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JD News Roundup 2021 – Vol. 8 (Apr. 24-May 14)

If you have any questions or topics you are hoping we will explore, please email press@jd.com.

BUSINESS HIGHLIGHTS

JD joins Intl Consumer Products Expo in Hainan

JD participated in the first major event held in Hainan since the Hainan Free Trade Port was announced, the inaugural China International Consumer Products Expo from May 7-10. JD cooperated with top international brands to host an exhibition booth highlighting JD Retail Cloud, C2M products and more, as well as a range of events and initiatives. In recent months JD has opened two duty-free stores in Hainan, and plans to open a self-operated shopping mall in the region in coming years.

Technology

Speaking of JD’s restructuring in which JD Digits was merged with JD’s Cloud and Artificial businesses, Chairman of JD’s Technology Committee Bowen Zhou said recently that JD will remain absolutely committed to its focus on technology. “On both strategic and tactical levels, we will continue to invest in the R&D, productization and commercialization of technologies.” Since 2017, the company has invested more than RMB 60 billion yuan in technological research and development.

One area in which JD is forging forward is in JD Cloud’s financial Cloud platform, which took 10.3% market share in the second half of last year, according to a report released by global market intelligence firm IDC on May 12. JD Cloud has serviced 780 financial institutes, including banks, insurance, trust and securities companies.

Logistics

JD has begun operating two highly automated warehouses in Poland and Germany to serve local clients. Both warehouses started trial operations in March, and are ideally situated to cover most of Europe, providing convenient and rapid fulfillment for clients. The warehouses will utilize JD’s cutting-edge AGV (automated ground vehicle system), a transformative technology that is 2.5 times more efficient than the manual picking used in traditional warehouses.

Retail

During an online event series titled “Retail Connected,” hosted by World Retail Congress in lieu of its annual offline retail conference, JD Retail’s Head of Strategy Development Chenkai Ling spoke about JD’s ongoing focus on omni-channel, how the pandemic has permanently altered retail, how fragmentation of the retail space is a positive development, whether delivery speeds in China can be shortened even further in the future, and more.

Health

JD Health will cooperate with PKU Healthcare Tairan, a Chinese company committed to treatment in the field of urology, in order to provide systematic, convenient and private male disease diagnosis and treatment services, and cooperate with offline hospitals across the country. Approximately 361 million men in China suffer from various male-specific diseases, according to WHO.

Additionally, JD launched its first health insurance product, “Family Doctor Insurance” on May 8. The insurance will integrate health management services into traditional medical insurance, covering everything from claim settlement to disease prevention.

International Business

H.E. Amb. Irit Ben-Abba, Ambassador of the State of Israel to China, visited JD headquarters on Apr. 28, to discuss potential collaborations between JD.com and Israel in the areas of technology innovation, supply chain and logistics, cross-border trade, sustainability and more.

Have a bit more time? Check out some of these reads:

JDT’s Chief Economist’s Analysis of China Census: After the release of China’s once-in-a-decade census, Dr. Jianguang Shen, chief economist of JD Technology, wrote about the bright spots and challenges reflected in the population’s structural changes:

https://jdcorporateblog.com/jdt-chief-economist-outlines-highlights-and-challenges-on-chinas-census-2020/

Gen Z Consumption Trends on JD: Gen-Z purchased a disproportionate amount of domestic products, signaling a loyalty to local brands, according to JD’s new Gen Z consumption trends report. Read more about the group that had the highest growth rate in online shopping turnover in 2020: https://jdcorporateblog.com/jd-unveils-gen-z-consumption-trends/

JD Brings E-commerce to Tibet

JD is expanding into Tibet, where residents have struggled to both sell and receive products in the past due to an average altitude of 4,000 meters and complex terrain. By helping Tibet develop its e-commerce ties, JD hopes to improve the living condition of local people, bring more high-quality Tibetan products to customers, increase the income of local farmers and more. Read more about how JD’s expansion:  https://jdcorporateblog.com/in-depth-report-jd-com-brings-e-commerce-to-tibet/

 

 

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JDers’ Videos Rewarded in “100 Reasons to Love Beijing” Competition

by Hui Zhang

JD.com won both individual and group awards in a short video competition, “100 Reasons to Love Beijing”, hosted by the Beijing municipal government, at an award ceremony held in Beijing’s Forbidden City Museum on May 14.

Representatives from JD.com, China Radio International, Beijing International Studies University, Pubilicity Department of Beijing's Dongcheng District, Beijing People's Association for Friendship with Foreign Countries rewarded as "Excellent Organizations"

Representatives from JD.com, China Radio International, Beijing International Studies University, Pubilicity Department of Beijing’s Dongcheng District, Beijing People’s Association for Friendship with Foreign Countries rewarded as “Excellent Organizations”

JDer Ella Kidron’s video “Discovering Beijing’s Limitless Possibilities” and colleague Kelly Dawson’s video “Unexpected Beijing” won the Grand Prize and Third Prize at the competition, respectively. Kidron’s video was also rewarded  the only most innovative video award among all over 1000 entries. JD.com was rewarded as one of the “Excellent Organizations” attending the competition. Mr. Jiang Jianguo, minister of the State Information office, presented the Grand Prize Award to Kidron. Mr. Wang Xudong, curator of the Palace Museum who is a veteran scholar of Dunhuang Studies, also attended the event.

Ella Kidron on stage to receiving "Grand Award" 

Ella Kidron on stage to receiving “Grand Award” 

The short video competition together with an essay contest with the theme of “100 Reasons to Love Beijing” has attracted over 1,000 foreign participants living in Beijing from about 100 countries. More than 100 short videos  were finally selected to be rewarded at the ceremony. The event was organized to give foreigners the opportunity to share their experiences of living in Beijing, and to express their feelings towards the city from their unique perspectives with different cultural backgrounds.

Performers on stage

Performers on stage

Kidron fell in love with Beijing on her runs around the sprawling capitol city. As a native New Yorker and former athlete, her life can be hectic, and running has been a constant companion.

Kidron fell in love with Beijing on her runs around the sprawling capitol city

Ella Kidron

“My Beijing story and my love of athletics are deeply intertwined. When making this video, it was important to tell the story through sport, both in terms of what I have discovered and who I have met along the way. Forging friendships has given me a sense of belonging in a city over 10,000 km from where I grew up,” said Kidron.

Ella Kidron’s video “Discovering Beijing’s Limitless Possibilities”

Ella Kidron’s video “Discovering Beijing’s Limitless Possibilities”

Dawson’s life in Beijing has always been about the “nooks and crannies” that one discovers throughout the city. As the protagonist of this story, it is emblematic of one of her favorite hobbies, using her own lens to capture the unexpected throughout Beijing.

Kelly Dawson Receiving "Third Prize" on stage

Kelly Dawson Receiving “Third Prize” on stage

“What I love most about Beijing is that it surprises me all the time. I’ve lived here for more than 6 years, and I still feel that it’s a place where I see things every day that I don’t see every day,” said Dawson. “I wanted to make this video for the competition as a kind of love letter to the city that I’ve called home these past years.”

In addition to Kidron and Dawson’s videos, JD.com also submitted 28 other videos with various themes to the competition. Among the 30 works submitted by JD, four of them were shortlisted for the 100 Outstanding Works in the competition.

The organizing committee will translate the selected 100 videos into multiple languages, such as Japanese, Korean, French, Spanish and Russian

Group photo

The organizing committee will translate the selected 100 videos into multiple languages, such as Japanese, Korean, French, Spanish and Russian, and will promote the videos through various of social media platform including You Tube, Facebook, Twitter, Ticktok, and etc.

 

(Banner photo: from left to right are Yuchuan Wang, Ella Kidron, Kelly Dawson, Hui Zhang responsible for JD’s International Corporate Affairs holding four prizes on April 15)

 

(zhanghui36@jd.com)

JD Industrial Technology Cooperates with Chalco Materials

by Ling Cao

JD Industrial Technology, a business unit under JD.com providing industrial products and services, signed a partnership in Internet procurement services on May 11 with Chalco Materials, a subsidiary under Chalco Aluminum Corporation of China (Chalco), the only large company in China’s aluminum industry that’s engaged in the whole value chain.

As Chalco Materials’ intelligent and digital procurement solution provider, JD Industry Technology provides an integrated service covering procurement, merchandise, operation and supply chain, helping the company achieve digital transformation.

In just four days of preparation, based on JD’s long-time development of its MRO standard program building, JD has helped Chalco Materials match the demand of over 500,000 specific industrial products, making the procurement process more efficient. JD is also coordinating with Wafangdian Bearing Group in Dalian, ABB, Schneider Electric and Delixi Electric to provide related resources and services to Chalco.

JD can utilize its own capabilities in smart supply chain to help Chalco design cost-effective fulfillment solutions, especially for many of their factories in lower-tier markets.

Yuesheng Chen, general manager of JD Industry Technology’s manufacturing industry department said, “The cooperation is just a start. We will continue to optimize our service for Chalco and provide comprehensive solutions, helping to improve the quality and efficiency of their procurement abilities.”

In the future, both sides will expand cooperation in co-building fulfillment centers and forward warehouses, further enhancing the service quality.

 

(ling.cao@jd.com)

JDer Kelly Dawson: Falling in Love with Beijing’s Nooks and Crannies

by Ella Kidron

For JDer Kelly Dawson, life in Beijing has always been about the “nooks and crannies” that one discovers throughout the city. As a former journalist with many bylines under her belt, Dawson is no stranger to exploration and revels in the ability of Beijing to surprise her. “It’s a place that not only challenges me but also inspires me,” she said in an interview at JD headquarters in Beijing.

Her video, “Unexpected Beijing”, takes viewers on a journey of Beijing’s Hutongs, which have become home to Dawson in her over six years in the city. The video is part of a video competition called “100 Reasons to Love Beijing”, hosted by the Beijing municipal government. Dawson accepted a third place award for the video at a ceremony in Beijing’s Forbidden City Museum on May 14. Larry Lee, vice president of Global Corporate Affairs at JD.com and Cheng Jigong a vice president at Kuaishou adminstered the awards.

“I’m an expat in the city I call home,” explains Dawson in the video. “In that way, maybe it’s easy to keep looking, to keep collecting the reasons I stay,” she continues as the camera pans to her taking photos in the Hutongs.

Though Dawson is the protagonist of this story, it is emblematic of one of her favorite hobbies, using her own lens to capture the unexpected throughout Beijing. “Exploring the different parts of Beijing and the little nooks and crannies that you stumble across represents the way that I have discovered and fallen in love with Beijing over the course of my time here,” she said.

One of Dawson’s latest discoveries has taken her to Yizhuang, a rapidly developing area in the southeast of Beijing, and home to JD.com’s headquarters. In the video, she is seen walking with the JD headquarters building in the background before swiping her employee card as she enters the building. It’s a nod to another adventure she has undertaken since joining the company last year. Dawson has fully embraced the experience and the culture of the place, appreciating the camaraderie she has with colleagues. She welcomes the challenges offered by the new experience. “Since joining JD, I’ve learned so much and being in this environment has been both exciting and inspiring,” she said. “I’m still learning and exploring, and this has also become a major part of my experience here in Beijing.”

In the final shots of the video, Dawson is seen against a backdrop of traditional Chinese architecture as she explains: “What I love most about Beijing is that what you grow to love about it won’t be obvious right away. It’s up to you to figure out what that might be.”

 

(ella@jd.com)

JD Opens Small Home Appliance Warehouse in Its “Capital”

by Yuchuan Wang

JD Logistics officially opened a warehouse for small home appliances on May 11th in Cixi, Zhejiang province, which is known as the home appliances capital of China. The new warehouse, and JD’s existing large home appliances warehouse established in the city in 2019, will facilitate the growth of manufacturers in Cixi.

Cixi is one of three home appliances manufacturing bases in China, along with Qingdao, Shangdong province and Shunde, Guangdong province.

Through the warehouse, JD Logistics will provide manufacturers and merchants with integrated supply chain services including one-stop in and out bound warehousing, and fulfillment across China. JD also provides worry-free after-sales service to help merchants directly handle product returns, product detection and maintenance.

“The launch of the warehouse will enable us to provide comprehensive services for home appliances manufacturers and merchants in Cixi,” said a representative from JD Logistics. “We will be exploring warehousing solutions for both small and large items in the future and advance the experience for clients in the industry.”

Both of the warehouses in Cixi adopt the “warehouse-near-factory” model which locates warehouses near manufacturing clusters to greatly improve the efficiency of first mile logistics.

 

(yuchuan.wang@jd.com)

JDT Chief Economist Outlines Highlights and Challenges on China’s Census 2020

by Vivian Yang

In line with the release of China’s once-a-decade census, Dr. Jianguang Shen, chief economist of JD Technology published an article on FTChinese.com on May 12, in which he outlined two bright spots and two challenges reflected in the population’s structural changes.

Shen pointed out that accelerated urbanization process in the past 10 years, which has moved more than 100 million people from rural to urban areas, significantly boosted China’s productivity and economic growth. Building people-centric urban construction, public services and financial, fiscal and other kinds of support will be next priorities for policymakers.

The rise in the number of people achieving higher education, showed that “China’s human capital has improved notably”. At the same time, the ratio of females to males also narrowed, alleviating the worries about gender imbalances exhibited in the last census.

Shen noted that a rapidly aging society poses a big challenge to China’s economic development. The trend can be seen from the slight consumption ebb of baby and maternal products and the rise of healthcare products and services in recent years.

In face of the mounting pressure on state-run pension management, Shen suggested to accelerate the transfer of SOE profits to the social security fund and develop the third pillar of pension insurance to form a key supplement to China’s pension insurance system.

The regional imbalance of population movement is another attention-worthy issue. Broadly, the data showed population declines in central and northeast regions of the country, but increases in eastern coastal and western areas. Taking a holistic approach to allocate public resources among different regions will be important for the country to achieve overall balanced economic growth.

 

(vivian.yang@jd.com)

 

Report Shows Opportunities for China’s Pharmaceutical E-Commerce Development

by Vivian Yang

Fast delivery speed and comprehensive choices are two core advantages of pharmaceutical e-commerce that have prompted a large amount of people in China to habitually purchase medicines online, said the Report on China Pharmaceutical E-Commerce Industry Research 2021.

The report was released on May 11 in Beijing by China’s leading medical industry-focused media and research platform VCBeat Research, in collaboration with JD Health.

The combination of online and offline operations and the readiness of last-mile delivery services on the market enables pharmaceutical e-commerce to cover all kinds of cases for users whenever and wherever they need medicine. A survey in the report on medicine buyers showed that 46.6% of respondents will buy medicine only when they get sick. Going online to order medicine can quickly answer their urgent need.

At the same time, common medicines for family use and medicines for long-term use account for 25.4% and 25.9% of users’ online medicine purchases respectively. Together with the government’s loosening of prescription medicine sales via the Internet, pharmaceutical e-commerce is facing an enormous opportunity to expand its market size, providing comprehensive medical products at competitive prices to customers in China.

The report also highlighted the importance of medical service in advancing the industry to the next level. It found that more than 70% of surveyed users expressed willingness to pay for doctor consultation service online, with nearly 40% willing to pay a  higher price to access veteran experts.

The outbreak of COVID-19 gave a strong boost to the development of the industry, doubling its market size from RMB 100 billion yuan to 200 billion yuan over the past year. This presents enormous opportunities for pharmaceutical companies to embrace these online platforms and their digital marketing solutions as a critical channel to reach end-users, the report said.

“The report aims to showcase a comprehensive status of China’s pharmaceutical e-commerce industry development and analyze the innovation models it is incubating,” said Han Hao, senior researcher of VCBeat Research. “For JD Health, we have observed that the company’s development in many aspects ranging from full-category expansion, omni-channel operations to healthcare services and more, are all an active response to the changing needs of users in China.”

 

(vivian.yang@jd.com)

 

JD Upgrades Chatbot’s Functions for Merchants

by Ling Cao

JD Technology announced the upgrade of its smart customer service chabot’s functions for merchants on May 11, aiming to help them get through the 618 Grand Promotion season.

The new version includes system upgrades specifically tailored for merchants use, including a beta light version for SMEs, as well as a special plan for 618. The purpose of upgrading the system is to help merchants improve customer satisfaction by being able to handle the entire shopping process from pre-sales to after sales more effectively. This also contributes to improved ROI.

Intelligent services such as image recognition and automatic replies to logistics queries enhance the robot’s problem solving abilities.

The robot can also help merchants achieve efficient decision-making by providing insight into customers’ emotions based on its algorithm, knowledge analysis and semantic understanding.

As the first robot to apply emotional detection at scale, JD’s customer service robot has gained significant experience operating during JD’s promotions major such as 618 and Singles Day(Nov 11).The service has also been opened up to over 15,000 merchants. During the Singles Day Grand Promotion in 2020, the robot served 84.32 million queries operating for over 100,000 hours.

Dr. Xiaodong He, vice president of JD.com and the deputy managing director of JD AI Research shared, “If I had to summarize what we are doing in one sentence, we are using AI to help our client and their customer to feel closer.”

 

(ling.cao@jd.com)