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Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket

author:36 Krypton
Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket

In April, the busy Jingdong Mooncake Festival preparation cycle in Daoxiang Village began again.

As a famous time-honored brand, it is also the largest brand in the sales of mooncakes in the country, which is one of the most important festivals in Daoxiangcun every year, and it is also the fourth time that Daoxiangcun participates in the Jingdong Supermarket Mooncake Festival.

Since the opening of dealer POP stores in 2010, this is the 11th year that Daoxiangcun and Jingdong Supermarket have "bonded", and now Daoxiangcun has a variety of store types such as self-operated official flagship stores, self-operated and dealer POP stores, and the cooperation with Jingdong Supermarket has become more and more close in recent years.

Because of the large number of categories, this time Daoxiang Village began to store up for the Mooncake Festival half a year ago. According to Zhou Liyuan, deputy general manager of Daoxiangcun Group, this year Daoxiangcun provided 50 or 60 styles for Jingdong Supermarket, including more than 15 products customized in cooperation with Jingdong Supermarket.

Starting on August 19 this year, the annual Jingdong Mooncake Festival began again. At last year's Mooncake Festival, Jingdong Supermarket's mooncake sales doubled year-on-year. Mooncake head brands, including Daoxiangcun, Beijing Daoxiangcun, Guangzhou Restaurant, Huamei, Quanjude and other mooncake head brands, all participated in the mooncake festival.

It is understood that this year, Jingdong Supermarket focuses on uniting with long-established brands to create self-developed differentiated supply chain products, for example, in terms of packaging, Jingdong Supermarket co-brand, joint Dior, Armani designers to design product packaging, customized for online trend new products.

"Through the unique sales insights of e-commerce, it provides manufacturers with suggestions for the differentiated needs of consumers in different regions and levels on packaging, price points and tastes, and guides brands to develop products suitable for Jingdong supermarket users", which is mentioned by a number of long-established merchants in interviews to 36Kr, which is inseparable from the precipitation of JD.com's middle-office supply chain in the past few years.

According to the data, up to now, Jingdong Supermarket has become the largest single channel for 80% of the long-established brands in Jingdong. The compound growth rate of the long-established brands in Jingdong is concentrated in the range of 50%-300%, while the nearly 4,000 stocks of A-shares have an average revenue growth rate of only 12.2% in 2019. That is to say, the growth rate of the long-established turnover of Jingdong Supermarket is nearly 6 times the average growth rate of A-shares.

There is no doubt that Jingdong Supermarket has become one of the most important and fastest-growing channels for long-established brands.

Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket

<h2>Help - the long-established national tide, push new products</h2>

Strictly speaking, the preparation for the new year's Mooncake Festival actually began at the end of the Mid-Autumn Festival.

This starts with a tense review meeting. Zhou Liyuan clearly remembers that not long after the end of the mooncake festival last year, the procurement and sales of Jingdong Supermarket pulled the Daoxiangcun team to hold a small review meeting, the content was concise: the 15 products launched by the cooperation, which sales were good, which performed badly, where the reasons were, and how to improve next year.

Daily communication will also become frequent. From once a day or even once a week, it has become once a day or even multiple times a day, and the messages in the communication work group are always uninterrupted. In the face of tens of millions of category merchants on the platform, it is not easy for Jingdong supermarket sales staff to provide information feedback for long-established brands alone every day.

The change began a few years ago when Jingdong Supermarket supported long-established brands.

On January 16, 2018, Jingdong Supermarket officially announced that it has established the first "China Time-honored Internet Boundless Retail Alliance" with long-established associations in 13 provinces and cities, as well as hundreds of long-established enterprises such as Wang Laoji, Daoxiangcun and Wufangzhai. This day also marks the entry of long-established food companies into the fast lane of e-commerce.

In September last year, Jingdong Supermarket released the "Three Major Support Plans" for long-established brands, announcing that it will help long-established brands shine with new brilliance from the aspects of marketing, supply chain and big data. This marks that the route map of Jingdong Supermarket's comprehensive support for food long-established brands is fully drawn, and this makes Jingdong Supermarket a larger incremental field for food long-established brands.

According to Zhou Liyuan, in order to revitalize the national tide, Jingdong Supermarket has implemented a series of measures, including "long-established brand certification", "long-established brand special", "time-honored revival plan", etc., and even gave huge traffic support to help the old-fashioned brand, through the venue recommendation list, expert evaluation list, 100 craftsmen's awards and other forms to create a content ecology for the time-honored brand.

In the past year, Daoxiangcun and Jingdong Supermarket have cooperated to launch a number of trendy products, among which the distinctive packaging products designed by the international fashion brand Dior designers combine international fashion elements with traditional Chinese culture, making it have the concept of trendy luxury goods, and once the products are launched, they quickly attract the attention of young people. It is understood that among the users of this product, 65% of the users after 90.

Cooperation customization has become a typical feature of JD.com's support for long-established brands at the level of big data and supply chain. According to the data of a well-known brand in old Beijing, more than six of the mooncakes sold at last year's mooncake festival became cooperative customized products, including fashionable domestic products from the old brand, classic IP that people are familiar with, and new and exotic products with unique tastes.

Shanghai's time-honored "Xinghualou" was originally a long-established brand featuring "Cantonese mooncakes", according to the experience and insight of Jingdong supermarkets - the food cultures of Beijing and Guangzhou are completely different, the taste preferences of mooncakes are also very different, in order to open up sales channels, Xinghualou sells Cantonese mooncakes in Jingdong for the southern region, and for the taste habits of users in the northern market, it has developed innovative products and successfully occupied the market.

Lu Jun, deputy general manager of Xinghualou Marketing Company, told 36Kr that in order to prepare for the mooncake festival, he and his team ran to Beijing in early July this year to meet with the team of Jingdong Supermarket for two days to discuss strategies and playing methods, which showed the degree of attention.

The effect is also obvious.

It is understood that in the past three years, Daoxiang Village has achieved substantial growth continuously. In 2020, the sales volume of only one customized gift box cooperated with Jingdong exceeded 600,000 boxes; the sales volume of Xinghualou 2020 Mid-Autumn Festival nearly doubled year-on-year, and the bulk mooncake in 2021 has exceeded the total volume of the 2020 Mid-Autumn Festival as of August 30, and is expected to double year-on-year.

Now, many regional food brands in Jingdong Supermarket have also expanded their national sales with the help of Jingdong, of which up to 90% of the long-established brands have effectively opened up the market outside the province. Jingdong supermarket has become a powerful promoter of the long-established national tide of food, the promotion of new products, and the transition from the region to the whole country.

Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket

<h2>Long-term - JD Supermarket's supply chain advantages provide a steady stream of power</h2>

The competition for the long-established brand and the revival of the national tide has become more and more fierce in the past few years, not only the traditional e-commerce platform, but also the short video platform has joined the competition, which is a happy annoyance for the brand.

But there is no doubt that the competitiveness of Jingdong Supermarket should not be underestimated. Over the past 20 years, the precipitation from self-operated e-commerce to platform e-commerce has enabled Jingdong Supermarket to accumulate huge advantages in terms of brand power, supply chain and logistics.

Zhou Liyuan told 36Kr that as a product with strong seasonality, mooncakes have quite strict requirements for logistics timeliness. "After the Mid-Autumn Festival, everyone's consumption of mooncakes will be reduced instantly, and the logistics and distribution timeliness of Jingdong's self-operated logistics is very in line with consumers' requirements for seasonal products."

In recent years, the logistics delivery of Daoxiangcun has shifted from the company's own logistics plus social logistics system to the cooperation with Jingdong TC Logistics, after the goods are produced, Jingdong Logistics directly ships from the factory to the warehouse, making the arrival speed of Jingdong products faster and the integrity of goods higher.

Xinghualou and Beijing Daoxiangcun also chose to put goods into the 8 warehouses of Jingdong, in order to improve the user experience and better create explosive models through big promotion.

With the penetration of Jingdong channels and the sinking of logistics, the proportion of online consumption in many remote areas is also increasing.

Last year, consumers in the northwest region increased their purchases of Cantonese-style and Beijing-style mooncakes by 1.6 times and 1.9 times year-on-year, respectively, and the way of online sales broke the geographical restrictions between regions, cross-regional early adopters became a trend, and promoted exchanges across the country .chi) and (huo) days.

This year the process is likely to be further accelerated. In December last year, JD.com once again upgraded the 30,000-square-meter Tibet public warehousing and logistics center in the Lhasa E-commerce Park, and 80% of the local order demand can achieve direct delivery from Lhasa.

With the formation of the trunk logistics network, the acceleration of the construction of the warehousing and logistics park and the transportation expressway, local farmers and herdsmen can not only buy things online, but also achieve the next-day delivery of goods, and perhaps tibetans can eat the mooncakes sold in Jingdong supermarkets in time during the Mid-Autumn Festival this year.

The construction of the supply chain is more critical.

According to 36Kr, in order to cooperate with the platform sales, during the seasonal product sales period, the three production plants in the north and southeast regions of Daoxiangcun have docked the production of goods in Jingdong Supermarket, and set up several production lines to dock the production of goods, thus ensuring that the goods are produced on time and on time.

According to the sales data of different regions in previous years and weekdays, Jingdong Supermarket will require merchants to prepare the corresponding number of goods to the nearest Jingdong warehouse to cope with the possible traffic peak.

This is the centralized output of JD Supermarket's supply chain capacity precipitation in the past few years. To put it simply, it is to make the whole link, the whole process, and the whole channel form a "one-plate cargo", and classify it according to the user characteristics and sales data of different scenarios, and supply the same plate of goods to different ends. It can be said that this supply chain capability is the model advantage of JD.com, rooted in jd.com's genes, and provides lasting impetus for the sustainable development of the old brand.

In concrete terms, this capability has benefited many brands.

The sales of Xinghualou are mainly from the original East China, and now it is facing the whole country, and the sales outside Shanghai have accounted for more than 50%; Daoxiangcun is not only in the first-tier cities such as Beijing, Shanghai and Guangzhou, but also enjoys popularity in first-tier cities such as Beijing, Shanghai and Guangzhou, and the brand has developed to third- and fourth-tier cities in the past few years.

What is even more valuable is that while the traffic of other platforms is stuck in the bottleneck, JD.com's traffic increment is constantly exploding, which has a natural attraction for brands. According to the financial report data, in the past two quarters, Jingdong achieved 32 million new users, compared with only 26.1 million and 17 million in Pinduoduo and Ali.

Zhou Liyuan and the Army both admitted that compared with other e-commerce, JD.com currently has greater development potential, whether it is traffic dividends or resource support, which has greatly alleviated the marketing anxiety of the old brand.

Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket

<h2>The future - the largest incremental field of the old brand</h2>

With a permanent history and tradition, it is most closely related to traditional Chinese culture, and its product strength is amazing and the quality assurance is guaranteed... These are the impressions of old brands, but in the face of great changes in consumption, many old brands are powerless.

How to meet consumer demand? How to share the market dividend of consumption upgrading? It has become an important problem that needs to be solved urgently in front of many "old brands", and it is also the key point for the next step to find a way out.

Set up your own stage and sing your own? It is inevitable to face multiple challenges, such as technology, capital, talent and operational thinking, but if you change your thinking, borrow chickens and eggs, and use other e-commerce platforms, the situation is very different, which is also the mainstream choice of most of the current "old brands".

Since 2015, Jingdong Supermarket has strengthened its support for time-honored brands, and in the following years, it has established the first "China Time-honored Internet Boundless Retail Alliance" and "China Time-honored Boundless Sales Development Alliance".

According to Jingdong 618 data, from May 21 to June 8, a total of more than 338 long-established brands doubled in sales, and long-established brands such as Wufangzhai, Guangming, Haitian, Yunnan Baiyao and Tsingtao Beer occupied the top of the sales list.

Founded in 1921, Wufangzhai is a well-deserved "Zongzi King" in China, leading the sales volume in the Annual Dragon Boat Market. Since cooperating with Jingdong Supermarket in 2014, by making full use of Jingdong Supermarket's e-commerce sales experience, it has launched a number of customized products in cooperation with Jingdong Supermarket, and successfully created a brand "explosion".

In a way, this is a one-shot "marriage".

For the long-established brand, the cooperation with Jingdong Supermarket not only expands the online sales channels, but also greatly improves the efficiency of the supply chain and reduces the trial and error cost of the long-established brand in product innovation and research and development with the help of Jingdong Supermarket's in-depth insight into consumer demand.

It can be said that with the rise of the national tide and the improvement of the cultural pride of the younger generation, Jingdong Supermarket has successfully attracted long-established merchants and is becoming the largest incremental field for long-established brands. No one dares to say that the way out of the future of the renewal of long-established brands is, but the model represented by Jingdong Supermarket has given at least the best answer for the time being.

Revive the long-established brand and recreate the "century-old heritage" in Jingdong Supermarket