JD: Stimulating the vitality of the consumer market and establishing high-quality "true low prices"

The low price we want is not a 'fake low price' obtained by shoddy goods, but a 'real low price' that squeezes water in the supply chain, "said JD Retail CEO Xin Lijun at the launch meeting on November 11th this year.'True low price, true benefits' is also the' core KPI 'that e-commerce platforms focus on this year's various consumption nodes

The low price we want is not a 'fake low price' obtained by shoddy goods, but a 'real low price' that squeezes water in the supply chain, "said JD Retail CEO Xin Lijun at the launch meeting on November 11th this year.

'True low price, true benefits' is also the' core KPI 'that e-commerce platforms focus on this year's various consumption nodes. Analysts have pointed out that this year will be the most expensive edition on November 11th.

It is reported that this year, Taotian Group has set the "lowest price on the whole network" as its core goal, including the three major industry development centers and horizontal departments such as users, platforms, and live streaming, all of which have clearly defined the "lowest price on the whole network" as their core KPI. Kwai e-commerce also announced to invest 18 billion in traffic and 2 billion in commodity subsidies during November 11 this year. In addition to full discount discounts, Pinduoduo will also launch its first "single item reduction" activity on the 23rd, which is a direct price reduction on top of subsidies.

On November 11th this year, JD.com stated that not only will there be pre-sales, but there will also be a large number of cheap and high-quality products available for purchase directly from stock at 8pm on October 23rd. Consumers don't have to wait, and they don't have to worry about expensive purchases. Over 800 million products are fully price protected. JD has revealed that since its first price protection service was launched in 2008, it has saved nearly 9 billion yuan for consumers. Xin Lijun also stated in his speech on October 19th that the theme of this year's JD 11.11 is really cheap, and low prices are the genes engraved in JD's bones.

In fact, since the end of last year, low prices have been JD's core strategy. This year, JD has launched a 10 billion yuan subsidy and a 9.9 yuan package channel. On October 19th, Xin Lijun also announced the phased achievements of JD's low-priced measures since the beginning of this year: one is that on November 11th this year, the number of products participating in JD's 10 billion subsidy reached twice that of 618:00 this year; The other is the overall number of merchants participating in JD 11.11 this year, which has increased by more than 1.5 times compared to the same period last year.

Industry insiders have analyzed that although this kind of price contagion is good for consumers, at the same time, consumption is a complex business activity involving multiple parties, requiring mobilization not only on the consumer side but also on the supply side. How to achieve a balance of benefits among all parties through the "low price strategy" has also become the "key issue" behind the phenomenon.

In response, Xin Lijun told reporters that JD's so-called low prices are not "bleeding subsidies", but rather "squeezing water" in the supply chain, allowing users and partners to benefit from the money saved through extreme efficiency, which can truly promote consumption and stimulate the vitality of the consumer market.

The meaning behind 'true low price' is multidimensional, "said the General Manager of the JD Business Unit of a certain digital brand's e-commerce department. With the development of the industry, upgrading measures such as merchants' honest operation, attentive service, cost reduction and efficiency increase are all positive attempts and improvements for the platform to implement the low price strategy.

And JD's low prices not only help consumers lower product prices, but also enable manufacturers to make money. As Xin Lijun said, JD's low prices are achieved by relying on economies of scale and technology driven supply chain continuous innovation.

Through continuous cultivation in the supply chain field over the past 20 years and forging the technological capabilities of digital intelligent social supply chain, JD has achieved lower costs and higher efficiency.

On the evening of August 16th, JD Group announced its performance for the second quarter and mid-term of 2023 on the Hong Kong Stock Exchange. In the second quarter of this year, JD achieved a year-on-year increase of 7.6% in revenue of 287.9 billion yuan; The net profit margin attributable to common shareholders of listed companies under non US GAAP reached 3.0%, the highest level in history for the same period. JD Group CEO Xu Ran stated that in the second quarter, JD achieved stable financial and operational performance thanks to its continuously optimized business structure and leading supply chain capabilities. As of June 30 of this year, the scale of JD's supply chain infrastructure assets reached 140.8 billion yuan, a year-on-year increase of 24%.

It is worth mentioning that just a few days ago, JD Logistics announced a comprehensive upgrade of its express delivery services in the Hong Kong and Macao regions, providing local residents with local express delivery and express delivery services from Hong Kong and Macao to the mainland. Hong Kong local express delivery can be delivered within 4 hours at the fastest, and Hong Kong consumers can also achieve the fastest next day delivery when purchasing goods from JD online. JD International will also provide freight reduction policies for consumers in Hong Kong and Macao, with a total of 199 self operated packages of 3kg and no threshold for self operated goods to be shipped to their doorstep through JD Logistics.

At the same time, JD.com's real-time retail business, JD.com Home, also announced that this year on November 11th, JD.com will collaborate with over 400000 physical stores to provide consumers in over 2000 counties, districts, and cities across the country with "full category free shipping and hourly delivery" services, and bring real discounts of millions of low-priced goods.

In the overseas market, JD Logistics is also focusing on promoting the "global logistics speed up", providing e-commerce package delivery services for consumers in multiple European countries through nearly 90 overseas warehouses, bonded warehouses, and direct mail warehouses worldwide, as well as cooperation with overseas enterprises such as Geopost, an international express delivery company under French Post.

In response, JD.com stated that over the years, the group has been positioned as a "supply chain based technology and service enterprise" and has consistently anchored a large amount of investment in supply chain infrastructure, continuously promoting "chain network integration", achieving the "three networks" of goods network, warehouse network, and cloud network, effectively ensuring the security, stability, and resilience of its own supply chain, It has also effectively driven the digital transformation and cost reduction and efficiency increase of ecological enterprises upstream and downstream of the supply chain industry chain, helping the stable and high-quality development of the real economy.

JD has always prioritized the shopping experience of consumers, and its brand image of "multiple, fast, good, and economical" has deeply rooted in people's hearts. On November 11th this year, in addition to stimulating consumption with low prices, services are also another focus of JD's efforts.

According to JD.com, during November 11th this year, over 200 basic services targeting user pain points, as well as more than 80 industry-leading and unique services including price protection and home renewal, will still provide consumers with a safe and secure shopping experience. At the same time, there are also 3C digital and home appliances that offer one-stop trade in services, as well as specialty services such as direct shipping from fresh sources, "365 day worry free trade in" for automotive supplies and automotive appliances, and "authentic identification" for imported goods.

In addition, JD's price protection service has also been further upgraded, with over 800 million products enjoying full price protection. Consumers who purchase price protection services from 8pm on October 23 to 24pm on November 13 can enjoy price protection for 30 days or more. Since the launch of price protection services in the industry in 2008, as of now, JD's total number of price protection application orders has exceeded 1 billion, saving consumers nearly 9 billion yuan in total. At the same time, this year, JD.com has also laid out measures around low prices, including a 10 billion yuan subsidy of "double compensation for expensive purchases", as well as a recent move to lower its self operated postal package from 99 yuan to 59 yuan for the first time.

It is worth mentioning that in 2021, JD broke the tradition of "starting at 0 o'clock" in previous years and took the lead in promoting "staying up late at 8 o'clock" in the industry. This year's JD 11.11 is also different from the previous pre-sale opening, providing consumers with more choices. Not only are there pre-sales, but a large number of products will be available in stock at 8pm on October 23, including all categories of 3C digital, home appliances, food, clothing, beauty, home furnishings, etc., which can be bought directly or not.

In response, Xin Lijun stated that JD's low prices should first reassure users. While providing low-priced products to users, they should also provide high-quality quality and thoughtful service guarantees, which can truly improve the consumer experience at a low price; JD's low prices should reassure partners, not at the expense of sacrificing their growth, nor at the cost of squeezing their interests. They are the low prices that can help our partners truly achieve healthy growth; JD's low prices should reassure the industry and society, without harming the healthy development of the industry. By establishing a positive cycle of "high-quality and low-priced product supply, meeting consumer demand, and merchants earning money", it is a low price that benefits users, partners, and society, truly promotes consumption, and stimulates the vitality of the consumer market.

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