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Jingdong Mall: the victory of the vertical e-commerce

Published:2010-6-4 17:07:58 |

     Insight into the market, precision positioning, concentrating a superior force, reduce costs, improve efficiency, people-oriented, bold innovation, it is by virtue of the operation of these unique characteristics, vertical e-business benchmark - Jingdong Mall to this day. 30000000, 10000000, 5 years, 40 million, 300%, 1.5 million, this group of characters is the vertical B2C e-commerce businesses the unique tags Jingdong Mall: June 18, 2009, sales of single-day Jingdong Mall exceeded 30 million yuan, China's B2C sector is currently the highest performance; December 24, 2009, all the Jingdong Mall their own procurement, production and distribution of the first 10 million order generation; 2009 sales of nearly Jingdong Mall 40 billion, it uses 5 years, the rate of 300% per year beyond the B2C industry, all opponents to become China's largest B2C company; January 27, 2010, Jingdong Mall Announces Tiger Global Fund's lead investor C1 round of venture capital funding is currently $ 75,000,000 sum has been credited into account in this round of financing before the end of C2 arrival, the total amount will be over 150 million U.S. dollars, which is the Chinese Internet market since the financial crisis, the biggest amount of financing. This is like a bomb thrown into a Chinese B2C sector, triggering the industry's attention. Jingdong Mall in rapid development, China's B2C market is colorful, and the brightest giants to enter the B2C market invariably spend lots of money: in December 2009, Foxconn's Tiger Tesco trial run; January 3, 2010, Taobao Taobao Electric City formally launched; trial run for a long time Suning Tesco announced formally launched; Japan joint e-commerce company Rakuten and Baidu, which claims to set up China's largest e-commerce company; Gome said in e-commerce site in May of this year on-line. Jingdong Mall performance to see, explore the reasons behind its development, B2C market may be able to bring some inspiration to similar companies. History: 3C dominant network channels grow Currently, Jingdong Mall is the largest vertical B2C market, 3C (computer, communications and consumer electronics) net purchases of professional platform, is the most popular consumer e-commerce and most influential e-commerce websites. According to iResearch statistics show that in 2009, the Chinese B2C transactions transmitted from the scale of home 21.2 billion, third-party platform for B2C transactions transmitted from family size is 16.6 billion, of which 38.6% Jingdong Mall of the market, Taobao Mall 16.7%. Gu Jingdong Mall back the development process, with the "explosion" to describe, is not an exaggeration. June 18, 1998, Jingdong owned by Mr. Liu Jiangdong founded in Zhongguancun, sales agents magneto-optical products. After 10 years of leaps and bounds, to June 2008, Jingdong Mall will be flat-panel TVs, air conditioners, refrigerators, washing machines, CRT TV and other large appliances product line expansion is completed one by one, completing the full range of 3C products to build, a truly 3C online shopping platform. January 2009, Jingdong Mall today to obtain capital from male cattle capital and Asia's leading investment bankers Mr Francis LEUNG of private companies totaling $ 21,000,000 in the joint injection. This is also the 2008 financial crisis, China's first e-commerce enterprises to obtain financing. February, Jingdong Mall features door trying to sell services to move into value-added services to explore the field of B2C important breakthrough. At the same time, Jingdong Mall issued by the Ministry of Commerce received "home appliances" retailer licenses, became the first task of home appliances to take e-commerce businesses. March, Jingdong Mall monthly sales exceeded 2 billion, became the first and only monthly sales exceeded 2 billion yuan in the B2C e-commerce company. Jingdong Mall 2009 second quarter sales of 8.4 billion yuan, occupying 28.8% of China's B2C e-commerce market share. Of which sales exceeded 370 million yuan in June, total sales were flat in 2007, June 18 one-day sales exceeded 30 million yuan.
     2009 turnover of nearly 40 billion yuan, more than 600 million registered users, and 46.7% share of 3C online shopping has become China's largest B2C e-commerce businesses.
     At this point, Jingdong Mall has been a year for 5 consecutive years to maintain the rapid development of more than 300%. In 2010, the impact of Jingdong Mall sales target is 100 billion. The development of niche: the mode of operation characteristic B2C market in China, Taobao Mall on, excellence and Dangdang giants like the case in power, many online shopping companies precarious, Jingdong Mall Why not just survived, but developed quite well? Jingdong Mall of rapid development, not only benefited from China's growing e-commerce environment good, but thanks to a deep insight on the environment, based on the distinctive grasp of the vertical B2C mode of operation. Jingdong Mall mode of operation has the following characteristics: Insight into the market, precision positioning Jingdong Mall had entered the market to 3C as the starting point, a vertical B2C, online shopping is in line with market requirements, but also to make themselves easy battle. This is the insight into the market, the precise positioning of the wise. Internet users aged 25 to 35 mainly young people, and the computer, communications and consumer electronics products, is their main consumer groups. This means that the mainstream consumer groups Jingdong Mall and the Internet user a very high degree of coincidence, it has a premise to explore the market. Data show that the existing fixed Jingdong Mall 6 million users, the cumulative order of 1000 million, compared to other B2C companies tens of millions of users, these two figures show the user Jingdong Mall viscosity is very strong. Jingdong Mall to purchase goods in the users, 25 to 35-year-olds accounted for 56%, staff and managers accounted for 70%. Jingdong Mall to buy a member of the Internet, the main population, with strong purchasing power, but compared with 25 to 35 the number of netizens, the Jingdong Mall is still much room for development. Do B2C and vertical categories Comprehensive B2C, difference is obvious. From the perspective of the supply chain, Comprehensive B2C need a wide range of general merchandise, the number of objects and more cooperation, investment and the difficulty of integration of resources is also large, and the cooperation of the vertical object class is relatively simple B2C; from the perspective of operational management Look, the vertical mall just on the B2C category million products to meet the needs of most consumers, but at least Comprehensive B2C mall more than 100,000 kinds of commodities to meet the operational needs of the increased number of goods will inevitably bring difficulty and staff with the increase of increasing difficulty of management. Therefore, Jingdong Mall had to enter the market to 3C as the starting point when doing the vertical class B2C, can make themselves easy battle, and improve resource integration, and further deep secret agents in the field of 3C. However, you can see, Jingdong Mall is currently selling products online, in addition to household appliances, mobile phones, computers and other products, there are daily use products. Clearly, there are first and stronger Jingdong do great intentions. Reduce costs, improve efficiency Online shopping, value is cheap, fast and convenient. This is for all B2C companies, means that the network is the law of the survival of "low cost and high efficiency." Jingdong Mall reference commodity prices, never developed counterparts price, but on the purchase price of goods, plus a 5% margin, that is, the price of Jingdong. The price of physical channels than the king of 3C Gome and Suning 10% to 20% cheaper than the manufacturers retail price of 10% to 30% cheaper. CEO Liu Qiang Jingdong Mall dealers Zhongguancun East origin, for a variety of channels, "hidden rules" gains a.
     Jingdong Mall rapid conquest of the consumer in the use of low-cost, while expanding sales volume, and use of electronic commerce is another significant advantage - a short account of improved bargaining power with suppliers to achieve a virtuous circle.
     The loss of traditional consumer electronics stores in 100 days, retailers severe cash flow squeeze suppliers, so suppliers miserable. Jingdong Mall aware of this weakness of traditional stores, inception, self-built information system, based on the consumer in the CTR, the degree of concern in the past sales and other information, to make sales quickly predict , and the whole process of product sales - order confirmation, storage, picking up cargo, logistics, distribution and other aspects of information management, and take full advantage of the high efficiency advantages of e-commerce, credit period as short as possible. Jingdong Mall, the average inventory turnover is currently just 12.6 days, with an average loss of only 20 days. The advantage is obvious. Achieved through the information of the short account, in so much pressure on suppliers to reduce liquidity, while ensuring Jingdong Mall getting goods from upstream to lower prices, thus speeding up the sales, get more and more stable cash flow, so as to realize a virtuous cycle of business, accelerating the rate of expansion. Jingdong Mall East CEO, said Liu Qiang, Jingdong Mall future is not to profit by raising prices, but as the scale continues to expand, to get more manufacturers rebates. People-centered, bold and innovative Jingdong Mall development is its "people first" service philosophy and pioneering spirit of bold innovation inseparable. Jingdong Mall in the development process, the success of the first industries to create a lot of rich e-commerce mode of operation. July 2004, Jingdong first real-time auction system in the country - Jingdong auction opened, consumers can buy their favorite super-cheap goods, but also able to experience the thrill of shopping mall in Jingdong, stimulating, interesting effectively improve customer satisfaction, a strong build consumer loyalty for Jingdong. Currently, Jingdong auction model has been the major e-commerce sites to emulate. June 2006, Jingdong create a precedent for the industry, the country's first product as the main object of the professional blog system - Jingdong product blog system is open to offers made for the majority of users in the use of technology or product reviews, enhance the shopping experience , provides satisfaction and purchase a platform, but also for the operator to listen to the voice of consumers, improve service quality to provide a good way. October 2007, Jingdong Mall in Beijing, Shanghai and Guangzhou to enable mobile POS credit card service site. This not only convenient for consumers to enhance the speed of transactions, but also significantly increase the sales and customer satisfaction as helping businesses increase revenue and enhance customer loyalty effective measures. February 2009, Jingdong Mall site trying to sell a range of features, including door installed services, computer troubleshooting services, cleaning services and other home appliances. This not only enables consumers to buy inexpensive goods Jingdong Mall, but also to get more personalized service, enjoy a comfortable life. This is a value-added services to explore the field of B2C important breakthrough, but also a wide range of another embodiment of goods. Jingdong Mall pioneered the industry first, in essence, is "people first" concept, continuing to provide consumers with personalized service, and constantly enrich the customer experience, a manifestation of ongoing customer relationships, which is very consistent with the market competition in Network requirements. Leveraging capital, rapid expansion Low-cost high-speed expansion of the road, on the backstage logistics, storage capacity, increasing service demands, Jingdong Mall every 10 months, moves every need. This actually needs a steady flow of huge capital investment. Jingdong Mall will continue to expand sales volume, has maintained a growth rate of up to 300%, and its successful financing are inseparable.
     August 2007, Jingdong to win the world's leading venture capital funds - capital of $ 10,000,000 today's financing. This is the first of its access to financing. January 2009, Jingdong Mall today to obtain capital from male cattle capital and Asia's leading investment bankers Mr Francis LEUNG of private companies totaling $ 21,000,000 in the joint injection. Of which 70% of the funds into the construction of a logistics system: 2000 million yuan to build its own courier company; Beijing, Shanghai and Guangzhou Storage Center expansion to 90,000 square meters; opened 26 urban distribution points; in Beijing, Shanghai, Guangzhou, Chengdu and other places to purchase the land, the new logistics center. Jingdong Mall series of initiatives to make the logistics system to a comprehensive manner. The end of January this year, Jingdong successful third round of financing, access to leading investment fund Tiger Global Venture Capital, the total amount will exceed 1.5 billion USD. $ 150,000,000 for the use of funding, CEO Liu Qiang East of external claims 50% of new funds will be used for warehousing, distribution and after sales service capability. Jingdong Mall after another in the second half of 2010 in Beijing, Shanghai, Chengdu, the three cities to build single area over 100,000 square meters of large logistics center, together with the existing logistics center in Guangzhou, the country will have four level warehouse . Meanwhile, across the country will be established Jingdong 15&# 12316; 20 secondary Treasury will achieve every 600 km Jingdong Mall will have a storage center or warehouse. At the same time, Jingdong Mall urban distribution points will also be increased to more than 50 in order to achieve coverage for all major cities in the country. Currently, Jingdong Mall has started acquisition of 1,200 acres of land in the country, used to build logistics and warehousing platform will be capable of supporting tens of billions in sales. In addition, the 2010 National Customer Service Center Jingdong Mall expansion will also be full, call the 150 seats will be increased to the previous 400, while B2C firms in the country the first to achieve 7 × 24 hours a day. In addition, including order counseling, after-sales warranty, return service, after sales support will be a comprehensive upgrade. Where is the way the vertical B2C e-commerce platform in China According to China Internet Network Information Center (CNNIC) "25th China Internet Development Statistics Report" shows: Business transaction applications fastest growing users of the scale, average annual growth rate of 68%. Among them, the online payment users to an annual rate of 80.9%, ranked first in all applications, travel booking, Internet stock trading, online banking and online shopping subscribers grew by 77.9%, 67.0%, 62.3% and 45.9%. China's consumer business of Internet applications, features strong trend is clearly room for future development of Chinese e-commerce is very large. According to iResearch forecasts, C2C next 3 annual growth rate decreased year by year, 2011, B2C growth rate will reach 101.5%, higher than the C2C more than doubled over 2012 B2C C2C become a dominant force in online sales. China's B2C market, a bright future. However, with Foxconn, Baidu, Gome, Suning, Taobao, the addition of a few giants, China's B2C market vertical Running out only just begun. Operation of the market in the future, the vertical B2C enterprises are to achieve competitive advantage, in particular the following aspects need attention: Core competence: a more rapid and efficient processing of orders With the increasing popularity of the Internet, people will choose to shop online more and more. With such a huge market and many of the competitors, how to do warehousing, picking up cargo, logistics, sale, and other fine aspects of information management, resulting in faster, more cost-effectively meet market demand, is the core of enterprise competitiveness B2C force. Competition key: the depth of customer relationship management system Do not think that an attractive price, good product quality, brand large consumer outlets spread around to worry about sales.
     Products and services in the era of high degree of homogeneity, the key is not how good you are, but that consumers believe how good you are. Therefore, through the efforts of many ways in all directions to ongoing customer experience, customer relations are very important.
     Competitive trends: 3G era "full" e-business strategy January 7, 2009, China Mobile, China Unicom and China Telecom respectively issued by the Ministry of Information Industry and the three 3G licenses, which indicates that China has officially entered the 3G mobile communication era. With the 3G mobile phone business Shidai increasing number of Internet users, and with a feature-rich web browser and use the keyboard a good smart phone market performance, the real "consumer oriented" B2C business target market can not be limited to computers of Internet users, and should also include mobile Internet users. This also means that the future trend of the vertical competition in B2C companies must be the integration of computer and mobile phone e-commerce marketing. Jingdong development, replication of the 3C category line channel "leading" brands of the category sales system, but with Taobao electrical store on the line, Jingdong Mall and Mall of the game became Taobao industry focus, if Taobao Jingdong Mall Mall victory, then the library name shoes, good music to buy so the fate of the vertical e-commerce platform will face enormous challenges, Taobao, e-commerce platform will become the oligarchs; if victory Taobao Jingdong Mall Circuit City, then perhaps the vertical e-commerce platform opportunities still exist in China, China's B2C e-commerce platform integrated platform will occur "thriving" and vertical platform "Hundred Flowers" and prosperity.
     MMT08B310T3G is the number for products that is related with integrated circuit.

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