On March 8, 2018, the China Household Electrical Appliances and Consumer Electronics Expo (AWE), one of the three most widely watched consumer electronics and home appliance shows worldwide, was grandly opened at the Shanghai New International Expo Center.
AWE2018 is the first group debut since the establishment of the Jingdong Electronic Entertainment Group. From the perspective of scale, it not only sets up a huge booth space of nearly 800 square meters, but also takes the theme of '36 promises, one mind only for you', with two modules. The eight-area home appliance digital product full-scene experience provided a magnificent quality feast and a brand-new high-quality consumer experience for a large number of manufacturers, exhibitors and visitors. In the ever-popular smart home exhibition area, JD.com’s intelligent capabilities were 'open'. Successfully attracted all the audience to stop and experience.
At the exhibition site, we also invited Mr. Li Hongtao, director of content distribution of the Department of Home Appliances of the Jingdong Mall Appliance Department, to make an in-depth interpretation.
Jingdong Mall Appliance Marketing Department Director of Content Communication Li Hongtao
Subvert the industry's service standards Let consumers buy peace of mind
Jingdong is the largest home appliance e-commerce platform in China. What new product experiences and service methods have been upgraded this time?
Li Hongtao: This is our fifth time to participate in AWE, which is also the largest one. Our booth is nearly 800 square meters this year, which is the biggest one. It is mainly a theme, two modules and eight regions. One theme is Jingdong this year. The 36 promises of home appliances launched are for you only. We want to make the ultimate service experience for consumers. Because home appliances may involve things like installation, after-sales, logistics, return, and replacement are all very important pieces. Therefore, we now because Jingdong is China’s largest home appliance channel. While we are selling, we may need to shift our focus to the services of consumers. This is the main point. We have introduced many service standards that subvert the industry. 36 items are the highest service standards in the Chinese home appliance industry. We all know that like seven-day logistics, then 30-day guarantee, 30-day return, one-year warranty extension, etc. These are all previous. Now we have upgraded, including the launch of WeChat One. For a dedicated customer service, you must reply within 30 seconds. You must solve the consumer's problem within a certain period of time. The one-on-one problem is solved by someone. This includes us and the factory. The relationship of the after-sales system is gradually getting through. It used to be that after the platform had purchased goods, there were quality problems that were looking for manufacturers. We hope that Jingdong will replace consumers and manufacturers to communicate. Consumers will always only look for Jingdong. Jingdong cooperates with suppliers. Overlord terms, but our Overlord terms are all after-sales service. For example, consumers and merchants, manufacturers kick the ball, we pay the consumer first, and then we coordinate with manufacturers. Such as water heater installation, some consumers The feedback said that I might buy a water heater installation fee that is as expensive as a water heater. We put forward a ceiling for the installation fee. Many services are for the consumer to buy things. It is safe to worry about it. I don’t worry about buying after-sales problems for large-ticket items. There’s a problem with JD. To solve.
Two modules, one is Jingdong's specialty store, we specialize in specialty stores in the 3rd, 4th, and township markets, which is part of the channel sinking. It is also our home appliance experience store because we feel that the degree of home appliance upgrade is becoming more and more obvious. For example, products like smart high-end products need experience. So we need to build a city-level experience center, a large-scale experience shop, our conception is one city and one store, one big city has one such experience store. The main display is not In the past, products displayed in the form of stores were favored by experience, including many new products, products that people might have heard of, but they did not buy at home, and they did not know how to use them. When they bought, they would have concerns. You can go to our experience shop to truly feel the next.
Upstream and downstream of the tandem joint promotion of industrial upgrading
Reporter: JD.com originally launched smart refrigerators and other products. One voice thinks that JD.com also makes refrigerators. Does it compete with manufacturers for the market? How do you see this problem?
Li Hongtao: Yes, we now want to be able to link the industry chain, upstream or downstream, and we will promote the smart concept products. We do not produce home appliances, but we integrate this module. The refrigerators we push are also manufacturers. In cooperation, we have also established a smart refrigerator alliance with 18 manufacturers. We provide a concept because we have the largest user group and we can get big data. For example, you put eggs in the refrigerator. How many of the boxes are appropriate, this data we share with the manufacturers, some think that ten, some think that twenty, how much is the frequency of consumer purchases. How much time do most consumers eat how many eggs, we are Sales, we can most accurately know such information, companies can design these things based on these humanization. Including the habits of consumers, big data can provide support. Based on these developed smart products, consumption People will think that it's easy to use. We once launched a product with a manufacturer, B2C products, Who filled out online like what function, what kind of design information through our feedback to the manufacturers of large data, manufacturers can know first-hand what products consumers want to.
Li Hongtao: I know that some manufacturing companies will also do consumer research themselves, but may be affected by the respondents' mood, time, location, and other factors. Some survey companies may even be false, such as Jingdong’s data is in RMB. Including sunbathing. Because JD.com is totally free from fake sunbathing or brushing. We have bad reviews and we can't delete them. Praise is also impossible to delete. This is the most accurate. Because everyone is a real consumer. , Maybe when you say market research, for example, many consumers say that they hope so, but if he hopes that such a product is really expensive, he will not buy it. So Jingdong, we don't want to say that we are replacing manufacturing companies. We need a brand. We want to push our products. We don't need it. Because our core competitiveness is not where we are, we don't need to do this with the company. We work together with the company to achieve a win-win situation and jointly achieve industrial upgrading, avoiding the detours of the company. It also avoids us from taking a detour.
Unbounded Retail Sales Without Asking Scenes
Reporter: In recent years, JD's sales share in the home appliance industry has increased rapidly, which also reflects that the service launched by Jingdong is very popular with consumers. Recently, Liu Zong (Jing Dong founder Liu Qiangdong) proposed the concept of 'unrestricted retail'. What is the relationship between JD.com and JD.com?
Li Hongtao: Liu Gengti's concept of unrestricted retailing is based on a reflection of this new retail reform. Previous forms have fixed sellers, channel parties, manufacturers, and consumer concepts. There is a physical store model for sales. In the future, Unrestricted Retailing can be extended to all aspects of your life, not necessarily The sales experience can only be realized in a specific place. We hope that consumers can integrate in any scene, it is convenient to experience products, and purchase products. Including many offline and online integration products we push, including some to enter. Community, like this, makes it easy for people to buy. Including channel sinking is also the case, because there is information asymmetry in urban and rural consumption, and rural areas are greatly affected by the channels, especially in counties and townships. Home dealers, what are your dealers selling, consumers can theoretically only buy what, and the pricing is also set by the dealers themselves. Such consumer choice is very small, we have been doing channel sinking, we hope to put the competitive price , Good products are brought to the people of the country.
Li Hongtao: In terms of channel sinking, we have been able to reach 600,000 administrative villages across the country. In theory, we can all sell home appliances to places where Jingdong Logistics can reach. And rural and urban consumers enjoy the same goods, The same price, but also to engage in special preferential activities in rural areas, this effect is very good. Our rural sales defined in 2017 can account for 40 percent of the overall Jingdong. With the Jingdong Bang service shop, in addition to distribution and installation There is also a very important piece that is responsible for after-sales service. It also solves consumers and manufacturers and helps manufacturers to sell more products.
Reporter: In the future, whether it is Jingdong’s unbounded retail or Ali’s new retail, currently in the urban market, they all want to seize the community. How do you understand this?
Li Hongtao: When we enter the community, we think that there are two aspects of thinking. One way to enter the community is that we don’t want to chain down to offline entities. Because the first and second tier cities are now, their consumption concepts and ideas have taken root. The changes. Why did JD.com's home appliances grow so fast? In fact, it was due to a tendency to stop. Now that consumers are after 80s, consumers after 90s, they are almost not considering offline stores because they have no time, and Accepted online shopping. Although there are advantages under the line, but if in the first and second tier cities we think there will be heavy burdens, that is the operating costs, these should be passed on to consumers. If we do not pass on, the purpose of the business is to There is no such thing. So we are definitely not in the form of a store in the community. It may be the concept of an unbounded retail. It fits into various scenarios. For example, we did a 'hundred-city tour' activity last year. We told consumers in simple publicity. Since consumers have a concept of Jingdong, urban consumption can also be seen and known. We only need to tell him our advantages, our services, our logistics, our products, our activities, and tell them about consumption. Just fine.
Li Hongtao: With regard to the rural market, you are a physical store like our specialty store, but our store is different from a traditional husband and wife store. We don't need inventory, pressure, we just need a storefront and several prototypes. You Most of the products sold are on the Internet. Your warehousing and logistics are all handled by JD. You are only at the retail end. It is a partnership with JD. It solves many problems. Because of the advantages of JD. , It may have already tasted the sweetness. Some were still guarding the original mode of thinking. Now they no longer have a chance to turn.
Li Hongtao: For example, we and Five Star Electronics, which have a lot of influence in the South market, have reached a strategic cooperation with it. This is an important point for unrestricted retailing. Jingdong transfers the online part to offline, and he puts the offline part to Jingdong transfer, selling many proprietary models to the line, at the same time we have transferred many of ours, including strategic cooperation in logistics, distribution, etc., to a win-win situation.
Online and offline integration will be the final format
Reporter: There is a saying that, including the current two years of data, the growth of e-commerce has been slowing down. JD's share in e-commerce is currently over 60%. What kind of growth will this future be?
Li Hongtao: On the one hand, e-commerce development is relatively fast. According to the latest data from the Ministry of Industry and Information Technology, e-commerce sales in 2017 accounted for nearly 500 billion home appliance categories, and Jingdong accounted for 60 percent. This is very high. Some people say that they are on the ceiling, but We see there is still a great opportunity because we look at another data. Even so, the proportion of many types of online shopping for household appliances will be about 30%. From this point of view, there is a huge market space. We think that a larger market. Where is the space? Now that consumers have changed, they started to come to Jingdong because they are cheap, but now they have changed. We feel that the biggest opportunities in the future are high-end products.
Li Hongtao: Replacing high-end products in the urban market is a major trend, including the purchase of home appliances that were not originally available, such as dishwashers. This is a huge increase. There is also a huge rural market that has not been developed, so we did three years of development. The sinking of channels has made great progress. As we have more and more stores and more and more coverage, we will definitely increase our share. Therefore, we believe that the increase in the household appliance market in the future still exists.
Reporter: The e-commerce platform represented by JD.com has launched a number of initiatives in terms of service enhancement. In addition, physical stores will also attract customers and increase customer stickiness by optimizing services. Will this affect the way consumers purchase?
Li Hongtao: In the era of explosive popularization of home appliances, people’s demand for home appliances was very strong. They mainly opened stores in concentrated areas of people and concentrated sales. This was a feature of the time. Now, it is characterized by fragmentation. It may be APP, and may be WeChat. It may be any scene in any place. But in terms of physical store, no matter if nobody is there, the personnel cost, the rent cost, the operating cost are here. From the perspective of future development, more and more offline entities are actually changing their minds. To move closer to the line, they also found that this model is more efficient and can achieve increased value.
Reporter: The essence of this should be the online and offline integration mentioned just now. From the perspective of future development, can we understand this way? The format cannot simply use the online and offline physical compartments. You have me and you have me. In fact, it is a format.
Li Hongtao: Yes, but offline as an experience form will exist. The general purpose is to make consumers more convenient and easy to buy products. Who can provide a better shopping experience, who will be able to seize the future trend, JD is now thinking To do service, we must work together with manufacturers, in a win-win attitude of cooperation, the principle of openness, the principle of empowerment, promote the upgrading of consumption, and bring benefits to consumers through win-win cooperation, and finally promote the development of the industry.