Recently, the Asia’s leading e-commerce giant helped over 49 offline bookstores to up their competitiveness. Most of these bookstores were almost shutting their doors due to the fierce competition from their online competitors. JD.com offered the brick and mortar stores with Retail as a Service (RaaS) technological solutions that helped them improve their sales, profits, book procurement, as well as their logistics. These improvements helped the offline stores to compete with their online competitors who had advanced marketing tools. How did JD.com’s RaaS solutions help the offline bookstores?
First, Jingdong’s technological solutions cut down the labor costs of the traditional bookstores by a significant percentage. Previously, JD’s RaaS solutions had been utilized by Wang Shun Ge restaurant to lower its labor costs of by 50%. Secondly, JD.com’s technological solutions helped the bookstores to generate valuable information about their customers’ purchasing preferences. The critical business information helped the offline bookstores to stock their stores to match their customers’ preferences. Thirdly, the advanced technological solutions helped the bookstores to provide their customers with virtually any book. JD.com agreed to supply the offline bookstores’ with the out of stock books within 24 hours.
The move benefited the bookstores that had limited storage to stock every book. Did JD’s RaaS solutions help the traditional brick and mortar stores? Yes, JD.com’s RaaS solutions helped the offline bookstores to get onto their financial feet. Tangning Books, one of the sellers that benefited from Jingdong’s technical support disclosed that its sales grew by 30% after adopting the RaaS. Besides the increase in sales, Tangning registered a 17% increase in profits, and its labor costs reduced significantly. Speaking in an event, Ningxin Lu, Tangning Bookstores’ founder confessed that Jingdong’s technology helped them compete with their online rivals. “The technological back-up restored the future of offline bookstores,” added the founder.