Unbounded Retail: Strategy and Implementation of the Fourth Retail Revolution

For JD.COM, 20 17 is the first year of unbounded retail. On February 14, Liu Zaijingdong once again mentioned unbounded retail. COM: "In the past year, it has played a connecting role in the history of JD.COM. JD.COM officially established the strategic grand plan of' unbounded retail', and carried out industrial layout through the concepts of openness, * * *, common growth and regeneration, and actively transformed into a' service provider of retail+retail infrastructure'. "

In this book, we will interpret "unbounded retail". What is unbounded retail? Liu believes that the so-called change is to adopt various means to improve efficiency in an all-round way, improve the operating efficiency of brands and improve the living efficiency of consumers. Unbounded retail is the essence of the fourth retail revolution. The ultimate goal is to rebuild the cost, efficiency and experience of retail based on "people, goods and fields", and at the same time establish new ecological relations with offline partners from the perspectives of online retail, supply chain, logistics, finance and technology.

"People+goods+market" is the essence of retail. In the reform of unbounded retail, three elements will undergo great changes:

The scene is infinite. Unlimited scenes have two meanings: one is to eliminate spatial boundaries, and future retail scenes are everywhere, everywhere; The second is to eliminate the time boundary, and the future retail scene will always be seamlessly switched.

Goods are endless. Future commodities will not stick to the inherent form, and commodities, content, data and services will penetrate each other. Commodity is content, content is data, and data is service. Selling a product can not only increase the demand of users, but also increase the output.

People and enterprises are inseparable. Consumers will participate more deeply in the value chain such as design, manufacturing, transportation, distribution and after-sales; At the same time, enterprises have more temperature, and enterprises and consumers will trust each other.

In order to improve the efficiency, it is necessary to break the boundaries between scenes, commodities, people and enterprises, connect the scenes, establish connections between different scenes, and give full play to the role of each scene through "placing orders online, picking up goods offline", "moving coupons, and spending in physical stores".

Unbounded retail is based on the internet, but it is far beyond the internet, which will inevitably lead to strong subversion. Behind the rapid development of Internet e-commerce is consumer dissatisfaction with prices. After the internet revolution, information tends to be flat, and consumers can see how much others sell and how much they sell online. Although consumers want offline contact, perception, experience and interaction with sales staff, it also involves a price issue. After the Internet revolution, channels are split into online and offline, and all price problems will directly appear in front of people, and consumers will make more, better and more choices that meet their needs.

In the era of "consumers are king", the shopping experience of consumers will become: from online entrance to offline experience, then choose online payment, offline delivery, and finally choose online after-sales service. In the whole purchase process, consumers will jump freely between the two. This sales model is the ultimate choice for future consumers, and online and offline retail enterprises will have more cooperation.

E-commerce is not only a sales channel, but also a brand new infrastructure; Online and offline can be not only a competitive relationship, but also a * * * relationship. In the next 10-20 years, the retail industry will inevitably usher in an unbounded retail revolution. This revolution will not only change the whole retail industry, but also have a great impact on the retail infrastructure, making it extremely plastic, intelligent and common, thus greatly promoting the arrival of the "unbounded retail" era and greatly improving the cost, efficiency and experience.

Nowadays, scientific and technological innovation is pushing the retail industry to the forefront. The application of innovative intelligent technology is breaking through the boundary of retail productivity, upgrading experience and cost efficiency, and constantly optimizing the capital flow, goods flow and information flow in the retail system. This can not only reduce the marketing cost, but also help consumers find the information they are really interested in and want to know in the information flow, thus enhancing the consumption experience.

The concept of "unbounded retail" has a brand-new retail gene since its birth. Only by promoting the smooth development of unbounded retail from the dimensions of business logic, shopping experience and consumption upgrade can the old retail function be upgraded and become more focused and penetrating.

In the future, it will be the era of unbounded retail!

Editor's recommendation:

Recommended 1: Smart commercial times, the future retail pattern is "unbounded" and "accurate".

Recommendation 2: The so-called unbounded retail means that there is no boundary. Boundless is reflected in consumers, that is, beyond time and space; Reflected in the supply chain, it is the integration and flow of data; Reflected in marketing, it is the intelligence of content marketing, the comprehensiveness of media, and so on.

Recommendation 3: Unbounded retail is a new opportunity for e-commerce development.

Recommendation 4: The future will be the era of unbounded retail, and the concept of unbounded retail has a brand-new retail gene since its birth.

Media recommendation:

The fourth revolution that followed changed not retail, but retail infrastructure. Retail infrastructure will become extremely plastic, intelligent and common, which will promote the arrival of the era of "unbounded retail" and upgrade cost, efficiency and experience.

-Liu

Directory:

Chapter one: retail reform: the concept interpretation and feature description of unbounded retail.

What is "Unbounded Retail" /3

Unbounded channels: channel integration is higher than zero-sum game/10

Unbounded marketing: value chain reconstruction in the era of unbounded retail/15

Unbounded operation: industrial chain reconstruction in the era of unbounded retail /20

The second chapter discusses the trend: the future development direction of unbounded retail.

Future retail ecology: * * Birth, alternation and regeneration /27

Future retail prospects: "unbounded" and "accurate" /3 1

Future retail "allies": working together to create unbounded retail scenes /35

The Nature of Future Retail Transactions: Products, Services, Experiences and Data /39

Walking on two legs: store+e-commerce /45

Chapter III Innovation Drive: Technological Innovation Makes Retail Unlimited

Technology Update-Driving Force of Retail Revolution /5 1

Scientific and technological innovation pushes the retail industry to the forefront /57

Unbounded retail, unbounded is the table, and intelligence is included /59.

Retail infrastructure plays an important role /62

Black technology in the era of unbounded retail is a hit.

Chapter four products in the era of unbounded retail: grasping the fulcrum of products and reshaping the relationship between goods and people.

Rebuilding the relationship between goods and people with the Internet as a bridge /73

Products serve consumers, giving priority to consumer demand /80

To build the ultimate product, you must first drive yourself crazy /86

A sword to seal the throat, product design should have a sense of expectation /90

JD。 COM four innovative products open the era of unbounded retail /96

Chapter five: Unbounded retail service in the era of unbounded retail: adhering to the service creed and showing people-oriented feelings.

"Customer satisfaction" is the only standard of service/103

Your service follows the needs of consumers/108

Non-standardized services in the era of unbounded retail/11

Xiaomi's service business creed/1 15

The sixth chapter is the experience in the era of unbounded retail: creating a brand-new consumption scene and providing a superimposed consumption experience.

In the era of unbounded retail, consumers are supreme and experience is king/12 1

The core of customer experience is who the product is designed for/125.

Closed-loop experience is not "behind closed doors"/129

The highest level of experience activities: product mobilization, activity productization/135

Chapter 7: Three elements of organizational evolution in the era of unbounded retail: environment, strategy and organization.

Environment: unstable, uncertain, complex and fuzzy unbounded retail/14 1

Strategy: From "Integration" to "Integration and Opening"/143

Organization: "building block organization" with flexible combination, openness and adaptability/145.

Chapter 8: Supply chain in the era of unbounded retail: optimizing supply chain and strengthening dependence.

Supply chain reform and challenges in the era of unbounded retail/15 1

Supply chain optimization and logistics upgrading in retail transformation/156

Make the supply chain smarter and retail without boundaries/160

Supply chain upgrade and transformation direction of FMCG industry in the era of unbounded retail/166

Innovative solutions of supply chain/17 1 viewed from the innovation of jingdong logistics.

Chapter 9 Industry Benchmarking: See how retail giants turn from high-profile confrontation to rational cooperation.

JD.COM and Tencent jointly launched the solution of "Jingteng Unbounded Retail"/179.

JD.COM strives to empower brands and create new advantages of differentiated retail/18 1.

Giants invest in Xindada, and the unbounded retail of Xindada is here/185.

HP teamed up with JD.COM to build an international brand of unbounded retail strategic cooperation/190.

Ps/193

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What is "unbounded retail"

In the era of change, the essence of the fourth retail revolution is unbounded retail. Grasping the "unchangeable" essence and actively seeking changes in strategy and organizational methodology are the only way for retail enterprises and the times to survive and play.

People born in the 1970s and 1980s may have had such an emotional experience in their childhood: on holidays, parents will take their children to department stores to buy new clothes, which is a very happy thing. As long as adults take themselves to the mall to buy clothes, young people will always be happy for a long time.

However, with the rapid development of mobile Internet today, with the gradual improvement of living standards and the continuous development of science and technology, many shops, supermarkets and stores have appeared, and a series of subversive changes have taken place in the retail industry, and people's consumption patterns are very different from those in the past. The traditional retail model has been broken, and consumers can use computers or mobile phones to move their fingers online to buy the goods they want.

The leap of computing power and the continuous breakthrough of intelligent algorithms have enabled us to enter the intelligent commercial times. We have reason to believe that the future retail will be unbounded, and consumers can complete the consumption process in any scenario, and what you see is what you get.

Now the post-90s generation is the main consumer. With their rise, consumer demand, purchase behavior, communication and interaction are very different from the past: consumers pay more attention to the expression of personality and put forward higher requirements for products and retail; At the same time, all brands want consumers to remember themselves. In order to provide consumers with the best consumption experience, they have established a unique business scene, which can effectively reach the target consumer groups.

On August 20 17, JD.COM and Baidu jointly launched the "Kyoto Plan", which successfully accessed nearly 1 10,000 active consumer data of Baidu and 236.5 million high-value active e-commerce consumer data. Through such cooperation, JD.COM not only obtained Baidu's first-class shopping entrance, but also provided consumers with targeted information through accurate delivery and content cooperation. For example, if consumers usually like to buy beauty brands and products, Baidu will push some JD.COM beauty discount information for consumers; After that, if consumers are interested in this information, they will take the initiative to click to learn about it, which will lead to buying behavior ... In this way, a closed-loop marketing is successfully completed.

This will not only enable consumers to enjoy the instant shopping experience, but also greatly expand the sales scene in JD.COM and widely promote the products of platform merchants. "Kyoto Plan" deeply interprets the trend of unbounded shopping scenes, and it is a kind of retail that "points directly at people's hearts". From AmazonGO to unmanned supermarkets to millions of convenience stores in JD.COM; From immersive shopping AR experience to supporting automatic checkout ... With the continuous upgrading of technology and experience, retail gradually penetrates into the details of life, which is the real "unbounded".

Nowadays, scientific and technological innovation has pushed the retail industry to the forefront. The application of innovative intelligent technology has broken through the boundary of retail productivity, not only realizing the synchronous upgrade of experience and cost efficiency, but also crossing the enterprise boundary, realizing the optimization of capital flow, goods flow and information flow of the whole retail system.

The environment of unbounded retail in the future will be unstable, uncertain, complex and vague. The retail industry will also show the following characteristics: consumers' pursuit of personalized products and services will become stronger and stronger, and the accuracy of traditional sales forecasting tools will be greatly reduced; Retail scenes will become more and more decentralized and fragmented, and changes in entrances and traffic will become more and more difficult to predict; Cross-border has become the norm, retail and various industries penetrate each other, the rules of competition and cooperation are more diversified, and the judgment of success factors is more vague.

The instability, uncertainty, complexity and fuzziness of retail environment bring great challenges to enterprises: in order to deal with instability, enterprises should respond more quickly; In order to cope with uncertainty, enterprises should constantly collect systematic and comprehensive information; In order to cope with complexity, enterprises should rebuild their organizations; In order to deal with fuzziness, we should keep an open mind and constantly verify possible opportunities ... The traditional enterprise management takes "planning, management and control" as the core, which naturally cannot meet the requirements of the unbounded retail era and must change the existing organizational model. The future strategy determines the scenarios and consumer types faced by enterprises. In order to open the original business relationship and meet the needs of the external market more flexibly, enterprises must change the existing organizational model.

The future of retail is not an "empire", but a relationship of solidarity and mutual assistance. All participants should be clear about their own advantages and constantly optimize them, and finally recombine different advantages to evolve an unbounded retail scene.

The rules of the retail game are not "competition convergence", but "competition seeking difference", which is a natural and interactive retail ecology. The influence of "unbounded retail" on the whole retail industry can be analyzed from two aspects.

First, the impact of "unbounded retail" on consumers.

1. Consumption habits. In the past, consumption was done offline, and consumers had to go to supermarkets and shopping malls if they wanted to buy things. The current consumption pattern is more fragmented, and it is carried out anytime and anywhere. As long as there is a signal and smart equipment, you can go shopping. People's consumption habits have changed a lot, and most people are willing to shop online.

2. Consumption period. In the past, people went online to shop in physical stores, and consumers could only buy goods during normal business hours. Now, whether it is day or night, as long as you are connected to the Internet, you can shop easily. For example, during "June 18" and "Double 1 1", tens of thousands of consumers will snap up in the early morning.

3. consumption scenarios. In the past, the consumption scene was relatively simple, and you could only look at the products or samples in the store to buy. After the "unbounded retail" was put forward, the consumption scene became more diversified and fragmented. When reading, watching videos and listening to songs, consumers can click on the links to buy their favorite books or video products. At the same time, you can also experience online to offline consumption scenes, place orders online and pick up goods offline.

4. Consumer experience. With the development of Internet technology, if you want to experience and understand a product, you don't have to experience it yourself. You can learn about a product by browsing pictures and experiencing human-computer interaction. For example, Tmall opened the "Unbounded Retail Experience Hall" in Yintai. Consumers don't have to use the product in person, but they can feel the effect of using the product through the virtual fitting machine and fitting room.

5. Consumption decisions. In the past, consumers had a single channel to know about products, either through word-of-mouth publicity of relatives and friends or through advertisements of businesses. Now, when consumers shop, they will first understand the reputation of the merchants and other consumer evaluations. Consumers are no longer satisfied with small-scale and one-sided information, but will refer to "big data" and then consume.

6. consumption channels. In the past, the combination of online and offline can only expand consumption channels and cannot enhance consumers' consumption experience. If consumers want to feel the advantages of unbounded retail, they must integrate omni-channel networks. Unbounded retail is "online+offline+logistics", which can fully open up data such as membership, payment, inventory and service. The combination of big data, cloud platform and online and offline stores has brought seamless cross-channel consumption to consumers.

7. Means of payment. With the emergence of financial payment platforms such as Alipay and Tenpay, consumers' means of payment are more diverse, not limited to cash and bank cards. When consumers shop, they can pay as long as they bring their smartphones. With the development of "unbounded retail", payment methods will be more diversified, and technologies such as fingerprint recognition, face recognition and tattoo recognition may also become one of the future payment methods.