JD.com invests 1 billion to make short videos

Driven by the short video craze, many shelf e-commerce platforms have followed the example of short video platforms such as Douyin, trying to attract and retain users by adding short video entrances. However, is this follow-up strategy really effective? Why do platforms such as JD.com choose to do so? Faced with the real needs of users and the core competitiveness of shelf e-commerce, how should these platforms balance and make choices? This article will deeply analyze these issues and explore the future development path of shelf e-commerce.

JD.com is starting to get anxious as it sees other platforms, such as Meituan, Ele.me, Alipay, Pinduoduo, etc., starting to develop short videos.

According to relevant information, JD.com has prepared 1 billion in cash, focusing on the fields of short videos and live broadcasts.

Key subsidies will be provided to content creators in more than 20 fields, including digital home appliances, pets, fashion, and sports. A single account can receive a maximum of 30,000 yuan in cash creation subsidies in a single cycle.

At the same time, in order to quickly complete the invitation of talents and the improvement of content, JD.com will specially set up an institutional incentive list of 5 million yuan.

Even Liu Qiangdong, the founder of JD.com who has not made a public appearance for many years, will make his live broadcast debut on April 16 as the No. 1 purchasing and sales manager of JD.com. Of course, he will appear as an AI digital person.

In any case, it is enough to show Dong Ge’s emphasis on short videos and live broadcasts.

But I personally am not optimistic about JD.com spending huge amounts of money to enter the short video market.

1. Serious content homogeneity

The first and most obvious problem is that all major platforms are now attracting authors, and authors are very happy about this.

After all, one work can enjoy multiple benefits on different platforms.

But the content is for users to watch. Low-quality and unpopular videos will hardly become popular even if you post them on other platforms.

For high-quality content and authors, Douyin is definitely the first choice.

For example, I often see a lot of reposted content posted on Pinduoduo and Alipay. I don’t want to watch it after a few times. The key is that it wastes the traffic of core channels. Many apps put short videos in the tab position of the first screen.

2. Why do users watch short videos on JD.com?

Many people believe that since users can consume on short video platforms, creating a short video entrance on e-commerce platforms will definitely help sell goods.

Although this is indeed the case for a part of it, it is still very small compared to the overall proportion.

Just like restaurants usually sell drinks, but when users are thirsty, they will still go to the convenience store next door to buy them.

In particular, JD.com has not thought about one question: for what purpose do users open JD.com?

No one has ever seriously thought about why users should stay on JD.com to watch videos after searching for products?

Especially those high-net-worth users accumulated on the JD platform, will they watch short videos on JD instead of opening Xiaohongshu or Douyin?

3. Shelf e-commerce is putting the cart before the horse

Of course, it’s not just JD.com. Many other e-commerce platforms are eager to put videos in the most important position like TikTok.

First, they believe that as long as they have traffic, they can succeed in anything they do.

Secondly, they believe that short videos are very popular now, so by creating their own short video portal and inviting some authors to publish their works, they can achieve a closed loop of traffic interception and consumption.

But they didn't think about the fact that users don't actually want to use something unprofessional and messy.

Just like WeChat will never be able to do e-commerce well, and Alipay will never be able to do social networking.

The core of video e-commerce is content. If the content does not arouse the interest of users, there will be no consumption. It takes one piece of content after another to stimulate the consumption desire of users in order to bring about transactions.

The core of shelf e-commerce is products. If users cannot find the products they search for, or the prices are not good, or the quality and after-sales service are poor, they will not come back next time, no matter how many videos you put up.

4. JD.com should focus on products and local markets

Why do many people stop using JD.com in recent years?

Why are many consumptions so easily replaced by Pinduoduo and Douyin?

Because the products on the platform are the same, users found that even though they are both brand flagship stores, the price difference between JD.com and Pinduoduo is not a few dollars, but dozens of dollars.

Maybe it doesn’t matter if you buy it once or twice, but if you buy it more than once, you will spend hundreds of dollars more.

The key point is that JD.com is famous for its quality and service, but spending a few dozen dollars more did not bring an experience that exceeded expectations.

Especially nowadays, express delivery is also required to be door-to-door. If you buy something in Jiangsu, Zhejiang and Shanghai, it can arrive the next day. This is what JD.com needs to think about.

First, why are the same products more expensive on JD.com? Where is the low price that JD.com always claims? How can users feel it intuitively?

Second, why are many products available on Taobao, Pinduoduo, and even Douyin, but not on JD.com?

Third, JD.com claims to have fast delivery speed, but in fact the delivery of many products is also very slow. How can it be improved?

Fourthly, e-commerce has been developing for 20 years. JD.com should focus on delivery within one hour, same day and next day. Otherwise, why should we use JD.com?

5. One leader, one policy

As to whether JD.com can produce good video content, you can follow up on its development.

However, short videos and live streaming have been developed for seven or eight years, and it is obvious that JD.com is much slower.

Especially for live streaming sales, which is relatively more reliable and more suitable for the scene, JD’s focus is on brand live streaming, and JD does not have its own top brand.

Kuaishou has Simba, Taobao has Li Jiaqi, Douyin has Xiao Yangge, Make Friends, and Oriental Selection, what about JD.com?

As to whether JD.com really wants to invest 1 billion yuan, it is actually unknown. This budget can be stopped at any time.

But what I want to say more is that in the process of starting and maintaining a business, many companies often have one leader and one idea.

For example, Alipay has set up interest communities and provided subsidies for creation. This crooked idea is a typical random move that wastes traffic just to make the KPI look better.

What is the final result?

That is, there is no stickiness or consumption awareness between users and creators, and they are just here to take advantage of the situation.

Then after a while the data was not good, a new leader was replaced, and a new policy came out.

By the way, you can go to Taobao’s homepage and activities, and see what’s the difference with Pinduoduo. It’s completely Pinduoduo style.

So starting a business is difficult, and maintaining a business is even more difficult.

Author: Shili Village

Source: WeChat public account "Shili Village (ID: shilipxl)"