Liu Qiangdong won Lei Jun's 200 billion big order

E-commerce newspaper Pro

2024-05-15 11:07Posted on the official account of Guangdong E-commerce News

JD.com and Xiaomi have in-depth cooperation, with a three-year target of 200 billion

Liu Qiangdong's allies are increasing.

A few days ago, Xiaomi announced that it had reached a new strategic cooperation with JD.com, and Lu Weibing, partner, president and president of the international business department of Xiaomi Group, and Xu Ran, CEO of JD.com, attended the signing ceremony.

Source: JD.com

At the signing ceremony, the two sides clarified the cooperation goal: Xiaomi will sell 200 billion yuan in Jingdong's omni-channel in the next three years.

According to the agreement signed by the two parties, JD.com and Xiaomi will carry out in-depth cooperation in the two major fields of retail and logistics.

In terms of retail, relying on its deep accumulation in the fields of 3C digital, home appliances and automobiles, it has worked closely with Xiaomi to jointly promote Xiaomi's products to cover a wider range of markets with accurate market positioning and in-depth understanding of consumers.

In terms of logistics, JD Logistics will give full play to its strong logistics network and advanced supply chain digital intelligence capabilities to provide Xiaomi with comprehensive and efficient integrated logistics supply chain services, as well as international logistics and logistics digital intelligence solutions, to help Xiaomi achieve more efficient and accurate logistics operations.

In addition, JD.com and Xiaomi will not only deepen cooperation in retail, logistics, technology, finance and other fields, but also expand to industry, production and development, health, insurance and other new fields to achieve all-round industrial integration and coordinated development.

In this way, this cooperation is not just as simple as JD.com helping Xiaomi sell goods, but an all-round and in-depth cooperation between the two sides based on their respective advantages.

It is worth noting that this strategic cooperation is not the first time that the two parties have joined forces.

In May 2015, Xiaomi and JD.com jointly announced that Xiaomi's JD.com self-operated flagship store was officially launched. In just two years, the sales volume of Xiaomi products on the Jingdong platform exceeded 60 million.

Source: JD.com

In 2018, the two parties upgraded their partnership again and jointly launched the "Jingmi Plan". In the plan, JD will efficiently integrate the resources of both parties through data exchange, and rely on Xiaomi's rich ecosystem of MIUI to improve marketing accuracy and promote the efficient transformation of e-commerce platforms.

In addition, Xiaomi also provides a wealth of advertising resources, guided by user behavior and needs, to explore more convenient and high-conversion advertising forms.

The 2024 Rice Noodles Festival, organized by Xiaomi and JD.com, is the first time that the Xiaomi brand has cooperated with channels to jointly hold the Rice Noodles Festival.

In April this year, JD.com's instant retail platform JD Hourda and Xiaomi announced a deepening strategic cooperation. Xiaomi SU7 accessories are launched on the JD Hourda platform, and it will only take 30 minutes to deliver at the earliest.

From the perspective of performance, the cooperation between Xiaomi and JD.com has achieved remarkable results. Data shows that in 2016, Jingdong became an important sales channel in addition to Xiaomi.com, accounting for about 18% of sales, and rose to about 27% in 2017.

At the same time, Xiaomi's products have also achieved good sales results on JD.com.

Last year618, Xiaomi won the mobile phone sales championship in the full-price segment below 6000 yuan on JD.com. In the same year's Double 11, Xiaomi ranked first in the cumulative sales of domestic mobile phones in Jingdong's 4000 yuan price segment and 2000 yuan price segment.

It is not difficult to see that with the help of JD.com, Xiaomi has gained a lot of development opportunities.

Today, JD.com has become Xiaomi's largest strategic partner in global sales, and the in-depth cooperation between the two sides indicates that Xiaomi will receive more solid assistance and inject new vitality into its future development.

To some extent, without JD.com, there would be no current Xiaomi. As Xiaomi said, "JD.com's full support and the loyal support of rice fans are the greatest confidence for Xiaomi to achieve its strategic goals."

What kind of calculation is JD.com playing?

The so-called cooperation is usually a win-win situation for both parties.

Xiaomi needs JD.com's huge market and strong logistics support, and JD.com also relies on Xiaomi's brand influence and product strength. This highly complementary cooperation model is not only in line with the development needs of JD.com, but also in line with Xiaomi's market strategy, which is simply a double win.

Looking at the cooperation with Xiaomi, Jingdong can really enjoy a lot of dividends.

Not long ago, Liu Qiangdong's AI digital human appeared in the live broadcast scene, and many people must be deeply impressed by it.

At that time, JD.com chose to broadcast live in the image of Liu Qiangdong, precisely because of his extensive influence as the founder, hoping to quickly attract the attention and participation of a large number of users.

The results lived up to expectations, official data showed that less than an hour after Liu Qiangdong's AI digital human was launched, the number of views in the live broadcast room exceeded 20 million, and the cumulative turnover of the entire live broadcast was as high as more than 50 million.

Source: Jingdong Blackboard News public account

In the same way, JD.com's choice to cooperate with Xiaomi in depth is also based on the same considerations. Lei Jun, who has become an "Internet celebrity", can not only bring huge exposure and user stickiness to Xiaomi, but also bring significant sales conversion to JD.com.

Influence aside, Xiaomi's product line covers multiple areas such as smartphones, smart homes, and smart hardware. By partnering with Xiaomi, JD.com is able to ensure the quality of the products it sells, improve the consumer shopping experience, and enhance user stickiness.

For JD.com, this is obviously a great opportunity to improve the quality of its products.

In terms of market expansion, since Xiaomi has a wide range of market layouts around the world, JD.com can further expand overseas markets and realize its globalization strategy by cooperating with Xiaomi.

This coincides with JD.com's long-term strategy of going overseas. After in-depth cooperation with Xiaomi, JD.com may be able to gain some inspiration and achieve broader market expansion.

Of course, that's all for later.

The new strategic cooperation has just begun, and for JD.com and Xiaomi, at this stage, it is more about each taking what he needs.

It has to be mentioned that in addition to Xiaomi, JD.com has carried out in-depth cooperation with many well-known brands in the past year. These include Lenovo, BYD, Midea, Gucci, OPPO, China Southern Airlines, Eddington China, as well as Yuyue, Omron, Kefu Medical, Philips and others in the medical and health field.

Taking Midea as an example, in February this year, Midea and JD.com jointly held a grand annual sales celebration. Important leaders of both parties, including Fang Hongbo, Chairman and President of Midea Group, and Xu Ran, CEO of JD.com, attended the celebration.

Source: JD.com

At the event, the two sides solemnly set a grand goal for the next three years: Midea's online channel business will maintain a net increase of 10 billion yuan per year, and strive to achieve overall net sales of more than 210 billion yuan.

Combined with the close cooperation between JD.com and Xiaomi, JD.com is determined to seek to establish long-term and stable cooperative relations with major well-known brands to promote the common development of both businesses, which is something that needs to be done for a long time.

In Liu Qiangdong's eyes, the power of allies should not be underestimated. By working closely with these brands, JD.com is able to achieve much better results than if it were to go it alone.

In the stock era, e-commerce platforms need brands

Generally speaking, the development of e-commerce platforms is indispensable for the support and promotion of brands.

Taking Channels as an example, WeChat Open Class data shows that in 2023, the GMV of Channels brand stores will increase by more than 226%, the number of brands entering the game will increase by more than 281%, and the number of brand stores exceeding 10 million will increase by more than 860%.

"Brand power" seems to be a crucial and indispensable part in the development of e-commerce platforms.

Even Pinduoduo, which is known for its white-label products, has significantly increased its emphasis on branding since the second half of last year. For example, in the recent spring outing promotion, Pinduoduo introduced world-renowned brands such as Adidas and Baili Group.

Source: Pinduoduo

Among them, the official flagship store of Adidas has officially settled in Pinduoduo, and a number of brands under the Baili Group have appeared in the form of outlets.

This series of measures began to give Pinduoduo a taste of the sweetness of "branding". In the first quarter of 2024, Pinduoduo's brand GMV grew 48% year-on-year, accounting for 35% of the company's total revenue. Among them, the GMV of large brands increased by 130% year-on-year.

Why do e-commerce platforms value brands? There is a key reason: brands have a higher appeal, influence and loyalty to consumers than white labels.

In the stock era, in addition to attracting brands to settle in, it has become an inevitable trend for e-commerce platforms to cooperate with brands in various aspects.

As the saying goes, you can't make a forest alone. The development of the e-commerce industry cannot only rely on the power of the platform, and brands also need to give full play to their strength to jointly promote the upgrading and transformation of the industry.

Author | Li Xiang

View original image 12K

• 

• 

• 

• 

• 

• 

• 

•