JD.com And The “Retail As A Service” Strategy

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JD.com of Jingdong Mall was launched in 2004 by Richard Liu Qiangdong and is one of the biggest e-commerce platforms in China. Traditional bookstores are currently going through a revival as a result of JD.com’s new online book business.

 

In addition, Jingdong Mall provides solutions when it comes to book procurement, technology, and logistics to 49 book stores around the country, including AIO SPACE, and Yitiao, as a result of Jingdong Mall’s RaaS  or “Retail as a Service” strategy. Under the RaaS strategy banner, JD also provided services and technologies to a number of companies from various industries. The “Retail as a Service” strategy also went beyond retail, helping a popular restaurant chain cut delivery costs in 2017.

 

One significant partnership that resulted from the RaaS strategy has been between Tangning Books and JD.com. Tangning Books is a bookstore that has two locations in Guangzhou, and was managing over 60 book suppliers prior to partnering with Jingdong in 2017. As a result of Jingdong and Tangning Books partnership, sales grew by 30% from May to December, and the profits also grew by 17% over that period. The partnership also enabled Tangning Books to reduce their turnover to 220 days, and using JD’s resources they are now able to have insight when it comes to customer buying behaviors and is able to tailored to their customer base, which in turn leads to more sales. Click Here to learn more.

 

When talking about the partnership, the founder of Tangning Books, Ningxin Liu stated that without the tech and supply chain expertise of Jingdong, his business would not benefit from any competitive advantage. He also pointed out that being backed by e-commerce technology allows the offline book business to see a bright future.

 

Another important benefit that resulted from the partnership between JD and Tangning is the fact that the bookstore now allows customers to scan QR codes for the books that aren’t available at the store and they can deliver the books within 24 hours using JD’s deep inventory. Haifeng Yang of JD Logistics noted that offline bookstores is only one example of many industries that can benefit from JD’s expertise when it comes to inventory management, technology, supply chain, and data.

 

See Also: https://www.chinamoneynetwork.com/2018/10/18/jd-com-opens-up-its-logistics-network-to-users