JD is a Chinese e-commerce company founded in Beijing in 1998 by Richard Liu Qiangdong. The company started as an online bookstore and was initially named “Jingdong Bookstore.” After several years of continuous growth, in 2003, Jingdong diversified into the consumer electronics business by selling personal computers through the website. The company purchased over 10,000 PCs through JD.com and sold them in China as part of this expansion.
Appealing to the needs of older people, the company had established a range of products, including diapers and baby foods, beginning as early as 2002 when it began selling baby food. Today, the company offers over 1,000 products and services in more than ten categories, including home goods and electronics. The company has launched a product that allows customers to win JD products and cash prizes. It is an international collaboration that provides people with the latest information on JD’s promotion, product quality, honesty, and other household shopping.
JD618 grand promotion is put on each year and is conducted through Jingdong’s online shopping site JD.com. JD618 is a combination of the year (2016), month (6), and day (18) of the promotion. The promotion has two main goals. The first is to make the customer aware of Jingdong’s website focusing on its products and services. The second goal is to improve the company’s reputation by driving customer loyalty and increasing revenue. The 618 grand promotion has unique features that allow the customer to win cash prizes by participating in many different activities. One of these activities includes joining JD’s membership system online. Another activity includes shopping online and earning JD points to spend on future online purchases.
The main part of the 618 grand promotion is the JD lottery held since 2006. This year’s prize pool is 100 million yuan (approximately $14.3 million) and will be shared between those participating in the promotion. People who become JD members can enter a lottery, the first draw on December 15. The first prize is 10,000 yuan ($1,451) and the second prize is 5,000 yuan ($766).
Over the past years, the group has gradually modified its entity structure to produce intellectual property rights (IPR) for itself and create favorable operating conditions for all investors worldwide. In 2017, it took legal measures to help JD.com operate internationally through subsidiaries and invest overseas through strategic partners.
The company has set up many overseas R&D centers, sales offices, and factories in various countries, including the United States, Canada, India, France, Italy, and other countries. The primary purpose of setting up overseas factories is to produce products for sale in foreign markets and reduce production costs. Besides that, the company occasionally shuts down these overseas factories for adjustment or upgrading. Furthermore, it is a good way for the company to bring some of its products to international markets gradually.
Moreover, the company is focusing on cutting-edge technologies such as blockchain and AI to facilitate its operation strategy to integrate online and offline businesses, which will help it to build a futuristic business model. Last year, the company agreed with various manufacturers in China to use blockchain technology to eliminate fraud in the supply chain and improve its service quality.
Over the past three years, the company has been actively exploring overseas investment opportunities, partnering with international companies and local enterprises to jointly build a global supply chain logistics ecosystem and realize the total value of data and logistics. By leveraging their strengths in industry resources, network, and logistics expertise, industry partnerships will be laid on one platform, providing a new business model for developing cross-border e-commerce in overseas markets.