Alibaba And Jingdong "Shouting" In The Afternoon

At the beginning of September, Tmall supermarket and Jingdong supermarket had begun to fight with guns. The first line of couriers and collection points like Wen Jie and Liu Gan felt the pressure first.

The joking scene is that in the subway stations of Beijing or Shanghai, Jingdong, shop 1 and cat's big ads are always closely linked. It seems that consumers must make choices.

The top two sides of the advertising industry are also beginning to frequent "empty call" and the next battle: first, Tmall supermarket announced that it would reach 100 billion scale in three years, and will invest 2 billion yuan to build supply chain. Jingdong supermarket should also unite 1 stores, WAL-MART and Yonghui to attack cats, and the 1 shop should invest 1 billion yuan within 3 months.

The grain and grass have not moved yet, but the "war of words" between the two sides has already started.

Wen Jie, a 48 year old courier, doubled his workload recently.

From September 1st to 9, he will increase his working hours from the original 8 hours to nearly 14 hours every day, so as to complete the delivery volume of Shanghai Siping Road area.

This is the day of Tmall supermarket's "half discount" promotion in Beijing and Shanghai. The order quantity of Wen Jie's daily distribution is more than 100.

According to the data of Tmall supermarket, the activity grew obviously in September 2nd and started less than two hours, and the expected 100 thousand single discount goods were exhausted.

The "Yongxing grocery store", 113 Tieling Road, Yangpu District, Shanghai, has been cooperating with rookie Inn in the distribution scope of Wen Jie, and can collect the parcel.

The last few days have been full, and large and small packages have been stacked from the store to the sidewalk.

There are many kinds of goods, such as rice, oil, toiletries, etc., which are relatively large and the quality of goods is heavy. The surge in orders has brought trouble to Liu Gan, a grocer.

One of his daily tasks is to urge users to rush to get express.

At the beginning of September, Tmall supermarket and Jingdong supermarket had begun to fight with guns. The first line of couriers and collection points like Wen Jie and Liu Gan felt the pressure first.

The joking scene is that in the subway stations of Beijing or Shanghai, Jingdong, shop 1 and cat's big ads are always closely linked. It seems that consumers must make choices.

The top two sides of the advertising industry are also beginning to frequent "empty call" and the next battle: first, Tmall supermarket announced that it would reach 100 billion scale in three years, and will invest 2 billion yuan to build supply chain. Jingdong supermarket should also unite 1 stores, WAL-MART and Yonghui to attack cats, and the 1 shop should invest 1 billion yuan within 3 months.

The grain and grass have not moved yet, but the "war of words" between the two sides has already started.

Apart from the big promotion season such as double 10 and 618, we seldom seem to see such a fierce confrontation in the electricity supplier market.

Both sides firmly believe that "online supermarket" is a battleground for the military. It means not only the growth of GMV, the stickiness of new users, the traffic bonus from high-frequency consumption, but also the future of Ali and Jingdong, and the game of many interests.

In this war, brands are caught up in a slightly embarrassing situation.

Alibaba and Jingdong have their own brands that compare with their own brands. They have their own weight brand battlefield, and each brand is very clear that they should focus on that platform.

The online super war has different effects on different brands. The brand appeal is mainly divided into the following four categories:

1., the exposure rate, such as the former brilliant old brand, big brand, niche brand new brand.

2., we must increase production costs, high fixed costs, insufficient start-up rate and manufacturers / brands that need orders.

3., online consumer big data.

4., goods must be spread all over the world.

Li Yong believes that if the "battlefield" of different platforms is taken into account, the effective selling time of enterprises will be pferred.

For most brand manufacturers, they take things for granted.

But according to Li Weizheng analysis, both sides have their own advantages and disadvantages.

Jingdong supermarket resources are not flexible, activities are few, businesses can operate little; Tmall has the replacement resources, the maneuverability is strong, but because the brand is numerous, the competition intensifies, means that wants to highlight the tight encirclement may need the higher cost.

"How much is the amount of flowers under the line, it is realistic; and online, is a window, a location, money spent out of touch.

And you can't see or catch customers. "

Li Weizheng expressed his confusion in this way.

Brands even have to take into account the interests of the traditional channel providers. Distributors are most afraid of price pparency, and they have been robbed of their jobs by online channels.

A supplier who did not want to be named complained to reporters. "Now the price of electricity suppliers is very chaotic. It is very difficult for agents to pick up new products.

When consumers scan the code, they know that online prices are low and the prices of community stores are high.

We can not do it, manufacturers should pay attention to online and offline prices. "

Many people describe this online super war as "Jingdong carrying WAL-MART, Yong Hui and No. 1 shop, beating cat hyper".

In the category of O2O and supermarkets, Jingdong really acts very frequently.

In August 2015, Jingdong invested 4 billion 310 million yuan in Yonghui supermarket, holding 10%; in April 2016, in order to create the basic logistics and the last 1 kilometers, Jingdong group merged with the crowdsourcing logistics platform "dada" until recently, the layout of Jingdong and WAL-MART, 1 shop, Jingdong online Shang Shang Chao appeared.

But Jingdong rarely disclose business integration to the outside world.

The holding of Yonghui, the acquisition of shop No. 1 and cooperation with WAL-MART are three completely different formats.

The details behind it are inextricably linked.

Deng Xiangchao, partner of Yonghui supermarket project, worked in shop No. 1 and WAL-MART respectively.

He told the interface reporter, in 2012, he had represented WAL-MART online department to WAL-MART headquarters in the United States.

At that time, WAL-MART's position on shop No. 1 was "to maintain the market share of the existing category", meaning that within WAL-MART, the expectations for No. 1 store were not so high. It was not expected that the 1 shop would cut more market cakes, and of course, it was not allowed to be separated by others.

The negotiation between Jingdong and shop No. 1 began in 2014, and was led by the investor of Jingdong today and completed in 2015.

WAL-MART hopes to add number 1 to Jingdong, and WAL-MART's vision is to add WAL-MART's own Sam club to open up four channels: online, offline, community store and O2O.

At present, the way of cooperation that the public can see is that Sam's member stores have opened flagship stores on Jingdong.

The cooperation between Jingdong and WAL-MART is far from the degree of cooperation in warehousing or backstage data.

The integration of Jingdong and shop No. 1 has progressed to the integration of stores and personnel.

Jingdong Southern China area staff Yang Weisheng told the interface reporters, take the Southern China area as an example, Jingdong retained the brand of shop No. 1, but if there is a coincidence store in the area, the 1 shop will be cut off, which will inevitably involve the abolition of personnel.

From the Southern China area, we can see the whole picture of the Jingdong group integrating the 1 shop.

"From within, resources can not be wasted.

Shop 1 has 150 spots in Southern China, and the door to door must be demolished.

Jingdong unified takeover of pport and distribution business, before the 1 shop also used a large number of third party logistics.

We plan to cut off the third party of shop No. 1 first by the end of September.

"

Yang Weisheng said.

In the future, Jingdong will carry out system docking with shop No. 1, that is to say, although the brand of store No. 1 is retained on the surface, it is already the core of Jingdong in logistics, database and other key channels.

At a media conference in September this year, Song Chunlei, senior vice president of sales and marketing department of No. 1 shop, revealed that in 2015, the number of resale SKU of shop 1 exceeded 8 million, covering more than 300 cities nationwide, and the proportion of self distribution was 68%.

"Shop No. 1 has great advantages in East China and the Yangtze River Delta region, and the growth rate is fast in Southern China.

The Jingdong is strong in the whole country, and relatively likely to be stronger in the north. The two companies will have complementary advantages in the region. "

Song Chunlei evaluated the two party's complementary situation.

Zhong Hao, senior vice president of technology platform of No. 1 shop, also told reporters that "at present, the account system of No. 1 store and Jingdong has not been opened up.

At present, we are doing some feasible cooperation to exchange and exchange data. "

The cooperation between Jingdong and Yonghui is mainly related to supply chain.

Although it is a partnership of 10%, we have not seen more details of cooperation between Jingdong and Yonghui since our cooperation.

In order to achieve efficient production, Jingdong is classified according to the category of commodities.

For example, food mother and baby, books, 3C digital, small household appliances, clothing are stored according to different categories of silos.

The most intuitive embodiment is that you buy an Apple phone and a book in the Jingdong, the system will split into different sub orders, deliver goods from different warehouses, and finally unite to the site collection, and send them to the customers.

In other words, the operation mode of Jingdong supermarket is somewhat like a miniature version of "Jingdong mall". Besides purchasing goods, it is more meticulous and self oriented. Its delivery channels and distribution logic are exactly the same as B2C Jingdong mall's proprietary business.

Even in search orientation, if it can not be found in Jingdong supermarket, it will display some Jingdong mall pages.

Perhaps even Jingdong itself did not particularly want to distinguish the boundaries between supermarkets and shopping malls.

Jingdong supermarket operator Xiaoli explained to reporters that this phenomenon does exist because it does not leave users with a bad experience of "empty search results".

This explanation also reflects that Jingdong supermarkets do not realize the importance of "one-stop shopping experience" and the need for online supermarkets to separate from the mall. Otherwise, what is the significance of establishing online supermarkets? Yunyang Zi, deputy director of the joint business retail research center, believes that the Jingdong's immediate success is derived from the "surgical pformation" of the offline logistics in 2007.

Warehousing has become one of the most important assets of Jingdong.

Poor sales, it is easy to overcapacity, in the Jingdong, for Liu Qiangdong's logistics policy also has doubts.

Business super class is exactly the index to verify Liu Qiangdong's logistics mode.

"To say big, the victory of the super war is related to whether Liu Qiangdong is suitable for CEO."

Yunyang son said.

There are also some small and medium-sized stores in the market, and analysts hold different opinions on the war of online Shang Chao.

The retail industry is most concerned about the issue of accounts. Accounts are known as the basis for making money in the retail industry.

Li Yong, director of a liquor industry brand, mentioned on the basis of practical experience, revealed to a group of data reporters of the interface: "the settlement period of Tmall supermarket is only 10 days, and the account period of mass shopping mall is generally 45 days -60 days, and the actual 90 day accounts also exist.

Jingdong supermarket different categories of checkout period is different, overall, it is more than 30 days.

This may be one of the considerations for businesses to enter the platform.

Now Wan Mingzhi, the general manager of the 100 supermarkets and the former WAL-MART regional manager, interviewed reporters. He questioned the online business super model. "For fast food products, the Internet is faster and faster than the convenience stores at home." the FMCG itself is low in price, large in volume and heavy in weight. The cost of online distribution is high and the gross profit is very low. "Cat super, Jingdong has been subsidized like this is the bottomless pit."

The characteristics of fast moving products determine their WYSIWYG.

Physical retail is the future of convenience stores and community supermarkets. There is no need for supermarkets to undertake such products as washing, daily chemicals, general merchandise and so on.

If the users are accustomed to the Internet in the future, Tmall and Jingdong will be able to get more voice from manufacturers and suppliers with more purchases.

For retailers, the standardization of products such as washing, daily chemical, mother and infant products is very high, and the market can also be taken away by the electricity supplier.

But fresh, food and beverages are the advantages of physical retail. Jingdong, Tmall and other electricity providers can not take away, because the cost is too high.

Even if "catch up with the second wave rush to enter the peak," as the representative of Da Yun FA, Shang Chao also has no ability to compete in the online competition.

According to the data released by the joint venture network in September 2016, 13 super listed companies achieved a revenue of 141 billion 370 million yuan, accounting for 16% of total revenue, net profit of 2 billion 385 million yuan, accounting for 11% of total net profit, and net profit margin of only 1.68%, below 0.72 percentage points of the average level.

As the main retail business, the profitability of supermarkets and large supermarkets has been deteriorating.

In the first half of 2016, "Gao Xin retail", which owns the two benchmark enterprises of big RFA and Auchan, although the net profit ranked first in the supermarket industry, up to 1 billion 461 million yuan, but net profit also dropped by 3.4%.

According to the conclusion, "department stores, shopping centers and supermarkets have been defeated in the rush of e-commerce.

This shows that the overall decline of physical retailers solely based on commodity sales has become an industry trend.

In the era of e-commerce, we must face pformation. The future of Jingdong supermarket and cat Chao is winding up in the comprehensive game, subsidy war and market exploration.

Both sides are trying to go further in the upper and lower reaches of Shang Chao.

The cat has been mentioned as the fourth largest platform after Ali Tmall, Taobao and Juhuasuan "three carriages". The riverside reported directly to CEO Zhang Yong.

Ali hopes to enhance the user's stickiness with the help of fast recovery products.

Next, the new community e-commerce platform "hand Tao convenience store" will also be officially launched, and part of its operation will be responsible for the purchase of lightning.

Jingdong is trying to go deeper in the field of enterprise services, including enterprise procurement and supply to small shops.

At the Jingdong annual meeting in January 2016, Liu Qiangdong proposed Jingdong's new access to Jingdong's annual major innovation project.

According to the interface reporters, Jingdong mall's new access will be the company's "locomotive No. 1" status, with the aim of supplying three to six line cities.

The application of the new channel in Shang Chao is that we want to take the rural canteen and the wife and wife store as the pivot.

This coincides with Yonghui supermarket's focus on the development of supply chain.

Yonghui supermarket Deng Xiangchao told the interface reporter that Yonghui is going to be a "B2B trading support platform".

"If Jingdong cooperate with Yonghui and WAL-MART in the future, if cooperative purchasing is actually in the future, the future consumer habits will be blogger, and future consumers will live on the Internet. Although Jingdong and Tmall can't earn money now, they hope to make profits in the future."

Wan Mingzhi said.

Offline supermarket

The fresh attracts the passenger flow, but most of the profits are daily chemicals, and these categories are gradually pparent after the reshuffle of the e-commerce channel, and no longer have the advantage of profit.

Hu Chuncai, general manager of Shanghai Shangyi consulting, told the interface reporter that Jingdong has only 6 points of cost in the digital home appliances and other products (that is, the price increase can be achieved by 6%). Even if 8 points are sold, there will be a profit of 2%, but the shop must sell more than ten points to make profits.

That is to say, the cost of Jingdong in digital products is lower, while Taobao has the same advantage in clothing, footwear and other categories. If it goes to the field of fast moving products, its value will be greatly reduced.

"For example, Jingdong now has 26 points to do with Procter & Gamble, and large retailers may need 12 -13 points.

When you have a natural disadvantage, it is very difficult to move. "

Hu Chuncai said.

In the final analysis, the embarrassment of online supermarkets lies in the fact that domestic stores are always at a low profit stage. After all kinds of subsidies are stopped, the consumers who have been trained have to remain and earn profits.

The future depends on who burns to the end and who can burn more money.