JD.com's foray into car manufacturing, a comprehensive evolution
As the Double 11 shopping festival approaches, major platforms are gearing up to make new moves at this key consumption moment. For JD.com, this is no exception. At this year's JD.com "Double 11" Open Day, JD.com once again played its trump card, announcing a collaboration with GAC Group and CATL to launch a "People's Car." As a result, the outside world began to speculate that JD.com is entering the car manufacturing business. In reality, JD.com is not directly manufacturing cars but is instead strategically positioning itself in the automotive industry through its own approach.
According to a report by National Business Daily, JD.com primarily provides consumer insights and exclusive sales channels, without direct involvement in the manufacturing process. Specifically, JD.com is responsible for consumer insights, car purchasing, and maintenance resources, while GAC contributes its vehicle manufacturing capabilities, and CATL provides battery technology and battery-swapping ecosystems. Together, they aim to create a one-stop car consumption model.
It is evident that JD.com is attempting to participate in the car manufacturing process to create a new car consumption model rather than actually manufacturing cars itself. Nevertheless, JD.com's approach still brings fresh ideas, particularly showcasing a new future for e-commerce development. As JD.com's automotive strategy unfolds, we have reason to believe that JD.com itself will further evolve in new directions, bringing more possibilities to its growth.
JD.com's Automotive Strategy: A Key Link in the Supply Chain
JD.com has always focused on building its supply chain. This move into the automotive sector can be seen as an extension of this strategy. Ultimately, JD.com's automotive strategy is not just about car manufacturing but about enriching and perfecting its e-commerce supply chain. This aligns with JD.com's long-term strategic goals.
When discussing JD.com's supply chain, we must mention its self-built logistics system. As of now, JD Logistics has established a three-tier drone logistics system ("trunk - branch - last-mile"). By 2025, it aims to complete trunk-branch route tests in Sichuan and Chongqing, using large quadcopter drones for cross-province logistics, reducing the transportation time from Chengdu to Dazhou to under two hours—a more than 50% reduction compared to traditional land transport. This system efficiently connects different levels of logistics capacity, forming an "aerial highway network" to support scenarios like fresh food supply and emergency rescue.
Beyond its logistics system, JD.com has also optimized its supply chain through continuous improvements. It has built its supply chain system through JD Procurement and JD Manufacturing, while also leveraging JD Financial Technology to empower upstream and downstream industries comprehensively.
This automotive strategy is a crucial step for JD.com in strengthening its supply chain. Through this approach, JD.com's robust supply chain system gains a powerful new participant. For JD.com, its consumer insights can provide strong data support for upstream car manufacturers, while its exclusive sales model can meet downstream consumers' demand for new energy vehicles, addressing their needs for purchasing and using new energy cars. Therefore, only when we place JD.com's automotive strategy within its broader supply chain vision can we truly understand its significance.
JD.com's Automotive Strategy: A Real-World Example of Digital-Physical Integration
As the era of consumer internet fades, more players are shifting their focus to the industrial internet. In this process, some companies are participating through foundational technological empowerment, some are increasing investments through strategic funding, and others are directly engaging in industrial internet experiments. Regardless of the approach, all are exploring the industrial internet era through digital-physical integration, seeking new opportunities. For JD.com, this automotive strategy is a bold attempt at digital-physical integration.
Based on current information, JD.com is not directly involved in manufacturing but is instead using its consumer insights and sales advantages to better connect upstream and downstream players. A deeper analysis reveals that JD.com is creating a new model of digital-physical integration.
On one hand, JD.com leverages its strong data and computing capabilities to empower upstream car manufacturers, enabling them to produce more market-friendly vehicles, reduce design and manufacturing costs, and improve industry efficiency. On the other hand, JD.com's unique sales model ensures these vehicles reach consumers at the best prices and quality.
Of course, this is not the most critical aspect. Through its automotive strategy, JD.com is also creating a new digital-physical integration ecosystem. Under JD.com's linkage, the entire new energy vehicle supply chain—from upstream to downstream, including after-sales services—becomes a unified whole, achieving comprehensive integration. In this new model, the new energy vehicle supply chain is truly fused together.
JD.com's Automotive Strategy: An Upgrade of the E-Commerce Model
Currently, the e-commerce industry is undergoing a comprehensive and profound upgrade. For JD.com, this automotive strategy is more about creating a new consumption model, through which it is upgrading its e-commerce approach. Only by recognizing this can we truly understand the essence of JD.com's automotive strategy.
In the traditional e-commerce model, consumers can purchase pre-produced products, while merchants design and produce based on their market judgments. Although e-commerce evolution has improved direct consumer-merchant interaction, mismatches between products and demand still occur. Ultimately, consumer needs are not accurately communicated to upstream merchants and manufacturers in real time, leading to resource waste and unmet demand.
Through its automotive strategy, JD.com is upgrading the e-commerce model once again. This model allows consumer needs to be precisely communicated to merchants and manufacturers, reducing market misjudgments, producing more market-friendly products, and further improving industry efficiency.
For consumers, after purchasing related products, they can also enjoy affordable and high-quality services on JD.com's platform, enhancing their shopping experience.
In this process, JD.com is no longer a traditional e-commerce platform but a bridge connecting and serving upstream and downstream players, achieving deep integration across the industry. Overall, JD.com has evolved from a traditional platform-based e-commerce model to a new industrial e-commerce model.
Final Thoughts
"JD.com's car manufacturing" is not about JD.com actually making cars but about strategically positioning itself in the automotive industry. Through this move, we see JD.com embarking on a comprehensive self-evolution. In this new evolution, JD.com is further strengthening its supply chain, exploring new digital-physical integration models, and upgrading its traditional e-commerce approach. JD.com's automotive strategy is not just about cars—it marks the beginning of a new upgrade and evolution.
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