Financial reporter Guan Yanan
Imagine what it would be like when the timeliness of instant retail delivery is increased to "seconds"?
In order to provide consumers with a better service experience, on May 16, JD's instant retail business was comprehensively upgraded and launched JD Seconds, integrating the original instant retail brands JD Hourda and JD Daojia, and providing consumers with a shopping experience of "good things to enjoy" and the fastest 9-minute delivery with a new brand image "JD Seconds". At present, JD Miaosheng has 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 launch of JD Seconds is the "first shot" of user experience for the instant retail market, and what impact will this have on the industry?
Trillion market competition, Jingdong not only opens the "volume" delivery timeliness
With the faster and faster pace of people's lives, instant retail has become one of the first choices for modern consumers to shop with its efficient and convenient characteristics. In the context of the gradual fading of e-commerce traffic dividends and the decline in the growth rate of offline supermarkets year after year, this retail service model, which can connect online and offline, and has both the characteristics of supermarkets and e-commerce, has been sought after by Internet giants.
Instant retail has almost become a must for large manufacturers, and in the case of limited online traffic, instant retail platforms have to start a new round of "war" between users and merchants. In order to continue to meet people's increasingly diverse shopping needs, various instant retail platforms have also embarked on the road of "evolution".
Taking JD.com, the leading instant delivery platform, as an example, JD.com's "Hourly Delivery" brand was upgraded to "Instant Delivery", taking the lead in improving the timeliness of instant retail fulfillment. The reporter found,Users can now experience"Jingdong second delivery"Service,JingdongAPPThe merchant page has been marked with"Second delivery"Logo,At the payment page,There is also a time period selected by the user,2-5Multiple orders within 5 kilometers,The fastest display is17 minutes,The latest is40Minutes of delivery。
Jingdong seconds to send the page
Of course, the rapid improvement of distribution efficiency also means that strong capacity, manpower and even computing power are needed behind it, and JD.com has recently recruited riders on a large scale to ensure that the performance of delivery is fulfilled on schedule. It is understood that Dada Express will launch the recruitment of knights in the summer of 2024 and invest 50 million yuan in knight subsidies to fully guarantee the instant delivery services of important nodes such as the upcoming 520, 618 and summer.
Jiang Han, a senior researcher at Pangu Think Tank, said that from the perspective of competition trends, the launch of JD Miaosen has undoubtedly intensified the competition in the instant retail market. In order to stand out in the market, major platforms are likely to invest more in improving service quality, including improving delivery speeds, expanding product assortment, and optimizing the shopping experience, thereby driving the entire industry to a higher level.
For the long-term benefit of the industry, the launch of JD Miaosen will promote the investment of the entire industry in technological innovation. In order to achieve the promise of nine-minute delivery, JD.com needs to carry out technological innovation and optimization in logistics, warehousing, and distribution, which will promote the development of the industry in a more intelligent and efficient direction.
In addition, Jiang Han said that continuing to strengthen the construction of the supply chain and improve the speed of distribution is the key to long-term success, so the launch of JD Miaoshou will promote the integration and optimization of the supply chain. In order to achieve fast delivery and meet the diverse needs of consumers, JD.com needs to cooperate and coordinate closely with suppliers, manufacturers, logistics providers and other parties. This will promote the integration and optimization of the supply chain and improve the efficiency and competitiveness of the entire industry. At the same time, the optimization of the supply chain will also bring more innovation opportunities and growth points to the industry.
The ultimate user experience
"Before, it was always difficult for me to buy durian online to buy the flesh and meat, since JD lowered the delivery fee, I tried to buy on the JD instant delivery platform, almost never missed, fast delivery, good quality, now I can't do without JD second delivery." Ms. Chen, a senior user of JD.com, said.
User experience has always been JD.com's "strong attack". Liu Qiangdong also publicly said, "If you compete with anyone, you must win because of the user experience, and whether customers choose you or not is because of the user experience, there is no second reason." "JD's user experience has always been divided into" more, faster, better, and more economical", and it is reflected in JD's second delivery is no exception.
"Many" is reflected in the number of merchants and the richness of goods. Everything at home has become the consensus of the instant retail industry, and all types of SKUs are the key to improving user experience. JD.com is further expanding its stores in categories such as convenience stores, mobile phone brands and computer digital. In the first quarter, JD Miaosheng deepened cooperation with convenience stores such as Meiyijia and 3C digital brands such as Xiaomi, and the number of new online stores exceeded 5,000 and 3,000 respectively. Among them, the GMV from convenience stores increased by more than 5 times year-on-year, and the GMV of mobile phones and computers increased by nearly 100% and 40% year-on-year respectively.
In addition, JD Miaoshou has reduced the average performance time of a single contract by 12% year-on-year in Q1 through strategies such as the estimation timeliness model, further consolidating the implementation of "fast". Jingdong instant retail has launched"Free shipping over 29 yuan"activity,This service has covered nearly 9% of stores on the platform,Jingdong data shows,After lowering the free shipping threshold,With the blessing of quality, Jingdong hours up to order users increased by 25% month-on-month。
It is also thanks to the improvement of user experience investment and supply that the core operating indicators of JD Miaosheng have accelerated growth and have a strong momentum, which has continuously strengthened the user mentality of JD Miaosend's "good and saving", and Dada Group's first-quarter financial report also confirmed this with data.
Dada Group's financial results for the first quarter of 2024
In the first quarter of this year, the GMV from the JD App field increased by more than 30% year-on-year, of which the GMV of the Miaosan channel increased by more than 200% year-on-year; The average number of monthly order users and order volume in the JD App field have increased by more than 70% year-on-year, accelerating by more than 50 percentage points from the fourth quarter of last year. In the past April, the year-on-year growth rate of the number of users and orders further accelerated to more than 100%. At the same time, user stickiness is growing. In March, the repurchase rate of users in the JD App field increased by more than 30% year-on-year in the following month.
Instant retail is an extension of local offline retail, focusing on localization and immediacy, and today, when the traffic dividend has peaked, instant retail has become a new blue ocean for Internet giants competing for the next trillion-level new blue ocean. According to the "2023 Instant Retail Development Trend White Paper", it is expected that by 2030, the scale of the instant retail market will increase to 3.6 trillion yuan, equivalent to 6% of the total retail sales of consumer goods in the same period. At present, the tug-of-war for the trillion market has just begun, although the industry barriers to instant retail are not high, but Jingdong Miaosheng has been one step ahead in terms of supply and fulfillment capabilities by virtue of its core competitiveness, and Jingdong will continue to write a new breakthrough story in the future of "all-weather consumption, full-scene penetration, and full-category innovation".