How to Tap into Marketing Potential in the Upgrading Phase of China's Logistics Industry?

By ESC Editorial Team, over 5 years ago Business

How to Tap into Marketing Potential in the Upgrading Phase of China's Logistics Industry?

In June 2018, China's Internet e-commerce platforms launched a big round of sales promotions. Take JD.com as an example: during this year’s Global Mid-Year Shopping Festival, from June 1^st 0:00 until June 18th, 24:00, JD.com’s order amount was RMB 159.2 billion, which is a record. The performance of e-commerce platforms cannot be separated from the logistics industry.

As the bridge linking the two terminals of consumers and brands, logistics and transport can smoothly deliver the branded products smoothly to consumers. The logistics delivery scenarios of shipping and receiving packages have become an integral part of Chinese people's lives.

Although hundreds of millions of express deliveries take place daily, logistics has accumulated massive user consumption data. However, for many people, logistics is limited to consumer-oriented services such as cost reduction, word-of-mouth communication and third-party credit. The potential of logistics at the brand level and research into marketing models have received too little attention.

With the fragmentation of people's consumption scenes, online traffic is spreading to various platforms. And the trend is becoming more obvious. Therefore, China's retail industry urgently needs new business formats. How to professionalize the logistics and other infrastructure in the current marketing environment in order to achieve good brand promotion efficiency with the new marketing model? This will be a project for future e-commerce and brand companies. During this year’s 618 Mid-year Sales Festival, JD Logistics set up "Unbounded Logistics Paradise" which integrates both online and offline merchants. The unbounded marketing perspectives give rise to a lot of imagination. Below are three levels of thinking.

The First Level of Thinking: Break the Online and Offline Boundaries and Address Marketing Pain Points in Delivery Scenarios

At present, more and more Chinese are opting for e-commerce shopping. JD's logistic data shows that the space and time constraints associated with choosing a package are still a problem for most users. Especially in sales seasons like 618, problems often occur: Slow deliveries of goods, the explosion of packages, the decline in service quality and customer complaints. To solve these problems, JD Logistics proposed the concept of "Unbounded Logistics".

Not only does JD Logistics have an industry-leading network layout and basic infrastructure, it has also accumulated a large amount of user consumption data and can accurately output user portraits. Big data analysis of consumer behaviour enables JD Logistics to pre-deliver hot-sale products in specific areas in their warehouses, thereby shortening the logistical distance between goods and users.

The online detail pages of these hot-sale items are labeled "Lightning Delivery". Users only need to open JD APP to find the most suitable product in no time. After an order has been placed, JD Logistics can quickly receive, ship and distribute the order to complete the final delivery of goods with “Lightning Delivery”.

To illustrate the perfect experience of the "Lightning Delivery" service, JD Logistics also ran an offline "Lightning Delivery" event in Beijing’s Happy Valley, inviting people from all walks of life. At the event, an athlete placed a "Lightning Delivery" order via the JD "JD Now" platform. JD Logistics promptly delivered his order, MIZONE of Mojito taste, within 10 minutes, and quickly resolved the thirst of the athlete. By combining intelligent technologies with logistical advantages, Jingdong Logistics achieves the ultimate shopping experience with one-click orders and lightning delivery.

The Second Level of Thinking: Integrate Online and Offline Resources to Enable Marketing Breakthroughs for Brands

Marketing expert Philip Kotler believes that marketing adds value to consumers. Logistics delivery not only completes the last stage of goods transfer, but is also a very important point for the consumer. After more than ten years in the logistics industry, high-frequency delivery scenarios in daily life are the marketing breakthroughs JD Logistics offer to brand owners.

On the surface of the boxes "Unbounded Logistics Paradise" and brand posters in the boxes are huge brand logos. On the one hand, it shows that the mature brands recognise and trust JD Logistics; on the other hand, it also shows that the express box, logistics, distribution vehicles and other lines are also becoming the resources to expose the brand.

In any case, in addition to the logistics advertising resources, high-frequency displays of cooperative brands in key venues such as various JD.com platforms, the opening of YHD APP, and the home page focus map will bring hundreds of millions of online traffic exposures.

JD Logistics also has numberous offline resources of brand cooperation. During the 618 sales campaign, JD Logistics teamed up with more than 100 channels and other industry channels to launch 104 off-line activities simultaneously. It acquired more than 11,000 offline advertising resources across the country, covering more than 7,000 community campuses and several first-tier cities. The number of people reached is as high as 35 million.

The Third Level of Thinking: The Combination of Technology and Innovation to Help Merchants Improve Marketing Efficiency

After integrating the online and offline logistics system and extensive marketing resources, JD Logistics has also cleverly used various marketing methods such as content marketing and experience marketing, which has significantly improved the marketing efficiency of branded merchants.

In line with the offline activities of Unbounded Logistics Paradise, JD Logistics has used social online platforms like WeChat to attract more attention through various forms of content such as graphics, video, brand cross-border posters, etc., to increase the popularity of topic and fan participation.

In addition to creative content, JD Logistics uses technology innovation to increase interactive interest and participation to further develop the brand's marketing potential. For example, during the event, visitors were able scan all Jingdong Express Boxes through JD.com AR to connect to the 3D shopping street. In addition to the “Lucky Money”, they can receive more online discounts. In conjunction with the lightning delivery service during the event, it is easy to switch from outdoor scenes to shopping scenes.

JD Logistics provides an integrated unlimited marketing solution for cooperative brands through video, graphics and other content creation on social platforms, technology reserves such as holography, AR scanning and Lucky Money and experiential marketing for offline activities.

Summary

Combining logistics advantages, resource integration and marketing innovation, the "Unbounded Logistics Paradise" during the 618 Sales is a perfect interpretation of Jingdong's unlimited retail concept.

With the advent of the era of unlimited marketing, JD Logistics has broken through the limitations of online and offline traditional logistics markets. It means that JD Logistics is taking a step forward and setting a new benchmark for brand cooperation. JD Logistics will be a reliable marketing partner for brand owners.