Original title: "Jingdong New Department Store" online and offline stores are about to open: shouldering the important task of growing POP business, the omni-channel retail layout has been clear
Source: Daily Economic News ▲ Network diagram POP business is re-opening for the second time this year With the installation upgrade, , JD.com’s new omni-channel strategy of has also sounded again. html On May 9, JD.com’s fashion home business was fully upgraded to “JD New Department Store”, which is an in-depth integration of JD’s existing apparel, home, beauty, sports, luxury watches and other businesses. This new channel is also launched on the JD.com APP at the same time, and its entrance is second only to JD.com Supermarket and JD.com Appliances, the two core business lines of JD.com. 
" Daily Economic News " reporter learned that this upgrade of the fashion home business is not a simple integration of multiple business lines. The new channel brand entry threshold is higher, and the circulation and identification standards set for product selection are also more strict.
In addition, an important signal is that JD.com’s new department stores will no longer stick to online, but will also lay out selected collection stores with different “theme models” in multiple key cities offline. An insider told reporters that the first batch of planned cities include Beijing, Chengdu, Xi'an and other cities, and the first store may be opened before June 18 this year.
▲ The "JD New Department Store" channel on the JD App homepage has been officially launched
Following the adjustment of the V business group, JD.com has launched the second key integration of POP business this year. In fact, the fashion home business group has always played a major role in the growth of JD.com’s POP business. Especially after e-commerce bid farewell to the "choose one" model, a large number of clothing, home furnishing, and luxury brands and merchants have poured into JD.com, which is a relatively important accumulation of volume and scale in the early stage.
However, what is more attractive to the market is that the new business will be deployed offline. With the addition of Dasheng Supermarket and C Home Appliances Business Group, JD.com’s three core retail business lines’ offline layout and omni-channel strategy will be completed.
Reporters noticed that JD.com’s 2021 annual report data showed that daily necessities merchandise revenue accounted for 40% of JD.com’s total merchandise revenue for the year, which has reached a record high. It is not surprising that JD.com’s omni-channel layout is targeting daily necessities categories.
For JD.com, this is a bold new attempt in the main retail business: in the once weak categories, it also carries out business format innovation and online and offline omni-channel layout. On the one hand, we can see the confidence in the internal strength of its own supply chain, and it is also easy to see JD.com’s urgency to seek new growth points.
POP business “protagonist” is back in action
It is reported that JD.com’s new department store business integrates JD.com’s fashion home business, and its subcategories include clothing and underwear, bags, shoes and boots, jewelry, children’s clothing, beauty and skin care, sports and outdoor, watches and glasses , luxury goods, kitchenware, home textiles, household daily necessities, furniture, lighting, etc.
The launch of Jingdong’s new department store has the same purpose as the adjustment of the V business group: to focus on categories and move towards a refined stage of operation.
However, compared with the categories covered by the V business group, the fashion home business group has always been the main category development department within JD.com that focuses on POP business. It covers important business lines such as clothing, beauty, and home furnishings, and is the core of JD.com’s POP business. Responsible for growth. The strategic significance of apparel, beauty, and home furnishings under the fashion home business group is obviously higher.
From an internal strategic level, fashion home, supermarkets, and 3C home appliance business groups are also known as JD.com’s three core retail business groups. Industry insiders revealed to reporters that "Jingdong New Department Store" is a project promoted by Feng Yi, president of the fashion home business group, and is internally positioned as an "S-level" project.
▲ Feng Yi, senior vice president of JD.com and president of JD.com’s retail fashion home business group. In August last year, Feng Yi, the former president of Dasheng Supermarket’s omni-channel business group, was transferred to the fashion home business group as president, reporting to Xu Lei.Because he has served as president of the consumer goods division for a long time, Feng Yi’s resource coordination and team size management capabilities have always been highly rated internally by JD.com.
From the perspective of the external market environment, the fashionable home business has become the focus of e-commerce retail giants in the past two years. For JD.com, after e-commerce bid farewell to the "choose one", it continues to welcome a large number of domestic and foreign brands. and cooperation. The reporter noticed that the launch of numerous new hot products, especially from luxury brands, KA merchants, small and medium-sized businesses and merchants in industrial belts, has brought great richness to the product categories of JD.com’s fashion home business.
Especially since last year’s Double 11, JD.com’s entire fashion home category has begun to develop on a fast track. Financial report data can prove that in the third quarter of last year, the number of third-party merchants on JD.com’s main website was three times the total in the first half of the year. Among them, the number of new merchants in the fashion home category increased the most. During last year’s Double 11, the overall new product volume of JD.com’s apparel was 15 times that of the same period last year. Many big brands, including LV, Bulgari , Estee Lauder , etc., all opened stores or cooperated with JD.com in different forms last year.
This has brought early scale accumulation to "Jingdong New Department Store". As the main responsibility for the growth of Jingdong's POP business, it is time to complete a wave of renovations before 618. The intention can be imagined.
integrates three core businesses. JD.com’s offline retail landscape is gradually becoming clear.
The omni-channel strategy is one of JD.com’s main focus directions in 2022. In recent years, JD.com has also been accelerating its omni-channel strategy.
According to incomplete statistics from reporters, at present, JD.com has deployed JD MALL, JD Electric Super Experience Store, JD Home Appliances Store, JD Computer Digital Store, JD Home , JD Pharmacy, Qixian Supermarket, JD Convenience Store There are tens of thousands of offline physical stores such as and Jingdong Auto Club.
JD Pharmacy Chongqing flagship store Image source: ICphoto
Judging from the main business composition of offline stores, JD Super Sports stores and other stores focus on JD’s traditional 3C categories, while Qixian, JD convenience stores, etc. are under the large supermarket format. Now, JD.com’s new department store, which focuses on the fashion home category, has also announced that it will open offline physical stores.
At this point, JD.com’s three core retail business lines all have online and offline omni-channel business layouts. JD.com revealed that it will deploy new department store collection stores with different themes and models in key cities across the country in the future. At present, offline new department store physical stores have entered the preparatory stage.
In terms of cities, people familiar with the matter told reporters that Beijing, Chengdu, Shenzhen, Xi'an, etc. are the main cities for early deployment. In addition, offline JD.com's new department store physical stores are expected to open the first batch of stores around June 18 this year. In stores, brand merchants that are strictly screened by the new rules for online channels will also enter offline stores simultaneously. The tone of
physical stores focuses on trends, selection and youth. The main target group is also a young consumer group. JD.com officially positions it as a "boutique collection store". This kind of positioning and style is also reflected in the previously opened Jingdong MALL.
This is not the first time JD.com has launched a trendy retail store. In July last year, JD.com led the F round of investment in trendy retail company KK Group .
Public information shows that KK Group owns O2O e-commerce platforms, KK pavilions, , KKV and other brands. Its brands have hundreds of offline stores in core business districts and shopping centers in Beijing, Shanghai, Guangzhou, Chengdu and other cities. store. This may also add imagination to the offline layout of JD’s new department store.
In response to JD.com’s new offline physical layout, Li Zhiqi, vice chairman of the Beijing Federation of Industry and Commerce and chairman of the Zhenxing International Think Tank , said in an interview with a reporter from the "Daily Economic News" on WeChat that department stores are regarded as a new online and offline integration scenario. The gameplay is no surprise. connects offline and online, and implements the layout of omni-channel business scenarios, which is also the ultimate issue that e-commerce and retail companies have been facing at this stage.
▲ On July 28 last year, Li Zhiqi, deputy director of the Economic Committee of the Beijing Municipal People’s Political Consultative Conference, vice chairman of the Municipal Federation of Industry and Commerce, special researcher of the Municipal Government Counselor’s Office, and chairman of the Zhenxing International Think Tank, was invited to attend the high-level exchange meeting at JD.com Group Headquarters and presented the " digital Delivered a keynote speech titled "New Challenges for Economic Development and Suggestions for Government-Enterprise Cooperation". Click on the link to read
"JD.com has tried offline physical businesses before, and this time it has expanded more horizontal categories." Li Zhiqi told reporters, "Including JD.com, current e-commerce platforms are generally facing growth challenges. There are also different levels of traffic anxiety on the ceiling. On the one hand, JD.com can do more business attempts under the label of 'department store' that includes more new categories, and department stores can also be operated as a new traffic pool. On the other hand, the traffic obtained offline is more active because it can form a better interactive experience. This is an important direction that e-commerce platforms are trying hard to open up."
But Li Zhiqi also admitted that traditional The offline department store business has hit a bottleneck, and can even be said to have reached its limit. Whether the difficulties and pitfalls encountered by traditional department stores can be better digested by JD.com’s new department stores will be the main issues and challenges that JD.com will focus on next.
“However, I believe that JD.com’s digital capabilities can bring some new changes to the traditional department store format and create some new scenarios and gameplay, allowing consumers to obtain new consumption experiences more accurately and conveniently. This is expected ." Li Zhiqi said.
He also bluntly said that it will take a long time to transform and innovate the traditional department store format, sort out the complex nodes in the chain, and drive upstream and downstream. better solves the problems of efficiency and cost, and the benefits will not be obvious in a short time. It will take a long time to explore, and corresponding changes may occur.
