On March 8th, one of the world’s major home appliances and consumer electronics shows, the 2018 China Home Appliances and Consumer Electronics Expo opened at the Shanghai New International Expo Center. In the afternoon of the same day, it was hosted by the China Household Electrical Appliance Association and co-organized by CCTV. Top Forum – Yan Xiaobing, Senior Vice President of JD.com and President of Electronic Entertainment Group made a keynote speech at the 8th China Household Appliances Development Summit Forum. In his speech, Yan Xiaobing boldly predicted and predicted the future of home appliance retailing industry. He proposed , Appliance industry is about to usher in a new era of unbounded retail.
Yan Xiaobing, Senior Vice President of Jingdong Group and President of Electronic Entertainment Group made a keynote speech
Retail industry will usher in the fourth revolution
In Yan Xiaobing’s view, the evolution of all retail formats cannot be separated from the three main core elements of cost, efficiency, and experience. The three revolutionary department stores, chain stores, and supermarkets recognized by the retail industry are all around these three elements. The retail business has entered the era of e-commerce today, but also because the cost, efficiency and experience have been greatly improved.
Yan Xiaobing predicts that in the next 10 to 20 years, the retail industry will usher in the fourth revolution - the era of unbounded retail will come. He believes that the fundamental driving force of the fourth retail revolution is changes in consumption and technological innovation. The twisting of these two forces has brought about changes in the retail infrastructure. Unbounded retail is not simply online + offline, but the retail activity itself is fully integrated into people's lives, using a kind of moisturizing substance. Ways to dive into all aspects of life. 'It redefines the boundaries of the industry, redefining the relationship between people and businesses, based on knowledge, knowledge, knowing the field, redefine the cost, efficiency and experience.'
What is 'unrestricted retail'? Yan Xiaobing made a precise summary of 12 characters: The scene is infinite, the goods are boundless, and the people are between.
JD Group Senior Vice President and President of Electronic Entertainment Group Yan Xiaobing
Scenarios Unlimited: Consumption Spatio-temporal Borders Will Disappear
The so-called 'infinite scenes', Yan Xiaobing believes that the spatial and temporal boundaries of consumption will disappear. He said that in the past, the household appliance industry emphasized that the channel was king, but whether it was an offline chain store or an online electricity supplier, it was increasingly The diversity and immediacy of the increased demand are not fully satisfied. The infinite scene represents the trend of decentralization. In the future, the role of the passenger flow center will be diluted, replaced by fragmented retail scenes, and eventually the wind will submerge into the night. Silent ways to integrate into every aspect of consumer life.
Yan Xiaobing said that the infinite scene will eliminate the boundary of space, and that consumer appliances in the future will be ubiquitous and all-encompassing; the boundary of time will also be eliminated, and consumers’ buying behavior will be there at all times and seamlessly. In his depiction, the boundaries between home appliances purchase scenes and life scenes in the era of unrestricted retailing will become blurred. People do not have to go to offline stores or online e-commerce vendors to buy electrical appliances. Consumption of home appliances will permeate any life. At the level, people can purchase home appliances at any scene and time, such as e-commerce platforms, online media, offline stores, community centers, unmanned vehicles, smart hardware, roadside billboards, and QR codes everywhere, all of which are possible. Is the place to buy home appliances.
'For consumers, you see a home appliance anywhere you can quickly understand its features through the ubiquitous Internet of things to meet your requirements, and through a variety of ways to buy orders directly and send to any A place. ' Yan Xiaobing said that the scene will be the most obvious feature of consumer electronics consumer behavior in the era of unbounded.
Boundless Goods: Disappearance of Commodity and Industry Boundary
In the era of unbounded retail, home appliances are not pure hardware, but will be given more diversified meaning, which also constitutes the second feature of unbounded retail - goods boundless.
Yan Xiaobing believes that the future of home appliances will not be rigidly adhered to the inherent form. Consumers purchase household appliances will not be a single product, but a combination of 'commodity + service + data + content'. For example, smart refrigerators can be based on users. The state of health voluntarily recommends food ingredients to provide recipes, and through the connected businesses to complete the purchase and distribution. Artificial smart TV will recommend programs based on the user's preferences, interact with the user's friends and share, but also actively shield out programs that are not suitable for children to watch.
In this case, the industrial boundaries of household appliances will also disappear, and the entire home appliance industry will be deeply integrated to form a cross-border value. Behind the diversification of product forms is the penetration between industries, retail, logistics, technology, the Internet, content, and finance. , Internet of Things, etc. In the future, the interaction between these fields will surely become more and more frequent and deeper. This penetration not only matches the simple cooperation of traffic transmission and resource sharing, but it will generate chemical reactions and form some New business model and value space.
In recent years, Jingdong has been deeply in cooperation with Haier, Midea, Gree and other home appliance companies in the aspects of supply chain collaboration, smart logistics, artificial intelligence technology, service management, etc., and they are mutually empowering. The value generated is far greater than simple zero supply. Cooperation has achieved a leap in value. 'In the future, we will continue to do more exploration and verification with other supplier partners.'
Human resources: the formation of a unified supply and demand, collaboration and cooperation
Yan Xiaobing believes that in the past, the home appliance industry used to create value for consumers, use value for consumers, and the dialogue between the two was very limited. There was a lot of information asymmetry. In the era of unbounded retail, the relationship between people and enterprises was redefined. , There is no longer a clear-cut role between production and consumption, so we can narrow the distance and form a trusting relationship with each other. Human resources will eliminate gaps in roles, and supply and demand will be formed between home appliance manufacturing and consumers. Created relationships.
Yan Xiaobing stated that in the era of unrestricted retailing, platforms with a large amount of user data like Jingdong will become a link between consumers and manufacturers. With the help of new platforms and tools, home appliances consumers will be able to fully integrate through AI algorithms and big data. Positions participate in various activities produced by manufacturers, from previous research, design, production to marketing, dissemination, and services in the back-end, through multi-data authorization, consumer behavior preferences can be deposited to the corporate side, through comments, suggestions, interactions Consumers can participate in the design and R&D process of the company. Through direct investment in resources, consumers can even become the leader. The boundaries between producers and consumers will be broken. In the home appliance industry, the most direct manifestation is personalization. The products have gradually become mainstream, and consumers need customized personalized products. As long as the future users like Jingdong such a platform will be able to buy home appliances fully meet their needs.
Yan Xiaobing believes that in the era of unrestricted retailing, online and offline home appliance industry, goods and services, hardware and content will completely realize data link and scenario connectivity, and ultimately bring value interoperability and create new value.
Jingdong Group founder Liu Qiang Dong stressed that in the era of unbounded retail, respected companies are not the import giants of traffic, but the scene empowerment of empowerment. Yan Xiaobing said that as the largest home appliance retailer channel, Jingdong home appliances In the era of unbounded retail, the mission is to become such an enabler and create a win-win situation with partners.