On the evening of May 31st, Shen Haobo, CEO of Mo Tie Group, posted a message on his social media to boycott JD.com.
In the post on the social media, it was mentioned that JD.com, despite the opposition of MoTie, forcibly allowed its products to participate in low-priced promotions. Mo Tie will take legal measures to protect its rights, indefinitely stop shipping to JD, and demand JD to remove its products and return them. Call on e-commerce partners not to follow the price and "accompany us through this round".
According to Red Star News, on June 1st, the reporter made multiple phone calls to Grinding Iron Group, but was unable to connect.
According to the official website of Mo Tie, Shen Haobo is the founder, director, and CEO of Mo Tie Group. According to information from Tianyancha, Shen Haobo is the actual controller of Mo Tie Group, holding 19.8% of the shares and ultimately benefiting 32.244% of the shares.
On June 1st, the topic "Grinding Iron has completely stopped shipping to JD.com" quickly made it to the hot search and attracted a lot of attention. A week ago, 56 publishing houses sent letters to boycott the JD 618 promotion, which also sparked heated discussions.
JD's latest response
On the afternoon of the 1st, multiple media outlets released a screenshot of JD's book procurement and sales staff's social circle under the theme of "JD Responds to Grinding Iron's Boycott on JD".
Online News of JD Book Sales and Purchasing Employees Responding
In the screenshot of the friend circle, it is mentioned that the goal of JD 618 activity is to enable consumers to buy cheap and good books, and it denies standing on the opposite side of publishing houses and the industry. The response also mentioned that JD.com has legal independent pricing rights for self operated books.
According to Red Star News, on that day, the reporter contacted JD to verify the authenticity of the screenshot and JD's response to the matter. JD stated that there was no response, but this screenshot can be used as a reference.
JD App Grinding Iron Flagship Store is still selling
Mo Tie has filed multiple lawsuits against JD.com before
On June 1st, the "Grinding Iron Book JD Self operated Official Flagship Store" store on the JD.com app was still selling normally, and some product pages showed participating in promotional activities such as "50% off, top off, and enjoy a discount of 130 for 300 or more, which is about 2.8% off when received.".
According to a report from Red Star News, customer service stated that they have not received any information regarding the cessation of shipment of the grinding iron and can purchase and ship it normally. But when the reporter searched the store, it was found that books such as "Tomb Robbing Notes", "Ming Dynasty Stories", and "Empress Dowager Zhen Huan", which are well-known for their products, are all out of stock.
The reporter searched on the Judgment Document Network and found that Mo Tie has repeatedly sued both the infringing company and JD for "copyright ownership, infringement disputes" and "infringement of work reproduction rights disputes". In two of the lawsuits, the relevant judgments both identified the defendant company as infringing and compensating for the corresponding losses of the grinding iron, but believed that "JD.com has fulfilled its reasonable duty of care and therefore does not need to bear compensation liability"; The other lawsuits ended in the dismissal of the case.
Previously, 58 publishing houses boycotted JD's promotion
It is worth noting that a week ago, in the face of more than 50 publishing houses sending letters to boycott, JD.com also seemed to respond with a screenshot of a sales employee's social circle.
On May 20th, multiple publishing houses in Beijing and Shanghai issued a statement informing that one stone stirred up thousands of waves. According to Southern Metropolis Daily, the contents of these notification letters are similar. Regarding JD's full range of books with a price protection policy of no more than 30% off, as well as the cumulative 8-day promotional activities from May 19th to June 20th, the publishing industry has stated that they will not participate in JD's "618" promotional activities and will not bear any rebate costs incurred during the promotional period.
The Beijing Joint Declaration includes Tsinghua University Press, Peking University Press, Renmin University of China Press, People's Posts and Telecommunications Press, Electronic Industry Press, Machinery Industry Press, Chemical Industry Press, Science Press, China Architecture Publishing Media Co., Ltd., and People's Health Press, all of which have been stamped with official seals. In addition, the Commercial Press and the People's Literature Publishing House have also sent separate stamped statements.
"We understand that this decision may cause inconvenience to your company, but in order to maintain the long-term healthy development of the market, we believe it is a necessary measure," all statements from the Beijing publishing industry have stated.
The main voice of the Shanghai publishing industry is the Shanghai Publishing House Management Association. It is reported that the Shanghai Publishing House Management Association has 46 member units, including Shanghai Century Publishing Group, Shanghai People's Publishing House, Shanghai Literature and Art Publishing House, Shanghai Translation Publishing House, Beijing Century Wenjing Cultural Communication Co., Ltd., and so on.
Based on this, at least 58 publishing units in Beijing and Shanghai have expressed their opinions on this matter.
According to Southern Metropolis Daily, JD.com has not responded to this. However, a friend circle of a JD book sales staff member circulated on the internet, where he wrote, "I just want to expand sales through small profits and high sales to create profits for our partners; I just want to do my best to promote consumption and create value for society... Why are you so angry? What did I do wrong?"
Dialogue with industry veterans: 618 is a breakthrough point, we cannot miss it due to misunderstandings
After the farce of "58 publishing houses withdrawing from the 618 promotion", 21st Century Business Herald reporters had in-depth conversations with the heads of the first tier publishing houses and senior personnel in the book business of three top e-commerce platforms, exploring the differences behind joint authorship.
A well-known publishing house official told 21st Century Business Herald reporters that some publishing institutions have misunderstandings with JD.com, and the 618 event invitation sent by JD.com to the publishing house is not a mandatory requirement for "full category, low discount". The person in charge mentioned, "Among the jointly stamped publishing houses, many have already roughly reached a cooperation plan with JD.com, and there are also helpless factors involved in the joint boycott."
"The relationship between publishing houses, e-commerce platforms, and short video platforms is a two-way choice, and no one has kidnapped anyone. It is important to eliminate the phenomenon of high and low prices in the future, otherwise it will be labeled as' windfall profits' and life will be even more difficult." Several senior book business professionals from e-commerce platforms have told 21st Century Business Herald reporters that book price wars are unsustainable, and publishing houses cannot "have both". Consistency in the price system is what all market entities hope for, after all, establishing a virtuous cycle can ensure the long-term survival of the industry.
From consumer feedback, as readers, their demand is only one: to buy good books at a cheaper price and to buy books for a long time.
Regardless of whether the publishing house voluntarily or out of necessity declares a boycott of the 618 campaign on e-commerce platforms, the reality is that such an important promotion node is something that no one wants to miss.
"Everyone needs exposure through channels, and big promotions are the opportunity to increase sales." The person in charge of the aforementioned publishing house revealed, "Volume prices are an industry flaw that everyone cannot escape. This is not something that a single e-commerce platform on JD.com can control. Some misunderstandings in communication cannot be stopped at hard work, and the publishing house needs to sit down and negotiate with the platform well."
Another insider revealed that in actual communication between multiple publishing institutions and JD.com, specific discount rates are set according to different product categories, which is not a generalization. The platform also does not strongly require all books to be discounted by 20-30%. "This year, JD's efforts have indeed been greater than in previous years. Pursuing lower prices than usual at major promotion nodes is also an appropriate way to lower prices to meet consumers' expectations and drive more sales. This is an inherent operation in the industry, not a singular phenomenon."
Zhao Can is a senior practitioner in the book business of a leading domestic e-commerce platform. According to him, it is relatively reasonable for some books to achieve a 20-30% discount during the 618 period, and even some books have a cost of 10-20% off. Such promotional prices still retain profit margins.
"Moreover, various platforms are facing traffic bottlenecks now, and there are not many marketing methods available. Price attractiveness has become an important means of competition among major platforms. Low prices are the breakthrough point, and no matter which platform proposes it, the price requirements are relatively reasonable. No one wants to disrupt the entire market," Zhao Can said.
Another senior staff member in the book industry, Zhang Wan, also expressed the same viewpoint. He said that the two heaviest nodes in the book industry each year are actually 618 and Double 11. Each platform is launching rights to attract users, and merchants are also conscious of raising prices. Essentially, it is to meet consumer expectations, not for the platform itself. "Merchants can also see 618 as a node for advertising, to some extent offering discounts and also a form of promotion."
Several consumers have also expressed that 618 and Double 11 are fixed nodes for buying books every year. Driven by discounts and discounts, the motivation to buy books is only a little more, almost enough to buy half a year's worth of reading at once.
According to Lu Ming, a senior practitioner in the book business of e-commerce platforms that are also in the first tier, in general, at major promotion nodes, publishers offer discounts of around 40-45% to the platform, and most books can still generate a profit of about 10% from a 30% discount. According to his analysis, the price of JD's 618 this time is lower than in previous years. On the one hand, it caters to the sales demands of the publishing house, and on the other hand, it may also have the intention of bringing the price of legitimate books to a rational level.
"The predicament of the book industry is evident, as emerging platforms such as short videos occupy consumers' energy and squeeze the survival space of the book market. Readers are price sensitive groups, so they can buy books wherever they are cheap. If legitimate books are so expensive that consumers feel 'unable to afford', over time, our industry will become narrower and narrower," sighed Lu Ming.
This is actually a consensus in the book industry. Publishing house insiders told 21st Century Business Herald reporters that consumer demand has undergone structural changes, and the book industry can no longer make money lying down like before. It is reasonable to offer more aggressive prices at major promotion points. The entire industry needs to think about how to make consumers buy good books at reasonable prices. Publishing houses and channels are not in opposition, but rather a win-win cooperation relationship.
Most interviewees believe that there is room for negotiation between publishing houses and e-commerce platforms on how to find a balance between profit and sales, and the ultimate goal is still to not miss important sales milestones.
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