1: Richard Liu founded JD Multimedia in 1998 as a small offline electronics store. Today, JD.com is the world’s third largest online retailer. JD.com is one of China’s largest online retailers, competing alongside Alibaba. Liu saw a need for selling products online in China during the SARS virus outbreak in 2003. After he moved his business online he began to build up the company’s logistics and managed the supply chain process to create a seamless delivery experience for customers. He began offering a much broader product range which established the online market presence JD.com has today.
The vision of JD.com is to become the most trusted company in the world. The company’s six core values are:
customer first, integrity, collaboration, gratitude, all in, and ownership. JD.com stands behind its products and commits to having quality and authentic products. It has a strict “zero tolerance” policy regarding counterfeit products, and the company promises to permanently ban any merchant that is found selling counterfeits. “The company’s business model is designed to stop counterfeits, both through the direct sales model, where JD.com has total control over the supply chain, and through a marketplace model where the number of sellers is limited to help facilitate strong oversight.”
The company sources its products directly from worldleading global brands and ensures that the credibility of the merchants providing the goods is up to company standards.
JD.com’s commitment to quality and authenticity of products is also accomplished through its technology and innovation focus in making the business processes efficient and reliable. The company is able to provide fresh food, apparel, cosmetics, and technology products to more than 1 billion people while fulfilling the promise of same- and next-day delivery. JD.com relies heavily on cutting edge technology and automation to implement its vision and goals. JD.com incorporates big data, cloud computing, robotics, drones, and more to give consumers the best retail experience possible. Its use of technology provides consumers a boundaryless shopping experience. For example, its customer service chat bar is able to detect even the slightest human emotion, offering real-time feedback with less frustration. This chat bar allows customers to be better taken care of and to feel more valued. It creates a natural and efficient interaction with the customer, providing a more pleasant experience. The chat bar uses deep learning and transfer learning technologies to give appropriate responses to the consumer. Another feature the company has incorporated is SnapShop, a consulting tool using artificial intelligence (AI). SnapShop allows customers to upload photos of products to the website and analyzes the photos giving customers personalized recommendations based on taste, type, and other qualities. It allows customers to more quickly locate the specific product they need and also learn about new trends and products the technology recommends.
JD.com understands that a large factor in building the trust of online consumers comes from a customer’s desire to know the origin of their products. Because of this, JD.com has incorporated blockchain technology to provide transparency in its supply chain. This technology provides customers visibility into the supply chain of the products: where they came from, how ingredients are sourced, handled, stored, and transported. JD.com believes the traceability of blockchain will significantly change the level of trust consumers have. The JD Blockchain Open Platform also has streamlined the accounting process by establishing a traceable system for invoices and documents through applications the company has launched. It provides partners of JD.com with blockchain capabilities without having to create their own platforms.
Robotics and automation play a significant role in the fulfillment process in JD.com warehouses and delivery stations.
Its delivery drones, autonomous delivery vehicles, and fully automated warehouses allow JD.com to execute its same- or next-day delivery promise. Incorporation of drones and autonomous vehicles is vastly changing the ability to efficiently deliver products to consumers while preserving the value of the products it is handling. JD.com aims to lead the pack with its omnichannel retailing strategy. For example, consumers can find authentic car parts online and receive auto services in-store through JD.com’s network of offline stores. With more than 30,000 authorized offline stores, JD.com has an extensive network offering quality products and service across all channels. The company announced its intention to expand its offline market further, opening many thousands of stores across China. However, due to its extensive distribution network and low reliance on physical stores, JD.com was well-prepared for the COVID-19 (coronavirus) pandemic.
JD.com has a mission to share its processes to online retailers worldwide. The company shares its technology and infrastructure with a variety of its partners as their “Retail as a Service” initiative. JD.com has a vision to change the future of global commerce and wants to enable other retailers to accomplish the same. The company works to share its big data technology discoveries with partners, hoping to increase efficiency and innovation across many industries globally.

Questions for Discussion

1. In what ways does JD.com benefit from sharing its technology and infrastructure with its partners?
2. Describe how JD.com can measure the success of its AI-based Snap Shop tool.
3. Why is it important for JD.com to have an omnichannel retailing strategy?