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The battle to compete for the low-end market with white label products has once again stirred up waves. During JD's "11 · 11" period, on November 8th, JD's discount shopping brand "Jingxi Self operated" disclosed its business details for the first time and released the "White Label Domestic Products Factory Billion Support Plan", aiming to compete with peers for the white label product market.
It is reported that a white label domestic factory refers to a factory that processes and produces goods without a brand or with low brand awareness. Currently, these factories are facing many survival difficulties such as vicious pricing on e-commerce platforms, difficulty investing heavily in online sales operations, losing money while selling goods, unlimited competition, and increasingly inferior products. At the same time, some export-oriented industrial belts and factories are also facing difficulties in exploring the domestic market.
To this end, Jingxi Self operated announced an annual investment of 10 billion yuan to subsidize commodity prices, implement operational and traffic support, and subsidize logistics freight for white label domestic factories. It is reported that Jingxi's self operated "billion yuan subsidy" focuses on supporting 10000 white label domestic factories. Preliminary estimates suggest that each factory is expected to receive an average subsidy of 1 million yuan.
The person in charge of Jingxi Self operation stated that in the future, Jingxi Self operation will carry out 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, 5 core industrial belts with a turnover of over 10 billion yuan will be created, 5000 white label domestic product super factories will be incubated, and tens of millions of people will be employed through radiation.
Unlike other e-commerce platforms that sell industrial belt products and white label products, the biggest differentiation advantage of Jingxi Self operated is relying on JD's supply chain advantages and adopting JD's official operation model. The products are supplied at bare prices, and the Jingxi Self operated team provides marketing and operation services.
The second difference between Jingxi and other e-commerce platforms that sell industrial belt products and white label products is that all of Jingxi's self operated products are delivered by JD Logistics to ensure a better delivery experience than other e-commerce platforms, while the logistics costs are borne by Jingxi's self operated products.
The third difference is that Jingxi provides a self operated subsidy of 10 billion yuan, targeting its main competitors with real-time price comparisons to ensure that the price is at the market bottom. At the same time, all products are selected by Jingxi's self operated procurement and sales, and the quality of the products is also required to be higher than that of its main competitors.
Since its launch at the end of 2023, Jingxi's self operated store has covered all types of products, with SKUs exceeding 1 million and monthly sales exceeding one million orders. The buy one get one free event held on the 18th of each month has effectively increased customer stickiness. Currently, Jingxi's self operated official store has over 140 million fans.
Provide a subsidy of 10 billion yuan annually to white label domestic factories: supplement prices, supplement internal and external traffic, and supplement JD Logistics distribution costs
According to relevant statistics, there are currently over 100 industrial clusters in China, with Zhejiang, Jiangsu, Guangdong, and Shandong provinces being the most concentrated.
A large number of industrial belt factories produce high-quality white label domestic products, but they suffer from insufficient funds for marketing and cannot afford to hire live streamers to promote their products. Without accumulating user awareness, they can only engage in OEM production or contract manufacturing.
At this media communication meeting, Jingxi Self operated announced the "White Label Domestic Products Factory Support Plan" to the public.
The person in charge of Jingxi Self operated stated that Jingxi Self operated will comprehensively evaluate and consider four dimensions: product cost, product quality, factory scale, and social benefits, and select white label domestic factories that meet the requirements, providing an annual subsidy of 10 billion yuan.
Jingxi self operated provides an annual subsidy of 10 billion yuan, which not only includes off-site paid traffic, on-site advertising, and coupon subsidies, but also includes subsidies for logistics, that is, JD Logistics delivers goods to users' homes without the need for factories to bear logistics costs.
In addition, Jingxi Self operated will also provide operational support for the white label domestic goods factory, with JD Procurement and Sales responsible for product operation, JD customer service responsible for pre-sales and after-sales of products, and optimizing product customization and production processes through data insights, so that the factory can only focus on production and reduce operating costs.
In fact, there are already many high-quality white label factories that have broken through the limitations and found the optimal solution for cost and efficiency under the self operated model of Jingxi, ushering in high-speed growth.
Covering over a million SKUs across multiple categories, currently selling millions of best-selling items per month
Since its launch at the end of 2023, Jingxi's self operated development has been rapid. Currently, it has achieved full category coverage and has over one million SKUs of products.
Jingxi self operated has also cooperated with 50 core industrial belts including Yiwu in Zhejiang, Shenzhen Electronics, Chongqing Paper Products, Chenghai Toys, etc. It has also created explosive products with monthly sales exceeding one million orders in many categories such as paper drawing, headphones, underwear, fruits, etc.
As a low-priced shopping brand under JD.com, Jingxi Self operated has launched a "hands off shop" model for factories, making factory cooperation simpler and more efficient. Merchants only need to be responsible for production and sales, while the rest of the operation, distribution, after-sales service and other links are handled by Jingxi Self operated official.
Under this mode, Jingxi Self operated also goes deep into the source of the industrial belt to select the best quality factories for cooperation, and establishes a supplier sourcing bidding mode under a fixed standard to ensure that "Jingxi is extremely cheap, high-quality, and delivered to Jingdong".
Jingxi self operated integrates JD resources to provide product design and factory operation support for cooperative merchants, helping them reduce costs and increase efficiency.
In addition, JD's strong logistics supply chain advantages have greatly improved factory performance efficiency and ensured customer experience. real-time info
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