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8On the 20th of June, the Asian Pet Show "JD.com 13th International Pet Industry Summit Forum - Asian CEO Summit" was held in Shanghai. At the summit, JD Supermarket officially announced that it would double its manpower, purchase 100 million yuan in cash, and invest 1 billion traffic resources, and work with brands to create 100 large differentiated single products with a sales volume of tens of millions, helping the top 100 brands join the "100 million yuan club" and the top 10 brands join the "1 billion yuan club".

The relevant person in charge of JD Supermarket's pet business department said that the pet economy has anti-cyclical properties, and differentiated large single products drive the growth flywheel. JD Supermarket relies on precise market insights to segment and cut out differentiated large single products, and promote efficient brand growth through precise promotion and conversion. On this basis, it further deepens user relationships, promotes repeat purchases with high-quality user groups and differentiated services, and accumulates user assets at low cost.

The pet industry is constantly innovating and introducing differentiated big single products to break through the market and improve the brand profit structure, which drives the flywheel to rotate positively.

In recent years, with the prosperity of the pet economy, the industry has become increasingly competitive. Data shows that the industry's production capacity has increased by 21% in the past year, and competition has further intensified. Manufacturers with cost advantages have begun to cut prices to seize the market. In the second year of increased production capacity, the public's consumption power declined, and the unit price of pet consumer items across the network fell by 10%, making it increasingly difficult for companies to survive.

In the fierce market competition, industry chaos is also common. Industry insiders once sampled cat and dog food with sales of nearly one million on a low-price platform, and the results showed that aflatoxin exceeded the standard. Long-term consumption can cause pets to have stunted development, organ damage, or even death. Consumers also reported that the imported cat food from Crave and Acanna purchased on a low-price platform was found to be fake after official identification.

The emergence of industry chaos is due to the fact that some unscrupulous businesses use inferior raw materials to reduce costs.Illegal addition of veterinary antibiotics to cover up adverse reactions after consumption by pets.Low-cost e-commerce platformIn pursuit of profits, they indulge in unscrupulous behavior and compete with genuine brand products for traffic without distinction., and eventually bad money drives out good money.

Faced with the current development status of the pet industry, outdated formats and business models will gradually be replaced by newer and more efficient models. Based on this "retail rotation theory", JD Pets proposed the "differentiated large single product" strategy, which is to seek differentiation, invest more energy and cost to create unique value, drive the company's own development, and push the efficiency boundary of the entire industry forward.

The relevant person in charge of JD Supermarket's pet business department said that it is necessary to concentrate efforts to avoid ineffective resource waste, invest all resources in intensively cultivated differentiated large single products, and combine the power of the platform and the brand to jointly promote them to achieve higher product efficiency. JD Pet will take the precise differentiation of large single products as the starting point, coordinate the supply chain, R&D, operations, and user efficiency to improve the profit structure, and then invest the improved profit income into the next wave of differentiated large single product development to drive the flywheel to rotate positively.

The three major strategies of "cut out", "push up" and "keep" are used to accurately cut out differentiated large single products and enhance brand resilience

The vicious cycle brought about by increased costs, rising expenses, declining product performance, and deteriorating profits has forced brands to go on more and more difficult. In this vicious cycle, a large number of inefficient and redundant SKUs have accumulated, which has dispersed the brand's operating resources and market resources. JD Supermarket has continuously reconstructed the retail-supply relationship through the three major strategies of "cutting out", "pushing up", and "keeping", helping brands return to users, improving product strength, improving operational efficiency, and enhancing brand core competitiveness.

Cut out and differentiate based on user needs. Relying on its consumer insight advantage, JD Supermarket uses data decision-making tools to sort out the network and output category planning, applies scientific tools to cut out differentiated large single products that meet the company's positioning and have high market popularity, and cooperates with professional buyers to buy out and operate, share risks, and ensure that the products have strong product power from the beginning of manufacturing and production.

Promote it and build user trust with channels to achieve product and effect integration. JD Supermarket integrates resources for brand building and promotion. On the basis of building consumer trust, it uses the full-link digital marketing "Tianlian" product for promotion and subsidies, so that one market cost investment can generate multiple sales and bring long-term value growth.

Stay, accumulate user assets, and maximize repeat purchases. JD.com's high-quality user groups can lay a good foundation for accumulating brand assets, and based on the logic of accumulated traffic, brands can maintain high search rankings at low cost and even get more free traffic. In order to improve user experience, we have also launched service initiatives such as Ask a Pet Doctor, Free Returns if You Don't Like to Eat, and Replacement instead of Repair, which continuously optimizes the professional customer service capabilities of merchants.

In addition, JD Insurance, an insurance brokerage platform under JD Group, adheres to the business philosophy of "good products, really cheap, and more reliable", and combines high-frequency life scenarios of users such as pet medical care to provide merchants and consumers with better insurance protection services, and provide users with "really cheap and more reliable" high-quality services.

2024In 2018, JD Supermarket announced that it would increase its investment in manpower by 100 million, cash purchases by 100 million, and traffic resources by 1 billion. It hopes to work with brands to create hundreds of differentiated large-scale products worth tens of millions, help the top 100 brands join the "billion-yuan club", and the top ten brands join the "ten billion club", so that more pet brands can achieve resilient growth.

JD Supermarket is one of JD's channels, located in JDAPPThe channel list on the upper left corner mainly sells fresh food and daily consumer goods. Third-party data and multiple user surveys show that among online and offline supermarkets, JD Supermarket has the leading market share, the most competitive prices, the most guaranteed quality of goods sold, and its various services are also in the leading position in the industry. It is the preferred shopping channel for hundreds of millions of consumers.