Jingdong Published Unbounded Service Strategy, Reconstructed Automobile Aftermarket Industry Chain
Jingdong published unbounded service strategy of automobile in Beijing, in the publication conference, Jingdong officially announced to enter in B2B domain based on automobile accessory business, and thoroughly build up the entire industrial chain of automobile aftermarket brand merchants, distributor, maintenance party and consumer.
Aftermarket, Jingdong and Automobile Service
A few days ago, Jingdong published unbounded service strategy of automobile in Beijing, in the announcement conference, Jingdong officially announced to enter in B2B domain based on automobile accessory business, and thoroughly build up the entire industrial chain of automobile aftermarket brand merchants, distributor, maintenance party and consumer.
Xin Lijun, the vice president of Jingdong Group, president of family life business division of Jingdong Mall stated that in 10 to 20 years to come, the fourth retail revolution will push forward the coming of “unbounded retail”, the cost, efficiency and experience will be upgraded, Jingdong automobile unbounded service strategy will set up automobile aftermarket B2B2C chain via reconstruction of cargo flow and information flow, empowering the upstream and downstream and reconstructing the industrial structure. Jingdong will also set up the first integrated platform of entire industrial chain of automobile aftermarket service in China.
The space of automobile aftermarket is huge, there are many pain points requiring urgent treatment
In the mature automobile industrial chain of developed countries, the proportion of automobile aftermarket can generally reach 50%-60%, but the figure is only 10% in China now. In general, automobile aftermarket need is closely correlated with automobile age, if the vehicle age is more than three years, the after-sale need began to increase, if the vehicle age is more than six year, the aftermarket need such as maintenance reaches the highest level. According to the data, as of June 2017, the average age of more than 200 million vehicles in China's has been nearly five years.
The huge market space attracted numerous merchants. According to the industrial statistics, beyond 4S store system, at present, there are more than 400,000 automobile maintenance service stores in the market, far exceeding the demand. Among which less than one tenth of automobile maintenance stores hold the qualification above second level, the service quality is far from the requirements of consumers. In the meantime, the redundant service force results in fierce industrial competition. It is much harder for merchants to talk about brand under high customer cost, and fall into development dilemma finally.
Tang Yishen, the principal of automobile accessory of Jingdong said that the selection of automobile accessory requiring certain profession, it is a high threshold for ordinary consumers, besides, it is hard for consumers to discern the service level of the countless maintenance stores on the market, hence, consumers are faced up with the dilemma of what to choose.
For the industry, on the one hand, it is hard for brand merchants to control product sales condition under the complicated distribution level and scattered market sales, the blindly formulated production goal under growth pressure forces the sub-distributor faced up with pile-up of goods. However, while the distributor and re-seller encounter inventory problems, the maintenance factory cannot find accessories, which forces the car owners to wait for several months. Therefore, the cost of the industry remains high.
Perfect One-Stop Purchase System of “Brand + Service”, On-line “Maintenance Package” and “Jingdong Service Store”
According to the survey of Iyiou, Jingdong began to engage in automobile accessories since 2012, and now it has cooperated with more than 5,000 brands, including many fields such as repair and maintenance, in-car electrical appliances, beauty and cleaning, car decoration and others. In 2014, Jingdong automobile accessories were put online of “Car Manager” system, including 28,000+ vehicle models, and can complete the matching of nearly 100,000 accessories. Consumers can automatically match the recommended applicable products by inputting the information of their vehicle models. In 2017, Jingdong once again put an exclusive customer service group for automobile accessories online. The personnel with professional customer service knowledge can provide one-to-one help and guidance for consumers, and solve various problems.
In addition, as automobile accessory is an industry that commodities are closely related to service, from the consumption scene, most often the need of consumers is not only simply to purchase car accessories but to change and install corresponding products. Therefore, Jingdong automobile accessory created one-stop consumption experience of “commodity+service” purchase. Consumers can select the installation service at the nearby store or convenient store while purchasing Jingdong commodities, and the commodities will be delivered to those stores for reserved installation. At present, Jingdong automobile accessory has reached strategic cooperation with numerous renowned automobile accessory brands such as German Continental, 3M, karcher, Bosch, Fengfan and others, the purpose of which is to deepen the service capability. As introduced by Tang Yishen, by now, Jingdong automobile accessory has reached cooperative agreement with more than 30,000 stores in China.
In this strategic conference, Jingdong automobile accessory announced to upgrade the system of “Commodity+Service” again, and will launch “Jingdong Maintenance Package” and “Jingdong Service Stores” within 2017. Car owners can choose the package with different yearly maintenance times based on their drive frequency, and they cannot only enjoy the benefit of preferential price but also receive gifts. Moreover, during the period of November 11 (double 11), Jingdong automobile accessory will continue to launch various activities by focusing on “commodity+service”, consumers who purchase the tire, engine oil, brake, filter, automobile data recorder and others that need installation sold by Jingdong can share the privilege of free off-line installation.
In addition, before the Spring Festival, consumers is expected to witness the coming out of automobile service stores with Jingdong brand marks, and these stores will be put into operation after being strictly selected and reviewed based on Jingdong standard. Tang Yishen expressed that Jingdong automobile service will not pursue the quantity but pay more attention to quality, and Jingdong will provide support to stores in many aspects such as products, management system, service capability and so on.
March in B2B domain, build up overall industrial chain of automobile aftermarket, and create “medical record” for consumers.
What deserves attention is that after deeply engaged in B2C domain, Jingdong officially announced to march in automobile aftermarket B2B domain. Qing Yan, the principal of automobile aftermarket business of Jingdong expressed that B2B business will reconstruct cargo flow and information flow based on new technology, and the brand merchants, distributor and maintenance party that cooperate with Jingdong will achieve direct link between the capability of production-end and the need of consumption-end, thus decreasing the lag of production circulation, and optimizing turnover rate of inventory. Jingdong will comprehensively open up supply-chain integration ability, technical ability and logistics ability for the brand merchants, agents and maintenance party. During the period Jingdong creating new industrial chain, the brand merchants, distributor and maintenance store will realize network operation, in future, consumers can create “medical record” for their cars, and the “medical record” can be universally used in all stores within the system, which will be convenient for maintenance and repair of cars.