Reported by Pulsestacks on May 21
In the first half of this year, JD has been actively involved in the automotive industry.
On March 16, JD announced a 500 million yuan subsidy to support the "trade-in" of old cars for new ones. On the same day, JD reached a comprehensive strategic cooperation agreement with BYD.
On March 17, JD's New Energy Vehicle Experience Center opened at Tianjin JD MALL.
On May 13, JD entered into a new strategic partnership with Xiaomi. In addition, accessories for the Xiaomi SU7 (specs | images) have been launched on JD's "instant delivery" service.
On May 17, Shenlong Auto and JD Automotive officially signed a strategic cooperation agreement at JD's headquarters, launching the "Dragon Capital Plan." They will collaborate deeply in retail channels, parts authorization, service networks, and more to jointly create a new automotive service model, furthering their commitment to "guarding with five hearts and resonating with kindred spirits."
As Vice President of JD Auto and General Manager of JD Auto Care, Chen Haifeng stated, JD Auto has established a comprehensive business layout covering vehicle sales, self-operated automotive products, and automotive aftermarket services. The collaboration with Dongfeng Motor Corporation not only signifies another significant move by JD in the automotive sector but also brings new impetus and opportunities for Dongfeng's market expansion and service enhancement.
Dongfeng Motor Corporation chose JD as a partner primarily for JD's notable advantages in supply chain management, market coverage, and technological support. With over 1,600 JD Auto Care stores nationwide, JD covers a wide range of after-sales service areas, especially in regions where Dongfeng's brand and service network have yet to reach. By authorizing JD Auto Care stores to provide after-sales service for Dongfeng vehicles, Dongfeng can rapidly expand its after-sales service coverage.
Furthermore, JD Auto has established a complete business system covering vehicle sales, self-operated automotive products, and automotive aftermarket services. As China's largest self-operated automotive product sales platform, JD has over 1,600 JD Auto Care chain stores, connects with 40,000 social stores, and directly links with over 20,000 technicians, showcasing strong service capabilities.
JD has over 200 million car owner users, serving millions of orders annually, providing a one-stop automotive service for car owners nationwide. This vast user base offers a broad market and potential customers for Citroën. Leveraging JD's expertise in digital technology and big data analysis can help Citroën optimize operations and decision-making, enhancing efficiency and customer satisfaction. By integrating resources, both parties can establish a service ecosystem covering the entire lifecycle of cars, offering users a more convenient and premium service experience.
Through collaboration with JD, Citroën can not only achieve comprehensive improvements in marketing and after-sales service but also enhance brand influence and market competitiveness, achieving sustained business growth and a comprehensive brand upgrade.
This marks the first time in the automotive industry that an OEM has authorized a chain service platform outside the 4S system to supply parts for its full range of models. Through cooperation with JD, Citroën can leverage JD's extensive network and resources to connect more corporate clients, creating more market demand. This collaboration model disrupts the traditional 4S dealership service system, providing a more flexible and extensive service network.
The collaboration between the two parties goes beyond just after-sales service but also explores new automotive service models. By integrating their respective strengths, Citroën and JD will enrich their product lines, improve customer touchpoints accuracy and response speed to meet the growing personalized customer needs, comprehensively enhancing the customer experience. This innovative service model aims to co-create a new ecosystem for omni-channel users, covering the entire lifecycle of users' vehicles.
In terms of market potential, since its establishment in 1992, Citroën has sold approximately 6.4 million vehicles, with around 4 million vehicles currently on the road. Approximately 700,000 vehicles return to the factory for after-sales service each year, generating around 1 billion RMB in revenue for Citroën. Additionally, there are around 3.5 million vehicles in the social after-sales system, representing a target customer group for Citroën, with significant market potential estimated at nearly 5 billion RMB.
Through the integration of resources, Citroën and JD will mutually leverage each other in customer service, filling service gaps, reducing customer service radius, better responding to market and customer needs, making car usage more convenient for customers. Particularly for French car owners, concerns about "no service available" during car usage are eliminated.
In the future, users will be able to purchase original accessories for Dongfeng Peugeot and Dongfeng Citroën series models at the Dongfeng Peugeot Citroën JD self-operated flagship store. Dongfeng Automobile will also innovate the accessory sales model at JD Auto Care stores in authorized areas, enriching both online and offline purchasing channels. At the same time, Dongfeng Automobile will authorize qualified JD Auto Care stores to provide after-sales services for Dongfeng Peugeot and Dongfeng Citroën brand vehicles, enhancing service network coverage and providing a better service experience for car owners.
In 2016, Dongfeng Automobile sold 710,000 vehicles, reaching a historical high, but dropped to 50,000 vehicles in 2020. In this situation, restoring customer confidence becomes particularly important. To address this, Dongfeng Automobile has proposed the "Five Hearts Guardian Action," aiming to comprehensively enhance the customer experience in aspects such as buying with confidence, driving with peace of mind, attentive services, reassuring maintenance, and joyful car replacement.
Since the launch of the "Five Hearts Guardian Action" in October 2020, the monthly sales of Dongfeng Motors have seen continuous year-on-year growth. In 2020, they sold 50,000 units, which increased to 100,000 units in 2021, and further rose to 120,000 units in 2022. The ongoing upgrades to the "Five Hearts Guardian Action" each year demonstrate Dongfeng Motors' commitment to improving their services. In February of this year, Dongfeng Motors introduced a lifetime original factory quality assurance service, enhancing the overall customer service experience.
Currently, Dongfeng Motors has over 200 sales outlets and nearly 800 service outlets, but there are still regions with insufficient service coverage. Through their partnership with JD Auto, Dongfeng Motors aims to better reach customers, providing more convenient services, comprehensive spare parts, and efficient service responses.
This collaboration will provide crucial support for the future development of Dongfeng Motors. Both parties will explore new automotive service models, drive the industry's digitalization and intelligence upgrade, and deliver more high-quality products and services to consumers.
The year 2024 is a pivotal year for Dongfeng Motors in terms of strategic transformation. With strong support from shareholders and the strategic partnership agreement with JD Auto, Dongfeng Motors' brands, Dongfeng Citroën and Dongfeng Peugeot, will receive new momentum, further ingraining the concept of "Five Hearts Guardian with Kindred Spirits" in people's hearts. The exploration of this new model is particularly noteworthy. The launch of the "JD Self-Operated Flagship Store for Dongfeng Peugeot Citroën" on May 12 is the only self-operated car brand store on JD, showcasing its unique innovative model. This is not just an experiment but an exploration of various future development possibilities. We can look forward to more innovative initiatives in the future, bringing more surprises and benefits to the industry and consumers.
