Jingdong enters auto parts B2B to promote spare parts wholesale business

Recently, people familiar with the situation pointed out that JD.com will focus on the B2B cooperation projects with the brands of auto aftermarket manufacturers and vigorously promote the wholesale business of tires, oil, auto parts and other types of products. Informed sources also revealed that Jingdong has recently recruited B2B talent at all costs in various automotive parts and components. The demand for B2B is large, and even uses the sales, product departments, and some post-market media to find people.

Jingdong official website product prices lower than offline wholesalers

Insiders pointed out that Jingdong’s determination to enter B2B wholesale is not to be determined. For example, the price is 205/55R16, the price of the market is in the 500-600 yuan horse brand new tire product CC6 pattern, in the March 23 Jingdong official website, the lowest price after the promotion of the coupon can even be achieved 459 yuan a (499 yuan to buy 5, full 2399 yuan minus 200 yuan calculated after each average price), well below the market price standard, or even lower than the wholesale price - According to industry sources in the tire industry, Ma CC6 dealers give the store's wholesale price around 460.

This phenomenon is also applicable to other tire brands. We see that the Michelin XM2 pattern with a specification of 205/55R16 has a minimum price of 469 yuan after promotion. (5 yuan for 509 yuan and 200 yuan for 2399 yuan) The average price of each item was calculated.) The wholesale price of the Michelin XM2 with the same specifications was about 490 yuan.

According to analysis by the industry, JD.com may try to further squeeze the space of wholesalers under the line and convert the flow into online on the one hand; on the other hand, Jingdong plans to cooperate with the post-market brands in a round of cooperation. The focus may be on Jingdong’s reputation. "Locomotive One" B2B Project - New Access Division. It can be said that this is a test for the B2B channel after the mainstream brands in the market.

With the rapid growth of car ownership, China's replacement tire market has a huge potential. At the same time, in recent years, the consumption habits of Chinese consumers have shifted to the Internet. The market share of traditional channels is inevitably squeezed. The market of automotive aftermarket may embark on the development path of 3C products 10 years ago. A change.

At present, in the automotive aftermarket supply chain, basically half is controlled by the OEM and the 4S shop, and the other half is supplied by the auto parts city scattered in various cities, creating two major pain points in the automotive aftermarket, “monopolistic profits” and “counterfeiting” "The two major forces have symbiotically co-prospered for more than 20 years in the ravages of illness. Now it is time for this change.

Therefore, whether Jingdong can take the lead in making the B2B wholesale business through the Internet and a public brand has become an important step in the layout of its supply chain.

"Seeking Thirst," Jingdong is determined to expand after the market B2B short board

In addition to a large amount of price reduction, Jingdong has also recently recruited a large number of B2B supply wholesale talents. The positions include channel wholesale managers, purchasing managers, and B2B sales. Due to the large demand, Jingdong did not hesitate to mobilize its employees to recommend former colleagues and even used some post-market media to help them find people.

So, Jingdong, which has always been known for its B2C business, why suddenly suddenly engage in wholesale B2B auto parts?

On the one hand, it is bound to be related to Jingdong in the B2C field in the automotive aftermarket.

For example, as early as June 2015, a consumer (auto repair factory owner) bought 99 barrels of “Malaysia” version of Shell Lubricant through JD’s own “global purchase”. After receiving the goods, he discovered that the place of production was Hong Kong. , not Malaysia; Some oil products do not have a verification code, suddenly became suspicious.

The consumer then called Shell China to make a complaint. He subsequently received an official statement from Shell China stating that the consumer purchased Shell oil that was not produced by Shell and that JD.com agreed to stop selling the oil. Colleagues called on consumers to go to the official channels authorized by Shell. buy.

For a time, it was fermented into a "Jingdong false oil" incident that almost caught the attention of the industry. Although the industry is not unconvinced that Jingdong sales of fake oil, there is a voice for the Jingdong Ming injustice, but after all, Jingdong did not obtain the authorization of Shell oil is a fact, and ultimately can not come up with more favorable and direct evidence for their own name.

On the other hand, B2B is a blue ocean and there is huge room for profit growth.

Take tires as an example. For a long time, the tire supply chain has adopted a multi-level hierarchical agent model. After the products are delivered, they are delivered to the dealers of the first-tier (provincial) dealers, followed by the municipal, district, and county-level agencies. The channel system is different, but there is no doubt that the final transfer to the user has been through the layers of turnover and layers of increase, timeliness and price are not apparent.

According to statistical data from Kantar Retail Consulting, nearly 55% of brands use at least 200 dealers to manage traditional channels. Due to the monopolistic and bloated channels, the high maintenance and repair costs, inefficiency, and opaque standards all harm the interests of the auto market users. Although users have a few words, the hierarchical agency structure has always been unbreakable, coupled with the brand Interested in protection, they also have to pay for it.

At the 2016 Jingdong Annual Meeting, Liu Qiangdong proposed a high-profile establishment of the “JD East New Pathway” business unit, which will be Jingdong’s annual large-scale innovative “Locomotive No. 1” project. From the name, we can feel the mission of the new channel and create new channels in the B2B field. For more than a year since its development, Jingdong Xintong has successively entered into cooperation with Coca-Cola, COFCO, YiZi, Nestle, Mars, Unification, Wanglaoji, Pulse, Fonterra, Wyeth, P&G, Unilever, Liby, and many other brands, but after the market Field brands have been absent.

The lack of brand endorsements puts the platform products in an awkward position, and JD.com understands that this is only a profound understanding. In this context, auto parts B2B is an important breakthrough for JD.