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The merger of JD home appliances indicates the future development trend of the home furnishing industry

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On November 23, JD Retail started a large-scale personnel adjustment internally, and many presidents' posts changed.

Li Shuai is responsible for the merger of household appliances!

Lieutenant General Yao Yan, the former president of JD 3C household appliances business group, succeeded Liu Lizhen as the president of the omni channel business group of the supermarket. Liu Lizhen has other uses; Feng Yijiang, the former president of the fashion home business group, retired and was replaced by Kong Xiangying, who previously served as the head of the retail platform ecology department.

In addition, Jingdong Home Appliances will be merged with Jingdong Home Appliances. The original 3C home appliance business group will be divided into two independent business groups, namely, home appliance business group and communication digital business group. The responsible persons are Li Shuai and Wu Shuangxi respectively. The former is the CFO of Jingdong Retail Group, and the latter is the former general manager of the computer digital business group.

All the above principals report to Xin Lijun, CEO of JD Retail.

After this adjustment, JD Retail will have 6 business groups - household appliances, digital communications, omni channel business groups of large stores and supermarkets, fashion household business groups, life service business groups and enterprise business business groups.

In this structural adjustment, it is worth noting that JD has merged household appliances with home appliances to establish a household appliances business group. This also means that JD will connect home appliances, household appliances and furniture together. An insider said that household appliances and home furnishing are JD's traditional superior categories. This merger will enable JD to form a closed loop in the home scene and bring more business collaboration.

Integration of household appliances and home furnishing industry is the trend

Wu Xianjian, the assistant director general of China Household Appliance Business Association, said that the integration of household appliance retail business is a way to improve the quality and efficiency of one-stop shopping and package solutions for users from the demand side. In addition, in the 5G era, user demands and industry iterations are changing rapidly, and JD also needs to adapt to changes and make changes quickly.

Dong Jingjing, the brand director of Ningbo Youban Intelligent Technology Co., Ltd., believes that the integration of household appliances is the trend. Especially in the kitchen electric industry, the head kitchen electric enterprises have integrated kitchen companies, such as kitchen cabinets and whole house customization. Customized household enterprises also have corresponding kitchen electricity OEM business. Home appliances need to be customized, and the customer price is higher, so it is natural to drive the development of home appliances business. JD's combination of home appliances and home appliance retail business is also related to the poor prosperity of the current home appliance market.

Peng Xiandong, general manager of Gfk Zhongyikang's large household appliance business unit, believes that the retail channel of household appliances has changed rapidly recently, and the scale of social networking platforms has grown significantly. The organizational adjustment of JD is first to adapt to the changes in the current retail industry; The second is to focus on users, and put more resources into the combination of retail scenarios and users from the perspective of scenarios.

In fact, for the first time this year, the national policy has also combined the promotion of household appliances and household consumption. In August 2022, the relevant national departments issued the notice of the action plan to promote the high-quality development of the household industry, promote the integration and innovation of household appliances, furniture, lighting, hardware products and other industries, and cultivate the smart home ecology. Analysts believed that this was a breakthrough in the post real estate era.

The pre positioning of household appliance retail channels has also made the building materials and home furnishing market an emerging force in high-end household appliance sales. Like Red Star Macalline, it is actively opening a large store of smart appliances. According to the data reported by AVC, in July 2022, the sales of kitchen appliances in China's high-end building materials channel accounted for 26.6%.

"It is not surprising that JD has combined household appliance retail business." Wang Bing said that JD is already planning. In Nansha District, Guangzhou, Jingdong has opened a 3000 square meter home appliance store; In Qingyuan City, Jingdong is also planning to open a home appliance store of several thousand square meters; In Zhongshan City, Jingdong also opened a similar home appliance store. The number of people in offline household appliance retail stores has decreased, which can not support the rent. Many offline household appliance retail businesses have been transferred to the home furnishing, furniture and building materials markets. When looking for someone to design, consumers who want to decorate also take refrigerators into consideration. Home appliance sales are transforming from the terminal retail market to the sales of complete sets of home appliances, moving to the front. JD's structural adjustment caters to the changes in the market.

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