京喜直营 completely eliminates the concept of brand names, that is, there are categories but no brands, and is operated and sold by the integration of the JD.com supply chain and small commodity factories across the country. According to reports, the Jingxi team is expanding, and the team size will expand from the current 200+ people to 800+ people by the end of this year.
Cailianshe|Xin Xiaofei Daily news on July 2nd (researcher Liang Youyun), media reports recently revealed that JD's Jingxi is expanding its team, and the team size will be expanded from the current 200 to over 800 by the end of this year. It is reported that Qi Ting, who was formerly responsible for JD Supermarket B-end business, general manager of the Consumer Goods Business Department Sales and Marketing, and general manager of the User Experience Upgrade of the Large Consumer Business Group, is an old employee who has grown up with the JD platform.
In fact, before the opening of JD's 618 in early June, in addition to the "9.9 yuan seckill", JD also launched the "Jingxi self-operated" mode for low-priced goods, which is managed by JD's supply chain and operation backstage.
The official Weibo of Jingxi self-operated announced that Jingxi self-operated has been upgraded from the original Jingxi brand, and adopts a fully-managed mode, utilizing the advantages of JD's supply chain to continuously integrate high-quality supplier resources, and is committed to bringing factory-brand products to consumers. At the same time, Jingxi self-operated also put forward the slogan of "Strictly selecting procurement, direct supply from factories, free postage for one item, official service".
JD platform started with the self-operated mode, and successfully created two well-known self-operated business models, "JD self-operated" and "JD Jingzao". What is different about this "JD direct sales"?
The difference may lie in the introduction of two new logics of "low price" and "factory-brand", which will help JD to build a new label for sinking consumption.
According to the New Consumer Daily News, the former "JD self-operated" model was to purchase genuine branded products from the platform and sell them to the public through its own platform channels; "JD Jingzao" was to cooperate with brand OEM factories to develop and produce products, and finally gave the brand name of "JD Jingzao".
This Jingxi self-operated completely cancels the concept of brand name, that is, there are categories but no brands. It is operated and sold by integrating the source of goods from small commodity factories across the country through JD supply chain.
At present, Jingxi self-operated products mainly include home daily necessities, personal care and cleaning, fresh food, trinket clothing products under 10 yuan, and some digital small appliances under 50 yuan. At the same time, the main sales of Jingxi self-operated are in JD's special edition (formerly Jingxi special edition) app, which is a shopping platform that targets the sinking market and focuses on low-price strategy. In JD's app, Jingxi self-operated operates in the form of "official self-operated stores".
It is not difficult to find that Jingxi self-operated's current operation mode is very similar to Taobao's "Factory Direct". Both focus on low-priced small commodities, aim at providing platform-managed and operated services for factories in industrial belts across the country, and the biggest feature is the brandless products.
The difference may lie in the fact that Taobao's "Factory Direct" developed from the operation and management of B-end merchants by Taobao. Under the "semi-managed" mode, factory leaders can choose to let the platform take charge of part of the e-commerce supply chain operation, while they still need to participate in other e-commerce operations. Taobao mainly earns operation service fees and other transaction commissions.
Jingxi self-operated is closer to JD's original self-operated logic. The platform extensively integrates the supply chain into the factory, and under the "fully-managed" mode, contracts most of the work except for production, logistics, platform operation, marketing, etc. JD earns the price difference between factory price and retail price brought about by the cost and efficiency advantages of the supply chain.
The market has mixed views on JD's attempt to "fully-manage" industrial belt factories. Some comments believe that entering through the managed factory supply chain can help JD improve its control over low-priced goods, reduce costs, and compete positively with PDD and Taobao's low-priced goods as it increases factories participation. It is an important tool for JD to seize the sinking market.
However, there are also oppositions that JD's "fully-managed" mode may lead to excessive burden on the platform. A large investment in low-priced goods may easily be more costly than profitable, and low gross profit margin is difficult to cover costs. Therefore, "semi-managed" or providing more resource-based access to third-party low-priced merchants might be more effective than "fully-managed".
JD also disclosed some sales situations of low-priced goods and industrial belt merchants in its 618 report.
On the day of upgrading Jingxi self-operated, JD's 618 sales data showed that the number of merchants participating in JD's 618 through the JD 9.9 postage-free channel increased by more than 10 times compared to the same period last year. Among them, Jingxi self-operated orders exceeded 1 million, and 14 popular items were born.
By the end of JD's 618, Jingxi self-operated orders had increased by 260% compared to the previous month, and over 10 million users ordered 2 yuan postage-free products. Categories such as paper products, stationery, storage, food, sunscreen, and T-shirts have all grown more than 4 times, and over 500 products have exceeded 10,000 orders. Industrial belts such as Yiwu have grown more than 15 times and continue to break through.
Currently, JD.com seems to have made a determination to continue low-price and OEM development strategy after the excellent performance during the 618 shopping carnival.
Due to the judgement of the trend of low-price consumption in the future, JD.com attaches great importance to the transformation of Jingxi internally. Reports show that as early as November 2023, Qiting was transferred to Jingxi to be responsible for adjusting the operation, and the relevant work was directly reported to JD.com CEO Xu Ran.
From billion-yuan subsidies and 9.9-yuan postage to Jingxi's self-operation, JD.com's low-price strategy is working hard to cover lower and more sinking consumer demand markets. From the feedback of the 618 shopping carnival data, compared with JD.com's unsophisticated live e-commerce, "coupon low price" seems to be one of the few new increments on the platform.