• Jingdong to Home—O2O Life Service Platform

Abstract

Since 2005, the rise of "Lazy Economy" in the mainland China caught focuses, and recent more and more business opportunities in supply and demand gradually shifted from large industry to the retail industry, commodity, showing rapidly rising trend. With the dramatic development of Internet technology and the "Sharing Economy", combined with the rapid growth of the retail industry supply and demand opportunities, Jingdong Group discovered the value of mainland China O2O platform, as soon as established as "Jingdong to Home" —the O2O mobile client application. "JD to Home" is given functions from LBS mobile positioning to provide goods and services that are living within 3-km. The case will consolidate and describe how this innovative O2O e-commerce business process and financial structure operate in the environment of the mainland China, and will analyse and address that the main problem of financial loss is responsible for the huge cost of logistics fees by Jingdong to Home, not the operation mode of O2O platform. At last, will discuss suggested solutions for current status of the Jingdong to Home to reach the break-even or explore the profits in the teaching manual of this case. The teaching aims of the case are training students abilities to analyse systematic process by learning flow-charting, as a result of indicating unreasonable business flow belong to working process clearly; and estimate the financial performance of Jingdong to Home; as well as how to adjust operational plans and put forward solutions to be profitability, for the better development of Jingdong to Home.

Keywords: O2O E-commerce Model, Sharing Economy, Business Process Management, Break-Even Analysis