They say that when people come together, great things happen. As cliché as it might sound, this saying is true and applies even in business, like JD. Com, Asia’s largest e-commerce retailer, proves. Due to the fierce competition that ordinary bookstores have been facing from online storefronts, JD.com recently announced its plans to provide e-commerce solutions to 49 traditional brick and mortar bookstores in the region in a strategy dubbed, RaaS, or retail as service. What makes the Raas stand out is that even though JD.com boasts its successful online storefront for the book business, it is offering its support to smaller business by providing innovative solutions which not only help them stay in business but also improve their functionality. This is an extraordinary gesture because instead of utilizing its vast resources to knock out its competitors, JD.com is setting the bar for other businesses supporting each other by giving a helping hand to the competition.
A glance at the RaaS platform
Some of the offline bookstores which will benefit from this new strategy include Yitiao and AIO Space. The Retail as Service strategy will utilize JD.com’s top-shelf technology to modernize the way offline retail businesses operate, thus enabling them to maximize on both offline and online markets. Some of the resources that retailers will enjoy are inclusive of Jingdong’s big data analysis capabilities, and supply chain expertise.
Even though the strategy has been in play for a short while, its success is already evident, as bookstores such as Tangning in Guangzhou have reported a 30% increase in sales since the launch of RaaS, early this year. Before partnering up with JD.com, the bookstore only managed 60 book suppliers, but now, it has way more than that and additionally, has had a 17% profit increase since the partnership began. According to statements from the Tangining’s management, the RaaS strategy has helped the bookstore gain a competitive advantage in this highly dynamic and competitive world of business.
A glance at JD.com
As mentioned earlier, JD.com is one of Asia’s largest e-commerce platforms in terms of revenue. The company was previously known as 360 buy but changed its name to Jingdong in 2013. The retail platform competes with the likes of Alibaba and offers a diverse array of goods in all categories. It is particularly renowned for its high tech capabilities, and also stands out due to its massive drone delivery system. It was established in 1998 but only went online in 2004 and has its headquarters in Beijing.