Jingdong New Department Store, quality and fashion fight?

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Jingdong New Department Store, quality and fashion fight?

2022-05-14 00:04:25 12 ℃

Produced | Pai Finance

Text | Editor Wang Feiyi | Edit Son

The more and more muddy e -commerce rivers and lakes were once again stirred by JD.

A few days ago, the "New Department Store" channel was officially launched on the JD.com APP, which marked that JD.com has completed the integration of clothing, home, beauty, sports, luxury and watches, etc., to fully upgrade the existing fashion home business to "JD.com New Department Store. It is reported that Jingdong New Department Store will lay out a new department store selection collection store with different "theme models" in key cities to locate young people. The first batch of cities planned at the current plan include Beijing, Chengdu, Xi'an and other places. Open before 6.18.

For Jingdong, it is not unusual to online new channels and offline stores, but this time there are some special features. It is no longer a sinking market, no longer 3C, digital products. Does this mean that the development strategy of JD.com has changed? Can Jingdong New Department Store be assumed its expansion?

01 By taking the trend

Opening the Jingdong APP, the third channel on the homepage is the "Jingdong New Department Store" channel. Here, there are various trendy boutique exhibitions such as "big -name recommendation", "super explosive model", "IP joint", "custom service", "trend list" The position, the fashionable atmosphere, shows that the goal of JD.com's new department store is "fashion boutique".

In fact, the "Jingdong New Department Store" channel does have a stricter entry threshold for the selected product settings, and the brand's requirements are also higher. " "Some people familiar with the matter said.

Feng Yi, senior vice president of Jingdong Group and president of JD.com Retail Fashion Home, said directly that Hope JD.com's new consumer experience scene can provide users with better products and services, better Meet the needs of consumers' new fashion life.

An important reason why JD.com began to make efforts in fashion home products is that JD.com's traditional 3C and fast -moving consumer goods business entered a bottleneck period. According to the 2021 financial report, JD.com 3C self-employed, fast-moving self-employment, 3P commission & advertising revenue, and logistics revenue growth, Q4 in 2021 fell to 20-30%. Changqiao Securities analyzed that JD.com's high -speed fast -growing fast -moving consumer goods and 3P business in the past seemed to be dissipating.

At the same time, after the second election last year, JD.com won the quite improvement in this field. According to reports, the number of third -party merchants opened in Jingdong after the second choice was lifted, and the financial report showed that the number of third -party merchants in Jingdong Main Station in the third quarter of last year was three times the total of the first half of the year. Merchants have increased the most in existence. During the Double Eleven period, the overall amount of new products in Jingdong clothing was 15 times the same period last year. Many big names including LV, Bulgari, Estee Lauder opened or cooperated in Jingdong in different forms last year.

The changes in the external environment also allowed JD.com to have enough power to open an offline store.

According to the previous media incomplete statistics, in the first quarter of 2022, nearly 700 domestic brand stores announced their closure, and well -known brands such as Wal -Mart, Louis Vuitton, KFC, and other well -known brands were listed. This is also a well -known brand, such as street shops, husband and wife stalls, small supermarkets, etc., such as those on the Internet, and so on. The number of closing stores is even more difficult to count.

In this regard, JD.com naturally came. According to people familiar with the matter, a large number of investigations in Jingdong have conducted a large number of investigations. "Everyone has a lot of demand for offline stores, but now the offline store is very low, and the cost of taking the store is also low. Time. With JD.com's brand blessing, it can also split the mall drainage costs. "

More importantly, when other stores were widely affected, domestic fashion quality consumption was not greatly affected. According to the statistics of the China Department Store Commercial Association, in 2021, the operating income and net profit of 41 department store retail listed companies have both increased. The total revenue of 41 companies totaled 195.69 billion yuan, an increase of 7.7%over 2020; net profit was 10.1 billion yuan, a year -on -year increase of 25%. China Department Store Business Association believes that the growth of department store retail industry has the return of overseas consumption, economic recovery in the first three quarters, and improvement of quality consumption.

From a larger perspective, according to data from the State Bureau of Statistics, the total retail sales of domestic consumer goods in 2020 reached 3.9.2 trillion yuan, of which offline retail still accounted for 70%, reaching 2.744 trillion yuan. This shows that compared to the market space that has gradually become online, offline retail has a more attractive prospect.

Moreover, JD.com is already a light car in terms of building stores. Up to now, JD.com has built JD MALL, Jingdong Electric Super Experience Store, Jingdong Home Appliances Store, Jingdong Computer Digital Store, JD House, JD.com Pharmacy, Qixian Supermarket, Jingdong Convenience Store, etc., 2021, in 2021, JD.com's omni -channel GMV increased by nearly 80%year -on -year.

It can be seen that in terms of market space, consumer needs, future development, or economic environment, JD.com has a very realistic consideration to promote "Jingdong New Department Store" from online and offline, especially in its own. When the advantageous business enters the bottleneck.

02 Sinking strategic steering

The attention of "New Department Store" is rare in Jingdong in recent years.

Feng Yi, president of the fashion home business group, is the main promoter of the "New Department Store" project. The project has attracted much attention since the end of last year. "S -Class" is one of the main projects promoted by JD this year. "Carol (Feng Yi's name in Jingdong) has a strong resource allocation ability, very PUSH, the entire (fashion home) business group has risen quickly in the past six months," said an insider. However, this highly valued S -class project is quite different from the sinking strategy insisted on JD.com in recent years. In 2020, Liu Qiangdong, the founder of JD.com, stated in the employee's internal letter that he would aim at winning the sinking market. Xu Lei, CEO of JD.com retail, said that sinking emerging markets are one of the three major winning battles in Jingdong in 2020. It will be built another JD in the sinking market in the next three years.

Earlier, "the strategy conveyed by the JD.com internal conference was -'Jingxi' sinking with 'Jingdong'", there have been media reports. Obviously, Jingxi assumes the heavy responsibility of JD.com's opening market. However, from the latest financial report, JD.com's sinking strategy has not met expectations.

According to the financial report, in 2021, the new business has become a black hole in JD.com, with a loss of 10.599 billion yuan a year. The "Jingxi" or the culprit of the community group purchase, sinking market, this part of business is also recognized as a large -scale burning of money. According to industry insiders, the level of losses of Jingxi fighting has always maintained a high level. After the cost of distribution, commission, employees, etc., Jingxi fight net interest rate is at -40%, and Meituan is preferred and more The net interest rate for food to buy food is about -20%.

According to the estimates of CITIC Securities, the single -quarter losses of Q3 and Q4 Jingxi and Jingxi business in 2021 may exceed 1.5 billion yuan and 2 billion yuan, respectively.

However, the Mi Giant Jingxi did not bring "surprises" to Jingdong. The financial report showed that the annual active users of JD Group increased from 417 million in 2020 to 570 million in 2021. According to relevant research reports, 70%of JD.com ’s new users from the year came from the sinking market.

It is particularly noteworthy that in the fourth quarter of 2021, JD.com's annual active users increased by only 17.5 million month -on -month and the growth rate was 3.1%. Investment cannot drive JD.com's new users. This is extremely abnormal for e -commerce companies, because in the fourth quarter, it covers important shopping festivals such as Double Eleven, Black Five, Double Twelve.

As a result, some institutions believe that the growth of users who are behind the sinking platforms such as Jingxi and community group purchase have slowed down. You know, as early as the establishment of Jingxi in 2019, he successfully entered the WeChat first -level entrance that others dreamed of. However, even so, JD.com still encountered Waterloo in the sinking market two years later.

As early as the performance of the third quarter last year, Xu Lei repeatedly said, "We observed the industry's problem is that there is no real reduced the cost of commodity circulation, and it cannot effectively increase fresh fresh freshness. Supply and performance efficiency. "He believes that the fresh category is a long -term track that requires 5-10 years, and the scale brought by short -term marketing is not sustainable.

Therefore, from last year, Jingxi, who had undertaken the heavy office, began to shrink, and there were news from regional closure. In the recent layoffs, the community group purchase business "Jingxi Fun" is also a big head of layoffs. Relevant sources revealed that the proportion of "Jingxi Fun" layoffs is 10%-15%.

In contrast, the outbreak of fashion home products has made JD.com see a new growth point. As mentioned earlier, during the Double Eleven of last year, the overall amount of new products in Jingdong clothing was 15 times the same period last year. Many well -known big names began to open or cooperate in Jingdong. This directly drives the data of JD.com's 2021 annual report. Last year, the revenue of department stores used department stores was 32.3063 billion yuan, an increase of 28.73%year -on -year, accounting for 40%of JD.com's total annual total product revenue.

Perhaps, the data that is against the opposite has made JD.com's determination to make changes.

Earlier, Debon Securities analyzed Jingdong at the beginning of the year that JD.com's business logic lies in three points: First, the category expansion, from the 3C of traditional advantages, expanded to dayba, clothing, fashion, etc. Metic; second, the platform is open, the infrastructure is open to third parties; the third is to sink the market new.

In the past two or three years, the sinking market is undoubtedly the main theme of JD.com's strategy. However, from the shrinking action of the Jingxi business group and Xu Lei's statement in the past two quarters, the "omni -channel strategy" has become increasingly occupied, and it is likely to become the new strategic focus of Jingdong in the future. The "omni -channel strategy" includes B TO C model, place of origin, and local retail models. The latest focus is on local retail.

Xu Lei has made it clear that in the retail business, it will pay more attention to the capacity building of omniic channels. It believes that the decentralization trend of the retail industry will continue to deepen. The overall channel strategy will be not only the second growth curve of JD.com's long -term development of ceiling. A deeper linked offline physical retail format will be linked.

From now on, online and offline promotion of the "Jingdong New Department Store" project may be more likely to help JD.com to create a Kitchen second growth curve. Presumably, this is also the deep reason for JD.com to promote the project. What is the victory of 03?

Can JD.com be successful in "fashion home"? I believe this is a majority question in people's hearts.

From the perspective of the successful experience of the opponent, JD.com does have a chance. In 2015, the Tao department occupied 75%of the domestic e -commerce market, and the number in 2018 was 70%. But by 2021, this pattern has been shaken Fast , Pinduoduo and other new players to tear up a crack. The market share of the Amoy series has fallen to 52%. The market share is 20%, 15%, 5%, and 4%, respectively, and the remaining 4%of the market share is divided by Suning Tesco, Vipshop, and gains.

And Douyin and Kuaishou seized are the market share of the Amoy, and it is still based on its most advantageous clothing, beauty and other categories. According to data, Douyin e-commerce has been as high as 7000-800 billion GMV in 2021, of which 2021 is 2021, of which 2021 is 2021, of which 2021 is 2021 In the second half of the year, clothing sales accounted for nearly 40%, and the proportion of beauty and second luxury accounted for more than 10%.

Douyin can do this. The biggest reason is of course its huge traffic advantage, three -dimensional short video forms, and also in its accurate e -commerce positioning -interest e -commerce. In order to more accurately define the current e -commerce era, Douyin proposed a new concept, namely "interest e -commerce". Interest e -commerce aims to be based on people's longing for a better life, satisfy users with potential shopping interests, and improve consumer quality of life. The core is "actively helping users to discover his potential needs."

To put it simply, through the form of short videos or live broadcasts, consumers are attracted by good products, discover consumer demand, and then form consumption.

If you understand from this perspective, then the "Jingdong New Department Store" at the same time on the BOE Line at the same time has the core of the interest with Douyin's interest -discovering demand. However, Douyin relies on hundreds of millions of online traffic gathered with short videos, while JD.com New Department Store provides dual guarantees with offline shopping malls and online traffic. Among them, offline malls depend on boutique to make it allowed to make it allowed Consumers have "impulse consumption." At this level, the offline store may be .

However, success is still not easy for the online market. The first is the brand cognitive issue. As of now, the Jingdong Retail sector still rely on 3C digital products, household appliances and other high -customer unit prices, and the commodity that needs to be transported. Lightweight products such as clothing and cosmetics have always been the weaknesses of Jingdong. Even since last year, more big brands have joined JD, but in terms of consumer cognition and consumption habits, the consumption habits of buying fashion home in Jingdong may still need to cultivate for a while.

But the cultivation of consumer brands is precisely the weaknesses of JD.com. The positioning of Douyin is a short video, and it also generates the consumption traffic that is preferred to the young man. New e -commerce players such as Kuaishou and Xiaohongshu also have similar brand cognitive formation processes. However, Jingdong's shopping tool attributes allow it to rely on external flow transfusion, and the brand cognition of "fashion" forms its own difficulty.

Judging from the "Jingdong New Department Store" channel just launched, JD.com starts with the perspective of quality and brand, not fashion, which is also the advantage of JD.com. According to Jingdong's previous consumption survey, from the perspective of women consumption in all ages, consumers aged 26-35 are the main consumer groups, and consumption accounts for 47%. Large brands such as Nike are placed in a significant position.

Even the JD Department Store Channel has launched "private customization", which is full of high -level sense. At present, the "Private Customization" channel has brought together brand merchants such as newsbirds and Yibang people to meet the customized needs of quality consumption.

However, the direct problem brought by such a design is that people who cannot make Jingdong New Department Store set up. Because in general cognition, the young user group refers to the Internet generation group of the post-95s, which is just dislocated with the mainstream consumer group of JD.com 26-35 years old.

What are the characteristics of post -95 mainstream consumer groups?

In this regard, Xu Lei once described a relatively accurate description: "First, the post -95s young people have a very low loyalty to the brand. Unless the brand has become synonymous with categories, this consumer group brand switching is extremely fast. In this change, this change has also spawned many Internet celebrity brands. Second, consumers post -95 consumers are very individual. Unique judgments or choose to make them form a small circle with a variety of preferences, creating very More segmented markets. The accompanying is the new opponent and new challenge attracted by the changes in consumer demand. "

The above characteristics represent the challenge to Jingdong's quality advantages.

In other words, JD.com knows the consumption needs of new generations of users, but they must take the inherent quality and brand advantages as the starting point, and this can be described as running counter to the fashion consumption demand of young traffic. In the end, the foundation of fashion flow and quality has formed a situation of fighting against each other in JD. How to integrate the two of the two may be the biggest test of JD.com's new department store.