At present, the Double Eleven battle is in full swing, and the e-commerce battle of competing for the sinking market with white label products is also making waves again. On November 8th, JD's "Jingxi Self operated" company disclosed its business details for the first time on its first anniversary of launch, and its "White Label Domestic Goods Factory Billion Support Plan" was also announced to the public.
From the former social e-commerce to the current self operated Jingxi, the sinking market has always been an important battlefield that JD.com hopes to conquer, and it is also an important incremental market in the eyes of e-commerce platforms. Qi Ting, the person in charge of Jingxi's self operated business, stated in an interview with media reporters such as Huaxia Times that the name Jingxi has always carried the persistence and dream of JD people towards sinking. The absolutely low-priced industrial belt white label field is definitely a good opportunity and window for future business growth.
Billions of subsidies support domestic factories
Billions of subsidies are a new weapon for Jingxi's self operated business in the sinking market.
On November 8th, Jingxi Self operated announced plans to invest 10 billion yuan annually to subsidize product prices for white label domestic factories, implement operational and traffic support, and subsidize logistics freight costs. According to its introduction, Jingxi's self operated "billion yuan subsidy" focuses on supporting 10000 white label domestic factories, with an estimated subsidy of 1 million yuan per factory on average.
Traffic is the largest investment direction for Jingxi's self operated billion yuan subsidy. Qi Ting told reporters that the biggest challenge faced by factories in e-commerce operations is the high cost of traffic, and JD.com needs these extremely cost-effective products to attract new users. Therefore, all the peripheral touchpoints that everyone can see, including on-site advertisements, are actively placed by JD.com.
In addition, logistics is also one of the important directions for Jingxi's self operated billion yuan subsidy. It is reported that it has already fully connected with JD Logistics. Qi Ting said that the experience of JD Logistics is very good, but the cost investment behind it is indeed more expensive. However, all these expenses do not need to be paid by the factory or the users. "We hope that users can enjoy better services, so that they can truly buy good products instead of paying for traffic
Jingxi has always been the vanguard of JD.com in the sinking market. According to the reporter's understanding, Jingxi was launched in 2019, renamed from the JD Pinduogou App, focusing on social e-commerce. It once occupied the first level entrance of JD on WeChat, bringing a large number of user growth to JD. But after a series of changes and adjustments, Jingxi launched a new self operated model in November last year. On May 29th of this year, Jingxi announced on social media that it would be renamed "Jingxi Self Operated". Prior to this, its name was "Jingxi Direct Operated". The reporter observed that currently, Jingxi Self operated is appearing as an official self operated store on the JD main website, with over 140 million fans.
Looking back on the past year, Qi Ting told a reporter from Huaxia Times that Jingxi's self operated business currently has three performance indicators. The first is the order volume, the second is the number of users, and the third is the repurchase rate. "So far this year, we have exceeded our plan to complete these three indicators
Behind these numbers, she said that Jingxi Self operated is more concerned about the construction of the supply chain during this year, as well as the efficiency of Jingxi Self operated's new customer acquisition. "Looking at it over the past year, whether it is from the process indicators of new customer acquisition or the quantity of new customer acquisition, it has already verified our previous idea
Launching a differentiation war in the sinking market
The white card battle in the sinking market has already begun with the addition of user anxiety.
Faced with the rapid growth of Pinduoduo, not only JD.com established Jingxi in 2019, but Taobao also launched the "Taobao Special Edition" in March 2020. However, there were reports in February this year that merchants and products on the Taote platform would be relocated back to Taobao. Alibaba subsequently responded that Taote would continue to develop and increase the full supply of hand Taobao to serve Taote's existing market users.
Behind the series of changes in competition in the sinking market, a major background is that as the overall growth rate of the e-commerce market slows down, e-commerce giants are no longer just sending a team to fight in the sinking market, but are fully engaged in the low price war. Among them, the entire JD Group has been focusing on low prices as its main strategy since the end of 2022. In 2023, JD's main website successively launched channels such as billion yuan subsidies and nine yuan nine free shipping, and launched a series of low price measures such as lowering the threshold for free shipping.
In the low price war of e-commerce platforms, the competition for white label factories related to absolute low prices has always been fierce.
According to relevant statistics, there are currently over 100 industrial clusters in China, with Zhejiang, Jiangsu, Guangdong, and Shandong provinces being the most concentrated. Among them, there are a large number of factories producing white label goods, but the operation and development of these factories face challenges such as high costs, inability to sell, and lack of profitability. Whoever can help these factories solve their difficulties will be able to grab more white label market share.
The self operated model is JD's biggest competitive point in the white card battlefield.
According to the reporter's understanding, under the self operated model of Jingxi, all product selection, pricing, operation, logistics, and pre-sales and after-sales services are handled by JD. However, a significant difference from JD's self operated model is that there is no need to fully stock these goods from the factory to JD's warehouse in advance. Qi Ting said that compared to the traditional fully managed model, the Jingxi direct sales model has a deeper involvement in the supply chain, and "we tend to call it self operated
It should be mentioned that on the same day, Jingxi Self operated also announced that it will launch investment promotion in 50 cities across the country, and jointly build 100 domestic product industrial belts with local governments at all levels and relevant associations. Among them, it will create 5 core industrial belts with a turnover of over 10 billion yuan, incubate 5000 white label domestic product super factories, and radiate and drive employment for tens of millions of people. Industry insiders believe that JD's self operated model, which is good at, has strong bargaining power and pricing power over products in the white label industry belt. Jingxi's low price advantage will be relatively obvious in the industry.
Qi Ting also told reporters on the same day that she does not mind the development of white label industrial belt factories on multiple platforms, because the overall scale growth will have a certain driving effect on the cost and operational capabilities of the factories. "We are more concerned about whether Jingxi has more value for the cooperative factories, whether it helps them sell more volume, save more costs, and earn more than on other platforms