JD subsidizes 10 billion yuan to support 10000 industrial belt factories, aiming to compete for the white label commodity market
老河流水
发表于 2024-11-9 14:03:36
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On November 8th, JD's discount shopping brand "Jingxi Self operated" disclosed its business details for the first time and released the "White Label Domestic Goods Factory Billion Support Plan", aiming to compete for the white label product market.
White label domestic factories refer to factories that handle processing and produce goods without a brand or with low brand awareness. Currently, these factories are facing various survival difficulties such as vicious pricing on e-commerce platforms, difficulty investing heavily in online sales operations, losing money while selling goods, unlimited competition, and increasingly inferior goods. At the same time, some export-oriented industrial belts and factories are also facing difficulties in expanding their domestic market.
To this end, Jingxi Self operated announced an annual investment of 10 billion yuan to subsidize commodity prices, implement operational and traffic support, and subsidize logistics freight for white label domestic factories. It is reported that Jingxi's self operated "billion yuan subsidy" focuses on supporting 10000 white label domestic factories. Preliminary estimates suggest that each factory is expected to receive an average subsidy of 1 million yuan.
The person in charge of Jingxi Self operation stated that in the future, Jingxi Self operation will carry out investment promotion in 50 cities across the country, and jointly build 100 domestic product industrial belts with local governments at all levels and relevant associations. Among them, 5 core industrial belts with a turnover of over 10 billion yuan will be created, 5000 white label domestic product super factories will be incubated, and tens of millions of people will be employed.
Unlike other platforms, the biggest differentiation advantage of Jingxi's self operated platform is that it relies on JD's supply chain advantages and adopts JD's official operating model. Products are supplied at bare prices, and Jingxi's self operated team provides marketing and operation services. The second difference is that all of Jingxi's self operated products are delivered by JD Logistics to ensure a better delivery experience than other e-commerce platforms, while the logistics costs are borne by Jingxi's self operated products.
In addition, Jingxi provides a self operated subsidy of 10 billion yuan and conducts real-time price comparisons to ensure that the price is at the market bottom price. At the same time, all products are selected by Jingxi's self operated procurement and sales, and the quality of the products is also required to be higher than that of its main competitors.
Since its launch at the end of 2023, Jingxi's self operated store has covered all types of products, with SKUs exceeding 1 million and monthly sales exceeding one million. The buy one get one free event held on the 18th of each month has effectively increased customer stickiness. Currently, Jingxi's self operated official store has over 140 million fans.
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Disclaimer: The views expressed in this article are those of the author only, this article does not represent the position of CandyLake.com, and does not constitute advice, please treat with caution.
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