Big action before 618! JD.com has integrated "second delivery" to increase the instant retail business

China Times

2024-05-17 22:28 Published on the official account of Beijing China Times

Before the 618 mid-year promotion, the e-commerce giant JD.com announced its report card for Q1 this year.

On May 16, JD.com announced its revenue of 260 billion yuan in the current period, a year-on-year increase of 7%, and its operating profit was 7.7 billion yuan, a year-on-year increase of 20%. JD.com Group CFO Shan Su also disclosed in a conference call that evening that as of now, JD.com has completed a total of $1.3 billion in share repurchases in the United States and Hong Kong markets this year, equivalent to 3.1% of the total number of shares outstanding by the end of 2023. It should be mentioned that JD.com is about to celebrate its 10th anniversary on the NASDAQ.

As a consumer retail giant, JD.com's financial reports have always been regarded by the outside world as a bellwether of consumer trends. Xu Ran, CEO of JD.com, also said in the above-mentioned conference call that China's consumer and retail market is large and highly fragmented, "There are more than 300 large cities with a population of more than one million Chinese, and the online penetration rate in 2023 is also about 30%, and with the continuous improvement of the efficiency of online platform enterprises and model innovation, the online rate will be further improved." ”

618 is expected to be optimistic

Selling goods is the basic plate of JD.com's income. In Q1 this year, JD.com's commodity revenue was about 195.5 billion yuan, accounting for 75% of the total revenue, an increase of 6.6% year-on-year.

Among them, the revenue of live products was about 117 billion yuan, accounting for about 60% of the entire commodity revenue, a year-on-year increase of 5.3%, and the commodity revenue of Japanese department stores was about 78.6 billion yuan, a year-on-year increase of 8.6%. As a comparison, JD.com's service revenue in the first quarter of this year was 51.5 billion yuan, a year-on-year increase of 8.8%.

Under favorable policies such as trade-in, live products are expected to bring more increments to JD.com.

Xu Ran said in the financial report meeting on the same day that this year has passed about ten years since the last round of "trade-in" of consumer goods launched nationwide, and the implementation of the "trade-in" policy can further stimulate the demand for stock replacement, accelerate the realization of existing renewal needs, and reduce the acquisition cost of high-quality household appliances for many families. She mentioned that JD.com recently found that some categories such as computers and home appliances that were originally thought to have a high online penetration rate have a higher potential online rate than originally judged.

According to the reporter's understanding, in March this year, Jingdong announced that it would invest 3 billion yuan in joint brands to continue to increase the trade-in subsidies for household appliances and service experience upgrades. Xu Ran also disclosed that from 2023 to the present, more than 16 million users have purchased JD home appliances and household goods through "trade-in", and the number of users of "first-time trade-in" has also increased by more than 200% year-on-year.

The low-price strategy behind the trade-in is just one of JD.com's recent directions. Xu Ran said on the same day that in the past year or so, Jingdong has carried out a series of active adjustments, optimizations and improvements around improving user experience, low-price mentality and platform ecology, including improving price competitiveness, reducing procurement costs, lowering the threshold for free shipping, and upgrading user experience and services such as "one-click price guarantee", "free door-to-door return" and "refund only".

The upcoming 618 mid-year promotion is also a matter of concern to the outside world. Some industry insiders believe that as the main battlefield of JD.com, JD.com will prepare for the 618-end promotion at least two months in advance. It is reported that this year's Jingdong 618 promotion will be sold directly at 8 p.m. on May 31, which is different from its previous sales rhythm.

Xu Ran was optimistic about JD.com's performance expectations for 618 this year. She said that whether it is daily sales or big promotions, each platform and retailer have their own differentiated capabilities and strategies, and JD.com's business model is mainly characterized by more advantages in the scale and certainty of the supply chain. "We are very confident that JD.com will continue to gain market share in the long term." Xu Ran said this day that day.

Instant retail and then add weight

To increase the online rate of the retail consumer market, it is not only necessary to rely on the large warehouse model started by JD.com, but also real-time retail has become the focus of its continuous efforts in recent years.

On the day of the release of the financial report on May 16, JD.com announced the integration of the original instant retail brands JD Hour and JD Daojia as "JD Second Delivery". The reporter learned from Jingdong that Jingdong Miaoke has now covered more than 2,300 counties, districts and cities across the country, with more than 500,000 cooperative stores, covering all categories of goods. The reporter also saw that the entrance of the second delivery is located in the top tab bar of the Jingdong App, alongside the "home page", and at the same time, Jingdong also launched the "second delivery area" in the core position of the home page, which previously belonged to tens of billions of subsidies, which highlights its importance to Jingdong.

The information provided by JD.com also shows that in the first quarter, the number of active stores in the JD App field of JD Miaosend increased by more than 80% year-on-year, and the GMV from the JD App field increased by more than 30% year-on-year. In addition, Jingdong Second Delivery also linked merchants to reduce the free shipping threshold from 59 yuan to 29 yuan, and the activity has covered nearly 80% of stores.

Internet analyst Ding Daoshi believes that the "renaming" of JD instant retail stems from the current competitive environment, and the distribution efficiency is becoming more and more volatile, "The new brand can declare the advantages of JD instant retail fast delivery." On the other hand, he told reporters that Jingdong previously had multiple entrances such as hourly delivery and Jingdong Daojia in instant retail, and after integration, "only through one platform and one system can quickly complete the fulfillment of orders." ”

According to the "China Times" reporter, JD's instant retail business has also changed its name before. In September 2023, JD.com's hourly shopping service, launched in October 2021, was renamed HourDa and is now in the same position as the "homepage". At that time, some industry insiders communicated with reporters that the expression of Hour Da highlighted the distribution advantages of JD.com, after all, "purchase" is a purchase behavior, and "reach" is a distribution behavior.

However, instant retail has become an important increment for many major Internet companies, not only old players such as Meituan and Alibaba, but also Douyin and Kuaishou. Ding Daoshi told reporters that compared with other players in the instant retail industry, the complex scheduling system behind JD.com can efficiently connect people, goods and information, "The competition in this field will be more fierce in the future." ”

Editor-in-charge: Huang Xingli Editor-in-chief: Han Feng

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