Liu Qiangdong entered the wine industry and sold 50 billion yuan a year

21st Century Business Review

2024-06-12 19:38Published on the official account of Guangdong 21st Century Business Review

Title image: Diagram worm

Reporter丨Xie Zhiying, Editor丨Jiang Yuying

The next super wine merchant may be JD.com led by Liu Qiangdong.

"The annual sales scale of Jingdong Liquor is 400-50 billion yuan, accounting for half of the online liquor sales."

Zhao Yu, general manager of the liquor business department of Jingdong Supermarket, revealed in an exclusive interview with "21CBR".

This year's 618, Zhao Yu said that the sales target is to grow more than double digits, "absolutely confident".

The trillion-dollar wine market used to be the world of traditional supermarkets and big merchants.

At the beginning of last year, Jingdong Liquor shouted, "Strive to become the first retail channel in the liquor industry to break 100 billion".

Holding logistics and supply chain, offline layout of Jingdong wine world. The e-commerce giant sells wine in two lines, and its ambitions are undisguised.

Chitoya Ambition

"Jingdong Liquor's sales growth rate in the first quarter is much higher than the 20% of last year."

Zhao Yu revealed that liquor accounted for 8% of the revenue volume, and red wine, foreign wine, and beer each accounted for about 7%.

Jingdong platform directly serves end customers, upstream directly connects with wineries, removes traditional 2-3 distribution channels, greatly reduces the cost rate, and has advantages in price and efficiency, and its liquor user scale has reached tens of millions.

In April last year, Jingdong Liquor publicly shouted "100 billion wine merchants", and made efforts in key scenarios, sales efficiency, supply chain, and platform ecology.

In the e-commerce business, Jingdong under the rule of Liu Qiangdong has established the mentality of "genuine licensed goods", and its internal management system is very strict, which is conducive to ensuring the supply of goods.

Last year, Jingdong Supermarket specially launched the old liquor channel, covering liquor, foreign wine, liqueur, rice wine, etc., which have been produced for more than five years.

"One of the major pain points of buying old wine is that it is difficult to distinguish between the real and the fake, and we specially invited the China Liquor Industry Association and the China Liquor Industry Circulation Association to identify the authenticity of 'one thing, one certificate, one code' in Jingdong warehouse, so that consumers can buy old liquor with confidence."

Zhao Yu revealed that the performance of its key old wine sector has recently increased by nearly 1,000% month-on-month.

Zhao Yu introduced that the innovative scene that we want to break through this year is the wedding banquet, "At present, the volume is relatively small, but we firmly believe in the potential of the market." ”

The specific methods include one-stop wedding wine purchase, providing wedding-related supporting services, including wine customization, honeymoon tours, one-table shopping services, etc.

In the after-sales process, Jingdong Supermarket also provides services such as return and exchange, upgraded "return if you can't finish drinking", and delayed delivery.

"This year, in the layout of the warehouse network, we have added warehouses with constant temperature and humidity, and some red wine and even scarce wine to ensure that when users get their hands, the products are better than other channels." Zhao Yu introduced.

618 this year, Jingdong explores new ways to play marketing and strengthen the minds of users, "Consumers can buy old wine that was born in the same year and month as themselves on Jingdong." ”

"In terms of price, we will still be more aggressive, especially for JD members to provide more welfare discounts." Zhao Yu said.

Wine industry map

JD.com has been expanding its liquor industry for 10 years.

At that time, the wine industry was in a period of adjustment, and phenomena such as online price chaos and difficulty in distinguishing authenticity emerged. Brand flagship stores have moved online, and the credibility of the JD platform provides endorsement for wine companies.

In 2014, JD.com set up a special liquor business section. In the next two or three years, Liu Qiangdong personally led a team to visit Moutai, Wuliangye and other leading wine companies, and Jingdong also became a strategic cooperation e-commerce platform for many famous wines.

Other brands have settled in, and JD.com's self-operated products have also begun to expand their alcohol products.

Zhao Yu told the "21CBR" reporter that Jingdong sells wine, and there are three main sales models.

First, Jingdong is self-operated, accounting for more than half.

JD purchases wine from the winery or the supplier channel entrusted by the winery, and the products enter the JD warehouse, and JD bears all the profits and losses, providing customers with a fulfillment experience.

The second is POP, also known as the "third-party store" model. Including the official flagship store of the winery, the offline store authorized by the winery, and the online agent.

"Third-party stores are on the JD platform, and the distribution of advertising traffic is the same as that of self-operated." Zhao Yu added.

The third is the O2O model, in which the winery's offline franchise stores arrive at home through Jingdong and deliver products to their homes within an hour in an hourly manner.

"Our competitiveness in the wine industry lies in the four aspects of 'how fast and good to save'."

Zhao Yu said that the upstream of the Jingdong platform is for wineries, the terminal is for customers, the intermediate channels are flat, and the efficient logistics system makes the overall cost ratio much lower than that of traditional channels.

According to reports, Jingdong, Wuliangye, Yanghe and other brands have launched customized products such as online exclusive double gift boxes.

"These products are mainly sold online, and there is no direct price impact on offline products." Zhao mentioned.

To help the nationalization of regional brands, JD.com also provides strategic value.

"Taking regional famous liquors such as Yingjiagong Liquor and Kouzijiao as examples, through JD.com, the brand has achieved a sales breakthrough outside the main provinces at a very low cost." Zhao Yu said.

Baijiu is still highly dependent on the offline distribution system, and the e-commerce penetration rate is only about 35%.

There is still a lot of room for expansion of Jingdong Liquor.

Offline weaving

"Baijiu alone cannot fully meet the needs of all users." Zhao Yu said that Jingdong Wine World is one of the innovative models to explore offline business.

Six years ago, Liu Qiangdong proposed an online and offline "unbounded retail" model of all customer groups, all channels, all categories, and all time periods.

Landing in the wine industry, the Jingdong Wine World project was launched.

The project is positioned as "an omni-channel wine retail enterprise based on the supply chain and supported by stores", with integrated online and offline operations.

Jingdong Mall brings traffic to the wine world, and the offline stores of the wine world serve as the front warehouse of Jingdong Mall, responsible for part of the distribution service, and achieve "29-minute fast delivery".

Source: Internet

The offline store connects wineries and consumers, and at the same time, provides additional services such as red wine canting, foreign wine with ice, etc., to accurately meet the needs of consumers.

"Selling in the O2O near field provides a good support point." Zhao Yu commented, "With such a fulfillment method, we have also launched some new categories, such as short-term drinks and cold fresh beer, which cannot be done through traditional e-commerce. ”

This year, Jingdong Wine World began to make efforts to cooperate with the wine of catering channels, and launched the "Penfolds Plan", so that consumers can use wine in restaurants, and Jingdong Wine World can also deliver it to the table in 29 minutes.

In cooperation with Wine World, catering companies can complete the upgrade of the wine business model, and can obtain three types of commissions: registration, store entry, and online promotion.

"The focus is on providing customers with a better and more convenient experience, and the current sales scale is not particularly large."

Zhao Yu said frankly that the number of stores nationwide is more than 1,000, and the coverage is still accelerating. "We are confident in the prospects of the business."

Standing on the shoulders of e-commerce giants, online and offline synchronous efforts, Jingdong Liquor is trying to fulfill the ambition of "100 billion retail".

Image source: JD.com, except for the annotations

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