Jingdong Releases Unbounded Service Strategy for Automobiles and Reconstructs the Automotive Aftermarket Industry Chain

Jingdong announced its unbounded service strategy in Beijing. At the press conference, Jingdong officially announced that it will enter the B2B field on the basis of the automotive supplies business and completely open up the entire industry chain between auto market brands, distributors, maintenance parties, and consumers.

JD.com unveiled a car unbounded service strategy in Beijing recently. At the press conference, JD.com officially announced that it will enter the B2B field on the basis of the automotive supplies business, and fully open up the entire industrial chain between auto market brands, distributors, maintenance companies, and consumers. .

Jing Lijun, vice president of JD.com and president of Jingdong Mall's home life division, said that in the next 10 to 20 years, the fourth retail revolution will promote the era of “unrestricted retailing,” and cost, efficiency, and experience will all be upgraded. Jingdong Automobile The unbounded service strategy will reconstruct the B2B2C chain in the automotive aftermarket by reconstructing the cargo flow and information flow, empowering the upstream and downstream, and restructuring the industrial structure. Jingdong will also create the first integrated platform for the entire industry chain in the automotive aftermarket.

There is a huge space after the auto market, and there are many pain points that need urgently to get through

In the developed automobile industry chain in developed countries, the proportion of the automotive aftermarket generally can reach 50%-60%, while China currently accounts for only about 10%. Usually, the aftermarket demand is closely related to the age of the car. After the vehicle age is over 3 years, the after-sales demand begins to increase. After the vehicle ages to 6 years, the demand for the aftermarket such as vehicle maintenance reaches the highest. The data shows that as of June 2017, the average vehicle age of China’s car ownership of over 200 million has been close to 5 years.

The huge market space has attracted many businesses to get involved. Industry statistics show that in addition to the 4S store system, there are currently more than 400,000 auto repair service stores on the market, far exceeding the demand in number, but less than one-tenth of auto repair shops with more than two qualifications are in service. The quality is far from meeting consumer requirements. At the same time, the excess service force has caused fierce competition in the industry. Under the high cost of acquiring customers, it is even more difficult for the business to talk about the brand, and eventually fall into the development dilemma.

Jing Dong, head of Jingdong Automotive Products, said that the purchase of automotive supplies requires a certain degree of professionalism. For ordinary consumers, the threshold is high, coupled with the market's volume of repair shops in Shanghai makes it difficult to identify the level of service, consumers are faced with The dilemma of starting.

For the industry, on the one hand, complex distribution levels and fragmented market sales make it difficult for brand manufacturers to accurately grasp the sales of products, and blindly customized production targets under increasing pressure have led lower tier retailers to layer goods. However, when auto parts dealers and distributors faced inventory problems, the repair shop did not allow the owners to wait for months because of the lack of spare parts... Therefore, the industry cost remained high.

Improve the "commodity + service" one-stop shopping system, on-line "maintenance package" and "Jingdong service store"

According to Yiyi, it is understood that since 2012, Jingdong will be involved in the field of automotive supplies, and now it has cooperated with more than 5,000 brands, including maintenance, automotive electronics, beauty cleaning, automotive decoration and many other categories. In 2014, JD.com Automotive's online “vehicle butler” system, which currently includes 28000+ models, can complete the relevant matching of nearly 100,000 spare parts. Consumers only need to enter their own model information to automatically match the relevant products that are recommended for use. This year, JD.com also launched an exclusive customer service team for automotive products. These professional customer services can provide consumers with one-on-one assistance and guidance to solve various problems.

In addition, because automotive supplies are a category that is strongly associated with goods and services, in terms of consumption scenarios, consumer demand is not simply to purchase automotive supplies, but to replace and install corresponding products. Therefore, Jingdong Automobile Products has created a one-stop shopping experience for "commodity + service." When consumers purchase goods at JD.com, they can select the nearest or convenient store's installation service, ship to the store, and make an appointment for installation. At present, Jingdong Automobile Supplies has reached strategic cooperation with many famous auto accessories brands such as German Horse Brand, 3M, Karcher, Bosch, and Sailing, which is intended to deepen service capabilities. According to Tang Yushen, as of now, JD.com auto supplies have reached cooperation with more than 30,000 stores nationwide.

At the strategic conference, Jingdong Automobile Products announced that it would upgrade its "commodity + service" system, and will launch "Jingdong maintenance packages" and "Jingdong service stores" during the year. Owners will be able to choose different packages for maintenance within one year according to their driving frequency. In addition to affordable product standards, they can also be used as gifts. In addition, this year during the double 11 period, JD.com auto supplies will continue to launch various activities centering on “commodities and services”, and may purchase products that need to be installed such as tires, oil, brakes, filters, and driving recorders of JD.D.’s self-operated products. Enjoy offline free installation discounts.

In addition, before the Spring Festival, consumers are expected to see the advent of JD.com's branded car service stores. These stores have been carefully selected and approved by JD.com. Tang Yushen said that Jingdong Automobile Service Stores will not pursue quantity and pay more attention to quality. “Jingdong will provide support to stores from various aspects such as products, management systems and service capabilities.”

Enter the B2B field, open up the entire industry chain of the auto market, and establish a “medical record” for consumers

It is worth noting that, after intensively pursuing the B2C field of automotive supplies, Jingdong announced its formal entry into the B2B field in the automotive aftermarket. According to Qing Yan, head of JD.com’s automotive business, B2B will restructure the flow of goods and information on the basis of new technologies. The brands, distributors, and maintenance companies that cooperate with JD.com will achieve direct and end-user demand. Links, thereby reducing the lag in product circulation and optimizing inventory turnover. Jingdong will fully open its supply chain integration capabilities, technical capabilities and logistics capabilities to brand owners, agents and maintenance parties. “In the new industry chain created by JD.com, brand owners, distributors, and repair shops will usher in the operation of the Internet. In the future, consumers can establish a 'medical record' for the car. All stores in the system are universal and easy to love. Cars for maintenance."