01. The buyer laughed, and the merchant earned
"Some products are not only 5% off, plus the full discount is really fragrant!" This year, 618 Wang Si sighed while placing an order for more than 600 yuan of goods on Jingdong. After using the full discount coupon and superimposing various discounts, Wang Si was quite satisfied with this shopping experience. She has bought more than 20 goods, with the highest unit price not exceeding 100 yuan and the lowest being only a few yuan. Among them, there are many beauty brands such as Fuerjia, Osman, and Florence.
This year's 618, in addition to various discounts, as well as full discount coupons, Jingdong has also launched a half-year lowest price strategy: as long as the price of the product during the 618 period is lower than the lowest price in the past 180 days, it will automatically participate in the "half-year lowest price" activity.
Wang Si bought two 60g Florance facial cleansers in Jingdong's self-operated store, which were labeled as "the lowest price in history in 200 days". She is a regular customer of this beauty and skincare brand. In the past few years, Wang Si spent 99 yuan on the cheapest facial cleanser of the same specification on other e-commerce platforms. This time on Jingdong 618, she picked up a big bargain and finally bought it at a price of 81 yuan.
What made Wang Si happy was that when the amount of goods she purchased reached a certain amount, she saw some cost-effective redemption products appearing, such as Blue Moon Hand Sanitizer, Heart-to-Heart Printing Paper Towel, Arden Gold Gel Essence, etc. The trade-in prices for these items are quite attractive, take two 500g bottles of Blue Moon hand sanitizer as an example. The daily price is 23.9 yuan, the Jingdong 618 activity price is 17.5 yuan, and the exchange price is only 11.9 yuan.
Wang Si's heart was moved. She carefully selected and bought the necessities of daily life, such as hand sanitizer and paper towels. The next day after placing an order, JD.com's self-operated goods arrived at the doorstep. In the following day or two, non-self-operated goods also arrived one after another.
"City Boundary" learned that attracted by factors such as preferential strength, logistics speed, and product quality, this 618, like Wang Si, has many people who buy "cheap and good" goods on JD.com. According to the data released by JD.com, more than 500 million users have placed orders on JD.com, which has become the preferred shopping channel for users who like a comprehensive experience.
Behind the buyer's smile, the merchants on the platform also earned. This year, 618 has more than 150,000 small and medium-sized merchants on JD.com, with sales growth of more than 50%. Zhang Hui, a new farmer who returned to his hometown in Yantai, Shandong Province to start a business, felt that the express delivery volume of cherries in Yantai increased by nearly 100% year-on-year. Wang Zhengtian, deputy general manager of Henan Simet Food Co., Ltd., which makes long-established domestic Siyuan instant noodles, said that this year, the turnover of 618 Siyuan in Jingdong Supermarket increased by 126% year-on-year, and the number of transaction users increased by 178%.
Anne Youer, who makes children's clothing, settled in Jingdong in September last year, and only half a year after opening the store, and the sales of 618 on Jingdong have also increased a lot this year. Rao Hongzhou, manager of Anne Youer's Jingdong flagship store, said that consumers on Jingdong are more searchable and accurate. Since entering JD.com for 9 months, he clearly feels that the conversion rate of goods on JD.com is the highest. There is no harm if there is no comparison, "We can achieve more than 10 production on JD.com, that is, we can sell for 10 yuan for 1 yuan." This is something that no other platform can do at all. ”
Zhang Huan is fortunate that in the past two years of continuous deep adjustment of the economy and the fierce competition in the e-commerce industry, it is precisely because of the Jingdong store with good sales performance that he can still live a relatively nourishing life in this industry. Zhang Huan is the owner of a small beauty and skin care store on JD.com, and after opening 2 franchised stores on JD.com in 2018 and 2021, he will open several JD.com stores in 2022 and 2023 respectively.
JD Store is an online store type under JD Group for individual and self-employed merchants. To date, Zhang's business on JD.com's platform accounts for 60% of all channels. The reason why he bets most of his net worth on JD.com is that Zhang Huan anchored JD.com's user portrait: basically the best customers on the whole network.
What's more, JD.com is user-friendly and business-friendly. "Some e-commerce platforms are buyer-friendly and don't think about merchants. If you don't do promotion, you can't sell goods at all, and you try your best to make money for merchants. Zhang Huan said with emotion.
The buyer laughed, and behind the merchant earned, it was the fact that JD won. It is understood that unlike the precipitous decline in the turnover of some platforms, Jingdong 618 turnover and order volume have reached a new high, and the order volume of Jingdong live broadcast has increased by more than 200% year-on-year, with a cumulative turnover of more than 1 billion brands83, clothing, beauty, sports and other categories The number of new products increased by more than 380% year-on-year, DIOR Dior, MONCLER and other brands increased by more than 240% year-on-year, and the turnover of more than 700 home appliance brands increased by more than 100% year-on-year.
How does JD.com achieve "Hello everyone, it's really good"?
02. Jingdong "exploded" millions of merchants
The example of the children's clothing brand Anne Youer is very typical, because this is the third time it has entered JD.com, and I really feel that JD.com's service to merchants is changing step by step for the better.
In 2017, after Anne Youer entered JD.com for the first time, she found that the gameplay of this platform was not the same as that of Tao. "Tmall is dominated by search and payment models; Although JD has search, the location of activities and resources accounts for a relatively large proportion. Rao Hongzhou said frankly.
In the two months after moving in, Anne Youer still couldn't find a way through her own exploration, and she didn't know where to find activities and resources, "Because I was not familiar with JD.com's operation strategy, the store was not built." In desperation, Anne left the store idle. In 2021, Anne Youer will enter JD again, but because it also operates stores on other platforms, after the funds on hand are exhausted, there is no spare energy to promote JD stores. This time, Anne Youer ended up withdrawing from the store again.
It wasn't until the third arrival that Anne Yuer achieved a turnaround last year. "This time, with the help of Jingdong's 'Chunxiao Plan', we settled in Jingdong for 0 yuan, and several persons in charge of Jingdong investment came to our store to see the products, and felt that we must be able to do it in Jingdong, and gave us a lot of resources and one-on-one counseling." Rao Hongzhou said gratefully. Behind this is the fact that JD.com "exploded" millions of merchants.
As we all know, JD.com has been pushing the low-price strategy in the past two years to create a cheap and good shopping image. Recruiting a large number of third-party merchants is a quick path for JD to achieve low prices. In order to attract a large number of third-party merchants to settle in, starting from the beginning of 2023, JD.com officially launched the "Chunxiao Plan", providing all types of POP merchants with support measures such as 0 yuan trial operation, new store gift packages, and double traffic incentives for new stores, which greatly reduced the entry threshold and store opening cost of merchants, improved the operational efficiency of merchants, and a large number of merchants have enthusiastically joined JD.com.
And,For more than a year,Jingdong"Chunxiao Plan"It has also been upgraded one after anotherThe support policies for merchants are becoming more and more abundant,Including 0 yuan to settle in and open a store,0 yuan to generate graphic videos,80% of the category deduction and rebate,18 business tools are free to use、12 promotional tools to upgrade and other measures,Greatly reduce the operating costs of merchants,Anne Youer is one of the beneficiaries of Jingdong's "Chunxiao Plan"。
"The support of these resources, for merchants, basically does not cost a lot, and they can do well." Zhang Huan also has the same sense of experience. She enjoyed the nanny-level service treatment here in JD.com. After entering JD.com this time, Zhang Huan connected to JD.com's operations and had an exclusive group. Basically, every Wednesday to five days, Zhang Huan will receive feedback from JD.com.
"For example, if you recommend good supplier resources to me, if there is any difficulty on my side, I can give him feedback as soon as possible, and I can solve it in time." What Zhang Huan remembers vividly is that last year, due to a change in the rules, Zhang Huan rushed to the Jingdong headquarters to negotiate with him, and the other party received him very warmly, and arranged for the Jingdong Rules Department and the Jingdong Store Operation Department to listen to Zhang Huan's suggestions, "This makes me very moved." ”
As a buyer, Wang Si is shopping more and more frequently on JD.com. She found that the consumer environment is becoming more and more cautious, and the quality of products on some platforms is difficult to describe despite the low price. Compared with other platforms, JD.com has achieved the best of both worlds: it is a low price under guaranteed quality. For example, Wang Si exchanged for the goods in 618 this time. Take the Arden Light Gold Gum 3.2ML Essence she got in her hands as an example, the original price was 199 yuan, and it only cost 29.9 yuan to redeem it. "After checking it, there is no doubt that it is genuine."
In fact, in order to allow consumers to buy cost-effective goods, Jingdong has done its best, such as a-like slippers, 618 promotion to 3.99 yuan and free shipping, the first four hours broke 50,000 orders.
This slipper, which achieves the ultimate cost performance, is from the encirclement of thousands of horses. "City Boundary" understands that JD.com will first take back all this trendy product on the market, and then compare them one by one according to the gram weight, raw materials, quality, size, etc. Next, Jingdong procurement and sales personnel will go to the industry to inspect, the color fastness of slippers, the color degree and the color difference of the color, etc., need to be seen is believing.
The various indices of the product are within the standard range of JD.com, and this pair of slippers can pass the preliminary screening of the procurement and sales personnel. In the third step, the slippers will be selected together with other samples. At the selection meeting, Jingdong procurement and sales personnel will assign the same style to different people to try on. After about three days to a week, in response to the feedback from the try-on, the merchandiser will brush off some of the products.
"The remaining part of the products will be taken back to JD for product testing as samples. After the full inspection is passed, the best of the best will remain, and it will finally be put on the shelves as the main product of the platform. A JD.com procurement staff added that after it is put on the shelves, they will also do some follow-up at the front desk. For example, the evaluation, how good the quality is, and so on. If there's a problem with product feedback, they'll respond within a day.
This means that JD.com is using the power of the whole group to achieve a win-win situation for the three parties.
03. Play the "real low price" with quality
The win-win situation of the three parties is also expected.
In recent years, market competition has become more and more volatile, and major e-commerce platforms are fighting low prices, and some platforms are even sacrificing the interests of merchants in order to win the hearts of users. However, when it is difficult for merchants to make profits, they will inevitably reduce costs and then reduce product quality. This also makes the cheap products on the market dominant, and consumers and even some businesses that adhere to the bottom line of quality sigh "as if no one cares about product quality".
JD.com cares. It wants to create the best ecology in the e-commerce industry, that is, merchants make money, buyers buy good things, and JD.com realizes supply chain efficiency improvement. According to people familiar with the matter, the low price advocated by Jingdong is not a "fake low price" in exchange for shoddy, lack of catties and two pounds, and stealing and cheating; Instead, it relies on honest management, and works with brands and merchants to reduce costs and increase efficiency in the whole process of the supply chain such as R&D, procurement, trading, fulfillment, and after-sales, and pass on the money saved by the ultimate supply chain efficiency to consumers, so as to achieve high-quality and sustainable development of "true low prices".
The other party emphasized, "JD.com's low price is not based on the premise of sacrificing the experience of partners, not at the expense of squeezing the interests of partners, but relying on scale effect and technology-driven continuous innovation of the supply chain to achieve low prices." ”
For this reason, Jingdong began to plan early, and the things it did were also interlocking. A few years ago, JD.com proposed the strategy of "open ecology", that is, to attract more third-party merchants to improve the richness of JD.com's products and broaden the price band. In the past two years, while JD.com has stabilized the 3C home appliance market and carried out drastic reforms in internal management, it has spared no effort to extend its tentacles to the fields of daily hundred, fresh food, clothing, and beauty.
In order to broaden the price band, more third-party merchants need to join in order to achieve the lowest price in the entire JD ecosystem. In order to accelerate the realization of this goal, starting in March this year, JD.com upgraded the "Chunxiao Plan" for the third time to continue to make profits to third-party merchants.
Zhang Huan once again emphasized that he was the beneficiary, "At the earliest, our deduction point was 1%, and a deposit of 5,000 yuan was charged, and there was no advertising support such as precision pass. Up to now, not only have we not deducted points, but also have advertising costs to support, and the deposit is not collected. Starting from March this year, we can also use AIGC tools to help stores reduce costs and increase efficiency. ”
AIGC is a content generation platform launched by JD.com, called Jingdiandian, which can help merchants quickly and efficiently generate product scene maps comparable to studio shooting textures and marketing copy comparable to professional writers. The person in charge said that in the era of traditional e-commerce, if a merchant wants to innovate a product, the costs involved will be very large, such as venue studio auction fees, leasing fees, commodity transportation costs, construction scene costs, labor costs, etc. "If a small product is a studio shot, the cost of a picture often ranges from 50 yuan to several hundred yuan. The average cost price of each picture is also as high as about 100 yuan. ”
Nowadays, with the technical blessing of Jingdiandian, merchants only need a mobile phone, take pictures of the goods, and upload them to the AIGC platform, Jingdong will use the ability of AI to help him realize cutouts, adapt to scenes, etc., "Merchants only need to take three steps, and a picture only needs 20 seconds to 30 seconds from uploading to the final drawing, and a product map comparable to the effect of studio shooting can be generated." For merchants, the cost can be reduced to more than 95%. The efficiency has also been improved geometrically. The person in charge of Jingdiandian said.
"City Boundary" learned that this year's 618, from May 31 to June 17, there have been 40,000 JD merchants who have used AIGC technology to produce graphic materials for their own store operations. Nearly 2 million scene maps generated by AI alone. This is equivalent to 40,000 users, and each company produces more than 50 AIGC graphs on average.
In the multi-pronged initiative, third-party merchants have heard the news. In 2023, the number of third-party merchants on JD will increase by 188% year-on-year, and the number of new merchants will increase by 4.3 times year-on-year in one year, especially the number of merchants in the categories of big fashion, home appliances and large supermarkets has achieved rapid growth, and Guangdong, Fujian, Jiangxi, Jiangsu, Henan and other regions have the largest number of merchants. In March this year, the number of effective stores of JD.com's third-party merchants has exceeded 1 million, and the number of product SKUs of third-party merchants has also more than doubled compared with the beginning of last year.
It is understood that among the new merchants who have settled in Jingdong, 22.9% of them are factory-based merchants and brand-type businesses with supply chain advantages, 15% are self-produced businesses such as new farmers, designers, and craftsmen, and 10% are new merchants of college students. Some of them opened a store within 5 days of the transaction volume exceeded 1,000 yuan, some sold thermal underwear with a transaction volume of more than 40,000 yuan, some sold navel oranges in their hometown within a week, and the transaction volume exceeded 200,000 in 24 hours for selling high-quality and low-priced nuts.
Xu Ran, CEO of Jingdong Group, revealed at this year's 618 launch conference that Jingdong and millions of merchants have brought richer, lower prices and better goods to buyers.
And "cheap and good" is also the most concerned point for buyers. Over the past year or so, with the blessing of low-cost measures such as tens of billions of subsidies and 9 free shipping, JD.com has attracted more new users while stabilizing its original customers. "In more than a year, the cumulative number of users of JD's 10 billion subsidized channel has exceeded 100 million." At the Jingdong 618 launch conference, the number mentioned by Xu Ran was quite eye-catching.
According to the data, during the 618 period, the number of online goods subsidized by JD.com's 10 billion yuan increased by more than 100% year-on-year, and the number of users and orders increased by more than 150% year-on-year. The number of online products in the whole cycle of the 9 block 9 free shipping channel exceeded one million, and the number of users and orders increased by more than 100 times year-on-year.
As a senior merchant on Jingdong Mall, Zhang Huan also recognized JD.com's concept of "hello everyone, it is really good". "There is no contradiction between JD.com's price and quality. It's not that you have to sacrifice service for price. ”
Judging from the data of JD.com's 2023 and 2024 quarterly reports and the battle situation of 618 this year, JD.com's three-party win-win e-commerce ecological environment will go wider and wider. The altruistic thinking of "hello everyone, it's really good" has undoubtedly made a good start for JD.com's "35711 dream".
The "35711 Dream" was proposed on June 18, 2023, on the occasion of the 20th anniversary of JD.com's founding. That is, JD.com will achieve the following goals in the next 20 years: there are 3 companies with revenues of more than one trillion yuan and net profits of more than 70 billion yuan; 5 companies that have entered the world's top 500; 7 listed companies with a market value of not less than 100 billion yuan starting from scratch; Able to pay 100 billion yuan in taxes for the country; More than 1 million jobs.
From the perspective of the long-term development of the e-commerce industry, "everyone, it is really good" is also beneficial to the entire industry and society, after all, the e-commerce blindly rolls low prices, and the final situation is that the business does not make money, the factory cannot open, the income of employees cannot go up, consumers can not buy good things, bad money drives out good money, and enters a vicious circle, and it is the whole society that finally pays.
(Wang Si and Zhang Huan are pseudonyms in the article)
Author | Tao Ting
Edit | Chen Fang
Operations | Liu Shan