Into December, looking back to the appliance industry in 2017 does not seem to be particularly large industry events.However, on December 11, the largest e-commerce channel retailer Jingdong announced that deep plowing with online for many years in the East China market Share leading home appliance retail giant Five Star signed a strategic cooperation agreement, the two sides 'create, empower, open' the purpose of the full launch of unbounded retail strategic cooperation.

Compared with the all-weather global new-generation logistics summit held by another car in Jingdong, Jingdong and five-star strategic announcements will be much shorter and will be completed in just two hours or so. The process is also very simple. Jingdong Group Vice President and Jingdong Mall Appliances Yan Xiaobing, president of the division, and Pan Yijing, president of Five Star, made keynote speeches, signing ceremony and media quiz respectively .It is worth mentioning that the time for media question and answer is almost the same as that of the previous two sessions and the media for on-site questioning are enthusiastic about cooperation between the two parties Everyone is full of curiosity and doubt.

From the conference mentioned topics, Aiken home network out of the following key words: unbounded retail, OTO, open, empowerment, create, the following one to do the next interpretation.

'Unbounded retail'

The development strategy of 'unbounded retail' was first proposed by Liu Qiangdong, Chairman and CEO of Jingdong Group at the 2017 Internet Conference.

In fact, 'unbounded retail' has long been written into the development strategy of JD.com. From strategic cooperation with Yonghui Supermarket in 2015 to the strategic cooperation with global retail giant Wal-Mart in 2016, Jingdong's 'unbounded retail' expansion has not been stop.

Liu Qiangdong said: 'We are in an era of change. The essence of the fourth retail revolution is unbounded retail. The ultimate goal is to reconstruct the cost, efficiency and experience of retail based on knowing, knowing and knowing. . The future of retail is not 'empire' but 'ally', with each participant clearly defining and continuously optimizing one or more blocks of their own, and eventually the different building blocks are combined to evolve unbounded retail Unbounded scenes.

Liu Qiangdong also said that retail rules of the game are no longer 'competition convergence', but 'differences in competition.' The future of retail ecology will certainly be more open and collaborative. Jingdong's role will be 'CEO' - Total Co-create, Empower, Open, together with partners to promote the new era of business civilization.The fourth revolution, the change is not retail, but the retail infrastructure The retail infrastructure will become extremely plastic, intelligent and collaborative, driving the 'unbounded retail' era and achieving cost, efficiency and experience upgrades. '

In the not-so-long start of the "11 Startups", Xu Lei, CMO of Jingdong Group, once again stressed: the future of retail must be unbounded, and Jingdong fully hugs the strategic thinking of 'unbounded retail' to create a brand new double 11.

In 2017, the strategic cooperation between Jingdong Appliances and Five Star Appliances complements Jingdong's 'unbounded retail' in 3C market.

At the press conference, Yan Xiaobing also pointed out that the strategic cooperation between JD Appliances and Five Star Appliances is based on the 'unbounded retail' theory proposed by Liu Qiang Dong and the perfect interpretation of its 'building block principles': JD.com is transforming from 'retailers' to 'Serve the whole society of retail infrastructure service providers'.

'O2O'

Yan Xiaobing mentioned the term 'O2O' at the opening of the conference, saying that O2O is a hot word on the Internet many years ago and that real O2O is a very strong complementarion between two companies and then each other Advantage can be played in each other, in which case the cooperation between the two can really have a chemical reaction.

'Today, our cooperation with Five Star is the more objective one of the more objective O2O words of that year,' said Yan Xiaobing.

Appears in Yan Xiaobing, Jingdong and five-star communication found that the two sides belong to each other needs and complement each other.

For the future, Yan Xiaobing thinks there is room for cooperation with Wuxing in these areas: First, he hopes to introduce Five Star as an oversized store to our Jingdong platform to enrich JD.com's products. Consumers feel the full range of online and offline products experience; Second, Jingdong hope that the two sides jointly set up offline experience shop together, but reached a consensus: the experience of electrical appliances have its own value, although Jingdong is doing electricity business, But do not avoid electrical products have some experience is offline unique, five-star online business experience under the long-term, able to make Jingdong supplement.

'So we both hit it off and decided to jointly open the country after the BOE appliance store experience.This experience shop is based on experience, not to our current traditional retail stores such sales-oriented, we are experience-oriented, five-star will Conduct a comprehensive management. 'Yan Xiaobing said.

It is understood that Jingdong appliance shop is based on the powerful Internet Jingdong gene and improve the supply chain, through big data analysis, a variety of online shopping mall featured the most talked about boutique collection in the offline experience store, through the scene Marketing has enabled the 'unbounded convergence' of online e-commerce and offline entities.

Yan Xiaobing said Jingdong appliance experience store will be the first pilot in the first-tier cities, and then gradually extended to the provincial capital-level cities and prefecture-level cities, and ultimately achieve 'one city one shop' so that consumers across the country can experience 'unbounded retail 'The disruptive experience and accessibility of ideas brought by the concept.

'open'

'Re-create a Jingdong appliance' open platform strategy to be released by the end of August 2017, 3 months later, Jingdong appliance open platform ushered in the Five Star brand flagship store.

In addition to the above cooperation content, Jingdong will also fully open up its own leading position in the commodity supply chain, logistics and warehousing, technology and finance, opening up the resources with the most favorable conditions and win-win mentality, and enabling the transformation of the Internet of Five Star Appliances.

Jingdong will rely on process reengineering and big data driven to create a smart supply chain for Five Star, improve online traffic and conversion rates, achieve product category docking, share sales inventory data and replenishment recommendations, and implement on-demand cloth from the source This means that Five Star stores across the country will become more and more 'smart', insight into consumer habits, preferences, and arrange goods accordingly, greatly improving the spot satisfaction rate, reduce the transportation costs caused by the transfer. Five Star Appliance will also mobilize the resources of the entity management as needed to ensure the success of the open platform cooperation.

'Empowerment'

From an enabling point of view, this measure is the behavior of both parties, but also influence each other.

Founded in 1998, Five Star has accumulated solid retail operating experience and special capabilities over the years, covering not only the provinces across the country, down to the township market, high-quality store network, also has a well-known consumers in the physical channels Behavior habits, good customer service retail team.Weststar brand flagship store fully settled Jingdong appliance open platform is the first major achievement of BOE platform strategy, which means that deep-rooted offline years of strong regional home appliances channel officially started a comprehensive Embrace the electricity supplier.

Five-star brand flagship store will be selected by the five-star team dedicated full-time operation of the company, the Five Star store sales of a large number of offline special products for sale through the Jingdong platform throughout the country, especially north of Guangzhou-Shenzhen and other super-sized cities.This Five Star Will be upgraded from a regional channel to a national channel.Weststar flagship store settled also greatly enriched Jingdong product categories so that consumers can buy the country in the past in the e-commerce platform can not be purchased offline home appliance model , Greatly meet the differentiated needs of consumers.

JD.com will strategically support five-star brand flagship stores in areas such as skills training, eco-friendly partner recommendations and diverting stations.

'Create'

Jingdong and Five Star Cooperate to Launch a Super-sized Jingdong Appliance Experience Store in a Major City to Deliver a Panoramic Immersive Experience to Deliver Real Feel to the 'Unbranded Retail' Avant-garde Convenience Experience that is Completely Different from Traditional Appliance Stores. Complete coverage of household consumption as the core of household consumption, to abandon the traditional sales guide to manufacturers selling model, so that consumers can immerse themselves in the experience of goods, and through the unbounded retail model to achieve the whole network to buy the same price.

In the comfort shopping environment created by the Jingdong appliance experience store, consumers will experience the most popular appliances they are interested in in the closest way to the future lifestyles. Consumers will no longer be the traditional home appliance store promoters Forced to sell and overwhelmed, you can really feel free to experience their own needs.For the satisfaction of the goods, consumers can easily buy, and enjoy the whole network Jingdong low price and speed home delivery service.

Through the brand flagship store, the offline model of Five Star sales in Jingdong entire network, on the other hand through the all-round cooperation in the supply chain, Jingdong has a large number of small appliances and 3C digital products have the advantage of full feedback five-star electrical line Channel, so that the original Five-Star channels more comprehensive, closer to the overall needs of consumers.This will fully activate the five-star electronics stores offline, without increasing the cost of storage under the condition of a lot of online star products to the offline Channels, to achieve great enrichment of goods, at the same time have the price advantage of online products, so that the traditional appliance stores more intelligent, humane, and physical store to achieve the inherent upgrade.

According to Five Star President Pan Yiqing introduction, Five Star 2018 has more than 60 self-managed store development plan and pilot to five-star and Jingdong dual brand endorsement way into the new region to open a physical store. Five Star will come up with the best quality physical store Resources pilot, in the existing five-star Jijia and Big Blue blue flagship store model based on the investment to create five-star unbounded retail stores.The overall image of this five-star brand-based brand, while inside and outside the store into the Jingdong elements .In the store both A five-star product will also have Jingdong's physical and digital entrance.

The two sides will continue to explore the store model, continue to invest, find a copy mode can quickly expand the country.

Pan Yi-ching said Five Star's vision is to be the 'most professional omnichannel retail service provider'. Five Star and Jingdong work together to achieve the goal of 'retail with you and me with you' Ecological, for the home appliance industry in the field of unbounded retail exploration has an excellent demonstration effect and benchmarking, will be on the appliance industry's overall format to bring revolutionary inspiration.

It seems Aike home appliances network, Jingdong and five-star cooperation is a deep online and offline integration of cooperation, this cooperation allows five-star 'touch the net' so Jingdong 'landing.' Five-star nearly 20 years of the traditional retail channels Jingdong experience and cooperation will flourish; Jingdong powerful e-commerce and logistics operations capacity will also be obtained through the cooperation with the five-star greater display.In addition, Jingdong also through the cooperation with five-star, to achieve the level one or two appliances market depth Coverage.Jingdong Appliance, the cooperation with the five-star is in the market for the third and fourth tier stores on the basis of plans to make up the first and second markets; for Jingdong Group, the significance of strategic cooperation with the five-star With Yonghui, Wal-Mart and other super-channel based on the new home appliance store resources, is to establish a complete KA channel resources complement.

For the future, Aiken Home Power Grid believes the cooperation between both parties will be implemented and deepened continuously, and finally a perfect integration template of online and offline channels will be established.