Shulou(Shulou.com)11/24 Report--

Author (Xi Xi)

Editor Luo Wen Ba Niang

Recently, the entry "JD.com takes the land for 3.1 billion yuan" has been popular on Weibo. It is suspected that the main body of JD.com won a total price of 3.112 billion yuan, located in the core area of Yizhuang, facing the headquarters of JD.com Group; and according to public information, the site is "multi-regulation in one", integrating commerce, housing, kindergarten and so on.

According to incomplete statistics, up to now, JD.com 's total investment in Yizhuang has exceeded 10 billion yuan, and these plots are basically commercial office space. Therefore, the use of the "multi-regulation in one" plot has attracted a lot of attention, and many media and netizens speculate that this is to build welfare housing for employees.

More than two months ago, Liu Qiangdong's internal letter also announced that he would "set up a housing security fund for all the group's grass-roots employees, including all the Debang brothers," and recently released a "big move" to buy land as soon as he returned to China. and it is said that "buy land to build welfare houses for employees." There is no lack of comments in the industry that doing a good job in ensuring the welfare of grass-roots employees is one of the measures taken by Liu Qiangdong to return to power to build his image.

However, it is obvious that a large amount of investment in "building image" is not the biggest medicine for JD.com 's current development. compared with caring for grass-roots employees and shaping a people-friendly image, JD.com may be time to focus on young users who "run away".

JD.com is no longer the only pronoun for "more fast and better to save". In 1998, Liu Qiangdong returned to Beijing from Guangdong and rented a booth in Zhongguancun to sell DVD discs. In Zhongguancun at that time, in order to make more profits, most people were mixed with fake goods and inferior goods, but Liu Qiangdong insisted on not selling fake goods. The consciousness of "authentic" won him a reputation and established JD.com Mall's idea of "guarantee of authentic goods".

Later, JD.com "moved" 3C digital home appliances to the network to sell, using self-built logistics strategy to reduce supply chain costs. Relying on the killer mace of "fast", JD.com not only surpassed the two giants Gome and SUNING, but also made the cognition of "buying JD.com on 3C digital home appliances" deeply rooted in the hearts of the people.

Over the years, "authentic" and "self-built logistics" have not only created JD.com 's advantages in the field of e-commerce, but also gradually defined its brand positioning of "more fast, better and cheaper". At the event of "BrandZ Top 100 most valuable Chinese Brands in 2016", Xiong Qingyun, then head of the marketing department of JD.com Mall, said: at present, JD.com is upgrading the brand positioning from "more fast, good and economical" to quality of life, strengthening the attribute of serving the family.

"how fast and easy to save" once created a unique degree of awareness for JD.com, but with the rise of new channels and new consumption, it is no longer a synonym for JD.com. JD.com still maintains a certain lead in terms of "fast" and "good", but in terms of "more" and "provincial", young users are moving to Tmall, pinduoduo, Douyin, Kuaishou and other short video live delivery platforms.

▲ photo source: JD.com Weibo Tmall, as the main engine of Ali consumer upgrading, was once rated as "Alibaba's main weapon against JD.com" by the media. In terms of user groups, Tmall's main attraction of cutting-edge white-collar workers, senior middle-class and other high-capacity consumers directly coincide with JD.com.

At the same time, Tmall, Taobao mainly play "big brand good things, everything", "thousands of good things, Amoy" and other platform features of a full range, so that it also occupies a large market share among young users and female users. Statistics show that nearly 50% of Tmall's users are 18-29 years old, and 60% are female users.

Pinduoduo, who is known as the target user in third-and fourth-tier cities, also relies on low-price strategies such as "10 billion subsidies" to seize to a great extent the sinking market, young users and female users that JD.com is not so good at. According to the data, 65% of pinduoduo's users are from third-and fourth-tier cities, with a relatively high proportion of users aged 25-35 and 70% are women.

In the dispute among the three giants of e-commerce, some users jokingly analyzed that middle-aged men chose JD.com and young women went to Tmall in the "cat-and-dog competition". A statistic also shows that 46.6% of JD.com 's users use pinduoduo, while only 37.0% of pinduoduo's users use JD.com.

"when buying 3C digital home appliances, I still go to JD.com to compare prices and choose to buy, but I am still used to shopping in Tmall for clothing, makeup and daily necessities," a post-95 girl shared.

02. Why did young people "run away" JD.com? A large proportion of JD.com users use other platforms, which reflects the change of consumption consciousness of young users.

Generation Z, born between 1995 and 2009, accounts for nearly 20% of the country's total population and is becoming a veritable consumer responsibility. As the first generation of mobile Internet aborigines, Generation Z is the "always online" generation, with an average of 8.33 hours a day on the Internet. According to an online survey, 45.5% of Gen Z said they had bought goods that were not part of the plan as a result of KOL recommendation. Li Jiaqi's "buy it" directly broke their innumerable lines of defense.

They are less dependent on brands, are willing to pay for fresh goods, live streaming, and word-of-mouth recommendations, and like to place orders for new consumer products with high frequency; and because most of them are at a stage of life when economic accumulation is not rich, thus adhering to the consumption concept of "low material desire", they prefer a platform with a full range of categories and strong price concessions. JD.com is not very attractive in terms of new consumer goods and low prices.

▲ Photo Source: JD.com Weibo shopping bills of four post-90s white-collar girls reflect this to some extent. Their "Taobao life bill" ranges from 6 to 10 years, with a cumulative amount of 200000-520000, and their strength interprets the name "chopped-hand girl". Baoma's "Singles Day" spends nearly 20,000 yuan on Tmall, which is mainly used to buy maternal and child products; single girls are big enough to decorate their homes, ranging from coffee machines and fitness machines to clothing, make-up and snacks all consumed by Tmall and Taobao. On the other hand, the consumption of these "88VIP" on JD.com is "very few", mainly mobile phones, computers, and technology products that consume very little.

When sharing "slow play" in a pair of second-tier cities in Hebei after 95, the studio between pinduoduo and Douyin was highlighted. " We are all ordinary staff, with a monthly income of more than 3,000 yuan, because we have children who are particularly frugal in living and spending. Whether it is dishcloth, detergent and other daily items, or sports shoes and clothing that we usually wear, we will buy them in pinduoduo. It can be said that we are veritable pinduoduo girls and boys, and we were among the early 'cut with a knife' clan. "

The mother also likes to broadcast live welfare benefits. "I also hang around in the Douyin studio when I have time. Often, some good daily items that I don't normally come into contact with are very cheap in the studio. If I encounter them, I will go to the studio for a visit."

Not only are young users in second-and third-tier cities brainwashed, pinduoduo is rushing into the "Fifth Ring Road". Perry, who works in a big Internet factory in Shanghai, and his girlfriend "never use JD.com". They are loyal users of Taobao and pinduoduo. "I am a loyal user of Taobao. I buy daily chemical products, clothing, shoes and hats on Taobao. Later, under the influence of my girlfriend, I gradually became a multi-user. I bought fairy water and small black bottles for her in a'10 billion subsidy', and I would also buy fresh and snacks on it."

"maybe today's young people advocate low material desires. On the one hand, they only buy what is necessary, and then they only buy cheap ones. I recommend a lot of Taobao merchants and pinduoduo fruits and snacks to my friends around me. Social sharing consumption is also a product of 'too lazy to think' that we like very much."

With regard to the preferences of users in first-and second-tier cities, a co-founder of pinduoduo said in an interview with the media: the difference between users in first-and second-tier cities and the so-called sinking market is not as big as expected. " Judging from the average demand, we do not think that there is a unique 'sinking market' or 'first-and second-tier cities'. To be exact, it should be that the Chinese are gradually reaching a consensus at the 'cost-effective' level. "

03, sinking, live broadcast, JD.com 's breakthrough road to "let users reach a consensus in terms of performance-to-price ratio" pinduoduo, in the GMV and active users continue to catch up with JD.com. Data show that in 2021, JD.com 's GMV for the whole year was 3.29 trillion, while pinduoduo's GMV reached 2.44 trillion in the same year; the number of active users of JD.com was about 570 million, while that of pinduoduo was 869 million.

In 2022, pinduoduo and JD.com were neck and neck, with growth rates of 15.3 per cent and 15 per cent, respectively. But according to Morgan Stanley, the growth rate in 2024 will reach 17.6%, ahead of Jingdong's 15.5% growth.

In front of the body Tmall, Taobao leading trading scale, the side of pinduoduo crazy chase, behind Douyin, Kuaishou continues to grow. In such a competitive environment, JD.com may have realized the need to make efforts in the sinking market and live broadcast to lay out the long-term growth for young users, but his investment in these two sectors has not been effective.

In 2016, JD.com began to lay out social e-commerce, launched JD.com shopping, and changed his name to Jingxi in 2019. Immediately after that, the reporting object of Jingxi Business Group changed from Xu Lei, the retail CEO of JD.com at that time, to Liu Qiangdong, which received much attention internally. In order to boost morale, Liu Qiangdong also proposed that "which province and region can become the first local market share, there will be a 20 million reward."

However, the Jingxi business group was broken up in June last year, and the original business line was integrated into other business groups. According to people familiar with the matter, some employees were included in the same-city purchasing business department, and some employees changed jobs and failed to "optimize". At the JD.com Group strategy meeting in early July, Liu Qiangdong also had to admit the failure of "Jingxi."

Although the Jingxi business group, which specializes in the sinking market, once became the main force of JD.com 's new user growth, it was really fierce and difficult to sustain in the breakthrough for more than two years. According to media reports, in the first quarter of 2022, JD.com 's marketing expenses reached 8.7 billion yuan, an increase of 24.4 percent over the same period last year, but the number of new users was only 11 million.

JD.com had already made up his mind to seize the first opportunity in the live broadcast. In fact, JD.com entered the live broadcast with goods very early, but never found the right direction. "I know JD.com has a live broadcast, but I don't have much impression." this is the "consensus" of most users who communicate slowly.

The direct cause of this situation is, on the one hand, the lack of attention of JD.com Live, opening JD.com App, "JD.com Live" occupies an inconspicuous entrance position on the home page, and clicking in is mainly the routine explanation of major brands in each track, with the number of broadcasts ranging from dozens of people to thousands. Second, JD.com lacks head anchors, just like Li Jiaqi on Taobao, Luo Yonghao on Douyin and Oriental selection, but JD.com has paid for celebrity anchors to create momentum, but she has never had her own representative anchor.

▲ photo source: JD.com 's "backwardness" of App Live does make JD.com more passive in the young user market, especially when live streaming has become one of the key means for customers to acquire and retain users. According to the financial report, JD.com had 588 million active purchasing users in the past 12 months as of September 30 last year, a growth rate of 6.5%, the slowest in three years.

In conclusion, in November last year, Liu Qiangdong also attended a JD.com management training seminar in the form of a video link, bluntly criticizing "executives talking too much about fancy stories, but too little about cost, efficiency and experience." If you don't have a good grasp of such a core strategy, it will be difficult to lead the team to go on in the long run. "this statement made outsiders feel that they" saw JD.com 's determination to change. "

Now the "decentralization" of Liu Qiangdong has returned strongly, and the media are constantly releasing signals that expect him to return to the helm of JD.com. "slow release" believes that in the face of the weak growth of active users in the e-commerce market, JD.com really needs to re-examine and grasp the core strategy, reduce investment in image construction, and focus on the experience of young users.

Reference:

1. All-weather science and technology, Liu Qiangdong also spent a lot of money buying land, "brothers" are blessed.

two。 Sohu? how did Liu Qiangdong's bitter history of starting a business start from scratch to establish JD.com step by step?

3. E-commerce Weekly, JD.com: upgrading from "more Fast, good and economical" to quality Life

4. Encyclopedia of Life Network, pinduoduo user Group Analysis (pinduoduo user Group Analysis Statistical Chart 2021)

5. Chinese entrepreneurs, first-and second-tier cities account for nearly half of the users. Who on earth is using pinduoduo?

6. Zhihu-Mango V anchor, Z generation has become the consumer responsibility: the weather vane that completely dominates live e-commerce!

7. NetEase number-Nail Technology (2021) Financial report: JD.com 's revenue and customer price are higher, pinduoduo wins in GMV growth and user scale.

8. Tencent content open platform-Seagull Cross-border CFO (Morgan Stanley): Pinduoduo GMV will surpass JD.com and Alibaba in 2024

9. Tencent News-selected later? Jingxi strives to close down more than half of the province's business, and the performance of each platform of community group buying fell short of expectations last year.

10. Titanium media? JD.com broadcast live, unable to make friends.

This article comes from the official account of Wechat: ID:manfangsd, author: Xi Xi

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