The retail industry has entered a new revolutionary era and has become the consensus of the industry. In 2017, Jang Dong Group Chairman and CEO Liu Qiangdong pointed out in the “Fourth Retail Revolution”: In the next 10 to 20 years, the era of unbounded retail will come. Unbounded retail redefines the boundaries of industry, the relationship between people and businesses, and redefines costs, efficiency, and experience based on knowledge, knowledge, and knowledge. Empowerment is an especially important part of this process. The main body of energy comes from Internet retail companies that have knowledge of knowledge, knowledge, and knowledge of new technologies.
With the development of the Internet, the market for traditional home appliance stores has been impacted. Currently, the penetration rate of online home appliances reaches 20%, and the online market for pure home appliances increases by as much as 33.1%. This means that e-commerce has become the first channel for home appliance retailers, while Jingdong continues to Sixty percent of the home network purchase market ranks in the forefront of omnichannel appliance retailers.
In the fourth retail revolution, JD.com will first empower the appliance industry. On March 20, JD.com held a 2018 strategic conference to announce that it will serve the home appliance industry with four strategies: empowerment, service, channel and marketing. , Promote the home appliance industry into a new era of unbounded retail.
Traditional home appliance stores face reshuffle
'I think that the stores of traditional home appliance stores that are now in stock will be reshuffled and cannot be said to be dead, but they will be shuffled. 'Jin Dong Group's senior vice president, Yan Xiaobing, president of Jingdong Mall Electronic Entertainment Group predicts.
Before the rise of online shopping, traditional home appliance stores had a large number of physical stores across the country and the business was doing well. With the rise of a large number of shopping sites, online shopping gradually moved from the first- and second-tier cities to the five-and-six-wire cities and even rural areas. More and more consumers are moving their shopping channels from offline stores to online stores.
According to the “2017 China National Electronic Household Appliance Industry Report” released by GFK, the international research organization, China’s home appliance and consumer electronics retail sales exceeded 2 trillion yuan for the first time in 2017. In the next 3 to 5 years, China’s home appliance industry It will formally enter the growth and outbreak period of consumer upgrades. In 2017, the overall growth rate of home appliances was 13%, while the online market growth rate reached 37%, far exceeding the overall level of the household appliance industry. The closure of traditional offline stores also highlighted. Traditional home appliances retail dilemma.
According to industry insiders, traditional home appliance stores will generally be selected in the bustling area with a large flow of people, thus ensuring passenger flow and gaining profits through promotion. This leads to higher costs for traditional home appliance stores, including personnel costs, inventory rent, and water and electricity expenses. Etc. Finally, these costs are transferred to consumers through the sale of goods, so the price of traditional home appliance stores will be more expensive than the e-commerce website. In addition, traditional home appliance stores are subject to site constraints, and the amount of goods that can be presented is limited, and basically Promoter shopping guide, the user's understanding of the product is limited.
The disadvantages of traditional home appliance stores in terms of commodity prices, commodity diversity, and product evaluation are precisely the advantages of e-commerce platforms. Using these advantages, the e-commerce platform has achieved rapid development, and various types of consumer data have been collected, through big data. Applied to different scenarios.
'Many functions of traditional home appliance stores are currently missing, mostly limited to a price-oriented promotional store.' Yan Xiaobing said.
In the case of traditional home appliance stores languishing, Jingdong has vigorously promoted offline Jingdong home appliance stores, and is still making secret progress 'Jingdong Appliances Super Experience Shop'.
'JD.com's online stores and traditional home appliance stores are very different from each other. We have seen some pain points in offline appliance stores. For example, only products are simply displayed. Products cannot interact with consumers interactively. Can only rely on the promoters to explain, some stores due to the limited area can only display a few standard items and so on. 'Jing Dong Mall electronic entertainment business group appliance division Liu Jun said.
According to Yan Xiaobing, Jingdong Home Appliances Co., Ltd. first opened the store and solved the problem of consumers' price. The implementation of online and offline prices was the same as that of the Jingdong Household Appliances Co., Ltd., and it was necessary to transplant JD.com's innovative retail technology to the stores to provide consumers with the ultimate experience. 'Users will have different feelings of experience in the new retail scenes, including Jingdong's own products and open platform products can be online and offline to experience. In addition to experience products, there can be more fun things, such as Scan the book to find out what's inside, apply face recognition technology to offline stores, etc. '
Appliance industry revolution
Unbounded retail, the promotion of the home appliance industry revolution is actually not Jingdong alone in the battle. 'Teaching people to fish to teach people to fish', Jingdong home appliances 2018 is the first strategy of the four major strategies is to empower manufacturers.
According to reports, the core of JD.com’s home appliance opening empowerment strategy is to build a large number of its own retail operations and service capabilities, to have the most dynamic member operating system, the most extensive marketing reach network, and the most complex SKU management system. Efficient logistics service capabilities, the most complete, the longest retail data of the value chain, the most reliable financial tools, etc., are fully open to supplier partners, become the retail infrastructure of empowering partners, provide brand owners with full-scene coverage, Full trading links, open architecture solutions, allowing the entire home appliance industry to share Jingdong's resources and capabilities.
In addition, in order to allow products, traffic, marketing, advertising, fans and sales of all resources to better focus on the brand, to achieve full empowerment of brand owners, Jingdong Appliances will completely break the brand in Jingdong platform in 2018 The boundary between 'self-operated flagship store' and open platform 'brand flagship store', all the products sold by JD.com self-operated and third-party platforms will be displayed in the only official flagship store. The next store is fully connected and integrated to achieve maximum product, user, service, data and sales. Consumers can see all products of the brand in the same flagship store, product proprietary or third-party platform attributes Clearly visible, better experience.
Liu Jun introduced: 'Before manufacturers in the open platform to do business, can only get their own shop data, this time we are all-round data open, now more product sales area and customer analysis, the future will be based on the manufacturers Category, Based on Jingdong platform and external partners' portrait analysis of consumers, adapting manufacturers for consumers, product promotion, pricing system, etc. '
The JD.com home appliance offline deployment will also enable the manufacturers, and the manufacturer's brand stores will have a full linkage. At present, both the traditional home appliance stores and many manufacturers' brand store closures are fast, the most fundamental reason. That is, sales revenue is not enough to support it in a place to bear all the costs and costs of the shop.
'The cooperation between JD.com's home appliances and branded stores is to form a '1+N' model, which is a combination of a big store and N brand stores. The big stores solve the problem of experience, and there are many N stores within 3 km around the big store. A brand store solves the problem of convenience. ' Yan Xiaobing said.
According to reports, JD.com’s home appliances are very willing to give their manufacturers the ability to package their products. The first is to empower all the products of the brand, so that the brand’s products can provide consumers with experience in the large offline stores of JD.com’s home appliances. The second is Empowering branded stores, an important attempt of JD.com's home appliance industry in 2018 was to cooperate with the offline stores of home appliance brands to carry out branded experience stores. It was to extend JD’s longer supply chain and more products to brand stores. Brand stores display more products, use Jingdong's leading big data and store management system to effectively analyze store data, achieve more efficient, more targeted store management, and use Jingdong's powerful logistics after-sales protection system to efficiently meet The service needs of the store customers. This can not only solve the problems of the customer service experience, but also solve the profitability problem of the store.
It is reported that at the channel strategy level, in 2018, Jingdong Home Appliances will continue to promote Jingdong Home Appliance Stores as the main channel for expanding the 4-6th line and the rural market. It plans to increase the number of stores to 15,000, and sales will be increased by 5 times compared to 2017. , Covering 100% of the county seats in the country, allowing more remote township consumers to purchase high-quality home appliances that are indistinguishable from those in the first-tier cities.
The service has been the pain point for household appliances consumption. According to the results of the complaints survey released by the China Consumers Association in 2017, the Consumers Association of China has received a total of 44,601 home electronics and electrical appliances cases in the first half of 2017, accounting for 15.6% of the total number of complaints. Among them, there were 15,398 complaints about quality and 17,359 complaints about after-sales service problems, involving a total of 32,757 items, accounting for 73.44% of the total number of complaints for home appliances. Consumers are increasingly concerned about home appliance after-sales service. While sinking, it also timely launched a one-stop service solution that includes the platform, pre-sales, sales, after-sales, and value-added services. The 'King Umbrella Program' provides consumers with one-stop home appliance consumer services. .
According to Jingdong Home Appliances' plan, in the near future, all pre-sales, sales and after-sales services for consumers will only need to face one person in Jingdong, and they will be able to see the service benefits they enjoy throughout the consumption process. The service rights and interests are more transparent, which greatly reduces the time and energy consumers consume in home appliance services, and the consumer experience is greatly improved.
Many manufacturers' after-sales service systems do not sink as deeply as possible. With the help of JD.com and the sinking capacity of home appliance stores, they can help manufacturers make up for short boards. They also hope that all consumers can enjoy a unified high-quality service. ' Liu Jun said.