Jingdong & 7Fresh
Jingdong
With the aid of high technology and efficient delivery, Jingdong has been able to optimize and upgrade its distribution & logistics system ceaselessly. As a wellknown retail enterprise in China, Jingdong possesses 300 million premium yet active users and 1,700 thousand merchants, providing consumers with high-quality goods and services, and advancing the borderless retail strategies with an open attitude to offer retailing solutions of combining online and offline channels into one, deepening customized services and integrating retail scenes with transaction.
In the e-commerce industry, Jingdong has persevered in low gross margin pricing on merchandise and invested heavily in expansion of new categories, warehousing and logistics, cloud computing, streaming media content and intelligent hardware, which are conducive to its long-term development, even at the expense of short-term profits. It is the series of long-term investment focused on the future that has made Jingdong stand out among its rivals in the China's Internet industry though its entry into e-commerce industry is relatively later.
At present, Jingdong is still in the critical period of competition for the e-commerce industry, far from earning quite a lot of profit. In 2018, Jingdong did not pursue profits as investors expected. In face of long-term strategies and short-term profits, it chose the former and continued to invest huge funds in user acquisition and sales promotion. According to its financial reports, the number of Jingdong’s active users continued growing rapidly to 313.8 million over the past 12 months, up 21.5 % compared with last year.
Seen from Jingdong’s financial data over the second quarter of the 2018 fiscal year, the expense that it put into technology research and development aroused much attention for its investment in the aspect rose up to 2.781 billion CNY over the second quarter, up 79.8% in comparison with the 1.546 billion CNY input over the same period last year, far faster than its investment in other financial projects.
Jingdong’s investment in technology covers the application and research of UAV, unattended warehouse and intelligent supply chain in addition to the basic researches such as big data, artificial intelligence and cloud computing. Aside from improving its operational efficiency through technology, Jingdong aims at creating the technologies into modular products, which opens to others; each technology product will eventually become a profit center.
1.7 trillion CNY on the scale of merchandise transaction enables Jingdong to have a full capability of bargaining with its upstream suppliers. It not only can get exclusive and low-price supply of goods but also acquire various advantages, for example, prolonging its cycle of paying to its suppliers. As long as it controls its investment in supply chain, marketing and technology, Jingdong can make huge profits.
Jingdong's new species named as 7Fresh wins an incredible tag for the services it provides such as self-service checkout, face-scanning payment, selected merchandise, goods chosen from original production areas, traceable food, facial identification, intelligent replenishment of goods, big data, half-an-hour express delivery for the orders online, food processing at catering area inside store entities, and intelligent shopping carts.
Highlight 1—face-scanning payment and self-service checkout
For the first time user who gets a Jingdong account, just type your cell phone number into the intelligent system and then you can enjoy the convenient service. Any consumption after that, you can complete the payment by scanning the commodity code and getting your face scanned. If you do not made payment by scanning face, you can complete the self-service checkout through 7Fresh APP. Just start the App and use it to scan commodities’ barcodes, then you can realize the checkout through Jingdong payment or Wechat payment.
Highlight 2—goods purchased from their original production areas, and traceable food
Its purchasing resources can be shared online and offline. Commodity matching and commodity selection are conducted by using big data. It enjoys professional team of buyers, who go to original production areas to choose goods to guarantee their qualities.
Highlight 3—facial identification and accurate marketing
Upon entry into 7Fresh store entities, cameras which are used for identifying consumers’ flowing tracks and purchase behavior can be seen everywhere on the ceiling and above racks. The data collected by the cameras can help achieve refined management and accurate marketing for its membership by combining the consumers’ shopping habits, such as their frequency of visit, products they often buy, their flowing tracks and the precise images of them.
Highlight 4—real-time inventory and intelligent replenishment of goods
Aside from the cameras recording consumers’ shopping habits, there are smart cameras respectively in white and black colors used for monitoring racks and supervising whether certain racks in need of replenishing goods in a real time.
Highlight 5—half-an-hour express delivery for the orders online
7Fresh provides the service within a radius of 3 kilometers around its store entities.
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