Jingdong Home Appliances Township: 2018 Stores Will Increase to 15,000

The home appliance channel is being restructured. As the largest home appliance retailer in China, e-commerce giant Jingdong will continue to accelerate its penetration into the offline market this year. The number of township and township specialty stores in Jingdong Electronics will increase to 15,000 in 2018, covering all county-level cities in the country. At the same time, JD.com's home appliances will also open more than 30,000 square meters of super experience stores in the first and second tier cities this year.

The online traffic dividend gradually disappeared, and the cost of online passenger acquisition continued to increase. In addition, the new strategy of "Unrestricted Retailing" proposed by Chairman and CEO Liu Qiangdong of Jingdong Group in July last year has enabled Jingdong Appliances to accelerate its channel sinking strategy this year.

From the 2018 strategic conference held by Jingdong Home Appliances on March 20th, the First Financial Reporter was informed that in 2017, the sales revenue of JD.com’s home appliances in the county market has increased fourfold year-on-year, accounting for a higher proportion of Jingdong’s home appliance sales revenue. This proportion will continue to expand in 2018.

Township Wandian helped sink

From the first Jingdong service store opened in 2014, by 2017, Jingdong has opened nearly 8,000 Jingdong home appliance stores in county towns and villages across the country. At present, Jingdong Home Appliances Store has covered 25,000 townships and 600,000 administrative villages nationwide.

Xu Lei, general manager of the sales and development department of the Jingdong Mall Appliance Division, said that there are several “pain points” in the existing township offline stores: First, it is difficult to see good brands and good products; Second, self-built cost is high; Third, customer traffic Declined, profitability of stores decreased.

Therefore, JD.com's home appliance stores will continue to be the main channel for expanding the 4-6 line and the rural market in 2018. It plans to increase the number of stores to 15,000, and the sales volume will be 5 times that of 2017, covering 100% of the county seats in the country. So that more remote township consumers can also buy high-quality home appliances that are no different from the first-tier cities.

In 2018, a new attempt of JD.com's home appliance channel expansion was to cooperate with more home appliance brands in offline stores across the country.

In addition to the township stores, brand experience stores, Jingdong home appliances in 2018 channel sinking another focus is the super experience shop. The first Jingdong Home Appliances Super Experience Store with an area of ​​more than 30,000 square meters will be piloted in the first-tier cities. It covers household consumption with household appliances as the core, changes the sales model based on shopping guide sales, enhances experience functions, 70% of the storefront area will be created as an experiential scenario, and consumers can enjoy online prices and home delivery services. Experience unbounded retail experience.

Unbounded retail new model

Yan Xiaobing, senior vice president of Jingdong Group and president of the e-entertainment business group of Jingdong Mall, frankly stated that although JD Electronics’ sales revenue for one year has exceeded 100 billion yuan, he has never been so anxious since 2017 because he discovered that “people, goods, and market” are all changed.

field. In the past, Gome and Suning's stores and Jingdong's online portals were all "fields," but now on WeChat, there are new channel models such as "playing together". With the WeChat applet, many companies can do vertical retail without advertising. Therefore, the "field" is now everywhere, WeChat, roadside QR code, content, TV, AR and VR can all be sold.

goods. In the past, the goods were sold at the lowest cost and highest efficiency. But behind the goods now, there are content, services, and data. If there is no content or service behind the goods, it is not goods. So, the goods are also changing.

people. In the past, consumers were divided into urban and rural users. There are many levels of consumption now. There are many layers between simple demand and high-end demand. The role of consumers from passive acceptance to participation in the design and production of goods is changing.

Therefore, around the unbounded retail, Jingdong has begun to change. Yan Xiaobing revealed that in March of this year, Jingdong Home Appliances will open all the self-operated business data to the factory.

In 2018, the boundary between the self-operated flagship store of Jingdong’s self-operated platform and the “brand flagship store” of the open platform will be broken, and all branded products sold by Jingdong’s self-operated and third-party platforms will be unique. The official flagship store unified display, forming a "self-operated + open platform" store model. At the same time, through the newly constructed unbounded middle platform system of JD.com platform, online and offline stores of home appliance brands will be opened and integrated.

In recent years, Jingdong Home Appliances and Midea, Haier and Gree have conducted in-depth cooperation in supply chain collaboration, smart logistics, artificial intelligence technology, and service management. Their sales in the Jingdong platform have exceeded 10 billion, and they have begun to challenge the target of 30 billion yuan. .

Regional chain pressure increases

Wu Xianjian, the deputy secretary-general of the China Household Electrical Appliances Business Association, analyzed with the reporter of the First Financial Bureau that consumption upgrades will lead the way. Jingdong and Suning accelerate the sinking of channels, and the consumption upgrading of rural household appliances market will enable rural home appliance consumers to enjoy better products and services. This will have a positive impact, and the competitive landscape of rural household appliances circulation market will also be reshaping.

From another perspective, the acceleration of large-scale channels will further boost the channel sinking of big brands, which will also have a significant impact on the brand and product structure of the rural household appliances market. The living space for small and medium-sized brands and brands will become narrower and narrower. .

For regional linkages, it will also bring greater pressure for competition.

In this process, the service will become the new revenue and profit growth point of the home appliance channel, and it will also be the focus of competition. In fact, both Jingdong and Suning proposed to provide providers of social retail infrastructure, open up data, logistics, finance, etc. to serve various retail formats in the society and “enable” them to new retail, unbounded retail, The transformation of smart retail.

At the same time, home appliances channels not only sell products to consumers, but also provide a complete package of services, including home appliance recycling, home appliance repair, home appliance cleaning, and home appliance rental. The home appliance recycling business like Jingdong has covered 320 cities, and the growth rate of orders last year reached 583%.

Liu Xiumin, president of the China Household Appliance Repair and Service Association, predicts that in the next two or three years, service income from home appliance sales channels will increase by more than 100%. Jiang Feng, chairman of the China Household Electrical Appliances Association, believes that the new channel model of new retail and unrestricted retailing will help consumer electronics industry upgrade during the period when China's annual per capita income transitions from 8,000 US dollars to 10,000 US dollars.

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