Ten billion yuan subsidy, "double compensation for buying expensive goods", "9 yuan and 9 packages for shipping", and Liu Qiangdong's "low price" competition 618

(Original title: Ten billion yuan subsidy "double compensation for buying expensive goods", "9 yuan and 9 packages for shipping", Liu Qiangdong's "low price" challenge 618) Reporter Wang Yubiao, Editor Liu XuemeiThe phrase 'not afraid of price comparison, welcome to find fault' is embedded in the introduction of JD's 10 billion yuan subsidy, which is full of gunpowder and imaginative. Regarding the promotion of e-commerce, some changes may be quietly coming

(Original title: Ten billion yuan subsidy "double compensation for buying expensive goods", "9 yuan and 9 packages for shipping", Liu Qiangdong's "low price" challenge 618)

Reporter Wang Yubiao, Editor Liu Xuemei

The phrase 'not afraid of price comparison, welcome to find fault' is embedded in the introduction of JD's 10 billion yuan subsidy, which is full of gunpowder and imaginative. Regarding the promotion of e-commerce, some changes may be quietly coming.

For a sense of value, natural existence and conscious cognition are completely different. "Last year on 618, JD Retail CEO Xin Lijun said in setting the tone for 2022 that the true existence of supply chain value was aligned with social cognition for the first time.

However, at that time, JD.com's emphasis on the value of the supply chain may have been more focused on the "fast and good" aspects of the comprehensive return of "many, fast, good, and provincial"; In the new year, starting from 618, JD wants to align with its "brand new" perception of low-priced consumption and focus on "multi and provincial".

On May 22nd, at the 20th JD 618 launch meeting, JD announced that the presale of JD 618 in 2023 will start at 8pm on May 23rd and fully open at 8pm on May 31st.

This year, JD 618 will start pre-sale at 8pm on May 23rd and fully open at 8pm on May 31st. Image source: provided by the enterprise

The Daily Economic News reporter noticed that this year, the number of products that JD 618 participates in subsidies worth billions will reach more than 10 times that of March. Starting from 8pm on May 31st, in addition to gold and other categories, JD will also fully launch the "double compensation for buying expensive" service for its billions of subsidized products. The "9.9 package", "JD flash sale", and "direct reduction+additional subsidies" undoubtedly want to directly reach the sentiment of low-priced consumption.

Liu Cixin once wrote in "Three Body": "Everything in a three-dimensional world will die when it falls into a two-dimensional world, and nothing can live in a painting with zero thickness." And the "lowest price in the entire network" is the "two-dimensional foil" that is hit by dimensionality reduction.

Returning to the Great Promotion itself is a reflection and "obedience" to the psychology of low-priced consumption. The frenzy of festival making has made 618 and Double 11 daily, and the "big promotion of low prices" has become "daily low prices". Returning to the concept of "more, faster, better, and more economical" and smashing at the battle drum called "low price", JD.com wants to play at its own home court.

Price comparison across the entire network? 20th JD 618: "Only" Low Price

The number of mentions of low prices this year can be considered as the highest in the history of JD 618.

In addition to regular full discounts, JD announced that during the 618 period, each user can receive a maximum of three "200+20" subsidy vouchers per day, and all products except special products can be used throughout the venue.

It is worth mentioning that JD's 10 billion subsidy channel, which was just launched in March, has ushered in a new round of markup and has become the core "low-priced pusher" of this year's 618 JD.

The Daily Economic News reporter noticed that during the 618 period of this year, JD's 10 billion yuan subsidy will launch nearly 10000 products, including over 200 super popular models, and the product scale will reach more than 10 times that of March. After the official launch of 618, the "JD Billion Subsidy Day" will also be launched completely new, and a "double compensation for expensive purchases" service will be launched.

The so-called "double compensation for expensive purchases" actually refers to consumers who, except for special categories such as gold, discover that the price of JD's 10 billion yuan subsidized products is higher than the corresponding platform within the same period of time. After submitting for review and approval, they will directly refund the double price difference.

At the same time, JD also encourages consumers to "compare prices and find fault". From a market perspective, this sentence is actually full of gunpowder.

Low prices were the most important weapon for JD's past success and the only fundamental weapon in the future. At the end of 2022, Liu Qiangdong reiterated the importance of "low prices", which can be seen as the strongest signal for him to return to Taiwan.

Whether it is the reshuffle on the eve of JD 618 in the new year or the cancellation of the hierarchy of the business group, JD's organizational structure adjustments in the first half of the year are all confirming the shift in direction and current situation, and the focus and focus are undoubtedly still JD's main tone on the platform side.

Of course, this is not a denial of JD's previous adherence to a quality oriented approach. We may consider it this way: during the 20 years since the establishment of JD.com, changes in the main channel have been necessary to adapt to the ups and downs of several consumption cycles, allowing for adjustments at the level of detail.

Over the years of adhering to the quality oriented approach, JD has accumulated over 35 million JD PLUS members. The reporter learned that during the 618 period, each JD PLUS member can enjoy a maximum subsidy of over 1000 yuan and can be used with numerous coupons.

Where does the mysterious institution's entry into JD Live GMV increase and return to?

Based on the transaction volume of 618 in the past, the growth trend is likely to continue.

According to a reporter from Daily Economic News, from 2018 to 2021, the cumulative transaction volume of JD Platform 618 was 159.2 billion yuan, 2015 billion yuan, 269.2 billion yuan, and 343.8 billion yuan, respectively. In 2021, it also created a high year-on-year growth rate of 27.7%. On June 18, 2022, the cumulative order amount placed by JD platform reached 379.3 billion yuan, an increase of 10.3% compared to 2021, setting a new record.

Since the launch of the billion yuan subsidy channel, JD's low-priced strategy has gained enough attention. The new year's 618 strategy and subsidy intensity can also be considered as the highest on JD.com in recent years. And after last year's Double 11, Alibaba and JD did not disclose transaction volume, will 618 companies release GMV numbers this year? How much will JD's incremental growth be?

E-commerce retail analyst Zhuang Shuai believes in an interview with WeChat reporter from Daily Economic News that low prices have always been one of JD's core competitiveness, while the other two are self operated logistics and procurement. Behind the low price lies the competition between operational efficiency and costs, which poses a great challenge to organizational and financial needs. Currently, 618 has always been the main battlefield of JD, and this year is no exception

Zhuang Shuai expressed optimism about the expected results of this year's 618. Extending from the low-priced strategy, this year's 618 will be the first "renewal" of JD's new procurement and sales system and organizational structure after "weight reduction".

Low prices were the most important weapon for JD's past success and will continue to be the only fundamental weapon. Image source: Daily Economic News Source

It is worth mentioning that JD also set a new "suspense" at the 618 launch meeting. The reporter learned that JD.com stated that JD Live will bring a lot of surprises during this year's 618 period. Especially on the evening of May 31st, mysterious institutions will enter JD and bring heavyweight guests.

Apart from simple textual descriptions, no further information has been disclosed. The so-called "less words, greater things" has not always been outstanding in the field of live streaming e-commerce. In addition to expanding into the sinking market, JD Live has always been a new expectation placed on JD Retail by the outside world.

On the eve of 618, the news of Xinba team Xinxuan Group and the "Crazy Little Yang Brother" team "entering Taobao" spread widely. Although Xin Xuan and others did not respond to the Daily Economic News regarding this, it has become a fact that the "sense of boundaries" of live streaming e-commerce platforms is becoming increasingly blurred. The action of JD Live 618 can also be considered as setting a compelling "suspense".

Since last year's Double 11, there has been a significant promotion for decades, and a sense of value is returning. The difference is that this year's 618, disputes and artillery fire may unfold in the field of low prices. This may also be a return to another sense of value.