Traditional book stores are experiencing challenges including fierce competition and declining sales and traffic. A revival is occurring in China due to JD.com. or Jingdong. This is the biggest retailer in the country and includes an online book business. The company provides 49 offline book stores with book procurement, technology and logistics. The company also provides services to retailers including restaurants and consumer goods manufacturers.
Jingdong developed technology for their eCommerce business, increased sales for offline stores and modernized their supply chains. Jingdong is working with a book store in Guangzhou called Tangning Books. The store managed in excess of sixty book suppliers prior to their partnership in 2017 with JD.com. The inventory was replenished through JD.com each week to decrease delivery delays and labor costs. During this period, profits increased seventeen percent and sales grew thirty percent.
The partnership between Jingdoong and Tangning Books, enable the latter to decrease their turnover from more than a year to 220 days. Jingdong provided analysis capabilities regarding customer behaviors and books tailored for their customers. This resulted in an increase in sales. The founder of Tangning is Ningxin Lu. Ningxin stated the business would not have a competitive edge without the supply chain expertise and technology of JD.com. Another issue was the inability to stock all the requested books in a limited space.
Due to the inventory of JD.com, Tangning Books customers can scan the QR codes for books not available in the store and receive delivery within 24 hours. This enables the two businesses to work as a team and share the profits for the sales. The General Manager for JD Logistics value supply chain is Haifeng Yang. Haifeng stated the expertise in inventory and supply chain management, technology and big data provided by the Jingdong platform could benefit numerous additional businesses. Read This Article for related information.
A lot of companies beyond retail have benefited from the solutions offered by Jingdong. One of the most famous restaurant chains in China is called Wang Shun Ge. Jingdong Mall made it possible for them to reduce the delivery costs for their restaurants by half while increasing the speed of their shipments. This became possible when the restaurant chain started using JD.com for logistics and procuring kitchen ingredients in 2017.