Reject inferior products from Double 11: JD.com calls on Tmall to say consumers need to consume rationally

The annual "Double 11" has attracted the attention of countless netizens. On this day, they can buy goods at a lower price, which is most people’s intuitive perception of “Double 11”. However, under the pursuit of merchants with varying quality, "Double 11" has lost control and the quality of products is low. Some manufacturers even use inferior products as good ones to deceive consumers under the guise of low prices. In terms of logistics services and other aspects, it is obviously unable to keep up, which makes online shoppers complain. What’s even more serious is that under the “bombing” publicity of major e-commerce platforms, Volkswagen’s Double 11 consumption is becoming increasingly irrational.

In my opinion, the "irrational" consumption presented in the past "Double 11" is worthy of in-depth discussion. As we all know, with the upgrading of consumption in recent years, the low-price-driven model has reached today and is obviously not adaptable. Consumers' needs and habits have also changed tremendously. Prices are no longer the main consideration for their shopping. Consumers call for quality consumption, personalized consumption, rational consumption... Driven by the new consumer proposition, the "Double 11" promotion strategy of e-commerce platforms is also quietly changing.

In China, when it comes to "Double 11", JD.com and Alibaba are the key players that are the first to bear the brunt. Especially Alibaba, as a well-known beneficiary of the domestic "Double 11" shopping carnival, some new gameplay will be launched every year. However, no matter how it changes, Alibaba’s top priority is still sales (numbers overwhelmingly)! Although JD.com also attaches great importance to sales figures, it has obviously taken a step faster in guiding consumers to consume rationally. Now, this year's "Double 11" JD took the lead in shouting the new slogan of "advocating low prices and rational consumption of good products." So, what is the difference between JD.com’s “Double 11” in 2016? The author tries to interpret it for you.

Take the lead in opening the reform

In the past, e-commerce giants usually issued big promotional statements in a provocative tone, arousing people's desire to shop. This time, JD.com chose a more gentle discourse system, with a set of advertisements themed on warm and considerate services, officially announcing that this year's "Double 11" promotion season has begun. Recently, whether it is platform advertisements, elevator posters, JD.com's smile and heartwarming monologue ("11.11, I'm by your side"), all make people feel warm.

Judging from the discussion in the circle of friends, the outside world has a high opinion of JD.com. The route taken by JD.com is also considered to be a high-level form of e-commerce development. In the long run, the competitiveness of e-commerce platforms does not depend on simple and crude price battles, but on service and technical capabilities.

After years of development, with the upgrading of consumption, people's understanding of e-commerce has also been upgraded. Shopping should be a rational need, driven in the form of "carnival", and is a wrong form. Wild growth will inevitably lead to mud and sand falling.

The "carnival-style" big promotion is very harmful. When the product quality and logistics services cannot be guaranteed, the more products are sold, the greater the damage it will cause to the e-commerce platform. Once consumers buy unsatisfactory products and find themselves cheated, they will abandon this platform next time.

Return to rationality, return to quality and service

The public is calling for a healthy e-commerce ecosystem. The smile of JD Express seems ordinary, but it is directly touching people's hearts - this is something that some e-commerce platforms have ignored in the past. In the view of Xu Lei, senior vice president of JD.com, after years of market cultivation, consumers have gained a clearer understanding of the attitude of "Double 11". When shopping online, they are increasingly returning to rationality and carefully selected quality and service.

Although the carnival-style promotions dominated by Tmall have achieved certain success, they have been questioned by more and more people. This model will always have its ceiling. This year, noisy entertainment and impulsive consumption will no longer be the mainstream of "Double 11". JD.com revealed that it will provide consumers with better choices through three major measures: "low price for good things", "extreme service" and "smart experience" and advocate consumers to shop rationally.

In Xu Lei's view, there are several main reasons for consumers to become more calm and rational about online retail. First, it is the consumption upgrade brought about by the rise of the new middle class. There are more than 100 million middle-class people in China , and they pay more attention to brand, quality and service in consumption. Secondly, online and offline channels have moved from confrontation to integration, and consumers' shopping habits of cheap online pictures and offline buying quality have been subverted. In addition, the experience innovation brought by technological changes, personalization driven by big data, and the specialization brought by division of labor in the retail industry chain all help consumers to get out of the primary shopping form. Today, consumers’ shopping is not only about branding, but also about channel service capabilities and guarantee levels.

Users’ shopping decisions no longer use price as the only reference factor, but also make rational judgments on multiple requirements such as brand, quality, service, and price. iResearch's report pointed out that after eight years of development in "Double 11", consumer shopping has shown several new characteristics such as "focusing on planning, demand, service, brand and value". The necessity of purchasing goods and whether it matches personal needs have become the core elements that affect users' final consumption.

In JD.com's view, "merchandise, price, and service" have always been the three core indicators that constitute the user experience of online retail. More than 85% of JD’s self-operated products have been delivered, and they have achieved same-day delivery and next-day delivery. In this year's "Double 11", JD.com's ultimate logistics services will be reflected in new ways. On November 11, the JD 3C category warehouses in nine major cities including Beijing, Shanghai, and Guangzhou jointly accelerated, and consumers can enjoy the ultimate service of orders placed in the early morning and delivered in the morning. In addition, during the shopping season, JD.com temporarily opened more than 40 trunk lines on the basis of the original routes to speed up the transfer of goods and to open night door-to-door pick-up services.

In the application of new technologies, JD.com has also been at the forefront of online retail. This year, during the "Double 11" shopping season, JD.com introduced intelligent robot equipment for the first time, and the two automation equipment of robot warehouse and robot sorting center will also be officially launched. From drones to unmanned delivery vehicles and robots, new technologies bring cost reduction and service improvement, bringing consumers a better shopping experience.

In addition, after JD.com and Walmart’s strategic cooperation, the two parties will carry out comprehensive and in-depth cooperation in major areas such as logistics, supply chain, O2O, and cross-border e-commerce. This will not only help JD.com more conveniently expand its high-quality overseas supply, but will also accelerate the O2O transformation in China's retail industry. The two sides join forces to participate in the "Double 11" battle will surely bring a more "good goods and low prices" shopping feast to Chinese consumers .

Two concepts, two forms

JD.com and Tmall have been compared by people. However, their positioning is completely different, which also leads to different strategies between the two sides.

Pursuing low prices is the intuitive impression Tmall gives consumers . But this model drags consumers into a brainless carnival, and there will be a large number of "expendables" every year on "Double 11". Therefore, after the annual big sale, there are a large number of victims. The things they buy not only have the quality of the goods, but also many things exceed their needs, causing a lot of waste.

Unlike Tmall, JD.com pursues quality and advocates "low-price for good products", takes a different approach in marketing, and prepares a variety of low-price promotions for good products. "Whether in terms of experience, service, or product selection, "low price for good products" has become the new normal of online retail, breaking the shopping impulse stimulated by relying on price advantages in the past.

No matter how low the price is, it is not a correct concept and immoral. In the long run, time bombs will inevitably be buried under this thinking. JD.com has already seen this. In this year's "Double 11", it clearly put forward the slogan of "shop carefully and buy some good things", and adapts to changes in consumer needs from multiple perspectives such as brands, products and services.

According to Han Rui, head of JD Marketing Operations Department, more than 100,000 brands will participate in JD's "Double 11" promotion season this year, of which more than 70% of the products are hot-selling products nowadays, and more than 50% are new products this year. At the same time, JD.com will create a "Double 11" shopping season concept, starting from October 26 and continuing until November 12, rather than forcing consumers to one day. The advantage of the shopping season is that it gives consumers plenty of time to choose and compare, which can meet the shopping needs of different consumers. (over)