During the Double 11 War, JD's procurement and sales of self funded subsidy products increased their salaries. On December 27th, JD Group announced that the annual fixed salary of frontline business personnel such as JD procurement and sales will increase by nearly 100% starting from January 1, 2024. At the beginning of 2024, JD Retail will have an average salary increase of no less than 20% for all employees.
The few words in the announcement have once again made JD.com's procurement and sales hot search. At the beginning of this year's Double 11, JD's "hard guy" Li Jiaqi rose to fame with a single shot. On October 24th, JD's sales personnel posted on their social media circle, claiming to have received a lawyer's letter from brand Hai Shi, alleging that the price of a certain oven was lower than the selling price of Li Jiaqi's live broadcast room, violating the so-called "bottom price agreement" signed between Hai Shi and Li Jiaqi, and facing huge breach of contract compensation. The procurement and sales department also stated that the low price was subsidized out of JD's own pocket.
In the current situation where various platforms are competing for low prices on this year's Double 11 shopping festival, "JD Purchasing and Selling Shouts Li Jiaqi" has become a hot topic on Weibo. JD buyers and sellers can simply enter the market directly. On the evening of October 25th at 11 o'clock, JD.com Home Furnishings made its debut in the JD sales live broadcast room, with the theme of "10% discount off Li Jiaqi's spot price". After home appliances and home furnishings, all business lines of JD.com opened live broadcasts, and salespeople dressed in customized red vests appeared in the live broadcast room, bringing their selected categories from thousands of SKUs to meet with the public.
This year's Double 11 shopping festival saw JD's sales and procurement go viral.
It can be traced that under the low-priced strategy, JD Retail cancelled the business group and changed it to a business unit to stimulate the team's combat effectiveness, dividing it into procurement and sales combat units according to specific categories. After the change, each procurement and sales unit has greater power in business decision-making, management, and other aspects, laying the groundwork for JD's procurement and sales expansion.
It is worth noting that JD.com, which has control over self operated pricing, has launched a new live streaming model without charging any pit fees or influencer commissions, and has also opened up new growth points for JD.com under its low price strategy. Recently, merchants who have been in contact with JD's procurement and sales told Southern Metropolitan Daily reporters that self operated procurement and sales have greater decision-making power. The current strategy is to purchase and sell a certain product at the lowest price on the market, and then promote which brand.
From this salary increase, it can be seen that JD's procurement and sales will be the key IP that JD will focus on building next year, and JD's procurement and sales live streaming may have more new actions. Regarding the future development of JD's live streaming sales, retail e-commerce industry expert Zhuang Shuai told Nandu reporters that the live streaming anchor is a position with strong sales capabilities and requires significant investment of energy. JD Procurement and Sales is responsible for daily procurement, negotiation, product selection, etc. If the two positions are combined, it will be difficult to balance the two jobs. Another option is for JD's self operated platform to have pricing power, which gives it a certain advantage in terms of price, but also incurs higher operating costs. In the future, while JD.com is making efforts to purchase and sell live broadcasts, it should also further enhance product richness.