The trade-off between efficiency and quality - JD Daojia product analysis report

1. Foreword

1.1 The purpose of this product analysis

This article attempts to analyze the version iteration process, user analysis, function analysis, and operation of JD Daojia Analysis and data performance are used to elaborate on the following questions:

(1) What is the product positioning of JD Daojia? (Business model/Profit model/Target group)

(2) What are the characteristics of JD Daojia’s product design and operation?

(3) What is the future iteration direction of JD Daojia?

All data in this article come from the Internet. Due to limited data sources and personal abilities, the views are for reference only.

1.2 Environment for this product analysis

(1) Product name: JD Daojia

(2) Trial version: 4.5.0

(3) Date of experience: August 24, 2017

(4) Model of experience: Nut pro

2. Product positioning and operation

Product positioning mainly focuses on the following aspects:

2.1 Product overview and development history

2.2 Current situation of the fresh food e-commerce market

2.3 User group analysis

2.4 Product Concept

2.5 Business Model

2.1 Product Overview and Development History

2.1.1 Overview of JD Daojia

Jingdong Daojia is a new business model developed by Jingdong Group based on the traditional B2C business model to higher-frequency commodity service fields (mainly supermarket fresh food, flower baking, medicine, etc.). It is an O2O life service that Jingdong focused on building in 2015. The platform is an important upgrade from the traditional B2C model to higher frequency fields.

It is based on JD's logistics system and logistics management advantages, and at the same time, driven by the popularity of the sharing economy, it relies on "Internet" technology to vigorously develop "crowdsourcing logistics" and integrate various O2O life categories. Provide consumers with the delivery of fresh food and supermarket products, and achieve fast delivery within one hour based on LBS positioning, creating an integrated application platform for life services. JD Daojia provides several types of home delivery services, including supermarket convenience, fresh fruits and vegetables, snacks and snacks, flower baking, and medicine and health. It has covered Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Tianjin, Wuhan, Ningbo, Chengdu, and Xi'an. , Chongqing and other first- and second-tier cities. (from Baidu Encyclopedia)

2.1.2 The development history of JD Daojia

(1) Version iteration

1.0.1 WeChat version, only supports Wangjing area

1.5.0 Order tracking and product evaluation functions are online; more diverse promotion methods are online; new industry channels are added to learn about the latest activities; the interactive design of the settlement page is updated. (Interactive experience/process upgrade, event content online)

1.5.1 Optimize login, address and other details; new activities are online.

2.3.0 adds red envelope sharing and discount collection; the limited-time function is optimized and the store name can be viewed.

2.4.0 The store homepage displays real-time activities and merchants’ qualifications; the settlement page has been revised.

2.5.0 Visual optimization of store homepage; optimization of shopping cart/checkout page; repair of remaining issues and enhancement of stability.

3.0.0 The home page has been revised to highlight the stores; the store list has been visually upgraded; purchases can be made in-store (offline); after-sales services are online.

3.1.0 Advance notes are online to deal with out-of-stock situations; estimated delivery is online; maps are online to make delivery routes more intuitive.

3.3.0 Shopping cart experience optimization; automatic positioning of the homepage is online; add SMS verification code to log in.

3.4.0 The friend invitation mechanism is online, friends can receive cash rebates when placing orders; products/stores support sharing; orders are placed after get off work the day before, and delivery will begin the next day when the store is open; the payment interface has been revised.

3.5.0 Positioning function optimization; flash sale activity page revision (cancel redundant time period display); promotional products will jump to the store promotion list after clicking; search results and store list on the homepage are optimized; packaging fee information description Display; product details page revision; after-sales batch addition of products and submission of after-sales orders online; order number supports quick copying to the clipboard; customer service system upgrade; comment system upgrade.

3.7.0 Report merchants, medals, and display reviews on the store page; you can complain about delivery personnel; follow the store to get coupons for fans of the store.

4.1.0 The evaluation function is improved; the store list style is adjusted; the types of promotions and refunds are added; the estimated delivery time is calculated in real time; the stores that the user has followed are highlighted in the search; and delivery personnel are supported to be rewarded.

4.4.0 Search function optimization; points system optimization; settlement page revised; stability repaired.

4.5.0 personal center revision; cashier revision; after-sales entrance process optimization;

From the above iteration list introduction, it can be seen that: starting from version JD Daojia 2.4.0, it will gradually By highlighting the proportion of stores near users in products, we hope to maximize the advantages of JD Logistics, mobilize service resources around users, and deliver the products they want to users as quickly as possible.

In addition, in the iteration of JD Daojia, JD has changed the interaction of the settlement interface many times. 2.X has carried out many iterations on the JD Daojia store page. Version 3.5.0 has launched corresponding functions for JD Daojia, a single type of multi-frequency product. 4.X has some iterations around after-sales.

From the ranking of each version of JD Daojia in the app store in Figure 1 and the number of comments in Figure 2, we can know:

(1) In version 2.3.0 (new red envelope sharing, Collection of discounts; optimization of limited-time functions, you can check the store name), the number of reviews and praise in the app store has increased a lot.

(2) In 2.3.0 (new red envelope sharing, discount collection; limited-time function optimization, you can view store names), 4.2.0 (evaluation function is improved; store list style adjustment; promotion and refund are added) type of payment; calculate estimated delivery time in real time; highlight stores that users have followed in search; support rewarding delivery personnel) 4.4.0 (search function optimization; points system optimization; checkout page redesign; stability repair) these three The number of positive comments for each version has increased a lot.

(3) In addition, JD.com’s “Home Shopping Festival” event on October 20, 2016 brought a good number of activities and comments at the time (but after the event, these two indices It fell down instantly).

Among the several search index peak events that have appeared in the Baidu Index from version 1.0 to now, two of the four are news about JD Daojia’s cooperation with famous food or supermarket brands (respectively Daoxiang Village, Yonghui Supermarket), one is the aforementioned JD.com "Home Shopping Festival" event on October 20, 2016, and a piece of news that "JD Daojia will start using drones to deliver goods from the first day tomorrow." (This one has the lowest search index compared to the others).

2.2 Current status of the fresh food e-commerce market

Because in the entire business system of JD Daojia, fresh food categories have the highest frequency of repeated purchases and 60% of users will purchase fresh food. At the same time, cross-purchase of other retail products is the most popular category and the most prominent consumer demand among the user groups of JD.com. Therefore, in the market analysis, the main analysis is the current status of the fresh food e-commerce market.

In the article "China's Fresh Food Consumption Trend Report: How to Win in the New Era Fresh Food Market" by the Boston Consulting Group (BCG) and Ali Research Institute, it was mentioned that from 2012 to 2016, China's The fresh food e-commerce market has grown from RMB 4 billion to RMB 95 billion. Currently, 7% of urban fresh food consumption occurs online. Price is obviously not the main motivation for consumers to shop for fresh food online. Rich, novel product types and convenience drive online fresh food consumption.

The article "China's Fresh Food Consumption Trend Report: How to Win in the Fresh Food Market in the New Era" also mentioned that compared to other supermarket categories, fresh food is the category with the highest willingness of consumers to upgrade their consumption. (63 percent of consumers want to buy better fresh products, while the average number of consumers in other categories is only 42.) Fresh consumers not only pursue better quality products, but they also demand trustworthy products. products and services and innovative lifestyle solutions.

Today in 2017, the fresh food e-commerce market is two years away from the "first year of fresh food" in 2015. In the fresh food e-commerce market, no one still has an absolute dominant position. Among the 170 e-commerce companies that received financing in the first half of 2016, only 21 were fresh food e-commerce companies, accounting for the smallest proportion. Obviously, at this time, the fresh food e-commerce market has begun to raise its threshold and entered the reshuffle stage.

In the category of fresh food e-commerce, except for the O2O model where JD Daojia is located. There are comprehensive platforms represented by Tmall, B2F/F2C represented by COFCO Womai.com, C2B/B2C represented by Cailan.com, and B2B models represented by Chain Cai.

In the future, the fresh food market still has huge potential, according to 199IT's "2016 China Fresh Food Industry Research Report". In 2018, the fresh food market will still maintain a growth rate of about 53%, and the market transaction size will reach more than 200 billion yuan. According to the "China Fresh Food Consumption Trend Report: How to Win the Fresh Food Market in the New Era" by the Boston Consulting Group (BCG) and Ali Research Institute, by 2020, China's online fresh food consumption will account for 20% of the total urban fresh food consumption. Consumption of 15-25.

2.3 JD Daojia user group analysis

2.3.1 JD Daojia target user group analysis

JD Daojia’s main characteristic is that it tends to be in the high-frequency purchasing field (Fresh food, flowers, medicines, etc.), utilizing merchant resources within a 3-kilometer radius of the user and relying on JD.com’s efficient logistics for delivery within one hour. Let’s take fresh food as an example again. The group that frequently buys fresh food is those aged 25 and older who have families and children and often eat at home. They can place an order before getting off work and receive the ordered goods when they get home, saving time on shopping in the supermarket and allowing them to rest more and spend time with their families. Instead of the so-called "lazy people": If you don't want to go to the supermarket because you are lazy, why not just order takeout?

It can be seen from Figure 4 that people searching for JD Daojia on Baidu are mainly distributed in first- and second-tier cities. From Figure 5, it can be seen that people aged 30-39 are the main search force. The male to female ratio is 59 for males and 41 for females.

To summarize from the above, I think the target users of JD Daojia are still in the first and second tier cities. The post-80s generation aged 30-39 have families and children. They often eat at home and their income level is at least Medium level.

2.3.2 User stratification and characteristics

Users of JD Daojia can be roughly divided into the following categories: supermarket store owners, wealthy family users, white-collar workers born in the 80s/90s, and experienced in online shopping of consumers. According to a report by the Boston Consulting Group (BCG) and the Ali Research Institute, by 2020, 30% of wealthy households will purchase fresh food online. The average age of consumers who purchase fruits, vegetables and other commodities through offline channels is now 45 years old, while the age of those who purchase these commodities online is 31 years old. Third, consumers with more than 5 years of online consumption experience will begin to consume a large number of fresh food online, and their online consumption accounts for more than 30% of the overall consumer market.

Because JD Daojia has always emphasized the combination of timeliness and quality from beginning to end. The typical usage scenario for these users may be at work: they are tired after a long day and don’t want to go to the vegetable market or carry things.

On the way home from get off work, I submit my need to buy dinner ingredients to the app; I am having sex with my girlfriend and find that I don’t have condoms, but I don’t want to go out and buy them back to ruin the atmosphere; when preparing for a family dinner, I need ingredients of both quantity and quality, and I place an order directly on JD Daojia Delivered to your home.

2.4 Product Concept

(1) Fresh food delivered to your home in 1 hour, supermarket fresh food delivered to your home - emphasizing efficiency, core selling point

(2) High-speed quality life Delivery must be of high quality and have an attitude - a combination of efficiency and quality

(3) Thousands of products can be owned with one click, and the products come from well-known supermarkets within three kilometers of the surrounding area - emphasizing efficiency and core selling points

(4) Make life easier, live a life without queuing or being mediocre - user demands

2.5 Business Model

JD Daojia and many other fresh food e-commerce products The difference is that JD Daojia makes full use of the resources of existing stores and supermarkets, thereby eliminating the need to build its own warehouses. JD Daojia only has to play a supervisory role for the quality of fresh food, saving a lot of costs. After the merger of JD Daojia and crowdsourcing platform Dada, combined with JD Daojia’s “resource distribution within 3 kilometers” method, JD Daojia has a huge efficiency advantage compared to other fresh food e-commerce brands, and is currently the only one A fresh food e-commerce platform that can basically meet the requirements of "delivery to your home within one hour of placing an order."

2.5.1 JD Daojia Business Canvas

The picture above is JD Daojia’s business canvas, which shows a detailed overview of each part of JD Daojia’s business model. In general, JD Daojia is an O2O supermarket product. It mainly uses rich rebate offers to guide consumers to place orders for high-frequency low-profit fresh products, thereby cultivating consumers' consumption habits and ultimately increasing other profits. Drain more products and achieve profitability.

Compared with other O2O fresh food products, JD Daojia has two major advantages: efficiency and brand. The merger with Dada allows JD Daojia’s products to be delivered through dedicated lines. This is why only JD Daojia can currently do this on the market. Guaranteed "one hour delivery". In addition, compared with other O2O fresh products, JD Daojia’s brand advantage is obvious. Consumers have a certain degree of recognition of the quality and delivery efficiency represented by the JD brand.

3. Product Design

This part mainly analyzes the user experience of the core functions of JD Daojia’s App. It is mainly divided into three aspects: information design, core business Main process and interaction design.

3.1 Core task flow chart

3.2 Information amp; interaction design

3.2.1 Store details

1. Red envelope icons for different stores Not uniform; 2. The position of the control of the collapsed page should be the same as the position of the open control

3.2.2 Shopping cart

1. The design of the thing that does not have the click function is too button-like. Unable to click; 2. The products in the shopping cart do not have any text information

3.2.3 Interaction design under special circumstances

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4. Summary and Suggestions

In general, JD Daojia is relatively mature in terms of the overall temperament of the product and the polishing of product details, but there are some minor problems in these aspects. This section mainly summarizes the product positioning and possible future iteration directions of the product.

4.1 Iteration direction

4.1.1 Super choice of suppliers

According to the survey, this group of consumers who use fresh food O2O have the highest willingness to upgrade their consumption. JD Daojia’s display of products within 3 kilometers often makes the displayed products insufficient in quality or richness to meet the needs of users. On my JD Daojia website, there is only one large supermarket, Yonghui Supermarket, but the number of orders it accepts is actually 10 times that of the second largest supermarket in the same category. This shows that spending additional logistics fees and spending more time without being able to purchase higher quality products will not attract consumers.

Because JD Daojia displays a large number of homogeneous small supermarkets within 3 kilometers, this means that JD Daojia's biggest competitor has become the community supermarket that is closest to the user's home and can be reached in 5 minutes. In terms of efficiency, JD Daojia will never be able to surpass the small supermarkets in the community.

So I think that in the selection of product providers, JD Daojia should be more inclined to large-scale comprehensive supermarkets that represent quality assurance and specialty stores in vertical fields that can best meet user needs. Jingdong Daojia can even cooperate with giant shopping malls like IKEA that are far away from urban areas and are inconvenient to frequent for consumption.

Another point is that due to limited resources within 3 kilometers, the daily operation of the product will also be affected. For example, I did not see a very detailed Qixi Festival theme plan on JD Daojia on the day of the Chinese Valentine’s Day ( Yes, but because there is not enough product richness in some places, there are only some limited types of discounts, so it cannot be done particularly well).

4.1.2 Interaction Design

The existing shopping cart and order TABs can be completely merged. The shopping cart is often empty. The main reason for the existence of the shopping cart is It is convenient for users to get information about their shopping products. When there is a discount, users can also use the shopping cart to find out whether they meet the discount conditions. The order TAB is more of a feature of high-frequency repeat purchases of fresh food, which is more convenient for saving time and improving efficiency when placing an order next time.

There is a problem with the design of JD Daojia’s current shopping cart interface. After entering this page, you have to jump back to the original store interface if you perform any operation. Information such as the total price of the selected products is not available in this interface. In this way, the shopping cart TAB plays a very small role (as shown below). In this case, a very common usage scenario (the user adds several new products on top of repurchasing previously purchased products) will switch the two TABs back and forth multiple times, making the entire process cumbersome. Got to be complicated. Therefore, it is reasonable to merge these two TABs into one TAB.

If the two TABs of shopping cart and order are merged and the necessary information is completed, it will help users make better shopping choices. Reduces the complexity of user operations. (As shown below)