Jingdong hand clothing field or stop for

Posted on Posted inhgouziab

[Abstract] Jingdong over reliance on 3C products in the past led to persistent losses. This time the expansion of clothing may stop for.

Tencent technology month on August 19th reported

yesterday, Jingdong announced the opening of strategic cooperation and "bazaar" in Beijing, into the field of clothing, and hit the "difference fast fashion" brand strategy.

for cooperation between the two sides, the Jingdong provides selection of products, and "bazaar" provide fashion advice and guidance, resulting in a new fashion business platform.

it is understood that the Jingdong to enter the garment industry, and Tmall, vip.com mode, pays more attention to the brand and product quality, will be three directions from fashion, boutique, the advance of the platform, it is the fine line, target market positioning for the pursuit of quality and brand in the end consumer.

Jingdong overwhelmed why enter clothing products

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has been a Jingdong hit 3C category, its sales accounted for about 60%, but the 3C category price is more transparent, low margin, over reliance on 3C appliance makes the Jingdong continued losses, the Jingdong may expand the clothing category to stop.

from the market value, the market capitalization of $41 billion 155 million, in the market share of the market value of the second only to Tencent and Baidu, vip.com’s market capitalization of $12 billion 512 million, living in the forefront of stocks. But the first half of the 4 billion 377 million yuan loss, but this loss, Jingdong need a rational view, such as the Jingdong in 2014 second quarter net loss reached 582 million yuan, but this is mainly due to the amortization of assets and business acquisitions and bring to Tencent strategy in the protocol of the intangible assets, bring real will not affect the daily operation of Jingdong.

Jingdong burned 3 billion 795 million last season, to the most recent two years, which is caused by non business Jingdong, but included a sum of 3 billion 670 million yuan, or about $606 million of equity spending, this equity is mainly granted to the board of directors of the Jingdong and Jingdong CEO Liu Qiangdong.

Analysys analyst Wang Xiaoxing view, the clothing category as the second largest electricity supplier sales category, variety of goods, gross margin was significantly higher than the 3C category, seasonal clothing itself but also makes clothing consumption frequency higher than the 3C category, these factors lead to the Jingdong’s clothing has become a hotly contested spot.

at present, in the clothing field of electronic business, Taobao Tmall occupy most of the market share, vip.com through flash sales model innovation has achieved good results, dangdang.com also reached a massive. It can be predicted that, with the Jingdong into the online apparel market, the future of the entire garment electricity supplier will usher in a new round of arms race.

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