Senior Vice President of Jingdong Group, Wang Xiaosong, President of Jingdong Mall Grand Express Group.
The common threat makes the two go closer. Will a combination of an offline hegemon and an online giant eventually achieve a strong alliance or a struggle between the two?
The second year of Wal-Mart's shareholding in Jingdong (2018), the cooperation between the two finally came to fruition.
One is the underworld hegemon, the other is the online giant, the two strong encounters, may be strong alliances, of course, may also compete with the two strong. Previously, the outside world was not optimistic about the cooperation between the two, that the meeting will be separated from each other, each other will There are some precautions. Now, according to Wang Xiaosong, senior vice president of Jingdong Group and president of Jingdong Mall's big fast-moving business group, the relationship between Jingdong and Wal-Mart is like 'marriage', then the two sides are now in the 'honeymoon period'.
At present, nearly half of the 400 stores in the Wal-Mart China market have opened up some of the goods with JD. 200 stores have settled in the Jingdong homepage and provided one-hour delivery service. Moreover, the capital of the two parties is bundled. More and more close, Wal-Mart is not only the third largest shareholder of JD.com, but also participates in the latter's O2O platform 'Xinda'.
The common threat makes the two go closer.
With the advent of Internet giants, China's retail landscape is entering an unprecedented dispute and battle. Most of the top 10 retailers in China are selected to stand side by side. The new retail format is subverting the existing retail map. Can Wal-Mart? Holding the status of the world's largest retailer, and for JD.com, the traffic business has encountered a growth ceiling, how to win more chips in a new round of retail competition?
Can we solve these problems together? Maybe we have added new problems?
Cooperation 'Honeymoon Period'
Wal-Mart finally tasted the e-commerce's 'sweetness'.
This traditional retailer, which has long been chased by the Amazon in the US market, does not know the importance of e-commerce, and the action is not too fast. As early as 2011, Wal-Mart bought the domestic e-commerce No. 1 store 17 % of the shares, added capital in the following year, gained a controlling position, but these failed to boost the e-commerce vitality of this traditional old store established nearly 60 years - the first one of the wholly-owned acquisition of the first store in 2015 The fight 'has not worked.
Until joining hands with Jingdong.
Wal-Mart CEO Dong Minglun once explained that in some countries, Wal-Mart will do its own omni-channel construction, but in the Chinese market, it needs to find local business partners to cooperate.
According to data provided by Jingdong, the official flagship store of Wal-Mart Global on the Jingdong platform has more than 100,000 kinds of products. It is the most complete third-party store in Jingdong. The sales volume in the first half of 2018 increased by 500%; the number of fans in Wal-Mart's official flagship store has been More than 1.3 million, ranked first in the fast-moving category on 618 in 2018. On the platform of Jingdong's home, Wal-Mart's sales were 3.5 times that of the same period in 2017, ranking first in the platform.
The breakthrough in e-commerce also boosted Wal-Mart's performance. In the 2018 fiscal year, Wal-Mart's total revenue exceeded US$500 billion, creating a record high. In the financial report, Wal-Mart also specifically emphasized cooperation with JD.com and JD.com. Cooperation is not only reflected in the growth of sales, but also in the development of new formats. Jordan Berke, vice president of e-commerce at Wal-Mart China, revealed that there are currently 10 projects under construction in Yuncang, where they have worked with Jingdong. Project, unlike the previous format, Yuncang is 100% serving online orders, making up for the current lack of density in Wal-Mart stores in certain regions.
From the other side of the cooperation, JD.com, in addition to the maturity of supply chain resources, it also complements its lack of offline channels, which will help JD to further improve the logistics and distribution system and efficiency.
For example, according to the past Jingdong 'central warehouse' distribution model, consumers buy a bottle of water in Jingdong, going through the process of warehouse-sorting center-distribution station-consumer home; and with Wal-Mart's offline store, the same An order can only be shipped from the nearest Wal-Mart store. Wang Xiaosong said that this will help to quickly digest inventory, improve the efficiency of the entire supply chain, and shorten delivery time and cost.
However, Wang Xiaosong did not answer the question of profit sharing positively. 'It is like two people getting married. It doesn't mean that when I get married, I just want to say that I want to divide my family. I think the first thing is how to live a good life.'
This is also a big truth. In fact, the cooperation between Jingdong and Wal-Mart has just opened its head. The 'three links' - user interoperability, store interoperability, inventory interoperability is the direction of cooperation proposed by the two parties in 2017, but it is still in its infancy Take the stock exchange as an example. In the Wal-Mart stores that have already accessed less than half of the total number of Chinese markets, only more than 300 SKUs have achieved inventory access.
'There will be a bigger breakthrough next year. ' Wang Xiaosong said that in 2019, all Wal-Mart stores will be opened.
'Borderless retail' border
At present, Jingdong and Wal-Mart are very satisfied with the cooperation between the two parties, and even plan to jointly organize a Jingdong shopping festival that belongs to Wal-Mart only - '8.8 Shopping Festival'. From Jingdong's point of view, Wal-Mart is also empowered for traditional retail. a 'sample'.
'Jingdong hopes to be able to empower the accumulated power in the field of e-commerce in the past ten years to help partners develop better. This is also a connotation of unbounded retail. 'Wang Xiaosong said, 'supply chain, logistics dirty Live, tired, others don't want to do it, give it to us.'
From the income structure of Jingdong, its direct online sales revenue currently accounts for 91.6%, and service revenue accounts for 8.4%. In the 'post-e-commerce era', raising the latter's income level is also an important means of stimulating overall income. Previously, Ali, Tencent's two giants have launched their own offline retail integration of the 'model room', the former has box horse fresh, RT-Mart, Intime Department Store; the latter has backgammon, Carrefour, Yonghui.
But the path and logic of the three are not the same.
Ali has always been a 'severe participation' for offline retailers, and even if it is not a huge investment, it has to become a pivotal 'two shareholders'; in the eyes of Ali CEO Zhang Yong, 'If you want to change chemically, you have to get through. He said in an interview with the reporter of "Chinese Entrepreneur", 'Otherwise, it’s just hello, I’m good, everyone, maybe I’m showing respect to this company in the short term, but in the long run, I’m going to get through the bloodline today. "The glory of the future development of the enterprise"; 'I want to make this thing, I can't do it without getting through the blood. I am responsible for this enterprise. I can't integrate it with Ali. I can't take responsibility. I have to do this. ' .
Tencent, which lacks retail genes, emphasizes ecological construction. A small number of shares are invested in retail enterprises, mainly based on technology and traffic. According to Ma Huateng's positioning of Tencent, the latter is to do 'digital assistants' in all walks of life.
There is neither Ali's wealth, nor Tencent's social traffic, and it also has a retail business. From this perspective, JD.com may face the biggest resistance when it comes to offline retailing.
As pointed out by some commentators, Jingdong and Wal-Mart can obtain Wal-Mart's strong bargaining power and supply chain system in the world. However, if Wal-Mart shares its core resources and capabilities with JD, will it cultivate a strong opponent? ?
'Jingdong is doing unbounded retail, emphasizing openness, of course, also depends on the open intention of the other side,' said Wang Xiaosong. The openness of Wal-Mart was also unexpectedly before. 'Because Jingdong is an online retail company, Wal-Mart is An offline retail company, if not open enough, we can't sit together.'
But not all 'negotiations' will be so smooth. In addition to the capital connection with Wal-Mart, Jingdong invested RMB 4.3 billion in 2015 to acquire a 10% stake in Yonghui, and hopes to be in the field of fresh O2O with the latter. There is cooperation. However, so far there has not been a consensus on the way of cooperation between the two. At the Yonghui 2017 Annual General Meeting of Shareholders more than two months ago, Zhang Xuansong, chairman of Yonghui Supermarket, once said, 'We have talked with Jingdong for two years. More, there has been little progress... but this is dynamic... they are changing, maybe we can find a way to cooperate.'
In an interview with a reporter from China Entrepreneur, Wang Xiaosong said that some companies have concerns and different ideas, and each retail company has different advantages, so the future cooperation with other companies does not necessarily coincide with Wal-Mart's The way can be the same. 'If fresh food is a non-standard product, you can't simply do inventory exchange, but go back to the front-end supply chain and unify the supplier. This will be slower to push forward.'
But no matter what the way, the most important point is that Jingdong, which has always emphasized unbounded retail, in the cooperation with offline retailers, it is precisely the 'boundary' problem that needs to be clarified.
'In the process of cooperating with other companies, the most important thing is to position well and do something for it. Ma Huateng once emphasized in Tencent's 'Internet + Digital Economy Summit' that it is necessary to carry out self-retail when doing retail empowerment. Restraint, 'Many business units are doing cross-border while doing it, so that other partners are going over there. This can't be done, don't cross the border.'