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JD’s Emergency Aid to Yunnan Earthquake Arrives the Next Morning

by Yuchuan Wang

JD.com delivered its first batch of emergency aid to Yangbi Yi autonomous county in Yunnan province at 5 a.m. on May 22, after the county was struck by a 6.4-magnitude earthquake at 9 p.m. on May 21. The earthquake killed three people and injured 32, according to a report by People’s Daily on May 22.

In 2012, JD.com’s founder Richard Liu announced a company regulation stating that if a disaster happens anywhere in the country, the nearest JD warehouse should immediately donate and transport its goods to meet the emergency demands, and that its management does not need to obtain prior approval.

JD’s truck departs from its warehouse in Dali in the early morning

Upon learning about the earthquake in Yunnan, JD established a support team and its warehouse in Dali immediately delivered goods, including water and food, to Yangbi. The company’s warehouses in the region continue to supply goods to help local people weather the difficulties.

JD.com has been actively practicing social responsibility by leveraging its supply chain. Since the breakout of COVID-19, the company has invested over one billion yuan in medical supplies donation, ensuring logistics transportation and people’s livelihoods, while enabling merchants and boosting the economy.

 

(yuchuan.wang@jd.com)

Posted in ESG

JD.com and Moutai Partner to Build Libraries in Rural Schools

by Hui Zhang

at the Er PrimaryJD.com and Kweichow Moutai Group, China’s liquor giant, unveiled the opening of a library School of Daozhen Gelao and Miao Autonomous County in northernmost Guizhou province on May 18, with a donation of about 15,000 books on the theme of Chinese traditional culture for students of both primary and secondary schools.

All the books were donated by employees from the two companies as part of their ongoing social welfare program in partnership with China Social Assistance Foundation, aiming to set up 5 public libraries within schools in the county to improve rural education quality.

“JD.com has always adhered to its social responsibility, and has made active and continuous efforts in improving the quality of consumption, safeguarding employment and promoting the development of the real economy, while also contributing to the high-quality development of the social economy,” said Carol Fung, president of JD FMCG Omni-channel.

Carol Fung, president of JD FMCG Omni-channel

Carol Fung, president of JD FMCG Omni-channel

“JD.com and Moutai share the same philosophy in practicing corporate social responsibility, and we have jointly carried out a number of cooperation efforts in the area so far. We hope to enhance cooperation with Moutai in the future to jointly promote rural revitalization and traditional culture.”

During the event celebrating the library opening and books donation, children’s literature author Zhou Rui hosted a much welcomed class for local students on Peking Opera, the most dominant form of Chinese opera combining music, vocal performance, mime, dance and acrobatics.

“Moutai believes that proper education can help relieve people from poverty, and we have done a solid job to help the poor through participating in education,” said Jingren Li, vice chairman and president of Moutai Group.

Jingren Li, vice chairman and president of Moutai Group

Jingren Li, vice chairman and president of Moutai Group

“Our cooperation with JD.com to set up this library is one of our new efforts to facilitate local education development in the county,” he added. “We’re looking forward to working with more companies like JD.com to help relieve poverty through education and to promote rural revitalization.”

 

(Banner photo: Lu Bin, Party Secretary of Daochen County; Jingren Li, vice chairman and president of Moutai Group; Carol Fung, president of JD FMCG Omni-channel; Xueqing Fei, Deputy Governor of Daozhen County) 

 

(zhanghui36@jd.com)

Ten Jingxi Partners Win Awards at JD 618 Kickoff Conference

by Ling Cao

Ten Jingxi partners won awards at the JD 618 kickoff conference held on May 20 in Beijing. The partners, which include P&G, Unilever, Mondelēz International, Midea (its official Jingxi store) and more, have all cooperated with Jingxi to expand in lower-tier markets, providing customers with cost-effective products and services.

The awards cover different sectors, such as Top 10 omni-channel partners, new lower-tier market brands, industrial brands, fresh produce brands and supply chain partners.

Unilever has worked with Jingxi New Markets since 2017, with both parties expanding lower-tier penetration by opening new stores, pushing forward marketing innovation, product customization and more. By sharing these capabilities with small and medium sized local stores, they have enabled customers to purchase high-quality products from brands more conveniently. In 2020, Unilever has gained 60% sales growth YOY for the sales contributed from the partnership with Jingxi New Markets.

A domestic cotton wipes brand Chunzhisu has been named among the Top 10 industrial brands. When COVID-19 impacted the industry supply chain in 2020, causing the row materials price to increase by 50%-70%, Chunzhisu still kept its product quality by working with Jingxi to customize products during the hard time. During peak time such as 618 or Singles Day (Nov 11) Grand Promotion in 2020, Chunzhisu orders increased from 10,000 to 50,000 on a daily basis.

Another domestic fresh produce brand Huadefeng also won an award. The brand worked with Jingxi to build a direct-sales model from place of origin to customers, with daily sales volume reaching as high as 20,000.

A representative from Huadefeng said, “We will deepen our partnership with Jingxi, providing customers with delicious fresh fruits using fresh food supply chain capability.”

A representative from Jingxi said, “From the kickoff conference until June 20, Jingxi will provide customers with new entertainment channels, more worry-free services and higher-quality products with affordable prices, helping partners lower costs and improve efficiency, promoting healthy industry development.”

 

(ling.cao@jd.com)

Kimberly Clark Awarded Sustainability Partner by JD

by Ella Kidron

American multinational personal care brand Kimberly Clark was awarded as one of JD’s Top 10 sustainability partners at a 618 Grand Promotion (Jun. 1-18) kickoff conference held on May 20. In recent years, JD and Kimberly Clark have collaborated in products, supply chain and omnichannel, among other areas, promoting many productions which have been well-received by consumers in China.

Customer-to-Manufacturer (C2M) has been an important area of focus for both companies. Last year during 618, Kimberly Clark released its “Love the Planet” (爱地球) product series, which has a photo of an endangered animal on the packaging. Three disinfectant and personal hygiene products developed based on insights from JD and R&D tech from Kimberly Clark became blockbusters once being put on sale. JD Super has also adopted an omni-channel model with Kimberly Clark, connecting JD’s app with the brand’s offline stores, as well as baby and maternal stores, convenience stores, and other brick-and-mortar shops, realizing more speed and precision in the shopping and logistics processes.

Huggies, the maternal and baby products brand under Kimberly Clark is also an important partner of JD. A signature cooperation with the Huggies involved working with the brand to develop a paper diaper (disposable diaper typically made of paper and plastic) with enhanced aeration and softness that hug to the waist, making it more comfortable and convenient for babies to move about. Sales of the new product accounted for more than 70% of the brands sales on JD the day it went on sale. Huggies has already become a top diaper brand on JD.

JD and Kimberly Clark have jointly called on the public to care for the planet and wildlife and to embrace sustainable development. Ms. Bei Wu, general manager of Kimberly Clark’s business division in China, said: “Every species has their reason for existence and is an indispensable part of the ecological chain.”

During this year’s 618 Grand Promotion, JD and Kimberly Clark will take advantage of accumulated gains from the two parties’ long term partnership, and continue to focus on product, supply chain, marketing and omni-channel.

Meina Chen, sales manager of diapers and wet wipes in JD FMCG’s maternal and baby products department said: “Kimberly Clark is an invaluable part of the JD Family. Working with the brand, we have been able to provide consumers with new products and services, making their lives more sustainable and convenient.”

 

(ella@jd.com)

JDT Chief Economist: Robust Exports Continue to Boost China’s Economy

by Vivian Yang

“China’s export growth will remain robust throughout the year, given stronger-than-expected stimulus in developed economies, the pandemic’s drag on global supply recovery, and China’s advantages in the global industrial chain,” wrote Dr. Jianguang Shen, chief economist of JD Technology, in an article published on May 20 in China Forex magazine.

With the overall improvement of the pandemic this year, China’s exports have expanded from pandemic prevention products to a growing number of products. The real estate market boom in the US increased demand for household products, fueling a rapid rise in Chinese exports of furniture and home appliances. Moreover, the exports of garments, shoes and boots, and baggage have also rebounded significantly, indicating that the demand for travel-related goods is gradually growing. In addition, goods less directly affected by the pandemic, such as cell phones, integrated circuits, automobiles and toys, have also seen strong growth so far in both US and European markets this year.

Dr. Shen pointed out that a widening supply-demand gap on the global level pushed up China’s exports. He listed three main reasons for the slow recovery of local productions, which include: 1) transnational supply chain has not yet recovered from the pandemic, as the Suez Canal blockage compounded worldwide container shortages and port congestion; 2) a lack of upstream and midstream supplies, notably the global shortage of chips that adversely affected automotive and electronics; and 3) the coexistence of a labor shortage and unemployment due to the lingering pandemic and generous unemployment subsidies.

On this week’s earnings call for the first quarter of 2021, JD Retail’s CEO Lei Xu also flagged to investors the impact of a global shortage of chips supplies. However, Xu believes that based on the company’s close collaboration with brands and suppliers on the deeper level of the supply chain, JD.com will be a less affected retailer.

As growth pressure eased with strong export performance, Dr. Shen suggested that China seize the opportunity to accelerate medium- and long-term reforms, especially exchange rate reform and capital account liberalization; encourage two-way capital flows; and promote the internationalization of the RMB.

 

(vivian.yang@jd.com)

JD Provides Delivery in Minutes in Over 200 Cities

by Yuchuan Wang

JD Logistics announced to offer its Delivery in Minutes service in over 200 cities during this year’s JD 618 Grand Promotion. The company will also leverage its strong technology abilities to support marketplace merchants to measure the biggest mid-year shopping festival in the world. The announcement was made at the kick-off event of 618 Grand Promotion held on May 20 in Beijing.

The swift delivery service relies on JD Logistics’ advanced technology. Through algorithms and supply chain planning, orders will be prepared and placed in JD’s front warehouses and delivery stations nearest to consumers. It is expected millions of SKUs (stock-keeping-units) covering almost all medium-sized product categories will be placed in advance and nearly half of JD’s delivery stations nationwide will participate to enable instant delivery.

JD Logistics will provide integrated services including big data, network optimization, intelligent forecasting and replenishment to help raise efficiency and lower costs through digitalized smart decisions.

This 618, JD Logistics will be operating over 1,000 warehouses in China. According to JD.com’s Q1 earnings, the company further lowered its inventory turnover days to a world-leading 31.2 days and delivered 90% of retail orders in 24 hours, thanks to advanced automation technologies.

From warehousing and sorting, to transportation and delivery, JD Logistics’ technology will play an important role in swift delivery to customers and securing stable operations for merchants and brands.

 

(yuchuan.wang@jd.com)

Photo Gallery: This Week at JD (May 15 – May 21)

JD.com held the kickoff event for its 618 Grand Promotion on May 21. The event gathered representatives from over a hundred brand partners. Awards were presented to the top 10 brands across 12 different categories. Chenkai Ling, vice president of JD.com, released seven consumption trends for 2021 during the event.

 

JD’s second E-Space store soft opens on May 19 in Hefei, the capital city of Anhui province. The store will be officially open on June 18th, the peak day of JD’s 618 Grand Promotion. The 40,000 square-meter store welcomes over 500 brands, and over 200,000 SKUs are available for sale in store.

 

On May 19, JD celebrated its sixth Employee Appreciation Day. On this day, JD specifically honors its long-term employees, who are often referred to with special designations: 5-year veteran employees are known as “Dalao” (big brother, or sister), and 10-year veterans as “Super Dalao.” There are over 40,000 Dalaos and Super Dalaos at JD now. Photo shows employees receive badges at JD headquarters in Beijing.

 

JD Logistics and China Railway Container Transport announced a partnership in intermodality on May 17 at JD headquarters. Both sides will utilize capabilities in integrated supply chain, rail cargo transportation, logistics information and technological devices, to develop domestic and international routes. Four executives, Jun Fan, vice president of JD.com, head of transportation resources platform at JD Logistics (second from left); Boling Han, general manager at CRCT (second from right); Yang Yang, head of rail transportation at transportation resources platform at JD Logistics (far left); and Jinhua Ge and deputy general manager at CRCT (far right), attend the signing ceremony.

 

China’s Ministry of Industry and Information Technology (MIIT) released the first winners for a national open AI competition. JD Logistics was awarded for its “intelligent logistics and warehousing equipment” project in the category of intelligent warehousing. The results were announced on May 20 at the 5th World Intelligence Congress held in Tianjin.

Livestreaming, Short Videos, and Graphics to Further Boost 618

by Hui Zhang

JD.com announced it will focus on livestreaming, short videos, graphics and tests to enrich its content marketing for the ongoing 618 Grand Promotion at a kick-off event on May 20 in Beijing.

JD.com will invite more than 300 celebrities, and executives from nearly 600 brand partners to participate in various promotions through livestreaming during the promotion. The company will also create social media hastags in accordance with latest public trends, and invite KOLs and celebrities to create short videos to assist promotion. More than 1,000 professional buyers or KOLs from different categories will be invited to share their favorite products to bring more traffic to JD.com.

JD will hold two galas through livestreaming inviting celebrities to bring consumers the festive atmosphere of 618. Meanwhile, JD Live, the company’s livestream platform, will select high-quality products from 100 industrial belts to bring local high-quality products to JD’s consumers. Leveraging JD and WeChat’s strength, JD will offer livestreaming through 10 WeChat accounts.

The company will also create over 100 social media hashtags, and invite over 100 KOLs and over 100 stars to create promotional short videos to assist consumers in decisions-making.

JD will invite more than 1,000 professional buyers or KOLs to recommend products to consumers through pictures and product sampling. In addition, JD will also cultivate more than 1,000 KOLs from ordinal content-creators through various of motivation solutions.

“Livestreaming is like trees, short videos are like the jungle, and graphics are like the grassland. JD is coordinating the three aspects of content to effectively recommend more high-quality content to consumers thus to assist them to make shopping decisions,” said Guowei Zhang, head of JD Content Ecosystem Department.

“Various content can also provide an immersive shopping experience to consumers while allowing them watch, buy and play at the same time.”

 

(zhanghui36@jd.com)