Jd.com's low-price strategy extends to the aftermarket.

Before the 11th golden Week, when Tuhu car was officially listed in the Hong Kong Stock Exchange, Miao Qin, vice president of Jingdong Group and president of Jingdong Retail Automobile Division, issued a congratulator in the circle of friends, and said that all "tiger price" goods are 5% lower than friends.
This means that the price war launched by Jingdong car for Tuhu will continue to escalate.
The so-called "tiger price" refers to the low-price activities launched by Jingdong Car maintenance in mid-September, covering multiple categories of automobile maintenance such as tires, maintenance, accessories, and batteries. After the launch of the activity, Tuhu car maintenance has quickly and quietly followed up, adjusting the price of related products to the same level as Jingdong.
The Jingdong car again pulled down the price, positioning all "tiger price" goods as 5% lower than friends, the directivity is very obvious.
Similar to the "mountain price" launched by Box Horse for Sam, the "tiger price" of Jingdong car is also considered to be a business war. But behind the scenes, Jingdong's bigger ambitions for car ownership are looming.
Chen Haifeng, vice president of Jingdong's retail automobile division and general manager of the all-channel business department of car maintenance, told the 21st Century Business Herald that the "tiger price" is not to disrupt the industry with a "price war", but to solve the "high price and low quality" industry roadblocks.
"Unilateral price breaking is bound to cause the industry to attack, but the 'tiger price' has been a positive response from industry partners and users." Chen Haifeng further pointed out that the core is that the "tiger price" is based on consumer demand and is intended to promote the return of the health of the industry.
The logic of "shock tiger price"
Is 5% lower than friends a short-term act of "playing house" or a long-term measure? Jingdong car with what can achieve low 5%, to rely on burning money subsidies?
The 21st Century Economic Report reporter learned that Jingdong car "shock tiger price" will continue to land as a long-term strategy. Inside Jingdong car, more from the perspective of the industry to look at this matter.
With the promotion of the domestic Internet, "food, clothing, housing and transportation" have been to a large extent obtained the blessing of Internet efficiency, and the automotive aftermarket industry chain is complex, it is still difficult to have a real sense of scale and standardization.
"High price, poor service, low transparency" is the typical characteristics of the automobile aftermarket, whether it is scattered auto repair shop, or still grasp the industry's dominant 4S shop system, for many years is still difficult for consumers to climb the hill.
This is a trillion-dollar market that has not yet been deeply internet-enabled. According to the report of Insight Consulting, in 2022, the scale of China's auto service market has reached 1.2 trillion yuan. With the continuous growth of car ownership in China, the continuous increase of mileage and the increasing age of vehicles, the knowledge Consulting expects that from 2023 to 2027, the automotive service market will grow at a compound annual growth rate of 9.0%, and by 2027, the market size will reach 1.9 trillion yuan.
"In the automotive aftermarket, the poor information is especially obvious, and many times consumers will face the pain point of spending a lot of money but not getting things done." Chen Haifeng said that the goal of Jingdong car ownership is to start from the needs of users, force the transformation and return of the industry, and the core is to promote the upgrading of the health of the industry.
Chen Haifeng repeatedly stressed that JD car ownership is not intended to be a price war, but a war to defend the value of the car market.
In the view of Jingdong car maintenance, on the one hand, low price is to promote the industry to return to normal prices, which is a necessary condition to meet consumer demand, but also the normal embodiment of full competition in the market; On the other hand, the automotive aftermarket has entered a period of change, and the new things will inevitably conflict with the old things, and low-price competition is the only way.
And 5% does not come from burning subsidies. According to the data disclosed by Jingdong, by optimizing supplier management, improving performance and delivery efficiency, reducing inventory retention time, and rapidly matching supply and demand, the platform can reduce the comprehensive cost of the supply chain by at least 30%.
According to Chen Haifeng, Jingdong car maintenance has also set up a strict price monitoring team to ensure that the "tiger price" products are 5% lower than the regular price of the whole network platform.
Jd.com has regained its low-price mentality
The logic of Jingdong's car "letting consumers benefit" is actually an extension and upgrade of the overall low-price strategy of Jingdong's platform.
In 2023, low prices have become a key project within Jingdong. Since the re-mention of the "low price mind", Jingdong has continued to promote the low price strategy, and has successively launched a series of measures such as Jingdong's "10 billion subsidy" channel, single price function, double compensation service for buying expensive, and lowering the freight threshold.
The low price strategy has also allowed Jingdong to taste a phased victory. In the second quarter, the number of new merchants on JD.com increased by 417% year-on-year, among which the number of third-party merchants more than doubled, reaching a record high.
On the other hand, Jingdong, which has regained the mind of low prices, is not simply and brutally cutting prices, but relying on the advantages of the supply chain that have been precipitated for many years to reduce costs and achieve "cost reduction and efficiency increase".
The same logic applies to the automotive aftermarket.
Industry insiders believe that Jingdong car is trying to attract more consumers with a low price strategy, trying to come from behind, and planting the seeds of their own brand in the hearts of users.
Chen Haifeng also said that Jingdong car hopes to use the "tiger price" action to let more owners in China know the brand characteristics of Jingdong car ownership at low prices, optimization and worry.
The 21st Century Business Herald reporter learned that within Jingdong car ownership, a clear assessment standard is "NPS - net recommendation value", which refers to the possibility that users will recommend the product or service to others, and is a hard indicator to examine customer stickiness.
"All business achievements will eventually be reflected in the user's mind, our goal is that when users need to own a car, they can think of the value of JD's products and services." Chen Haifeng said.
It is understood that the "tiger price" will not only continue to play, but also continue to increase. For example, Jingdong car maintenance will also introduce more powerful "tiger price" products including a number of big-name tires and 50% discount oil.