Jingdong O2O Focuses On Retail And Logistics Remains Core

　　 Keywords: logistics as the core

Since the end of 2013, Jingdong CEO Liu Qiangdong announced that O2O will become one of the five major strategies in 2014. Jingdong's first O2O director is Hou Yi. His other identity is Jingdong Chief Logistics Planner. It shows that O2O has natural logistics genes from the beginning. Hou Yi's O2O projects include: Jingdong cooperation with Tang Long convenience store at the end of 2013, O2O in March 2014, Jingdong holding tens of thousands of convenience stores, &ERP suppliers to build retail O2O, and Jingdong and Zi Zi Island cooperation in April 2014 to create fresh O2O. The specific operation modes of the three projects are online traffic + logistics distribution + information technology.

Previously, Jingdong CEO Liu Qiangdong has made clear in the media interview that Jingdong O2O will focus on Logistics: "our O2O projects are all about our logistics, and we just want to refine them. We have done loose in the past ten years in terms of category expansion and category management, but in the future, each of them will refine management." Liu Qiangdong further cited the example: "when we buy the vinegar and oil after the grid, when we buy a bottle of water, we will find the nearest water from your home. It is possible that in WAL-MART, it is possible to be in 7-11, where is the nearest water to you. We send instructions to our distribution staff in real time so that our distribution staff can go there to get a bottle of water to where to go, this is the O2O project".

At Jingdong's September 2014 conference, Jingdong CMO LAN ye also said that Jingdong would focus on the core logistics advantages to launch O2O. Obviously, the O2O strategy of Jingdong has been consistent from the beginning to the present. In July 2014, Jingdong vice president Deng Tianzhuo took over O2O business, O2O has improved at the strategic level of Jingdong, and more games are expected to appear. However, the overall development of O2O will still not change around logistics.

　　 Keywords two: focus Retail area

Jingdong started with 3C digital and focused on Retailing in the long run. After the platform traffic reached a good level, Jingdong began to absorb other categories through the open platform, and began to expand in the category of O2O. In February 2012, Jingdong travel channel was launched; in the same period of the first half of 2012, group buying websites such as full net, tick group, and pull hand net entered Jingdong platform. Both the travel products and the main categories of catering and movie tickets of the major group buying websites are non retail areas.

But Jingdong's attempt at service class O2O was not successful. The group buying website died a lot after 2013. The remaining few could not support Jingdong's group buying O2O platform, and Jingdong's travel channel also lost its voice for a long time, until it was reinstalled in June 2014.

It was not until 2013 that the concept of O2O rapidly expanded to physical retail. Jingdong really began to test the water O2O strategy. In May 2013, Jingdong and Lenovo signed a joint service docking and started to take the prototype of O2O in the field of 3C. In that month, Yan Xiaobing, vice president of Jingdong, told the media that Jingdong will try O2O in the field of home appliances. The specific method is to integrate terminal stores in the three or four and five tier markets, collect online orders on the line, and launch the O2O under the way of cooperative distribution.

And from the end of 2013 to now, JD.COM O2O's focus is on the retail sector, including the category of business super, raw materials, clothing and so on. Within the Jingdong, the O2O line is divided into categories according to the category. The main task is to expand the retail category of non Jingdong self-employed through online and offline integration. The community O2O product "Jingdong quick" launched in September 2014 also gathered in six retail categories: dairy products, fresh fruits and vegetables, snacks, drinks, rice flour, Cereals, Oils and care products. Jingdong on the service category O2O, it is called the layout is to take the takeaway O2O company to the food fair.

　　 Keywords three: target Reduce the middle layer

Liu Qiangdong once said that 5-7 years later, 60% of the Jingdong mall will be delivered directly from the factory gate to the home. By reducing the middle layer to solve the problem of low efficiency in the supply chain, the characteristics of O2O's intermediation coincide with Liu Qiangdong's idea. Hou Yi, head of Jingdong O2O, said privately that Jingdong hopes to bypass the middle tier as far as possible by O2O, and directly link the origin with consumers.

Prior to the cooperation between Jingdong and Zhang Zi Island, in September 2014, cooperation with Yangcheng Lake hairy crabs was a direct docking of origin products with consumers. Obviously, with the increasing size and scale of Jingdong users, Jingdong, whose negotiating capability is improving, is moving towards the upstream of the supply chain. Compared with retailers and agents, Jingdong is more inclined to cooperate with brands in O2O.