The thermos cup scene in Yongkang, Zhejiang: good business opportunities brought by smart logistics

Selling thermos cups from Yongkang, Zhejiang, all over China has been the lifelong dream of Ying Jiangming, the founder of Zhejiang Jileiya Industry and Trade Co., Ltd. Now, the baton has been handed over to his daughter Ying Yuting. The 18-year-old "successor" who started a business with her father and is now only 24 years old has a bigger dream: to design, manufacture and sell in a more intelligent and efficient way. The thermos cup makes consumers like it more and then sells it all over the world.

“Before cooperating with JD Logistics, our online store was somewhat tepid. After the cooperation, the sales conversion rate of our online store increased by 30%-50%, and the warehousing Management efficiency has also been greatly improved."

Since the 1990s, the thermos cup industry has suddenly emerged in Yongkang, and there has been a hot scene of "every factory has a cup". Due to fierce competition, many companies have been forced into the vicious cycle of "small profits but quick turnover". Under the stranglehold of price wars, many companies have failed to survive. At that time, Ying Jiangming and his daughter were also facing the same danger. There were tens of thousands of orders placed every day, and workers worked overtime until very late. However, because there was little profit, they almost lost money on every order.

In this situation, Ying Jiangming and Ying Yuting felt many crises and must change their development strategies in order to survive. On the one hand, we increased investment in technology research and development, and through strategic technical cooperation with German Bell Vacuum R&D Co., Ltd., we followed the path of quality and branding to create the "Yidi Shui" brand, raising the unit price through value extension and jumping out of the low price range. A marketing quagmire. On the other hand, with the rise of e-commerce, the father and daughter began to launch a breakthrough battle to test the waters of online operations. However, the initial situation was not ideal. "In the beginning, our e-commerce business was tepid. A prominent problem was that the delivery time and logistics services could not keep up with the needs of consumers." This made Ying Yuting very anxious.

Until the end of 2017, JD Logistics became a partner of “Yidi Shui”. JD Logistics is not just a simple delivery, but a professional integrated supply chain service. JD Logistics will arrange the goods in advance to warehouses in dozens of cities across the country. After consumers place an order, they will be shipped from the place closest to the consumer, so that the fastest way to achieve "order in the morning and receive the goods in the afternoon" is possible. "JD Logistics has done a good job of hosting a thermos cup from the production workshop to the hands of consumers with its digital and intelligent technical strength. The consumer experience has been improved, and the sales conversion rate has also increased by 30% to 50%."

In the first half of 2020, due to the COVID-19 epidemic, the businesses of many small and medium-sized enterprises were affected. The sales of Yidishui on multiple platforms have also declined to a large extent. The only exception is the JD platform. The overall sales have increased instead of falling, especially for insulated lunch boxes. More people pay attention to food hygiene and a large number of restaurant management have closed their doors. People's demand increased and sales tripled.

"Behind this is JD Logistics' uninterrupted operations and guarantees throughout the epidemic, as well as JD Logistics' intelligent supply chain system's advance prediction and guidance of Yidishui production." Ying Yuting said, During the epidemic, JD Logistics predicted in advance which areas and which products would be in high demand, thus guiding Yidishui to adjust the company's production lines and capacity. “Also during major sales periods such as 618 and 11.11, when stocks are easily sold out, shortages can easily lead to a large number of customer complaints. However, after we leave it to JD Logistics to take care of it, we will fully stock up in advance to ensure the spot rate. Such problems will not arise. Relatively few. ”

JD Logistics’ intelligent supply chain can provide Yidianshui with accurate predictions and efficient management in terms of explosive product prediction and inventory management, while reducing the loss rate. Can help them make decisions. Ying Yuting said: "As two generations, my father and I may have different business philosophies. Now we rely on JD Logistics. When we have disagreements, we have the same yardstick, which is to 'look at data'." ”

There is a proverb that says, “A drop of water can reflect the entire sun.” The development of "One Drop of Water" reflects the development of the Yongkang thermos cup industry belt. We can also see that JD Logistics is using digital intelligence technology to connect and optimize all aspects of social production, circulation, and services, reduce social costs, and improve social efficiency. Not only Yongkang's thermos cups, but also hundreds of industrial belts such as Guangzhou beauty, Yiwu stationery, Shantou underwear, Pingyi fruit cans, etc. JD Logistics has long become a builder of smart logistics infrastructure and an important promoter of industrial digitalization. , and contribute to the digital transformation of the industry.