DIpil Das
In April, the Coresight Research team joined JD.com in Beijing for a tour of its logistics prowess and to see first-hand some of JD’s most recent developments.
1. JD Robots Rocking Last-Mile Delivery
JD has tested self-driving delivery robots on open roads and recently upgraded their capacity from carrying only six parcels within a limited distance to carrying up to 30 parcels as far as 30 miles.
[caption id="attachment_87482" align="aligncenter" width="720"]
Traditional last-mile delivery and delivery robots by JD
Source: Coresight Research [/caption] The new robots have a navigation system, and image and data processing capabilities: They can see traffic lights, detect and avoid obstacles and adjust speed. When a robot arrives at the delivery location, it sends a voice and text message to the recipient, then waits 15 minutes for the person to pick up the delivery. Customers can use either a code they get with the text message or facial recognition to open the lock and access the package. If the package is not picked up in 15 minutes, the robot returns the next day. JD expects 5G cellular technology to enhance the robot’s abilities once it is available. 2. Drones Could Bring E-Commerce to Remote Areas JD claims to be the first company in the world to test drone delivery on a large scale. For example, in Shaanxi province, JD’s low-altitude drone logistics network spans a 300-kilometer radius that includes hundreds of routes across the province. JD has developed seven types of last-mile delivery drones, including heavy-load drones that can carry more than a ton. Over 500 million people live in China’s rural areas, meaning nearly half the population is underserved by e-commerce. JD’s drone program is designed to bring the JD online marketplace to people living in remote communities. [caption id="attachment_87483" align="aligncenter" width="720"]
JD drone delivering a parcel
Source: JD [/caption] 3. White-Glove Service Delivers a Premium Experience Using eco-friendly electric cars, JD Toplife’s white-glove service features specially-trained delivery personnel (actually wearing white gloves) who will wait for the customer to try out the product and handle returns on the spot if the customer is not happy with it. [caption id="attachment_87484" align="aligncenter" width="720"]
JD Toplife white-glove delivery
Source: Coresight Research [/caption] In February 2019, JD announced that Toplife, its luxury shopping platform, will merge with Farfetch China, strengthening the partnership between the two companies. (In 2017, JD.com became one of Farfetch’s largest stakeholders, investing $397 million and adding its founder and CEO, Richard Liu, to Farfetch’s advisory board.) JD has worked to create a “premier luxury gateway to China” for luxury brands.
Traditional last-mile delivery and delivery robots by JD Source: Coresight Research [/caption] The new robots have a navigation system, and image and data processing capabilities: They can see traffic lights, detect and avoid obstacles and adjust speed. When a robot arrives at the delivery location, it sends a voice and text message to the recipient, then waits 15 minutes for the person to pick up the delivery. Customers can use either a code they get with the text message or facial recognition to open the lock and access the package. If the package is not picked up in 15 minutes, the robot returns the next day. JD expects 5G cellular technology to enhance the robot’s abilities once it is available. 2. Drones Could Bring E-Commerce to Remote Areas JD claims to be the first company in the world to test drone delivery on a large scale. For example, in Shaanxi province, JD’s low-altitude drone logistics network spans a 300-kilometer radius that includes hundreds of routes across the province. JD has developed seven types of last-mile delivery drones, including heavy-load drones that can carry more than a ton. Over 500 million people live in China’s rural areas, meaning nearly half the population is underserved by e-commerce. JD’s drone program is designed to bring the JD online marketplace to people living in remote communities. [caption id="attachment_87483" align="aligncenter" width="720"]
JD drone delivering a parcel Source: JD [/caption] 3. White-Glove Service Delivers a Premium Experience Using eco-friendly electric cars, JD Toplife’s white-glove service features specially-trained delivery personnel (actually wearing white gloves) who will wait for the customer to try out the product and handle returns on the spot if the customer is not happy with it. [caption id="attachment_87484" align="aligncenter" width="720"]
JD Toplife white-glove delivery Source: Coresight Research [/caption] In February 2019, JD announced that Toplife, its luxury shopping platform, will merge with Farfetch China, strengthening the partnership between the two companies. (In 2017, JD.com became one of Farfetch’s largest stakeholders, investing $397 million and adding its founder and CEO, Richard Liu, to Farfetch’s advisory board.) JD has worked to create a “premier luxury gateway to China” for luxury brands.