Jingdong Subverts Middlemen To Achieve Direct Product Sales

What exactly is the development path of Jingdong O2O? logic In a few months before the layout. We can see that Jingdong's O2O first announced its cooperation with Tang Jiu convenience store in Taiyuan, and then announced that it would combine nearly 10000 convenience stores and then enter the field of fresh electric business.

In recent exchanges with Jingdong insiders, the Ba has gained the logic of Jingdong's overall development of O2O. In Liu Qiangdong's view, what Jingdong wants to do is to subvert middlemen, and the field is not just fresh food.

1, subverting middleman and eventually achieving direct sales.

At present, the Jingdong's O2O mode is mainly for offline convenience stores, and encourages convenience stores to constantly transform and integrate into Jingdong O2O system. In fact, the aim of Jingdong is to make use of offline convenience stores to achieve the two most difficult points in Logistics: fresh and home delivery. The way to achieve this is to subvert middlemen.

Insiders revealed that when Liu Qiangdong deployed the O2O business, he stressed that the core of Jingdong O2O in the future would be "cancel any link from the source to the end," which means that Jingdong's O2O will be an improvement of the supply chain system based on Jingdong logistics as the core. In order to achieve the omission of intermediate links, the future will start direct marketing of fresh O2O products after the maturity of the business model. At the same time, in accordance with this mode, March clothing Sales and other traditional business super service areas.

　 2, transform the supply chain with convenience stores as the core.

As mentioned above, fresh and home delivery are the most difficult to solve in logistics. At present, Ali's mode is to use traditional logistics + fresh packaging mode to solve the distribution of fresh electricity suppliers, that is, without changing the supply chain, we should keep fresh products by changing the packaging of fresh products (including refrigerants, etc.). Hou Yi, head of Jingdong O2O, believes that this model is feasible at present, but the cost is too high.

What Jingdong hopes to do is to realize the coverage of fresh logistics channels from the source to the housing, so as to fully grasp the control power of this process. The core is the convenience stores and supermarkets that constantly unite all cities. In the future, Jingdong will also enter the business super field and make further use of this logistics advantage to transform the traditional retail industry.

　 3. Jingdong's O2O in big cities logic

However, the biggest problem of Jingdong O2O is also relying too much on offline convenience stores. Once the region lacks the convenience store brand with absolute coverage, it is difficult to carry out the market. If this is the case in Beijing, the most popular brands such as good neighbors, fast passengers, and 711 brands in the market are not completely covered.

At present, the logic of Jingdong is that the small convenience store is transformed into a large supermarket, and it is cooperated with supermarkets such as wumi and Pu Lianhua, and uses their large warehouses to achieve fresh preservation and terminal distribution. However, unlike the convenience store mode, this mode requires Jingdong to provide the final distribution, which is a good solution at present.

　 4, Jingdong's core chip is vertical traffic.

So why did the convenience store and Shang Chao choose Jingdong to expand their O2O business? Obviously, Jingdong's advantage lies in its flow advantage in the vertical retail field. Too many offline brands want to build their own website models to dominate O2O business, but they often give up because of the high traffic cost. In fact, both Jingdong and Alibaba have such advantages.

In this process, the Jingdong actually plays the following roles: first, the supply chain integrator. Second, software system service providers. Third, traffic sellers. These three roles are built on the premise that they have vertical traffic advantages compared with traditional enterprises. In the Ba people's view, although the current e-commerce sites have such traffic advantages, the key is who can make good use of traffic rather than disorderly traffic under the line.

Finally, the Jingdong's current O2O situation is also an industry force. In fact, Jingdong's O2O project started later than Ali. After Liu Qiangdong's visit to the US, some of Jingdong's business slowed down, and the recent O2O projects were catching up. Of course, Jingdong O2O is quite reliable on the whole. Compared to simply want to move the flow of business to the line, Jingdong's core is "integration" rather than blindly seeking success.

Of course, it will take time to subvert the "middleman" whether it will eventually spread to more fields and succeed.