Oct 29, 2020|
Trip.com and JD.com Join Hands in Promoting Domestic Travel
by Kelly Dawson and Vivian Yang
Despite a significant impact to domestic tourism under COVID-19 in the first half of 2020, travel in China has steadily gained momentum in recent months.
To capitalize on that momentum and improve the user experience for consumers who are increasingly turning to online channels to book flights, hotels and vacation activities, JD.com announced in August that it has partnered with leading travel services provider Trip.com to integrate the two platforms.
In a continuation of that partnership, JD Retail CEO Lei Xu and Trip.com’s co-founder and Chairman Liang Jianzhang hosted a joint live-streaming event for Trip.com’s 21st anniversary on October 28th. It was the first time the two companies co-hosted a livestream, and also the first time Xu joined a livestreamed event for travel products.
Over 5.7 million people wathced the livestream during its peak time. Data showed that the sales of hotels on JD Travel on the day increased by 776% compared with the same period last year.
To entertain the audience during the livestream, Liang cosplayed the Monk Tang (唐僧), a leading character in China’s classic novel “Journey to the West”, who Liang referred to as a symbol of the most experienced traveler. In response, Xu chose another famous character in the same novel, High Lord (太上老君), who always held a fan in his hand.
“As we all know, the tourism industry was one of the most hard-hit businesses in the first half of the year,” Xu said. “I’m here today to fan the flames for the sales of Ctrip’s travel products.”
Liang replied with compliments for the e-commerce platform. “JD provides the most trusted products and supreme delivery services,” he said. “Our company and I always buy things on JD, especially expensive products.”
During the livestreaming event, Xu and Liang shared personal anecdotes about their own travels and shopping experiences on each other’s platforms over the years, lending a touch of intimacy to the festivities.
Spontaneous “red envelope” gifts were also announced, pocketed by a few lucky viewers.
Through the Singles Day promotion period, JD will continue to offer huge discounts with a one-stop preferential chain covering the front and back ends of airfare, hotel accommodations, tickets for parks and other entertainment events, and more.
Announced in August, the partnership between JD and Trip.com aims to help the two companies leverage each other’s resources in five areas, namely user flow, channel resources, cross-border marketing, business travel development and e-commerce cooperation.
More specifically, Trip.com has integrated its core product supply chain into JD.com, providing the company with real-time product inventory and highly competitive prices. In return, JD.com has opened its platform’s user traffic to Trip.com, providing all-around support in terms of daily operation and more precise-marketing based on user profiles.
For consumers, the benefits are obvious: a more fully integrated ecosystem of duty free, hotel and service industries and impressive deals. For example, when China relaxed travel restrictions to Macau earlier this autumn, JD and Trip.com launched a promotion that saw prices slashed at top hotels including the Marriott, MGM and more.
Consumers can expect the cooperation between JD and Trip.com to yield more deals in the coming months.
(kellydawson@jd.com, vivian.yang@jd.com)
Sep 27, 2024|
Leveraging AI to Drive Innovation, Reduce Costs, and Create Jobs: Insights from JD.com’s Chief Economist
At the 2024 FORTUNE Global 500 Summit in Guangzhou on September 26th, Dr. Shen Jianguang, Chief Economist of JD.com, shared how the company utilizes AI to transform its operations across retail, logistics, and more, while driving significant workforce expansion. “By integrating advanced technologies throughout our business, JD.com has more than tripled its workforce in the past six years from 180,000 to 620,000, all while increasing salaries,” Dr. Shen explained during the panel discussion titled “‘Changes and Opportunities’—Chief Economists’ Perspectives.”
AI tools have enabled JD.com to boost efficiency and elevate the customer experience. For example, JD’s AI-driven digital human livestream hosts have helped over 5,000 brands increase off-peak hours’ sales conversion rates by 30%. Additionally, AI-powered customer service representatives offer more personalized support, and logistics couriers use AI to deliver packages faster and with greater sustainability.
JD.com’s customer service representatives
“The competition in China is so fierce, and that’s what drives innovation—you have to innovate to survive,” said Dr. Shen, underscoring the role of innovation in reducing costs and increasing productivity. This is especially crucial in China’s e-commerce landscape, where consumers are becoming more price-conscious. “Consumers are looking for the ‘extreme quality-to-price ratio,’ meaning they want high-quality products at lower prices,” he added. At the same time, Dr. Shen noted a growing trend in rural and lower-tier markets, where significant growth opportunities are emerging.
Dr. Shen also discussed China’s recent economic stimulus packages. “Policy initiatives are important. When people perceive a shift in policy, the market responds,” he said, referring to the government’s subsidies for home appliance trade-ins introduced earlier this year. This program has stimulated demand for affordable, high-quality products, as reflected in the increased sales of subsidized items.
Guangzhou, the host city for the summit, launched a new round of consumer goods trade-in subsidies on September 1st, positioning online platforms like JD.com as essential providers of seamless trade-in services. Over 800 home appliance brands have partnered with JD.com in Guangzhou, offering more than 8,500 products. Additionally, JD.com is working with its brand partners on a Customer-to-Manufacturer (C2M) model, leveraging consumer insights to drive innovation for more tailored products.
JD.com provides one-stop trade-in services for home appliances and home goods
The panel discussion featured Dr. Shen alongside Minggao Shen, Global Chief Economist at GF Securities, and Robin Xing, Chief China Economist at Morgan Stanley, with FORTUNE Editor-in-Chief Alyson Shontell moderating. The panelists agreed that while AI is still in its early stages, its potential is vast. With China’s stimulus policies and a functioning capital market, the private sector is well-positioned to unlock considerable industrial and social value.
JD.com ranked #47 on the 2024 Fortune Global 500, moving up five spots from the previous year. Guided by its mission to “Make Lives Better through Technology,” the company remains committed to cost management, operational efficiency, and enhancing user experiences, while continuing to invest in employee development and upskilling to foster both business growth and workforce advancement.
(vivian.yang@jd.com)
Apr 1, 2024|
JD Chief Economist: Tech-Driven Supply Chain Revolutionizes Gen-Z Consumer Engagement in China
At the inaugural FORTUNE Innovation Forum in Hong Kong on March 28th, Dr. Jianguang Shen, chief economist of JD.com, highlighted the transformative impact of tech-driven supply chain solutions in meeting the dynamic needs of Gen-Z consumers in China.
“Gen-Z consumers are very discerning and pragmatic,” said Dr. Shen. “They don’t care if the brand is local or global.” Dr. Shen began by discussing the increasing sophistication of younger Chinese consumers. “The rising popularity of local products can be attributed to China’s supply-side reform, which has enabled brands to provide lower-cost products with higher quality,” he said. Shen also emphasized the strategic advantage that brands can achieve by leveraging advanced digital supply chains, which offer deep insights into consumer behavior, thereby tapping into substantial market opportunities.
Joining Dr. Shen were industry leaders including Angela Wei Dong, Global Vice President China at Nike; Pontus Erntell, President and Chief Sustainability Officer at IKEA China; and Doreen Wang, CEO of Kantar China and Global Head of BrandZ. Together, they shed light on the shifting preferences of China’s youth towards quality, sustainability, and enhanced social engagement in their retail experiences, especially amid economic headwinds, prompting brands to adapt swiftly.
Drawing examples from JD.com’s platform, Dr. Shen discussed the rising popularity of eco-friendly mini refrigerators among Gen-Z consumers. These products, aligning with Gen Z’s penchant for tech-savvy and environmentally conscious offerings, underscore the necessity for brands to evolve and align with consumer preferences.
Furthermore, Dr. Shen discussed the positive impact of a new government policy encouraging trade-in of consumer goods, which is expected to boost consumption. Leveraging JD.com’s robust supply chain capabilities, customers not only can easily trade in old appliances for more modern and eco-friendly goods but also benefit from a suite of JD’s attentive services such as doorstep pickup, installation, and recycling.
The conversation also touched upon the strategic collaborations under the Consumer-to-Manufacturer (C2M) model between JD.com and numerous brands, aiming to streamline the journey from product ideation to distribution. This collaboration has welcomed over 4,000 brands to JD.com’s C2M platform, drastically reducing product research and market introduction times by 80% and 70%, respectively, thereby fostering a mutually beneficial ecosystem for brands, retailers, and consumers.
Dr. Shen concluded by emphasizing JD.com’s commitment to technological innovation, with its deployment of AI-driven chatbot customer service, highly automated warehouses, autonomous delivery vehicles, and integrated retail solutions that bridge both online and offline domains. These innovations are designed to meet the dynamic preferences of consumers, enhancing the overall shopping experience and setting a new standard in consumer engagement.
C2M: JD’s Data to Change China’s Manufacturing Industry
