21st Century Business Herald reporter Kong Haili reports from Beijing
On April 10th, a reporter from 21st Century Business Herald confirmed from JD.com that JD.com is indeed going to focus on the video industry, planning to allocate 1 billion in cash and 1 billion in traffic subsidies to fully enhance the content consumption market.
The impact of short video platforms on e-commerce is obvious. Tiktok and Kwai e-commerce have become popular. E-commerce platforms such as Jingdong and Ali have also been making efforts to live broadcast sales in recent years, but after all, the genes are different, and live broadcast still plays a non mainstream role in driving sales.
Now, JD.com has officially announced the attraction of more original authors and high-quality content institutions to settle in, providing users with a better consumer experience with high-quality content and helping brand merchants find new growth points.
Cash+cash flow "real gold and silver" investment
The latest released Research Report on the Development of China's Online Audiovisual (2024) shows that 71.2% of the interviewed users shop online because they watch short videos and live broadcasts, and more than 40% of Internet users believe that short videos and live broadcasts are their main consumption channels, and content consumption is becoming the key track for all platforms.
The person in charge of JD's content ecosystem introduced that excellent video creators are an important force in promoting the prosperity of the content ecosystem. In order to recruit more outstanding talents and institutions to settle in, JD.com has offered 1 billion cash and 1 billion traffic as rewards to stimulate their creative enthusiasm and produce more professional and interesting content.
On the one hand, JD.com will provide cash subsidies to experts in over 20 creative fields, including digital 3C, home appliances, mother and baby, pets, fashion, sports, beauty and personal care, health, and automotive products. Specifically, creators who meet the recruitment requirements can receive a maximum cash creation subsidy of 30000 yuan per account within a single cycle. On this basis, creators can also enjoy video playback subsidies and sales commissions.
On the other hand, JD.com will bring more exposure opportunities for high-quality and original videos. Not only will it use algorithms for weighted processing and provide subsidies for fixed traffic vouchers, but it will also bring more traffic to high-quality content through special display methods such as evaluation and dressing TAB in the browsing channel, as well as adding evaluation and dressing floors in the product details page.
With the development of the live streaming industry, many MCN institutions have become gathering places for high-quality influencers. JD.com has not only provided basic recruitment incentives for these institutions, but also set up a 5 million yuan institutional incentive list. As long as the number of people successfully introduced by the institution reaches a certain scale, there will be opportunities to receive generous one-time cash subsidies every month. After the institution is established, the heads of various categories on JD.com will also provide one-on-one guidance and services to enhance the institution's operational capabilities in JD.com Video.
At present, JD.com is actively preparing for the incubation of top talents and plans to select the top 100 talents by the end of the year. It has already invested billions of cash in the reserve stage of talents and will provide more rewards in the future.
Seeking a second growth curve for the business
JD's layout in the content ecosystem has already begun. In terms of video content, JD.com began to focus on "personal testing" last year, with tens of thousands of people creating tens of millions of videos around "personal trial+evaluation". The indicators of orders, user size, and duration have all increased by 300% year-on-year, and in the first quarter of this year, it still grew at a high speed of 100% year-on-year.
During November 11, 2023, JD.com launched 20 vertical themed challenge competitions, generating 382 topics and generating nearly 100 million transactions with 26000 authors. During the Spring Festival, over 50000 video submissions were received on 30 hot topics, with a GMV of over 20 million through video transactions.
In terms of live streaming layout, over the past year, JD.com has been continuously striving to explore development models with JD's unique features. During the November 11th period of 2023 on JD.com, JD's live streaming of procurement and sales became popular. A group of young people who dared to try new things set up a simple and simple live broadcast room in the conference room. With familiarity with the product, they explained it with simplicity, professionalism, and enthusiasm, without charging any pit fees or influencer commissions, bringing affordable and low prices to consumers and gaining their recognition. During the period of November 11th on JD.com, the total number of viewers in the JD sales live broadcast room exceeded 380 million. During the Mango TV New Year's Eve Gala on Hunan TV, within 5 hours of live broadcasting on JD.com, the overall number of viewers exceeded 100 million.
In addition, JD.com also collaborated on "Make Friends" in 2023, achieving a win-win situation with Luo Yonghao's IP influence and JD.com live streaming data. JDG JD Esports Club also has cross-border live broadcasts with brands such as Hualing and Nestle Health Sciences.
JD insiders say that the increase in video content this time aims to bring users a richer and more exciting consumer experience, and also aims to promote stable growth of brand merchants.