumers love the convenience of bike-sharing,

“Technology is changing the lives of Chinese consumers, from shopping to transportation,” said Jipeng Men, a vice president and head of marketing at JD.com. “Consumers love JD, and they also love Mobike, so we are excited to create this innovative way for them to enjoy both platforms.”

JD.com’s June 18 anniversary event has become a nationwide symbol of China’s mid-year shopping season. With special promotions every day from June 1-20, JD helps brands realize record sales and gain more attention in China’s massive consumer market.