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SEVEN FRESH Announces Development Goals

by Mengyang He

SEVEN FRESH, JD.com’s fresh food store, announced its development goals on December 22, striving to become top-notch chain retail brand in China within the next 5-7 years.

SEVEN FRESH’s development goals revolve around supply chain networks, products and service quality.

“As SEVEN FRESH continues to develop its business across China, it will primarily focus on two regions, Beijing-Tianjin-Hebei Urban Agglomeration and Guangdong-Hong Kong-Macao Greater Bay Area,” noted Feng Zheng, president of SEVEN FRESH.

Feng Zheng, president of SEVEN FRESH

In order to better distribute resources and minimize losses, SEVEN FRESH is set to build two commodity centers in northern and southern China respectively, which will help improve supply chain efficiency, cater to local markets, and secure food freshness.

As of now, SEVEN FRESH has 47 stores in 13 cities across 9 provinces plus Beijing. It has entered a rapid growth period since the second quarter of 2021, and its GMV grew by 85% YOY this August.

By working with China’s top-tier real estate companies, SEVEN FRESH hopes to bring high-quality shopping experiences to Chinese consumers through its ecosystem, omni-channel approach, and supply chain. The joint venture of SEVEN FRESH and Better Life opened their first store in the southern city of Changsha this June, and the second one followed suit in November, with 5 more stores expected to open by 2022.

 

(hemengyang5@jd.com)

JD.com to Partner with Shandong Energy Group Company in Rural Revitalization

by Mengyang He

JD.com announced its partnership with Shandong Energy Group Company, one of the largest energy companies in China on December 14. The two companies aim to facilitate rural revitalization and the development of the fresh produce industry, in addition to expanding cooperation in employee welfare, industrial products, smart logistics, and more. Lei Xu, president of JD.com, and Baocai Zhang, general manager of Shandong Energy Group Company, witnessed the signing ceremony.

JD and Shandong Energy Group Company will look into co-building the “enterprise distribution warehouse” model and creating a smart management park for material supplies, which integrates smart technology into storage, management, picking and placing.

On rural revitalization, the two companies will also focus on smart villages. With the help of 5G, artificial intelligence and other technologies, they will jointly build smart systems for the agricultural industry as well as integrated agricultural smart service platforms. In addition, they will work on the standardization, digitalization, and tracing system for fresh produce. A high-quality digital production demo base for fresh produce is also expected to be built.

 

(hemengyang5@jd.com)

JD.com Develops a New Intelligence Retail Chain Model with Hitaly

by Yiming Yan

JD.com and Hitaly signed a cooperation agreement on Dec. 16, in which the two sides will cooperate in various fields such as online and offline retail, cross-border e-commerce, international and domestic logistics and warehousing, and supply chain fintech. Dr. Paul Yan, vice president of JD.com and president of JD Retail Cloud, and Stard Huang, vice president of JD.com and president of JD’s international logistics division, attended the signing ceremony.

JD will provide customized solutions for Hitaly through JD Retail Cloud, which will provide a technology platform and related technical services covering all aspects of the industry chain, including procurement, operation and inventory.

For sales business cooperation, JD will open up online and offline channels for Hitaly, provide support for the sales operation of Hitaly’s cross-border products in JD Worldwide and help to build the Hitaly intelligent shopping park.

When it comes to the logistics business, JD will provide integrated supply chain services for Hitaly through digital technology and equipment support such as unmanned warehouses, 3D warehouses, and AGV robots for warehousing, transportation and distribution.

The two sides will also accelerate the construction of a supply chain fintech platform and explore deeper and broader cooperation.

Leveraging experiences accumulated in the retail industry for years, JD Retail Cloud has developed the ability to provide technology platforms and technical services to build a full-chain production, supply and sales platform in both B2B and B2C businesses, which will effectively improve business operation efficiency while reducing comprehensive procurement and inventory costs for partners.

“The cooperation between JD.com and Hitaly is a good start for both parties to promote the transformation of the industry chain into digital intelligence, and both parties will continue to deepen the partnership, actively integrate the superior capabilities of online and offline multi-channels to promote business growth and create a new pattern of digital intelligence in the retail industry,” said Dr. Paul Yan, Vice President of Jingdong Group and President of Jingdong Retail Cloud.

Hitaly is a globally renowned commercial management company focusing on supply chain innovation in retail commercial complexes and has invested in projects such as Hitaly Outlet Shopping Park of Shanghai.

 

(yanyiming1@jd.com)

Givenchy Launches Online Boutique Through JD App

by Yiming Yan and Siyi Zhao

In collaboration with JD.com, Givenchy has launched a customized online boutique on Dec.15 in the form of a mini-program, which can be re-directed by typing “Givenchy clothing” or “Givenchy bags” on JD’s app. This is the first time Givenchy has collaborated with a Chinese e-commerce retailer.

For this collaboration, Givenchy is debuting a limited-edition 2022 Chinese New Year collection. Inspired by the Chinese Lunar New Year of Tiger, Givenchy has created new items in black, white, and red along with the iconic metallic 4G locking clasp, blending its pioneering attitude and a festive flair for the New Year.

Apart from Givenchy, over 300 brands including Dior, DELVAUX, and TAG Heuer will launch over 200 new products to enhance the choice of Christmas and New Year’s gifts for consumers as part of the JD Luxury Festival that started on Dec. 17.

More than 300 brands have already launched flagship stores on JD through multiple customized and digitalized collaboration formats. Following LV, more and more brands, such as BVLGARI, Dior, LOEWE, Givenchy have partnered with JD through the model customized by JD. Currently, most of the LVMH brands are in JD’s pipeline.

Known worldwide for its unique style of haute couture and accessories, Givenchy was founded in 1952 by Hubert de Givenchy. Later in 2020, creative director Matthew M. Williams joined GIVENCHY, bringing an independent and strong design style to the brand, conveying a spontaneous and unrestrained fashion attitude.

 

(yanyiming1@jd.com; zhaosiyi5@jd.com)

JD.com Plans to Double Imports of Sunkist Citrus Over the Next Three Years

by Vivian Yang

JD Fresh, the fresh produce business of JD.com announced a plan to double the imports of Sunkist’s citrus fruits in the next three years as the American citrus grower cooperative’s first export ship of newly harvested navel oranges arrived in Shanghai from Long Beach, California in mid-December.

Sunkist’s farmers in California sent off the first ship of seasonal navel oranges to JD Fresh in China

The rising demand for high-quality fresh produce is a prominent trend amid China’s consumption upgrade. JD.com became an authorized e-commerce direct-sourcing partner of Sunkist’s citrus fruits in China since 2018, the company has seen a compound annual growth rate (CAGR) of 60% in Sunkist’s fresh citrus sales in the past years, and it plans to import no less than 10,000 tons of the premium citrus within the next three years.

“Thanks to our close collaboration with Sunkist and JD’s cold-chain logistic strength, we have created a highly efficient way to supply the in-season citrus directly from farm trees around the world to the dining tables of Chinese customers throughout the year at a better price and faster speed,” said Wei Ye, general manager of JD Fresh.

“As people have greater need for healthy fresh food and are becoming more and more customized to shop for them online after the pandemic, we are confident to support Sunkist to further grow in the China market,” He added.

“We are grateful for the opportunity to deliver fresh California-grown Sunkist citrus to consumers in China,” said Christina Ward, Sr. Director of Global Marketing at Sunkist Growers, Inc.  “Through JD.com, we can educate millennial consumers on the in-season availability, flavor attributes, and nutritional benefits of our fruit.”

Sunkist Growers is a citrus marketing cooperative, founded in 1893, which is owned by and operated for thousands of family farmers growing citrus in California and Arizona. The variety of its fresh citrus products includes oranges, lemons, limes, mandarins and more. The seasonal navel oranges from the sunny California groves feature a refreshingly sweet and juicy taste, pleasant floral aroma and a bright orange, seedless interior.

Promotion of the new season Sunkist’s oranges from the U.S. on JD.com

Upon the ship’s arrival in China, following the custom quality inspection, the navel oranges will be sent directly to JD’s self-operated cold chain warehouses. The fruits will be put in JD customized packages and go straight to customers’ doorsteps through JD’s nationwide logistics network. JD’s cold-chain logistics for fresh produce, which range from same-day delivery to two-hour flash delivery, are the standard services available in more than 300 cities across China, allowing consumers in both coastal and inland regions to enjoy the freshest Sunkist products.

China is the largest importer for Sunkist citrus, accounting for about 30% of its global exports. Despite the headwinds in trade and supply chain in the past year, JD.com and Sunkist have continued to work together to ensure stable and smooth supplies to China and made the brand achieve first in sales among all the imported American citrus brands during the 2020-2021 season.

According to statistics from the United States Department of Agriculture (USDA) in September, U.S. citrus exports have dropped by 6% between 2020-2021 as compared to the previous season, primarily due to a smaller fresh-market crop. Under such circumstances, it is even more critical for the two sides to strengthen their partnership as a good indicator for the support of Sunkist’s farmers and the brand’s fans in China.

 

(vivian.yang@jd.com)

JD Logistics Inks Partnership with Dongfeng Automobile

by Yuchuan Wang

JD Logistics (JDL) and Dongfeng Automobile (DFAC), a leading Chinese auto maker, signed a partnership on Dec. 14. Under the partnership, the two companies will explore in new logistics businesses, new cold chain technologies and new delivery models, based on the research in Internet of Vehicles, cloud computing and more advanced technologies.

In addition, DFAC will collaborate with JDL in optimizing the supply chain processes and operating costs to further improve its service level and satisfaction rate for DFAC’s dealers, in the areas of inventory planning, last mile delivery and more. Leveraging JDL’s nationwide supply chain infrastructure and solutions, DFAC will also be able to explore in omni-channel marketing and fulfillment.

Xiaoping Lu, executive deputy general manager of DFAC, said that the collaboration with JDL will further accelerate DFAC’s digital transformation and promote the quality development of the supply chain and logistics industry.

JDL has provided supply chain solutions for over 200,000 business clients. According to the company’s 2021 Q3 earnings, revenues from external customers continue to surpass 50% of the total revenue.

 

(yuchuan.wang@jd.com)

JD and ATRenew Co-launch Circular Economy Report

by Vivian Yang

The post-consumption electronic wastes generated in big cities represent the sleeping “metal mines” — if “waken up“ and fed into the recycling loop, they would create considerable economic and environmental benefits. This is the conclusion from the latest “2021 Circular Economy Research Report” released on Dec. 1,co-produced by JD.com, Kearney and ATRenew, a technology-driven used consumer electronics transactions and services platform in China and an investee of JD.com.

The report noted that promoting trade-in services play a significant role in putting idle electronic products, primarily mobile phones, into the circular economy as well as boosting consumption, especially when it comes to big-sized home appliances in physical stores, according to data from JD and ATRenew’s user survey and second-hand goods sales data over the last four years.

In 2020, through close collaboration with JD.com and other retailers, ATRenew recycled more than 23 million second-hand products, mostly electronics, for resale or disposal in an environmentally responsible way. It enabled more than 100,000 SMEs to offer products’ trade-in services last year and dismantled about 225,000 electronic products, cutting down 36.1 tons of e-waste.

While the report emphasized the necessity of e-waste recycling both for the sake of metal parts value such as copper, gold, silver, palladium and other metals, and reducing heavy metal and battery pollution, it also revealed consumers’ various concerns over returning their electronic goods.

Around 46% of respondents claimed they don’t have a convenient way to dispose of their outdated electronic devices; 17.8% expressed concerns about data security; and 38% said they keep three or more idle electronic goods at home.

According to CINNO Research, an industry consultancy, 307 million mobile phones were sold in China in 2020. According to a JD Mobile user survey, roughly half of consumers replace their electronic items, mostly mobile phones, every two years.

To step up efforts on consumer electronics recycling, this July, ATRenew launched a pilot initiative called the “integrated city model” to bring together resources and capabilities of cities, merchants, retailers, and customers to increase the rate of circular economy adoption.

At the same time, JD.com announced a new 5-year low-carbon program in 2021, pledging to invest RMB 1 billion yuan in green supply chain construction and a 35 percent increase in carbon efficiency.

 

(vivian.yang@jd.com)

Posted in ESG

Ambassador of Thailand to China Joins JD’s Livestreaming on National Day of Thailand

by Mengyang He

JD Worldwide invited the Ambassador of Thailand to China, H.E. Arthayudh Srisamoot, to join a three-hour livestreaming in promoting various Thai products in Beijing on December 5, which is the National Day of Thailand. Ms. Pathumwadee Imtour, minister-counsellor of agricultural at the embassy, and Ms. Pakkanan Winijchai from Thailand’s tourism authority, also participated in the livestreaming.

Ms. Xinyi Bai (left), host of livestreaming, Mr. Arthayudh Srisamoot (center), Ambassador of Thailand to China, and Ms. Apinya Charunpumhiran (right), co-host of livestreaming

With 25 kinds of Thai products being presented in the livestreaming, including shredded squid, Thai black tea, pepper with pork stomach & chicken, Vitamin C tablets, and seaweed were the top 5 of the most popular products, and the shredded squid was sold out in the first hour of the livestreaming.

Thai dance performance at the opening ceremony of the Thai Week 2021

In addition to the livestreaming, JD Worldwide set up 7 booths at CP Center in the CBD area of Beijing, together with a dozen or so booths by Thai brands, covering different product categories, such as personal care, beverage, body care, textiles, and more. Ambassador Arthayudh Srisamoot also introduced Thai products and Thai culture to Chinese consumers.

Thai products are well recognized by customers on JD.com. “On the first day of JD’s 2021 Singles Day Grand Promotion, more than 170,000 latex pillows from Thailand were sold. In addition, 260,000 Thai durians were sold during this year’s JD’s 618 Grand Promotion,” noted Mr. Luke Liu, general manager of business development of JD Worldwide.

 

(hemengyang5@jd.com)