Obviously, JD.com is not satisfied with being just an e-commerce company. JD.com still has many things to do. In May this year, 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,

Obviously, Jingdong is not satisfied with being just an e-commerce company. Jingdong still has many things to do.

In May this year, 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 position is second only to JD.com Supermarket and JD.com Appliances, the two core business lines of JD.com.

Today, JD.com’s new department store’s first flagship store in the country officially opened in Chengdu, Sichuan Province. As a new fashion lifestyle collection that deeply integrates beauty, clothing, home, sports and outdoor, luxury watches and other categories, JD.com’s new department store will dynamically provide local consumers with more than 2,000 high-quality products and more than 10 immersive experience themes Special area.

The five major categories defined by Jingdong’s new department stores are basically closely related to the life aesthetics and tastes of Generation Z. They themselves are also a popular area in the current young consumer market.

From the internal strategic level, Fashion Home, Dasheng Supermarket and 3C Home Appliances Business Group are 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.

So today’s question is, JD.com is a Chinese e-commerce B2C giant. Why is it now obsessed with offline department stores?

Netizens all know that the e-commerce industry has had a huge impact on offline physical stores in recent years. Alibaba JD.com have all benefited from the development of the e-commerce industry, and now they have set their sights offline.

Data shows that although the overall downward pressure on the consumption growth rate of the domestic department store industry in 2021 is relatively large, there are still many department store companies that have achieved record high performance, and more consumers are gradually returning to physical businesses.

In other words, although offline entities are not as strong as in the past, more and more consumers are now returning to offline shopping. JD.com and Alibaba also realize that only the combination of offline and online is the way forward.

Especially JD.com, JD.com now needs to find a second growth curve.

Judging from the financial report previously released by JD.com, JD.com’s revenue in the first quarter of 2022 was 239.7 billion yuan, a year-on-year increase of 18%; the net loss (GAAP) was 2.991 billion yuan, and the net profit in the same period last year was 3.617 billion yuan. Although

users and revenue are growing, profits are not as good as before. JD.com started out in the 3C category. Categories such as clothing and makeup have always been JD.com’s shortcomings. If JD.com’s offline department stores can be rolled out across the country, then JD.com can use this to make up for its own shortcomings.

JD.com’s business model is relatively cumbersome. Many netizens believe that JD.com’s opening of new offline department stores is a bad move because it will undoubtedly make JD.com more cumbersome.

But in Mr. Chun's opinion, it cannot be said that this is a bad move at the moment. The new department store model does not need to rent large-area shops as front stores and back warehouses like traditional department stores, and the operation is more lightweight. Once the model is successfully tested, it can quickly penetrate more regional markets at a faster and lower cost.

Moreover, JD.com’s aggressive move into offline stores does not mean that there are no advantages at all. JD.com’s layout in department stores has four advantages: brand, users, supply chain, and logistics services!

For JD.com, the current economic environment is relatively poor and the cost of opening a store is also low. It is a good time to enter the game.

Jingdong’s new department store is a new consumption experience scenario that can provide users with higher-quality goods and services and better meet consumers’ new fashion life needs.

As for whether JD.com can have an advantage in the competition with Alibaba , Suning and others in the future, it remains to be seen!