Three insights about JD sales exceeding 100 million

　　#Laogao E-commerce Online Information# At the Laogao Crown Club regular meeting in May 2016, Wang Guoliang, a merchant with JD.com, shared his three insights. Wang General Company has a complete clothing supply chain and online distribution system. Currently, it has 21 JD.com, Tmall Mall, 2 offline wholesale stalls, and annual sales exceed 100 million yuan.

　　The following is a selection of full texts:

　　Our company now has more than 700,000 people and has more than 20 stores, focusing on Taobao stores. Why is our JD.com doing well? In fact, it is to understand the above problem. My understanding a year ago was different from now, and there have been great changes. Today, the first one is to re-reach JD.com, the second is to talk about some new achievements and methods, and the third is to talk about some detours and problems our company has taken.

　　Get to know JD again

　　The well-known problem of people sitting here is actually a problem of traffic. Many people do not have traffic, but there are actually three problems.

　　The first is the industry problem. The industry has no traffic, so this cannot be solved. JD.com is a very special platform. It is basically a male user over 30 years old, so there is no traffic for those selling maternal and infant products. The second problem is the cognitive problem. We used to only make men's clothing, but now the number of stores and sales of our women's clothing is the same as that of men's clothing. This year, the traffic brought by JD.com has exceeded that of men's clothing. For JD.com, you first feel that there is no traffic. You may have a big problem in your cognition.

　　The third problem is profit, which depends on your internal strength. The first is the excavator major in Shandong Lanxiang, which means you can only browse orders. The second is a second-rate university. You have done traffic acquisition, direct advertising, and advertised on JD.com. You are a second-rate university. The third is Tsinghua University. You have done brand flash sale and push. Now the growth rate of JD new customers has increased a lot, and they are all non-JD original customers. WeChat is a gold mine, and there are ways to do it big or small.

　　Why has the issue of cognition been emphasized? Because you don’t know much about it yourself, how can you let the team and users understand it? The first is the human problem. Everyone thinks that our customers are men, but now JD.com’s women’s clothing is much bigger than men’s clothing brands. JD.com started to operate it in October, but it was not available before. This year, our WeChat traffic has skyrocketed. Everyone knows that JD.com was the former JD.com. Now many industries have opportunities because traffic has changed. The simplest source of traffic is advertising traffic, which you can buy with money. Although we are studying JD.com, we can't keep up with its pace, and its changes are very fast.

　　What is the difference between JD.com and Tmall? The first point is that people are different, the second point is that the traffic distribution mechanism is different, and the third point is that the operations are different.

　　JD.com started out as a self-operated company, so it has been promoting this matter. Self-operated company must be a brand, and JD.com’s customers basically don’t care about the price. JD.com has done a lot of things in self-operated, and those with channels and abilities must do it.

　　Some new ways to achieve success

　　Here are some specific operating methods, how to exceed 100 million. In fact, it is easy for us to break 100 million, because we put our lives on top, why is it difficult for us to break 100 million? Because you don't pay enough attention. So how to do it? The most important thing is layout. Some people always talk about how to break the deadlock, but there is no way to break the deadlock. Our traffic sources were search traffic 15 years ago. Now 40% of our traffic comes from advertising investment. We have to advertise five million yuan a year for JD.com. Then there are activity traffic, such as Double Eleven, 618 and other relatively large activities. If your traffic proportion is problematic, then your store will also have problems.

　　We have laid out three types of stores here. The first is a search store, the second is a advertising store, and the third is a activity store. What are our requirements for these three layouts? Brand-type stores are mainly activities. Brand-type stores grab the traffic from PC, APP, WeChat and public beta. JD.com specializes in traffic for some brand categories. First, you need to enter the brand word, and you also need to do the best, preferably a flagship store, and then have a better relationship with the waiter. The second is an advertising-type store, which tests the strength and endurance of the merchant, and the winner is the king. In fact, direct investment does not make money, and the top ten rewards earned money. The third is the search-type store that everyone is very concerned about, which is difficult to build. His account is the core, and there is no way to simulate a real account, so it depends on luck. It is difficult to make a breakthrough entirely by relying on this.

　　Another thing that everyone needs to recognize is the brand. JD emphasizes the brand very much. The weight of the brand is very high. A-class brands do not need to be sold to achieve high sales. Brand weight is very important. Moreover, JD.com's brand weight is constantly adjusting. There is a factor in the brand segment, which is the search volume. If you choose a good brand, you will be very relaxed. JD.com doesn't like Internet brands very much.

　　Some detours and problems that must be paid attention to

　　Let me talk about some of the detours our company has taken. The first is desire. We have actually done a very good job in 2014. Jack Ma said that there will be problems with two companies, one is too much money and the other is too many opportunities. This is how our company is. We think we are rich and the team is so good. Let’s do Tmall. Our company mainly works in Taobao, so we must do it well no matter how we do it. But at that time, we were blinded by desire and wanted to double sales. We went to Tmall. We recruited more than a dozen people, prepared more than 1 million goods, and lost more than 4 million before we could do it. Many of the companies are bosses. In fact, it is difficult for small and medium-sized sellers. Everyone has a problem: homogeneity, what you do today depends on you faster than others. Let’s look back at your customers and products. Where are your customers three years ago? Is there any difference between the products three years ago and the products now? Our changes are not because of customer needs, but because market needs have changed you, so we small and medium-sized sellers are not going to grow bigger but become stronger. Without good products, special services, and building an ecosystem, there will be no success. A company that can truly survive is to build its ecosystem while making strategic choices. I must give you a warning, because I spent millions, and the difficulty lies in the balance. We have indeed defeated many people with WeChat direct investment, which is related to our ecology. Everyone must spend some time and effort on your products, otherwise if you want to rely on dividends every year, there is no future.

　　Finally, I will share a small example. I posted a Weibo post before, with more than 800,000 views. Why is this? Because I posted a sentence, Luo Yonghao said that life is not only about the fertility in front of us, but also about poetry and distant places. But in fact, this sentence was said by Gao Xiaosong, so everyone asked the wrong ones and @Luo Yonghao. Chinese people love to find faults and are very active.

　　Thank you everyone.

　　Q&A session:

　　1. I applied for a JD store in March and started working in April. We have been working on express trains. Do you have any suggestions?

　　Wang Guoliang: JD.com’s traffic is very scattered. First, you need to understand the entire advertising system. JD.com has no weight. Second, have you found any traffic portals such as WeChat? It is recommended that you increase the price slightly. The third is to open cash on delivery. If you open it, you can increase the traffic by 50%. As long as the product is good, the return rate is not large.

　　2. How can Yu Zhaolin, a men's clothing flagship store, be able to make such a low brand score?

　　Wang Guoliang: It is difficult to do it. It has brand words. Some of the weights are through search. The types of stores we search for are multi-store strategies. The core influence is the tone of your brand itself.

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