Since the partnership between JD.com and Tangning Books Store in 2017, Jingdong’s customer base increased to 49 offline book stores. The largest online retailer in China is helping traditional bookstores enter the e-commerce world using its book business services. Their solutions for logistics, book procurement, and technology enable retailers to increase profits and bring convenience to customers. Among the book retailers are Yitiano, AIO SPACE, Tangning Books, and other locations in Beijing and neighboring areas. The modernization of the traditional bookstores provides an opportunity to improve customer service and sales by learning the customers’ behaviors for tailored book selections.
Tangning Books has two bookstore locations in Guangzhou that are a part of the partnering agreement for JD.com to source all its books from their inventory. Through the weekly restock services, offline book retailers keeps their stock updated using logistics networks. They receive benefits of prompt deliveries and labor savings to help reduce overhead costs. The companies formed a partnership in May 2017 and within seven months sales rose to 30 percent and profits were up 17 percent. One main reason is its delivery service to customers when a book is out of stock at a physical location. The customer can just scan the QR code and have the book delivered to the door within 24 hours from Jingdong’s warehouse.
Without this service, Tangning Books would not have seen an increase in sales and improved profits so soon. Offline book retailers have an option of Retail as a Service or the Raas Strategy. Restaurants, manufacturers, and other types of retailers use Raas to have access to technology and services. JD.com was formed in 2004 as a store location and moved it to an online business for marketing its broad selection of products, in 2010. Richard Lui, the founder and chief executive officer grew the online retailer over the last eight years into a billion dollar company. The market value is over $60 billion making it the top Chinese e-commerce service provider and retailer. Information about the partnership with Tangning Books and other offline book retailers is on JD’s corporate blog in an article, on November 23rd, 2018.
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