But at the same time, the core of JD is its self-operated system.
What is self-operated? It means that JD purchases goods from brands and stores them in JD’s own warehouse, and then JD sells and transports them by itself.
The advantage of doing this is that it can not only obtain more profit points, but also control the transaction process in all aspects and maintain its own reputation.
The establishment of this model is related to Liu Qiangdong’s experience.
Liu Qiangdong’s first business was to set up counters, purchase accessories and then sell them. He would copy one after making one, and he could make millions a month.
Until 2002, because of home reasons, he moved this model online.
The model of group buying to store is actually similar to JD.
The group-buying supply chain purchases ingredients, sends them to stores for processing, and then sells them to group-buying consumers on the group-buying platform. In this way, all stores are actually equivalent to group-buying processing plants.
JD.com, on the other hand, treats manufacturers as its own production lines.
However, Qiu Hengdong and Liang Ming found during the investigation that Douyin e-commerce has evolved secondary based on this model and made a higher version.
Douyin also purchases from factories, stores them in its own warehouses, and uses its own products, but the sales process is completely different.
After stocking up, the group-buying supply chain updates the category list, and its sales are the high-traffic Internet celebrities on Douyin.
These Internet celebrities are themselves outstanding figures in various industries, have strong appeal, and know very well what consumers like.
They earn commissions for bringing goods to Douyin, and sales are king. Internet celebrities from all walks of life show their talents driven by interests.
Therefore, Douyin’s transaction rate is constantly reshuffled as Internet celebrities join and give up, and finally, without realizing it, they have become one of the top sales champions in the Douyin system.
It is said that with the rise of this live streaming e-commerce model without source of goods, countless live streaming companies have been established in Hangzhou and Linchuan, the two starting cities of the Internet industry.
Because there is no cost.
Whether it is the source of goods, warehousing, or logistics, they are all provided by the group buying system.
As long as you have 2,000 fans, you can do it with your mouth. The industry threshold is ridiculously low, so the growth rate is amazing.
Under this model, Douyin e-commerce itself is not profitable, but as it concentrates the traffic of this industry and becomes the one who makes the rules, there will be countless ways to make profits.
Whether it is the brand or the factory, they will be involved in this huge vortex.
In the future, your products will use group buying warehousing, group buying logistics, and finally you have to buy advertisements and traffic on their platform…
[You can’t always be right. ]
[But I never miss it. ]
After listening to the reports of the two executives, Ma Yun’s mind suddenly rang with the conversation between the two people.
“There is another thing that I think we should be wary of.”
“What is it?”
“Although their sales are less than 200 million, there is a single product that is selling like hotcakes, a body fat scale from Xiaomi. I think this is a gimmick, and they are using this method to lure brands to cooperate.”