Jingdong Explore The Market In Its Own Way

2018, the Jingdong is doomed to be unforgettable; in 2019, it was destined for a comprehensive expansion of Jingdong.

In 2018, Jingdong experienced a nearly year-round share price, active users and GMV growth rate, and still handed out a satisfactory annual earnings report.

The total annual spanaction volume of Jingdong in 2018 (GMV) was nearly 1 trillion and 700 billion yuan, an increase of 30% over the same period last year. Net income was 462 billion yuan, an increase of 27.5% over the same period last year, and the number of active users reached 305 million 300 thousand.

Jingdong's 2018 earnings report, behind these figures, we noticed that Jingdong, a traditional electricity supplier, seems to be particularly interested in new business models in recent years, especially in community retail.

Jingdong convenience store, community group purchase, Jingdong new access...... Jingdong is trying to sink to the last mile of consumers in its own way.

From the purchase to the community group purchase, Jingdong's "near field consumer war"

In the past year, Jingdong has been hard pressed by Ali and many spells.

On the one hand, Ali has made brilliant achievements in new retail business, and the "88VIP" membership system has joined almost all the core services of Alibaba, running through the new retail ecology of Ali. The box horse has been leading in the competition of new species; the retail sale of intelligent distribution business has covered over 100 000 stores by the end of 2018, and GMV has increased 3 times compared with that of last year.

On the other hand, the number of active users and market capitalization (short term volatility) both surpasses Jingdong, and the topic of social networking and community buying has been heated up so far.

For Jingdong, which is experiencing growth bottlenecks, sunk seems to be the most appropriate option. Jingdong's exclusive purchase is seen as a measure of blocking many collages.

And the gameplay of social networking providers has really played its own power. According to official data, in the past Jingdong 618 global Mid Year Shopping Festival, the total number of new Jingdong users increased by more than 3 times over the same period.

At the same time, during the 618 Jingdong period, the number of users who subscribe to the 3-6 tier cities in the Jingdong market grew by 106% over the same period. The number of orders for the purchase of Jingdong's small orders increased by 51 times compared with that of the previous year. The number of social games played by over 10000 fields increased by 40 times compared with that of the previous year, and the share of fission traffic accounted for over 75%, and the fission fold was as high as 23 times.

It is based on the sunken market business and traffic gain brought about by Jingdong as a whole. In December 2018, it was listed as an independent business department in the adjustment of organizational structure.

But this is far from enough. With the continuous sinking of the mobile Internet, the information asymmetry is broken, and the flow advantage of social business is gradually narrowing. Even if we fight a lot, we are faced with the situation of increasing sales costs and continuing losses.

In the exploration of sunken market and different channel scenes such as WeChat and line, Jingdong also needs some new and better means.

Community group buying is naturally not lost by Jingdong. In November 14, 2018, the on-line program of "friends shop" was regarded as a move by Jingdong to enter community group buying.

But in fact, the admission of Jingdong is earlier. In July 10, 2018, Jingdong's community group buying small program "Jingdong neighborhood group" went on line and renamed "Cricket purchase" a month later.

Relative to the shops with a high degree of concern, cricket shopping is very low-key, and it is difficult to find any information in public channels. But no matter from its main information as "Jiangsu Jingdong Information Technology Co., Ltd." or the service provider as "Beijing Jingdong Century Trading Co., Ltd.", there is no doubt that cricket purchase is more "straight" and "orthodox" than other shops.

The business property of friends shop is more extensive, and it can be divided into two main columns: "community group" and "community store". Among them, the "community group" is mainly based on the store manager, and is divided into self introduction "special benefit group" and "family City spelling".

The "community store" is consistent with the previous page of the old friends' shop, with the mode of "buy together", "spike", "fold up" and "exploding product recommendation" to get through with other small businesses in Jingdong mall.

The purchase of crickets in the form of business is very simple, with the head of the group as the main body, the selection of goods rush to buy, the door to carry out the form of business, the sale of goods for Jingdong platform products, but did not lead to Jingdong mall jump.

As the two parallel projects under the "horse racing mechanism", the volume of cricket purchase and friends shop is very limited. According to the small program, the sales volume of the "ex gratia group" single product is mostly within 300 pieces, while the sales volume of most products is zero. As for cricket purchase, news shows that the project is almost at a halt.

Linked to the recent June 17th, Jingdong departments and a number of national community platform intensive contacts, and has launched some cooperation, around Jingdong supply chain in the supply of commodities, big data selection products, brand Marketing, warehousing, logistics and other four aspects, the community oriented industry to provide information about family scenes (kitchen, living room, toilet and bedroom) related products, for Jingdong's personal entry into the community group purchase of two projects are also understandable.

Do you want to be a water bearer or a gold digger? Does Jingdong think well?

For the business beyond Jingdong mall, Jingdong seems to be better at opening up its supply chain capabilities than in itself, especially in retail sales.

Community group buying business is a good example. For community group purchase platform, head management and offline operation capability are the most important. Commodity and supply chain are equally critical, but in the early stage of horse race enclosure, the passing ability and excellence of supply chain capability will not cause the difference between heaven and earth, or even be handled by the professional third party.

This is an opportunity for Jingdong to link supply to community group buying business. It is also the crux of Jingdong's own difficulty in buying community group buying. Eventually, Jingdong can only output B to the near field consumption scenes, and can cut to small B but not directly to consumers.

For example, in February 25th, the new brand "whale shark" launched by Jingdong logistics and Shaxian County snacks was simply exported through the cold chain logistics capability and paved the way for the close consumption of Shaxian County snacks.

Community group buying is the case, so is Jingdong convenience store.

After shouting out the slogan of "5 years and one hundred stores", Jingdong convenience store ushered in a "closed shop tide" after the rapid expansion. The Jingdong convenience store, which is launched in the franchise mode, can be listed on a minimum deposit of 5000 yuan, relying on the capacity of the commodity supply chain and the output of Jingdong brand. In 2017, the number of Jingdong convenience stores was 45 000.

For the Jingdong convenience store, the shopkeepers attach importance to the brand effect and purchase channels of Jingdong. The brand names pay attention to the distribution channels and capabilities of Jingdong throughout the country, but for consumers, there are not many notable points for the convenience stores.

The advantages of commodity types and prices are not obvious, and loose affiliate relations make a large part of Jingdong convenience stores become simple brand spanactions. In order to avoid the brand effect of overdraft in advance, the best way is to slow down the pace and shift the core from the convenience store itself to its back end supply chain capability output, that is, the shift from Jingdong convenience store to Jingdong new channel.

For consumers, Jingdong is still the Jingdong mall, which is a spear, but also a shield. The lack of direct access to C terminals outside Jingdong mall may be one of the biggest challenges for Jingdong to explore community retail.

But such an exploration can not be stopped. For the Jingdong that started with 3C digital as the core competitive advantage, in the past, the brand image created by logistics capability, after sale service and genuine guarantee ensured that Jingdong's ability in a second tier city was definitely greater than that in the sinking market.

Today, the sunken market has become a competitive place for e-commerce. Shopping experience and performance price ratio are more people than the quality of paying. In this regard, Jingdong is obviously not enough.

Relying on the ability of ToB to cut down the market and make the water supply people on the Golden Road, it should be easier for Jingdong. But then, it is necessary to give up a possible big dream - the sinking market, whether there is a chance to rebuild a Jingdong?

Jingdong is facing choices.