Liu Qiangdong Wants To Take Three Or Four Towns And Jingdong To Buy Them As Pioneers.

Since the emergence of a lot of new businesses, the business segments have reappeared in the "burning camp". The traditional electric giant Jingdong, Ali, and Su Ning have launched their own business or products, and there are plans for drainage and income increase.

In fact, it is only a new term to count the purchase business.

The purchase is nothing more than a "low price and quantity sale" mode. This is the "farmers market" route. The three or four line small towns and the vertical villages and towns gather a lot of cheap high frequency fast food products, and the giants are packaged them into "new species" and sell them in wholesale mode.

But it is also undeniable that these low-end products not only solve the price sensitive users, but also save a lot of small manufacturers and small handicraftsmen who have been abandoned by Taobao.

The Jingdong's spelling and purchase business, which was born under this background, may be more for confrontations than ever before.

However, since the establishment of the Ministry of purchase and purchase business at the end of 2018, Jingdong platform endorsement has become another characteristic business of Jingdong.

Jingdong users cover the largest middle-income consumer group in China, mainly male users and a second tier city crowd. The female user group and the three or four tier and below urban users are weak. The purchase and purchase business just makes up for this shortcoming, and becomes a new engine for channel sinking.

In the face of the three or four line city electricity supplier bonus, can Jingdong buy and sell in Taobao, suning.com and many other new enemies?

Big business people do small social networking, Jingdong fight to buy to be aggressive.

Internet demographic dividend is fading away, and the mode of spelling and buying has become another weapon to break through.

The Jingdong upgraded its corporate structure in 2018 and set up a new sales department to enhance its strategic position.

By the end of 2018, the total number of Jingdong's retailers has reached 13.5, covering all retail categories.

Jingdong platform endorsement, as well as barriers to entry in the business gatekeeper, Jingdong collate and purchase accumulate thick and thin, and soon in the spice purchase electricity supplier "pure low price" strategy to kill the siege.

Jingdong bought and sold online in April 2018, relying on the six major wireless scenarios such as Jingdong APP (with the "9.9 yuan" first level entry), Jingdong WeChat shopping, Jingdong hand Q shopping, and the merger and purchase of small programs to dig deep one billion level traffic.

By the end of 2018, Jingdong set up a new division of purchasing and purchasing department, and started the recruitment of enterprises in January 2019.

The new business also follows three modes: self operated, individual businesses and enterprise businesses. Jingdong only charges 1% commission rate (home 5%) to attract businesses to enter.

Citic securities data show that in the second quarter of 2018, the proportion of Jingdong participating in the group business increased to 40% from 16% in the first quarter, and the volume of purchases and purchases increased to 10%, increasing rapidly.

618 during the activity period, the volume of Jingdong's purchase orders increased by nearly 24 times, the number of subscribers increased by 17 times, and the number of new users increased by 280%.

Jingdong's fourth quarter financial report has mentioned that as of the end of 2018, the total number of Jingdong retailers has reached 13.5, covering all retail categories.

Jingdong, which combines Jingdong's quality shopping genes and social genes, has become the leader of social business ecosystem.

Deep plowing three or four lines, Jingdong fight to buy female customers

The traffic dividend has vanished, and the growth rate of e-commerce users has slowed sharply or even negative growth. Jingdong is no exception. The latest data show that its annual active mobile users increased from 47 million in 2013 to 293 million in 2017, and CAGR was 58%.

Since 2018, the number of users has exceeded 300 million.

But the year-on-year growth rate has declined for 10 consecutive quarters since the 2016 second quarter. The 2018 quarter of third was the first to decline 2.7% to 305 million during the first quarter.

This data slowdown is also related to the long-term intensive cultivation of second tier cities, and the growth of users' dividends is almost at the end. Jingdong users cover the middle-income consumer groups in these cities, mainly male users and a second tier urban population.

The female user group and the three or four line and below urban users are weak, and the purchase and purchase business just makes up for this shortcoming, and the channel sink new engine.

According to the figures released by Jingdong in the same period, the user scale increased by 10 times during the year, and the first user increased by 26 times.

Xu Lei, CEO of Jingdong retail group, said that the merger and acquisition business played a very good role in the settlement of Jingdong's retail business to the lower tier cities, bringing users outside the mainstream market that Jingdong faced before.

At the same time, it is very helpful to explore the users and female users in the social ecology represented by the WeChat market.

In addition to continuing to invest and pay attention to the purchase and marketing of WeChat, Xu Lei said that the platform will focus on creating more suitable capabilities for the purchase and supply chain of WeChat, and will carry out the development and promotion of APP corresponding to the purchase and purchase.

Regarding the new user expansion that the market is concerned about, Xu Lei said that Jingdong will continue to enrich marketing scenes in 2019, including WeChat, offline and community, and increase the contact point with new users.

Expanding the three or four line market is an important goal of Jingdong group this year. It is also destined to fight with the leader of this field.

What is the potential of Jingdong?

Jingdong's spelling and purchase business is still in its infancy, and the total volume of business is still not large.

The financial company has interviewed Jingdong group on its purchase business, and has not received specific details about the purchase.

However, according to the fourth quarter earnings report released by Jingdong, its total merchandise trade (GMV) was 514 billion 400 million yuan, 403 billion 400 million yuan in the same period last year, an increase of 27.5% over the same period last year, and the growth rate was stable.

In the 2018 and fourth quarter, 205 billion 600 million GMV grew by 161%, even though the volume was only 40% of the Jingdong. However, the rapid growth was also caused by an unsatisfactory macroeconomic environment.

But the Jingdong's imagination lies in cross selling of products, such as converting the low price customers pulled by the purchase to the typical customers of the mall, so as to improve the retention rate and the unit price.

In the short term, the merger and acquisition business is a technology that the Jingdong makes a lot of defenses against the enemy. Although they all rely on Tencent, Jingdong seems to have been wrong.

However, in pursuit of low cost, it is also hard to escape the fate of people who criticized Taobao's fake products, selling fake products, selling defective products and other negative news, making them miserable and even affecting the market value.

The Jingdong adopts the strategy of "low price and high quality" to avoid this "stumbling block". However, only the low price is eternal in the group of five hundred and sixty eight lines. It is necessary to make efforts to maintain "high quality".

On the whole, Jingdong is a rising star, but with its own reputation, quality control, service and supply chain advantages, plus the support of WeChat's entry, and the next series of resource tilt policies, Jingdong will fight to buy more and more.

On the contrary, a lot of risks are many, while dealing with all kinds of negative news, and coping with the interception of giants, it is more important to establish a perfect supply chain system, and the operation system needs more efforts.