Apr 26, 2021|

WRC Connected 2021: Proximity Advantages will Drive Even Faster Delivery Speeds


by Ella Kidron

Chinese consumers can expect even faster delivery speeds in the future thanks to proximity advantages. Mr. Chenkai Ling, Vice President of JD.com, and Head of Strategy, JD Retail, shared his views on this during the World Retail Congress’ WRC Connected 2021 virtual event on Apr. 26. The discussion was moderated by Benjamin Zheng, lead partner of global strategy consulting firm EY-Parthenon.

“With the booming of e-commerce, especially after JD joined this domain, I think in China delivery speed already reached a very high standard,” said Ling, referring to the fact that nationwide same-day and next day delivery has become standard in the country. “But with the expansion into more categories of e-commerce, especially FMCG and fresh products, and also during this pandemic period, consumers’ demand for quicker fulfillment has become more and more apparent.” Combining the technology and retail expertise of retailers like with the proximity advantages of brick and mortar stores can enable faster delivery speeds than before.

“To put it into perspective, previously when a new product launched, for example a cellphone, we would work together with a brand to anticipate sales and then store these products into our warehouses closest to the consumer,” said Ling.

Right now with an advanced on-demand fulfillment network, we can help equip those brick and mortar stores that are closest to the customer with some capabilities so that they can act as an extension of our fulfillment network, which means fewer miles traveled, lower costs and faster speeds than before,” he added. JD has already achieved delivery within 30 minutes in several categories and the company expanding the service to more categories.

In March, JD announced an equity investment in Dada Group, China’s leading local on-demand delivery and retail platform of US$800 million in newly issued ordinary shares of Dada, which is also JD’s long-term partner in on-demand. “With that investment, both of us will facilitate and promote an expansion of the -demand fulfillment delivery, which can better suit the needs of Chinese consumers’ higher demands on delivery speed,” shared Ling.

Watch the whole session by registering for Retail Connected 2021 here.



Chenkai Ling, JD.com speaks with Benjamin Zheng, EY at Retail Connected 2021