How did JD.com perform in the assignment of 10 billion yuan in subsidies?

On March 6, the JD.com "10 billion subsidy" project, which has sparked heated discussions, was finally launched. So compared with Pinduoduo's "10 billion subsidy", how is the discount of JD.com's event? What kind of thoughts and considerations can we see behind the "10 billion subsidy"?

JD.com’s long-rumored 10 billion yuan subsidy has finally been revealed.

From the continuous release of information to the outside world, including the APP update, to the official launch time being moved up from 8 p.m. to midnight, JD.com has been very high-profile and anxious, and it is eager to let users see the intensity of the subsidies.

After all, this is Liu Qiangdong's first big move since he regained power and returned to the front line in the second half of last year. It is also Liu Qiangdong's first stage debut after he returned to China to work immediately after accompanying his wife to give birth to a child in February this year, firmly optimistic about the development of the domestic economy.

The importance is self-evident, and success or failure is crucial.

Whether it's a mule or a horse, take it out for a walk.

JD.com’s 10 billion yuan subsidy is directly targeted at Pinduoduo. Let us now compare and see what the subsidy intensity is of JD.com’s 10 billion yuan subsidy this time.

01

When it comes to the 10 billion yuan subsidy, the first impression in the user's mind is the brand standard product - Apple mobile phone. The reason why Pinduoduo's 10 billion yuan subsidy opened up the market within the Fifth Ring Road was precisely because of the subsidy for Apple mobile phones.

This also means that JD.com dare not be vague when it comes to Apple phones.

First, JD.com used its own resources to provide Apple with a 10 billion yuan subsidy, using a combination of its own and third-party stores on the platform. For some models, its own stores are even cheaper than third-party stores.

For example, the iPhone 14 256G midnight/purple price after third-party subsidies is 5,809 yuan, and the JD.com self-operated price after subsidies is 5,759 yuan, with a subsidy of 540 yuan, which is the lowest price in JD.com's history.

(JD.com on the left, Pinduoduo on the right)

In contrast, the Pinduoduo iPhone 14 256G purple page shows that the subsidized price is 5,959 yuan. If you complete the designated coupon grab, the price will drop to 5,759 yuan, which is consistent with JD.com's 10 billion yuan subsidy.

Similar situations also occurred with different Apple models. The price of iPhone 13 128G after JD.com’s self-operated subsidy was 4,459 yuan, and the price after Pinduoduo’s 10 billion yuan subsidy coupons were also 4,459 yuan.

Obviously, as a key project, JD.com’s sincerity in providing 10 billion yuan in subsidies has been demonstrated.

JD.com has launched its own products, not only lowering the prices of its own products to the lowest level in history, but also continuing to provide services and guarantees on the basis of high subsidies. At the same time, compared with Pinduoduo's 10 billion yuan in subsidies, JD.com has more self-operated models, users have more choices, and they don't have to grab coupons.

However, JD.com's 10 billion yuan subsidy still failed to break through Pinduoduo's 10 billion yuan subsidy price for Apple phones after all coupons were snatched, which is a little regrettable. After all, the price war that users expect is who is cheaper and who buys Apple more.

Of course, this is also most likely the result of maintaining price balance after competition between the two parties.

It is also worth noting that even with JD.com's strong attack, Pinduoduo has not given up its coupon-grabbing strategy of subsidizing Apple phones in the past two years, and its defense is not as active as expected. Yes, for JD.com's 10 billion yuan subsidy, Apple phones have a very high weight, but for Pinduoduo, it may be different.

02

The main dimension of competition is in other categories.

Although the price difference is not achieved on Apple phones, there are indeed some products on JD.com’s 10 billion yuan subsidy that are more cost-effective than Pinduoduo.

(JD.com on the left, Pinduoduo on the right)

The Switch console, which has been very popular among users in the past two years, has a Japanese version of OLED white. The price after JD.com's 10 billion yuan subsidy is 1,939 yuan, and the price after Pinduoduo's subsidy is 1,959 yuan.

The price of the Japanese version of Sony PS5 optical drive is only 3,344 yuan after JD.com's 10 billion yuan subsidy. Originally, this price was cheaper than Pinduoduo, but after JD.com went online, Pinduoduo also quickly adjusted the price to 3,344 yuan.

There are also some categories where Pinduoduo is cheaper.

(JD.com on the left, Pinduoduo on the right)

The eighth generation of Wuliangye Puwu is priced at 919 yuan after JD.com’s 10 billion yuan subsidy, while Pinduoduo’s is 899 yuan.

The price of Jiannanchun Crystal Sword is 418 yuan after JD.com’s 10 billion yuan subsidy, while that of Pinduoduo is 385 yuan.

The price of Golden Dragon Fish Peanut Flavor 5L is 62 yuan after JD.com’s 10 billion yuan subsidy, while Pinduoduo’s is 53.9 yuan.

etc.

As for beauty products and clothing, the SKUs covered by JD.com’s 10 billion yuan subsidy are relatively few, and most of them are non-popular products. Some users said that even Fairy Water and La Mer are not on the list, so what kind of 10 billion yuan subsidy is this?

It is not difficult to see that JD.com's 10 billion yuan subsidy for 3C categories is still supported by SKUs and bargaining power, but it is slightly unable to cope with other daily necessities, department stores, beauty and clothing, etc. Not only are there few subsidized categories, but the price advantage is also not reflected.

03

In general, JD.com’s 10 billion yuan subsidy may not be as powerful as imagined. It is more like a defense against Pinduoduo rather than an offense, intended to prevent more users in first- and second-tier cities from defecting to Pinduoduo.

Over the past year, JD.com has basically been in a state of stagnant growth.

In the first three quarters of 2022, the revenue growth rates of JD.com's core digital home appliances were 14%, 0% and 7.6% respectively, all hitting new lows since 2019. The user scale also slowed down.

Pinduoduo, with the help of 10 billion yuan in subsidies, continues to encroach on JD.com's 3C sector. Consumers who originally preferred JD.com to buy 3C products have begun to consider Pinduoduo as one of their alternative purchasing channels.

Pinduoduo's growth is still at a high level. In Q3 2022, Pinduoduo achieved revenue of 35.504 billion yuan, a year-on-year increase of 65%, which has accelerated for three consecutive quarters.

It is no wonder that Liu Qiangdong lost his temper, berated the senior executives, and then emphasized within the company that "low price was the most important weapon for JD.com's success in the past, and it will be the only basic weapon in the future."

This is why there is this 10 billion subsidy project.

Judging from the current situation, there are bright spots, such as JD.com's own brand endorsement, delivery system, and service guarantee. There are also shortcomings, such as the price has not been broken through, the SKUs are still small, etc. It depends on how it continues to move forward in the future.

Author: Ye Er; Editor: Wei Xiao

Source public account: AI Lanmeihui (ID: lanmeih001), a well-known new media reporting on AI and Internet industries.