Why Does JD Open A Dedicated Warehouse For Uniqlo?

JD wants to open a dedicated warehouse for Uniqlo. Pan Ning, senior executive vice president of the global marketing group of Uniqlo's parent company and CEO of Uniqlo Greater China, said that cooperation between the two sides can achieve complementary advantages.

At present, more than half of Uniqlo's overseas revenue comes from the Chinese market, and it has more than 300 stores in China, and it has landed on Alibaba Tmall platform as early as 2009. The head of Uniqlo media said that the JD flagship store is completely consistent with other official online flagship stores and physical stores of Uniqlo in terms of product types, commodity pricing, promotion modes and other links. The difference lies in the logistics. Uniqlo will use JD's warehousing and distribution, and specific regions can achieve the same day delivery.

Since the launch of "Shangjingdong" channel in January 2014, Jingdong has increased its power in the clothing field to confront Tmall. In just one year, HUGO BOSS, GAP, Levi's, Lacoste and other international brands successively landed in Jingdong Clothing City. The reason is that in addition to the advertising gifts and distribution fee concessions provided by JD, the most important thing is JD's logistics advantage.

In January 2014, Levi's JD flagship store was launched. "(JD) is very fast. It can distribute goods from the warehouse twice a day, and most express companies only distribute goods once, so that orders in the morning can be delivered to consumers in the afternoon, especially on holidays." Lauren, Levi's e-commerce manager Yang told the interface reporter.

In the past year, this e-commerce company with its own characteristics has invested a lot in logistics. As of December 31, 2014, JD has seven logistics centers and 123 large warehouses nationwide, covering 1862 districts and counties. Users in 134 districts and counties can enjoy the same day delivery service.

Uniqlo said that since the brand's e-commerce warehouse is in Shanghai, the two sides decided to put the initial running in place in this city, while JD set aside 10000 square meters of the original warehouse resources for Uniqlo. In terms of warehousing, because JD is SKU managed goods, while Uniqlo is batch managed, this subtle difference has led the two sides to discuss and adjust several times in the previous three months.

The exclusive warehouse in Shanghai will support the inventory of 1 million sets of clothing. After being put into operation, it can support the warehousing of up to 50000 pieces of clothing. With the warehousing capacity of 100000 pieces, an order can be completed every two seconds on average. For consumers, this means that it only takes 15 minutes from order placement to delivery, and the delivery time is reduced to 6 hours or less.

　　 JD.COM It also has certain advantages in terms of freight. Tmall Store logistics The brand is responsible for its own use of Japanese black cat's house. It charges freight according to the region. If you buy more than 200 yuan, you can get free mail. JD adopts its own warehouse and equipment integration background, which is implemented according to the freight standard rules, that is, free of postage for 79 yuan and above.

Although it is still one week before the official launch, Uniqlo It has started to launch promotional activities on the JD platform, with 5 products of designated colors participating in the limited rush purchase activities every day. In addition, Uniqlo, which always likes to launch cooperation series with various cartoon characters, also cooperates with JD to launch four co branded UT (UNIQLO) in different colors T-Shirt)， Each hero is Joy, the mascot of Jingdong, and the red one is exclusively sold on the Jingdong line.

Jingdong said that Shanghai Xincang is only the starting point of cooperation and will accelerate nationwide warehousing in the future. Cinthia, Partner of French OC&C Strategic Consulting Company in Greater China Chen believes that "the cooperation between the two sides may encourage more brands to use JD's logistics services." She adds that for brands, sales channels depend on cost and customer experience.

Delivering warehousing and distribution to JD has reduced Uniqlo's burden to a certain extent, while JD said that the exclusive warehouse can uniformly allocate warehouse resources and personnel through its own logistics resources, and its operating costs will not be higher than JD's own, but can reduce the costs of both parties through economies of scale.