On October 31, Wal-Mart, JD.com, Jingdong arrived at home and Tencent rarely appeared on the same stage.
This time, the four companies jointly released the “China Retailer’s Super-omni-channel Fusion Development Annual Report” to explore the development model of retail omni-channel integration.
Due to the complex equity and investment relationships, the four are now on the same ship that combines online and offline retail.
Tencent and Wal-Mart are the first and third largest shareholders of JD.
According to JD’s previously submitted materials, as of February 28, 2018, Tencent’s HuangRiver Investment Limited held an 18% stake in Jingdong Group with 4.4% of voting rights. Jingdong Group CEO Liu Qiangdong holds a 15.5% stake and holds 79.5% of the voting rights. Wal-Mart holds 10.1% and has 2.5% of voting rights.
Dada-Jingdong arrived home by JD.com’s O2O subsidiary Jingdong to the home and the crowdsourcing logistics platform Dada merged in April 2016. According to the announcement at the time, after the merger agreement came into effect, JD.com acquired the business of Jingdong, the business resources of Jingdong Group and 200 million US dollars of cash in exchange for about 47.4% of the shares of the new company and became the single largest shareholder.
However, in August this year, Jingdong and Wal-Mart joined forces to invest in Jingdong. In Dada-Jingdong‘s home announcement that it has completed the latest round of $500 million in financing from Wal-Mart and JD.com, Wal-Mart’s investment is $319 million, while JD is $181 million.
Jordan Berke, vice president of E-Commerce at Wal-Mart China, understands that the future of retailing is to combine the best physical stores, the best E-Commerce and the best digital thinking.
“We have found the strongest partner in China.” Bo Junxian believes in the idea that in the era of omnichannel, if you want to win, you must develop a deep partnership.
Dada-Jingdong’s founder and CEO, Jia Jiayu, said in an interview with the First Financial News reporter that among the four, Jingdong’s role at home is more like a friendship ambassador, and he has made one of the strongest abilities. Integration and implementation.
All of this has been “boxed” by Liu Qiangdong into the strategy of Jingdong Unbounded Retail.
As one of the important benefits of the acquisition of Jingdong, Tencent has generously opened the Wechat level entrance to Jingdong in 2014.
In October 2015, the two announced the Jingtong plan to provide marketing solutions.
In the past two years, Tencent has basically bought and bought all the way in the retail industry and will not forget to bring the teammate of Jingdong.
Wechat is still very important for the current Jingdong.
Liu Qiangdong revealed at this year’s BrainstormTECH event that as of July this year, among all the newly acquired customers, Wechat brought a quarter of new customers to Jingdong. Jingdong is trying to combine people’s social and online shopping to form a shopping cycle. There are still many interesting attempts in the future.
Behind this, it should not be overlooked that the current E-Commerce industry has become more and more expensive, and traditional offline retailing has become a must for E-Commerce to expand new users.
Bo Junxian emphasizes that Wal-Mart’s success in the past 60 years is to have the ability to carry out large-scale innovation. This year, the scale of company innovation has surpassed the past.
It is reported that in order to land the omni-channel strategy, Wal-Mart has cooperated with JD.com, and has launched a number of flagship stores to strengthen the E-Commerce business, and launched the “three links” strategy of stores, users and stock exchanges; and cooperated with Dada-Jingdong to solve retail sales. “The last mile”, parallel hands to implement the retailer’s first warehouse integration “Walmart Cloud Warehouse”; cooperate with Tencent to solve customer pain points through small procedures, and become the first retailer to have a small program that breaks through 10 million users. .
To put it simply, the scan code purchase between Wal-Mart and Tencent is that if the user sees a coupon for a Wal-Mart product in a circle of friends, he can open this link and put the coupon into his small program of Wal-Mart scan code, the next time Open this shopping applet in a Wal-Mart store.
The data given by Wang Mo, the head of Tencent’s smart retail project, is that “scan code purchase” has been promoted to nearly 400 Wal-Mart stores in more than 180 cities, with more than 15 million users. At present, the penetration rate of mature shop “scan code purchase” is 38%, and the users of “scan code purchase” are repurchased twice a month.
Recently, Tencent and Wal-Mart will also launch innovative applications such as “finding goods” based on electronic maps.
“Today in the world market, Wal-Mart serves more than one hour of service in the industry by O2O every hour. The environment we operate is an ecosystem in this ecosystem. In the system, we and our Chinese partners have achieved a strong alliance.” Bo Junxian explained.
Omnichannel Alliance Wars
In Bo Junxian’s view, Wal-Mart, JD.com, JD.com and Tencent passed the omni-channel model, and all parties created value and achieved business growth. “More importantly, it has explored a new and effective model for the retail industry to better serve its customers.”
However, Liu Qiangdong emphasized that Jingdong and its allies must have certain commonalities. “We share the same core values with all of these partners. It is very important. If you want to work with other companies and have different values, the results can be disastrous.”
In the current Quartet Alliance, JD is more of a “retail + retail infrastructure service provider” role.
Li Kefeng, vice president of Jingdong Group and head of the technical middle platform of Jingdong Mall, said that Jingdong’s ultimate judgment on the future trend of retail is unbounded retail. “The future of retail is not an ’empire’, but an ‘alliance’. Each participant defines his or that piece of ‘building block’ clearly and continuously optimizes it. Finally, different blocks are combined to evolve unbounded retail. Infinite scene.”
Jingdong’s home as an unbounded retail instant consumption platform is more like an infrastructure that connects all parties.
“By collaborating with Jingdong Group, there is a certain complement to the data base of the users of Jingdong and the corresponding crowd labels, etc.; the cooperation with Wal-Mart has gained a lot of innovative practices in the store, commodity and user; Based on Wechat payment, small programs and other cooperation, better service providers, etc.. Dada-Jingdong founder and CEO Yan Jiayu told the First Financial Reporter.
According to public information, Jingdong has already covered 63 cities across the country, and the first- and second-tier cities have basically achieved comprehensive coverage. At present, more than 100,000 stores have been on the line to Jingdong, providing a wide range of goods and services such as fresh fruits and vegetables, daily necessities, medical health, flowers and plants, cake baking, and beauty products.
Jingdong arrived at home this time and proposed to complete the comprehensive coverage of more than 200 urban core areas in 2019.
“This market requires deep upstream and downstream integration, and allies are critical. Ultimately, it is not competition between merchants and merchants, but competition between one supply chain and another. A group of suppliers in the supply chain often have capital. Based on the ties and business cooperation, the market will have a larger-scale competition in the future.” Yu Jiayu explained.