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Recently, JD Supermarket announced its latest performance report at its 10th anniversary celebration: in the first half of this year, JD Supermarket continued to grow rapidly, with new users increasing by 20%, order volume increasing by over 30%, and revenue achieving high double-digit growth. As of the end of 2023, JD.com has produced over 50 super brands with annual sales exceeding 1 billion yuan, as well as over 100 brands worth 500 million yuan and over 500 brands worth over 100 million yuan.
Yao Yanzhong, Senior Vice President of JD Group and President of JD Retail's Supermarket Business Group, stated that as the fast-moving consumer goods industry enters the second half, we should be wary of the "vicious competition" that drives out good products and harms consumer rights. We need to shift from seizing opportunities to improving our internal strength. JD Supermarket will help brands enhance their core capabilities in supply chain, product strength, and quality price ratio, and assist brands in achieving high-quality and sustainable growth on JD.com.
At present, the consumer demand of users in the fast-moving consumer goods industry is quietly changing. A research report released by Boston Consulting Group (BCG) shows that major consumer goods have shown a trend of high and low price band growth, and medium price band decline.
In this situation, JD.com believes that some brands and channels have engaged in vicious competition, leading to frequent occurrences of shoddy workmanship, substandard products, counterfeit goods, and other irregularities. Over time, this will create an ecosystem where bad money drives out good money, which is not conducive to the sustained and healthy development of China's manufacturing industry.
To this end, Yao Yanzhong said that JD Supermarket will focus on cultivating and restructuring its supply chain, rebuilding its product strength, and reshaping its quality price ratio, implementing a series of measures to help the brand achieve high-quality and sustainable growth.
Among them, restructuring the supply chain is to rely on JD's supply chain advantages and capabilities to further reduce the frequency of product handling. Specifically, JD Supermarket will use its digital capabilities to reduce the number of repeated handling between brand warehouses and JD warehouses. At the same time, JD Logistics' warehouses will be built directly at the source of fresh produce, allowing fresh produce to be shipped directly from the origin to the whole country. This is an advantage for JD.com, as JD Logistics founded by Liu Qiangdong can provide strong support.
In order to enhance product strength, JD Supermarket will use industry-leading product planning methodologies and insight tools to help brands quickly identify consumer pain points and needs, and identify fast-paced and promising segmented product tracks.
And ensuring the quality price ratio means ensuring the quality of the products sold by JD Supermarket. JD will adhere to a low price strategy, but will not engage in vicious competition. To this end, JD Supermarket has established safety monitoring laboratories in 45 Asia No.1 warehouses across the country, building a foundation for quality price ratio through three lines of defense: safety testing, genuine product identification, and on-site experience.
JD Group CEO Xu Ran stated that JD Supermarket is one of the important battlefields for JD Group to win in the next decade. Standing at the starting point of the new decade, JD Supermarket will continue to leverage its efficient supply chain and omnichannel capabilities, build a prosperous open ecosystem, and help partners achieve healthy and sustainable development.
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