The former online shopping mall overlord No. 1 store was silent after several changes of hands, and now it is gradually regaining its vitality. On May 4, No. 1 Store officially announced a change in its business entity, from New Hai E-Commerce (Shanghai) Co., Ltd. to Shanghai JD Caiao E-Commerce Co., Ltd., and at the same time, the platform was revised and upgraded. The adjusted No. 1 store not only changed the logo image, but also reflected the importance of global import positioning. Under the premise that JD Supermarket and JD Home Delivery has already included JD Supermarket and JD Home Delivery, the acquired No. 1 store was once considered to be marginalized, but today No. 1 store has shown more unique value.
Entering a new track of development
The upgrade and adjustment of No. 1 store is mainly reflected in four aspects: brand image, page design, recommendation portal and membership system. No. 1 store said that the adjusted new logo is flatter and will look younger and more energetic. At the same time, the slogan has also been changed to "Easy to Home in Global Supermarkets", and based on the previous import resources of No. 1 store, it will integrate and highlight performance. It is understood that the slogan of the No. 1 store was "Just for a better life."
Judging from the page design changes, No. 1 Store has optimized the PC and mobile pages respectively. Beijing Business Daily reporters noticed that from the PC side, the page style of No. 1 store has more "JD colors". For example, on the No. 1 flash sale and JD.com rush purchase countdown", the recommended product rankings and coupon centers are exactly the same in the presentation style. On the mobile page, the new No. 1 Store App has added channel pages such as global imports, No. 1 snap purchases, rankings, etc. to the recommended entrance.
In terms of membership system settings, the current No. 1 store members are divided into 6 levels from "new members" to "No. 1 Star". Compared with the previous level settings from "V1" to "V3", the title settings are more refined. No. 1 store said that the new version of the membership system is more detailed in classification, allowing old users to enjoy more benefits and drive user stickiness to improve. In addition, previous member points could not be used to deduct cash, while adjusted member points can be used to redeem gold coins. The function of gold coins can be used to deduct cash. This not only allows old users to enjoy more concessions, but also makes the points gameplay more diverse, which helps to improve user stickiness.
Differentiated complement
From the founder Yu Gang's team to Walmart, and then to the current JD.com, the No. 1 store, which has changed hands several times, was silent last year. In fact, from the news of JD.com's acquisition of No. 1 store, to the finalization and the running-in period for nearly a year since then, many industry insiders thought that No. 1 store would eventually be marginalized by JD.com. After all, JD.com's supermarkets are not centered, there are two major sectors: JD.com's home and JD.com supermarkets. JD.com's acquisition of No. 1 store was also more regarded as a decision made by JD.com considering its partnership with Walmart and reducing potential competitors. However, from the image update of No. 1 store, it can be seen that the No. 1 store in the future may still have a place in the layout of JD supermarkets.
It can be noted that in the current layout of JD supermarkets, a "iron triangle" pattern of JD supermarkets, JD homes and No. 1 store has been formed. Among them, JD Supermarket continues to accelerate in-depth cooperation with major high-quality brands, JD Supermarket mainly reflects the convenience of O2O services from store to home, while the adjusted No. 1 Store assumes the important role of mainly cross-border imported goods. But it is also worth noting that increasing global import business has also put forward higher requirements for the warehousing and distribution services of No. 1 Store. In response, No. 1 Store stated that the current No. 1 store’s logistics team includes both the free logistics team of No. 1 store and JD’s logistics distribution team. Beijing Business Daily recently reported that JD.com has announced the establishment of a logistics sub-group, indicating that JD.com Logistics will officially operate independently. After independence, JD.com Logistics will pay more attention to service opening, which may also make No. 1 store more powerful in terms of delivery services.
Facing new challenges
The No. 1 store started as an online supermarket, and then tried to fill the pit of low gross profit of supermarket categories by expanding its categories. In the end, it was unable to extricate itself from selling itself. The online supermarket category had low unit price, low gross profit, high logistics and distribution costs. Although it was a high frequency of demand, the cost remained high. After the No. 1 store, there were no other large-scale online supermarket platforms. On the contrary, after 2015, the emergence of a series of supermarket O2O startups has evolved the exploration of supermarket categories in online channels.
Through the App platform, we will reach cooperation with various supermarkets to synchronize product and inventory information on the App. After consumers place an order, they can quickly deliver goods to their homes through self-built or third-party logistics. Such supermarket O2O companies have been active in various first- and second-tier cities in the past two years, but there has not yet been a national platform. Compared with online supermarkets like No. 1 Store, supermarket O2O has more advantages in delivery time, generally delivered in 1-3 hours. In terms of product categories, online sales of fresh vegetables and fruits such as vegetables and fruits have become a reality because of the smaller losses caused by short-distance delivery. In addition, the supermarket O2O platform does not touch the commodity and supply chain, bypasses the areas with the deepest waters in the supermarket industry, and is only responsible for platform construction, information transmission and logistics.
In contrast, the No. 1 store acquired by JD.com has no worries, but years of operation experience and the rapid iteration of supermarket O2O prove that the old path of online supermarkets is obviously impossible to understand. The transformation in the spot will focus on "global supermarkets", avoiding competition with traditional offline supermarkets in the same category, and taking advantage of the advantages accumulated in imported goods before. In fact, the No. 1 store’s attempt to import categories has long been revealed.
A difficult problem faced by the No. 1 store in the world's supermarket after transformation is that Tmall International, also located in the Yangtze River Delta, has sharpened its swords in the import category. The two sides have already had a record of fighting in supermarket categories. Will the imported category trigger a confrontation between the two armies again? Walmart has moved its global shopping business to JD Global Shopping Channel, and will also introduce the UK ASDA supermarket to the JD platform in the future. How much ammunition support can the No. 1 store, which wants to make a difference in global supermarkets, get the same trenches and more powerful Walmart and JD?
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