WRC Connected 2021: JD Welcomes Retail Fragmentation

WRC Connected 2021: JD Welcomes Retail Fragmentation

by Kelly Dawson

While some retailers and brands may see the increasing fragmentation of the retail space with trepidation, JD.com welcomes this development, said Chenkai Ling, Vice President of JD.com; Head of Strategy Development and CEO office, JD Retail, on Apr. 26 during an online event series titled “Retail Connected,” hosted by World Retail Congress in lieu of its annual offline retail conference.

“There are short videos, there’s livestreaming, and there are other forms of commerce. Some brands and retailers view this as a threat, but we see it as creating a lot of opportunities,” Ling said in the discussion, which was moderated by Benjamin Zheng, lead partner of global strategy consulting firm EY-Parthenon.

While brands previously had limited channels, now they have many more options to reach consumers. However, the key to leveraging this expansion is to know their strengths and weaknesses, Ling said. “Brands need a holistic view of different shopping moments, understanding their positions and unique value proposition. For retailers, there are also some areas in which they need to be aware. They need to understand that retailers cannot have strong points across all the shopping moments; they need to acknowledge that.”

Retailers should think about their unique position in the market, Ling said. “What is your value in this shopping moment, and how do you differentiate?”

Additionally, although shopping moments are very fragmented, on the back-end data, transactions and traffic are integrated together. These conditions require that retailers adopt a more open-minded concept, and should be prepared to integrate their data and inventory or product with others.

For example, JD has explored a successful integrated omni-channel approach with Prada Group’s two brands Prada and Miu Miu, Ling noted. By integrating inventory with Prada’s offline stores, consumers could not only access a broader product display but also enjoy delivery from Prada’s offline stores.

“Consumers appreciated this,” Ling said. “It gives another layer of connection between brands and consumers even though the consumer is using the online platform to do the shopping, which also strengthens JD’s value proposition that we provide authentic solutions to consumers.”

Watch the whole session by registering for Retail Connected 2021 here.

 

 

Chenkai Ling, JD.com speaks with Benjamin Zheng, EY at Retail Connected 2021

 

 

(kellydawson@jd.com)

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