JD.com Enters Automobile Service Industry, Plans to Help Create at Least 100,000 Smart Repair Shops
Xu Wei
DATE:  Nov 02 2017
/ SOURCE:  Yicai
JD.com Enters Automobile Service Industry, Plans to Help Create at Least 100,000 Smart Repair Shops JD.com Enters Automobile Service Industry, Plans to Help Create at Least 100,000 Smart Repair Shops

(Yicai Global) Nov. 2 -- JD.com Inc. [NASDAQ:JD], who currently provides automobile accessories, will soon enter the auto service industry and plans to smartify the market by reorganizing the flow of goods and information, and by lowering the trust costs between repair facilities and car owners, China News reported.

The firm unveiled its strategy yesterday. JD.com will help create at least 100,000 repair shops featuring intelligent forecasting, restocking and supply chain technologies, said Xin Lijun, vice president of JD.com and president of the group's home life business unit.

More than 200 million Chinese own cars, and that number's rise has contributed to the prosperity and expansion of the automobile service market, but information barriers and a lack of coordination among participants restrict service quality and efficiency.

Chinese car owners face a dilemma. On the one hand, they are concerned about the prices of repairs at 4S (Sales, Spares, Service and Survey) stores. On the other, they are worried about the quality of services at some roadside shops. The majority of the hundreds of thousands of automobile repair service centers in China are struggling with marginal profits due to barriers in the flow of goods and information that hamper the development of the industry, JD.com said.

Automobile repair shops that lack the funds to stock accessories to meet customers' various demands need to spend a lot of time looking for suitable accessories from upstream suppliers, and even if they find the required items, they may face difficulties with ordering or delivery. The high cost of accessories and the time-consuming process lead to poor user experiences. Automobile repair shops can hardly develop a stable customer base, and they have to spend more money attracting new customers, an insider said.

To address the situation, JD.com is attempting to unify consumers' social behavior with shopping data to form an efficient, precise, and secure database that can help repair shops precisely identify and reach users within a specific region who may need auto maintenance and repair services.

With this guidance, automobile repair shops will be able to quickly find a supplier on the B2B (business-to-business) platform in JD.com's automobile service chain. In this way, they can purchase original-factory products from the shortest supply chain, at the best prices, with the best efficiency, said Qing Yan, who heads JD.com's automobile after-sale business.

JD.com has established collaborations with more than 30,000 stores nationwide. With JD.com's database, supply chain, logistics, membership and marketing resources, repair shops can transform themselves into service stores with intelligent inventories and operations.

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Keywords:   JD.com,Auto Service Industry