Upgrading JD Xiaojia with Core Technology Driving Cost and Efficiency to Build an IoT Intelligent Ecology

Recently, JD Consumer and Industrial Development Research Institute and JD Home Appliances jointly launched the "Smart Connected Home and" JD Small Home "Market Research Report" (hereinafter referred to as the report), which sorted out the market and products of smart homes and home IoTs.The report points out that in 2022, the market for various types of smart home devices has undergone varying degrees of product structure adjustment and functional upgrades, laying the foundation for the subsequent development of the market

Recently, JD Consumer and Industrial Development Research Institute and JD Home Appliances jointly launched the "Smart Connected Home and" JD Small Home "Market Research Report" (hereinafter referred to as the report), which sorted out the market and products of smart homes and home IoTs.

The report points out that in 2022, the market for various types of smart home devices has undergone varying degrees of product structure adjustment and functional upgrades, laying the foundation for the subsequent development of the market. How to upgrade and grow the future smart home market is actually a core issue: users cannot only shop under the same brand, but how to control all devices in the simplest possible way? Therefore, the following three trends are worth paying attention to.

Core technologies drive product fairness and functional upgrades. With the development of the smart home market becoming more rational, the starting point for consumers to choose smart home devices has gradually shifted from tasting new products to product functionality and quality. The novelty brought by pure intelligence has given way to product user experience.

In the past decade, despite significant changes in the consumer market and product form, the core logic of providing users with the most suitable product has not changed.

JD Xiaojia provides low-cost and efficient solutions to enable small and medium-sized brands to have the same technological capabilities as large enterprises and join the complete ecosystem when facing the trend of intelligent upgrading.

JD Xiaojia integrates IoT technology and JD mini program technology for innovation, and combines multiple access methods such as cloud connection, single direct connection, double direct connection, or integrated JD modules, as well as multi category access capabilities, to provide low-cost and efficient access solutions for brand merchants. Brand merchants can use low code tools of mini programs to quickly create device control panels through visual drag and drop components, We can also assist more small and medium-sized brand merchants in achieving intelligent access and quickly integrating into JD Xiaojia's intelligent ecosystem through public version solutions and brand customization solutions.

By refining operations such as cost efficiency, we aim to promote price fairness and expand market opportunities in different price ranges. In the past year, driven by product upgrades and rising costs, the average price of China's smart home equipment market has significantly increased, with a significant increase in market share in the high priced segments of categories such as smart TVs, smart speakers, and floor cleaning robots. As technology matures and some component costs fall, there will be more room for price adjustment in the mid to high end market in 2022. Under the trend of market upgrading, refined sales and operation of products in different price ranges are expected to further increase market demand in the medium to high price range.

On the one hand, JD adheres to the "35% Theory" and fully demonstrates the concept of reasonable profit distribution in the industrial chain and the coexistence and co development of JD and the industry, which is a guarantee and support for the high-quality development of the industry. By continuously optimizing and reducing channel costs, we aim to create a more stable development environment for the industrial chain and enhance its resilience.

On the other hand, with the development of the logistics system and the improvement of infrastructure construction, the transportation costs/expenses of large goods have begun to decrease, and the core issues of e-commerce development have been solved, accelerating efficiency improvement; At the same time, JD continuously improves management efficiency by improving its digital capabilities.

Upgrade fair service channels and reduce user learning and post purchase costs through high-quality touchpoints. Although the Chinese smart home market has undergone several years of development, the post purchase service experience has not yet achieved widespread adoption. The implantation of Xiaojia can better reach users and achieve "service fairness" through JD's multiple characteristic services such as extended warranty and renewal.

Through JD Xiaojia, users can further integrate with JD's existing high-quality services and stimulate consumption potential through experience. For example, stimulating new demand in the home appliance market through cross category and multi item exchange, ensuring consumer rights through offline experience, on-site installation, and after-sales service, reflecting the service value of the entire product lifecycle and cross brand connectivity value.

Overall, JD is working with its partners to build a complete industrial chain ecosystem in the Chinese home appliance market, which includes research and development, products, sales, services, and other complete product life cycles. Through the solid infrastructure and advanced technological capabilities of new physical enterprises, JD aims to achieve comprehensive optimization and upgrading of costs, efficiency, products, prices, and services, and help the industry break down barriers such as geography, population, and brand categories. This is also an important manifestation of JD's assistance in the home appliance industry, enabling both the industry and enterprises to enter a long-term high-quality growth trajectory.