The annual 618 mid-year promotion has ushered in a sprint moment. This year’s 618 is regarded as an important battle for brand merchants to recover blood in the first half of the year, and it is showing new growth points.
According to the data of JD’s 618 starter, from 8 pm on May 31 to 8 pm on June 1, the sales of JD Hourly Shopping and JD Daojia increased by 175% year-on-year. Since June, all categories such as 3C, home appliances, fresh food, and beauty have experienced significant sales growth. Among them, the sales of seafood and women’s clothing increased by more than 10 times year-on-year, the sales of sports and outdoor products increased by 7.8 times year-on-year, the sales of personal care appliances increased by more than 5 times, and the sales of perfume, make-up, and liquor all increased by more than 3 times year-on-year.
In fact, faster and more convenient “instant retail” is not only an outstanding part of this 618, but also an important component for many brick-and-mortar retailers and brands to seek increments.
To a certain extent, for brands, merchants, and even consumers, instant retail has a broader imagination space. Within this track, more exploration has begun. This 618 is just a staged exam.
Instant Retail Hands Over New Transcripts
Although ridiculed by the industry as “the most difficult 618 in history”, this battle is still regarded as a key battle by all participants, especially when the offline consumption format is facing uncertainty.
Affected by the epidemic, many offline stores decided to switch to 618 betting online.
According to statistics, as of now , more than 150,000 full-category stores have been launched on JD Daojia and JD Hourly . Among them, there are more than 17,000 stores in the 3C digital category, nearly 5,000 mother and baby stores, and more than 4,500 beauty stores. Many retailers and brands have shown a strong willingness to participate and invest.
This is the first time that Metro Supermarket has cooperated with JD.com to participate in 618. According to Metro, the real-time retail model of “online ordering, store delivery, and hourly delivery of goods” has driven the omni-channel of physical stores. On the first day of the 618, the sales from JD. This has brought about a 2-fold increase than usual, and the offline customer flow to the store has also increased significantly.
Tan Niyue, head of Metro’s e-commerce business, said: “JD 618 has a very obvious effect on boosting sales in our stores, and we are well prepared for both product stocking and pickers.”
To a certain extent, the home life in recent years has changed the consumption habits of some people and accelerated the migration to online. The immediate demand for “buy on demand” consumer goods for daily life is increasing, and many consumers prefer to shorten the waiting period. In terms of logistics time, instant retail can undoubtedly give a better solution. The explosion of demand on the user side and the continuous “expansion” of the supply side have accelerated the entry of many retailers and brands, which has also prompted the outbreak of the instant retail format.
Ms. Li, a consumer from Chaoyang, Beijing, said that the speed of the 618 was beyond her imagination. Only 10 minutes after the opening of 618 this year, she received the milk powder, diapers and children’s toys that she bought on JD.com. This greatly improves the convenience of its shopping.
The data also shows that on the evening of May 31, it took only 10 minutes for JD.com 618 to fully open, and the number of physical stores that generated orders on JD.com Hourly Shopping increased by 170% year-on-year.
A number of retail business leaders said that they are optimistic about the real-time retail format, “Online ordering, store delivery, and hourly delivery, these capabilities can improve store coverage, customer service, delivery timeliness, and user experience. “
An “Omni-Channel Enhancement Program”
In recent years, with the changes in consumption patterns, retailers are no longer only “squatting” offline, and many physical stores have entered the real-time retail format platform, and multi-channel layout.
The development of channels has undoubtedly been looking for new growth for brand merchants. At present, instant retail, as a blue ocean market, is regarded as a new direction in the retail and e-commerce industry.
For brick-and-mortar retailers, when offline operations face greater pressure, they work with instant retail platforms to divert online traffic to offline stores, providing strong support for store performance growth.
For brand owners, expanding O2O business and deepening cooperation with instant retail platforms is also the meaning of adapting to user needs, revitalizing offline resources, and actively seeking omni-channel business growth.
Yang Wenqi, general manager of JD Daojia FMCG, also said, “We hope that through the growth of 618 sales, we can mobilize the offline sales teams and offline organizational capabilities of brands.” In particular, when offline growth encounters pressure, it is natural to need a starting point for business growth to bring huge opportunities.
Based on this, before the 618 exam this year, JD Daojia and JD Hourly Shopping also came up with a set of solutions to boost brand growth.
According to reports, in addition to the strong performance capabilities of offline stores, JD.com has also come up with more solutions for traffic distribution and user hierarchical management in the online field. This can directly bring about optimization of operations, as well as more granular digital operations for users and commodities.
For example, if consumer A finds a digital accessory damaged while at home, he needs to buy a new one. In the past, he would choose traditional e-commerce channels to place an order, and it may be delivered to the door the next day. In the logic of real-time retail, it can quickly match the product pool of consumers’ surrounding stores to complete the supply. Based on the instant delivery advantage of JD.com’s hourly purchases, fulfillment delivery can be completed in hours or even minutes.
In the end, the 618 campaign for JD.com instant retail is not just as simple as driving sales. It also verifies JD.com’s methodology of cooperating with more merchants and brands in stages. improvement plan”. Specifically, it is aimed at brand owners and is based on JD.com’s digital omni-channel integrated marketing, omni-channel supply optimization under supply chain integration, and JD.com’s digital and intelligent marketing tool Jingzhuntong to achieve more efficient traffic distribution. Through the three key points of “traffic, supply, and conversion”, a complete set of solutions is formed to improve the efficiency of brand management and assist the growth of business.
Using such a complete and feasible improvement plan, Unilever increased its marketing ROI by 28% in the “Super Brand Week” activities of JD Hourly Shopping and JD Daojia in May this year, and sales during the event also increased by 119% year-on-year .
“For example, for conversion, we have an ‘integrated marketing’ project, which can integrate the respective interests of retailers and brand owners, plus platform subsidies to form the opening and integration of marketing resources, and at the same time cooperate with JD.com’s overall 618 gameplay to drive sales concentration. It broke out.” Yang Wenqi told 36氪.
During the 618 period this year, Unilever’s sales in the JD.com hourly shopping channel achieved significant growth, with sales increasing by more than 500% year-on-year. Cui Jie, Unilever’s global key customers and digital marketing director, said: “With the migration of consumption habits and changes in user needs, instant retail is more and more important to the value of the brand. The cooperation with JD.com and JD.com will help Unilever accelerate the realization of users. Global reach, continuous optimization of omni-channel operational efficiency, and optimization of user experience have achieved remarkable results. We also look forward to greater sales growth in the future.”
At present, merchants and brands in more categories have chosen to join the instant retail track.
Taking child-friendly stores such as Kidswant and Baby Room as an example, although the penetration rate of e-commerce in the maternal and child industry has been increasing, reaching nearly 30% by 2020, 70% of the transactions still take place offline, especially in mother-and-baby franchise stores. , this is because maternal and infant consumption itself requires a certain trust relationship between supply and demand. This also makes the mother and baby industry more willing to cooperate with instant retail platforms to reach omni-channel users and gain business growth. After all, for today’s post-80s and post-90s moms and dads, many people have become accustomed to the instant consumption model of “online ordering, store delivery, and delivery within hours”.
In fact, not only the mother and baby industry, but also retailers and brands in many categories such as fast-moving consumer goods, 3C, beauty makeup, home furnishing, etc., regard instant retailing as an important and even indispensable growth point for this year’s 618, and the “heavy warehouse” layout .
Continue to increase the number of instant retail
In 2020, Apple’s new mobile phone iPhone SE will be launched for the first time, and it will be sold simultaneously on the JD Daojia platform. The fastest order is delivered in only 15 minutes. In the same year, Huawei released the mate40, which also chose to be released simultaneously on the instant retail platform. This year, Xiaomi has also joined this camp, announcing that it will join hands with JD.com to provide instant purchase services for new Xiaomi phones.
Mobile phone brand merchants are off to a good start. In the next two or three years, more and more brand merchants such as 3C, digital, beauty, home furnishing, outdoor, mother and baby have joined the instant retail track. As a result, consumers have developed a new habit and began to buy everything within an hour – daily necessities, beauty, wine, pet supplies, and even camping products. They all hope to receive goods quickly through the instant retail model of hourly delivery. .
In this context, research from iResearch shows that the size of China’s instant retail market is estimated to be close to 900 billion by 2024.
Businesses participating in JD.com’s 618 event this year have actually felt the advantages of JD.com. As an enterprise with deep retail genes and rich experience in the B2C field, JD.com is working with Dada to apply its various capabilities to the field of instant retailing, realize the integration and optimization of the supply chain, and improve the efficiency of the industry.
Specifically, in the traditional B2C e-commerce model, a leading daily chemical brand already has multiple warehouses on JD.com, which are distributed all over the country. Users in different regions can place orders and use the nearest warehouse to efficiently perform contracts. At present, JD.com has accumulated profound supply chain capabilities, including continuous accumulation of retail digital capabilities.
With LBS (Location-Based Services) capabilities, JD Hourly Shopping and JD Daojia, whose business granularity is refined to stores, further pushes the distance between products and consumers to the last 3 kilometers from the store to the user, and further enhances the understanding of the store. Efficiency of resource retrieval to achieve a win-win situation with physical businesses and brands. “Which stores do the brand’s products exist in, what is the store’s online inventory, and the event prices of each store, etc., it is difficult to achieve high efficiency if only through the cooperation of the brand’s e-commerce and O2O teams, but as a platform, JD.com can use deep links. Offline physical formats, use the corresponding digital capabilities to complete a more accurate matching of supply and demand, and improve transaction efficiency.” Yang Wenqi introduced.
At present, JD.com has three and five supply chain capabilities, which can cooperate with merchants and brands to achieve the optimal solution of “cost, efficiency, and experience”. In terms of contract fulfillment, JD.com and Dada have fulfillment solutions covering the entire chain of warehousing, inventory management, and order sorting from terminal distribution to upstream, and have complex SKU management capabilities, which means that it can empower retail stores. , do a good job in commodity supply, inventory, sorting management, and improve the efficiency of contract performance.
For many merchant brands entering the market, the instant retail market has low penetration rate, high growth rate, and huge potential. It is worth mentioning that at present, JD.com’s instant retail business and the user group of JD.com’s main site are highly complementary, and the user group as a whole has strong spending power. In the process of continuously improving the penetration rate of instant retail, all parties involved will benefit.
In any case, judging from the investment during the 618 period this year, we can see the overweight situation of JD.com and Dada, as well as the determination and confidence to continue to attack instant retail. Brick-and-mortar retailers and brand owners are becoming more and more obvious in their “heavy warehouses” for instant retailing and seeking breakthroughs in performance.
It is foreseeable that the instant retail market will still have good growth in the future. For more retailers and brands, this is always good news to look forward to.
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