After the red envelope war, can the 1.5 billion Spring Festival Gala marketing help JD continue to "sink"?

In 2022, the red envelope war of the Spring Festival Gala ended. JD gave out red envelopes and gifts worth 1.5 billion yuan. Finally, the total number of interactions was fixed at 69.1 billion.
Seven years ago, wechat won the turnaround in the field of online payment by “sending red envelopes”. Since then, Kwai Fu exclusive partners have been a marketing mark for Internet companies. Taobao, Baidu, tiktok, jitter, Jingdong and so on have been in the market.
From the perspective of public image, compared with ALI meituan, who was issued an antitrust ticket, and Didi, who was frustrated in listing in the United States, JD, which is transforming a new entity enterprise and focuses on supply chain empowerment, seems to have got a “safety card”.
In order to “send” the red envelope of the Spring Festival Gala, JD has made many preparations internally. The red envelope project of Jingdong Spring Festival Gala is in the overall charge of Xu Lei, President of Jingdong group, led by Xin Lijun, CEO of Jingdong retail, and supported by Jingdong Logistics, Jingdong technology and other sub groups.
Chang Liang, senior director of JD cloud infrastructure research and development department, once told the interface news that during the Spring Festival Gala, the items related to the red envelope link of the Spring Festival Gala are at level s, and the other items are classified as ABC according to their importance. Even the items classified as level s in the past 618 will be degraded according to the situation.
Jingdong attaches so much importance to the red envelope of the Spring Festival gala for practical reasons.
According to the financial report data, although the traffic of Jingdong main station entered a growth period after the market was forced to sink, the growth rate of annual active users slowed down. In the third quarter of last year, JD had 552 million active users, a net increase of 110 million over the same period in 2020, but its year-on-year growth rate fell to 25% from 29% in the first quarter of 2021.
Its seven fresh food business is still focused on the first and second tier cities in Beijing Tianjin Hebei and Dawan district; Jingxi Pinpin withdrew from Fujian, Gansu, Guizhou, Jilin, Ningxia and Qinghai last year, and it is difficult to undertake the task of developing a sinking market under the contraction situation; The cycle of offline channels such as Jingdong electric appliance city flagship store and wanzhentong Township store is too long, and the cost is unknown.
For JD, the Spring Festival Gala may be another opportunity to open up the situation after community group buying. We should know that the Spring Festival Gala still has a strong influence in the sinking market and has a wide audience, which helps Internet companies improve their user structure and can be used as a fast track to open the sinking market.
Now that the Spring Festival is over, has JD’s red envelope marketing achieved twice the result with half the effort?
Only from the number of interactions, it seems that the Spring Festival Gala of the year of the tiger undertaken by JD is not as “lively” as last year. According to the 2021 Spring Festival evening data released last year, the total number of red envelopes during the Spring Festival Gala was 70 billion 300 million, higher than that of the tiktok year 69 billion 100 million times.
In addition to the Jingdong main station, the Jingdong app matrix is also “digesting” the huge traffic of the Spring Festival gala as much as possible. During the Spring Festival, the “shake the tiger in Beijing” activity is launched simultaneously. According to the data released by jd.com, the event issued more than 158 million coupons and attracted more than 32.27 million people.
However, Jingdong and tiktok APP attributes are not the same. Compared with the short video platform, e-commerce applications pay more attention to the transformation from interactive number to order behavior.
According to the Spring Festival consumption trend released by JD big data, as of February 5, the turnover during the Spring Festival in 2022 increased by more than 50% year-on-year (year-on-year in the lunar calendar from the 30th of the year to the fifth day of the first month). According to the statistics of the online connection clearing platform, the online connection platform handled a total of 4.20 trillion yuan of inter agency online payment transactions five days before the Spring Festival holiday, with a year-on-year growth rate of 11.58%.
This means that the growth rate of Jingdong’s transaction volume during the Spring Festival has been higher than the average growth rate of online payment at the social level.
At the user level, affected by the interactive activities of the Spring Festival Gala, the activity of JD young users has also increased. Data show that during the Spring Festival Gala, the interaction volume of young people under the age of 35 accounted for more than 56%, exceeding the annual average. Jingdong supermarket has searched more than 110 million times for annual gift boxes, of which 71% of users are post-80s and post-90s.
It is worth mentioning that under the promotion of the red envelope of the Spring Festival Gala and the new year’s goods Festival, the sales of goods in non JD advantage categories such as services have increased, among which the orders of goods such as laundry services, health services (package), automobile services and pet services have increased by 6 to 10 times over the same period of the lunar calendar last year.
According to the data released by jd.com, through the flow pool of the Spring Festival Gala, jd.com has successfully improved the consumption intention of platform users to a certain extent. At the same time, it has promoted young users under the age of 35, but it does not rule out the short-term bonus during the Spring Festival Gala red envelope and the Spring Festival.
At the telephone conference in the third quarter of 2021, Xu Lei, President of JD group, mentioned that about 75% of JD’s new users come from the sinking market. At the same time, Xu Lei divides the new users into two groups: 45 years old and above and 18 to 25 years old. He pointed out that it takes some time for users aged 18 to 25 to improve their ARPU value (average income per user), which generally takes half a year or four to five times of consumption.
Therefore, in the long run, how to seize the short-term benefits, improve the experience of young consumers and achieve user precipitation in the sinking market is still an issue that JD needs to consider in the next step.
This article is from “interface news”, reporter: Yu Hao, 36 krypton, authorized release.