JD.Com Saves offline Brick and Mortar Bookstores from Their advanced Competitors
JD.com is honoured as the e-commerce industry’s pacesetter. The e-commerce has established a reputation for quick logistics, professional customer service, as well as the provision of quality goods. In 2017, the company stepped out to help the traditional brick and mortar stores that were almost closing down due to the stiff competition from their online competitors. The conventional stores’ sales had consistently declined since the advent of the internet retailing. This is not the first time that the company has opened its high-technology online platform to other business. Through its Retail as a Strategy program, JD.com has allowed numerous retailers, who would wish to promote their products in the Chinese market, access to the platform. The booksellers are the latest beneficiaries.
How did Jingdong’s technology save the bookstores from shutting down? The prominent e-commerce store served the bookstores with advanced technological solutions that helped them increase their sales and proceeds, by streamlining book procurement and logistics. Into the bargain, JD.com’s technological support helped the bookstores to provide customers with virtually any book. Today, customers scan the QR code of the book they want, and JD.com delivers it within 24 hours. Jingdong offered the ‘Retail as a Service’ technology to over 49 offline bookstores operating in various Chinese cities. Some of the stores that benefitted from the support were Yitiao, Tagning Books, and AIO SPACE.
By the end of 2017, Tagning Books, a Guangzhou based bookstore disclosed that Jingdong’s technological advancements had helped them cut down their labor costs, as well as increase their delivery speeds. The offline bookstore’s sales grew by 30%, their profits shot up by 17%, and their turnover reduced from one year to 220 days. Into the bargain, Tagning Books announced that Jingdong’s data analysis ability helped them gather critical insights about their clients buying behavior. The business insights helped the bookstore to stock their shelves according to their customer’s unique needs. “Jingdong’s technological experts helped us compete with our online competitors. Now, we see a bright future for the brick and mortar bookstores,” said Ningxin Lu, Tagning Bookstore’s founder. Jingdong will share the proceeds of such sales with the stores.
Source of the article : https://www.wealthx.com/dossier/qiangdong-liu/