According to national media on Thursday, JD.com’s community group shopping platform, Jingxi Pinpinfurther reduced its business lines and can only maintain operations in the cities of Beijing and Zhengzhou.
In 2019, JD.com launched Jingxi, a social e-commerce platform primarily aimed at small town and rural markets, as a countermeasure to the rise of Pinduo-duo. Jingxi Pinpin is a community group shopping platform under Jingxi, and was officially launched on New Year’s Day in 2021. Jingxi Pinpin builds on JD.comsupply chain system to provide community users with services such as next day arrival. It only operated in eight cities when it was established and once expanded to more than 20 Chinese provinces as its business expanded.
In March 2022, Jingxi Pinpin reportedly downsized and ceased operations in some cities. LastPost reported that on the afternoon of March 21, 400 Jingxi Pinpin employees in Jiangsu and Zhejiang provinces were asked to leave. Jingxi Pinpin, who once operated business in more than 20 provinces, only had business in Beijing, Shandong, Henan and Hubei provinces.
An insider close to Jingxi said, “The adjustment is in strategic focus and regional focus. Jingxi will place supply chain construction at the heart of small town and rural markets.”
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At the time of its establishment, Jingxi was aimed at the markets of small towns and the countryside of China and endeavored to attract traffic for JD.com Low cost. It presents a differentiation and a complementarity with JD.com. However, JD.com users are generally not found in small towns and rural markets, so it has been difficult for Jingxi to gain an advantage in market competition, and it is also difficult to have the advantage in sourcing in fresh produce.
In the first quarter of 2021, JD.com merged Jingxi and JD Production and Development into new ventures. These two were displayed alongside JD Retail and JD Logistics in financial information releases. According to the financial report, from the first to fourth quarters of 2021, the new business segment, including Jingxi, recorded revenues of 5.15 billion yuan, 6.96 billion yuan, 5.732 billion yuan and 8.21 billion yuan respectively. However, the loss increased year on year, recording 2.2 billion yuan, 3.02 billion yuan, 2.073 billion yuan and 3.22 billion yuan respectively.