JD's brand "Jingxi", which focuses on high cost-effectiveness, has once again transformed. First Financial has noticed that Jingxi has recently changed its name to "Jingxi Self operated" and is offering lower priced products through a fully managed model.
On May 29th, "Jingxi" announced on Weibo that the Jingxi brand will undergo a comprehensive upgrade from now on, launching a fully managed model and renaming it "Jingxi Self operated". After the brand upgrade, Jingxi further strengthened the platform's control role in multiple aspects of product circulation.
From the perspective of business model, Jingxi self operated introduces that the brand will be committed to creating a white label in the industry, conducting on-site factory inspections, starting from the raw materials and processes of each product, rejecting excessive packaging, and providing professional customer service, so that users can truly obtain high-quality and affordable factory goods. Provide users with services such as strict procurement and sales selection, factory direct supply, free shipping for one item, and official services.
Jingxi Self operated stated that in the future, it will continue to leverage JD's supply chain advantages, continuously integrate high-quality supplier resources, bring more high-quality and low-priced goods, and improve consumer shopping experience.
First Financial Search found that there is currently no direct entrance to Jingxi Direct Sales on the homepage of the JD.com App. When searching for "Jingxi Direct Sales," it appears as "Jingxi Self operated Official Store." Jingxi Self operated Official Store currently has over 50 million followers. First Financial has noticed that most of the products in Jingxi's self operated products are priced at no more than 10 yuan, and some electronic products such as wireless Bluetooth earphones are priced at 8.9 yuan. The currently best-selling product is the hanging paper drawer priced at 3.9 yuan, which has received 2 million reviews. Perhaps considering cost-effectiveness, in terms of express delivery, Jingxi customer service told First Financial that the express delivery used includes Zhongtong, Yuantong, Yunda, Postal, Jitu, etc., and does not include JD Express.
The Jingxi brand has experienced several ups and downs since its launch. In 2019, JD.com changed its name to Jingxi and focused on social e-commerce. At a time when community group buying was booming, JD.com named "Jingxi Pinpin" community group buying in December 2020, and subsequently expanded its business to Guangdong, Shanghai, Shandong, Jiangsu and other regions. In mid-2021, Jingxi Pinpin retreated from Shanxi and gradually contracted thereafter.
In 2022, JD.com launched a round of optimization and adjustment, including related businesses of Jingxi. In 2023, JD.com began to focus on a low price strategy by launching channels such as a 10 billion yuan subsidy. After the main site focused on low prices, the presence of Jingxi decreased. Since the beginning of 2023, JD.com has successively launched a series of low-priced measures, such as "10 billion yuan subsidy", "9 yuan 9 free shipping" channels, and lowering the threshold for free shipping.
In 2024, Jingxi will once again embark on a fully managed model, continuing JD's "low price strategy". The fully hosted mode is led by Temu, a subsidiary of Pinduoduo. Temu, a subsidiary of Pinduoduo, was the first to launch a fully managed model in 2022, quickly opening up the market with the advantage of low prices. Such platforms as AliExpress, Lazada, Shopee and Tik Tok Shop have also successively launched this model. In the full custody mode, merchants only need to supply goods and transport them to the platform warehouse in advance, while the platform is responsible for transportation, operation, and sales. Both parties settle in stages according to the agreed nodes. The characteristic of this model is low product prices and hassle free for merchants. A cross-border seller told First Financial that the fully managed model is platform led, with lower logistics costs and no need to consider commissions. The pricing is much lower than that of self operated businesses. Pop merchants need to consider costs such as logistics and platform commissions, and the pricing of front-end displays will inevitably be higher than that of fully hosted products, which will lose competitiveness compared to fully hosted products.
Zhang Zhouping, Chief Researcher of Bense Think Tank, told First Financial that the future incremental market of the e-commerce industry will come from industrial belts and source manufacturers. The model of sellers responsible for production and platforms responsible for promotion and sales reduces the threshold for traditional foreign trade enterprises to enter the e-commerce industry. For platforms, industry and trade oriented enterprises have good production and manufacturing capabilities and supply chain systems. In the current competitive environment, platforms need to find products with higher cost-effectiveness, and finding the source will give manufacturers a more price advantage.
Regarding the current pursuit of low-priced products by platforms, Zhang Zhouping believes that this is related to the current global economy. Against the backdrop of slowing economic growth, consumers around the world need high cost-effective products, which also forces platforms to make changes.