17 years in Jingdong: from e-commerce to platform, from reach oneself to adult

category:Finance
 17 years in Jingdong: from e-commerce to platform, from reach oneself to adult


Six years, Jingdongs three secrets

What is the new chapter? Jingdongs subtle changes when it went public twice revealed some secrets.

Why is it so popular? This needs to focus on other changes. In addition to the amount of capital raised, the use of listed funds has changed a lot. In 2014, when the U.S. stock market was listed, Jingdongs capital use was to invest in logistics infrastructure, while in 2020, the Hong Kong stock prospectus, Jingdong said:

Use the net amount of raised funds to invest in key technology innovation based on supply chain to further improve customer experience and operational efficiency. Supply chain based technologies can be applied to key business operations, including retail, logistics and customer engagement. We will continue to invest in a series of key operating systems; strive to digitalize logistics capabilities through the establishment of various internal systems; continue to attract and cultivate world-class software engineers, data scientists, artificial intelligence experts and other R & D talents and expand our portfolio of intelligent products.

There are three messages in this passage. First of all, the focus of JD is changing. In 2014, the main focus is logistics, and now more emphasis is on technological innovation. Secondly, JD does not just refer to technology in general, but clearly plans its use in supply chain, internal system, etc. Third, we should emphasize the role of human beings. In the future, Jingdong may gather more technical experts.

Along with the change of fund use is the change of JDs positioning. In 2014, JD positioned itself as the largest self-supporting e-commerce enterprise in China, while when Hong Kong stock was listed, JD positioned itself as a leading technology driven e-commerce company is transforming into a leading technology and service enterprise based on the supply chain. In addition to highlighting JDs traditional advantage of e-commerce and continuing to emphasize technology driven, this positioning also mentions the keyword service, and the qualifier before the word service is supply chain. This means that JD will continue on the road of quality and service firmly, and the concept of service is not limited to the user end, but has a broader concept.

Three logics of JD in 2017

So, what kind of logic does JD have behind the establishment of this development idea and direction? From the performance of 618, we can sort out several clues of Jingdong.

In this years 618 store celebration, Jingdong has many changes and changes. What remains unchanged is that JD continues to set a new record. As of 24:00 on June 18, JD has achieved a total order amount of 269.2 billion yuan.

And the change is just as big. In this years 618, Jingdong dashangchaos Omni channel business group ushered in its first 618. JD health links 30000 doctors online 24 hours to meet the needs of peoples consultation anytime and anywhere. Jingdong has launched 0 yuan trial service, Jingdong supermarkets pay as you buy and regular purchase, fresh food pay only but not return and thousands of counties and towns reach 24 hours and other special services. Jingdong financial launched 24 interest free and 2 billion gold stickers. Jingdong c2m reverse customization is in full swing, and Jingdong live broadcast with goods also comes out in position C

These changes hide the logic of JDs development and its future layout.

Ecology: meticulous to every pore

Whats clear is that JD covers more and more levels, involving almost every detail. In terms of details, only pay for not returning serves the fresh market, buy expensive and pay for it guarantees fair prices, guarantees the service quality in remote areas in 24 hours, relieves the pressure of consumers and enjoys low prices.

Behind this, it is fundamentally the change of Jingdongs volume. Compared with the net revenue of 34.7 billion yuan in 2014, JDs net revenue has reached 576.9 billion yuan by 2019, an increase of 15.6 times. Now, the order amount of 618 store in one cycle is more than three times of the transaction amount in 2014. Jingdong has long been more than 3C, but 5 million SKUs, nearly 400 million high net worth users, covering all aspects of life.

Under the scale of 100 billion, Jingdong is faced with almost all users subtle needs, and needs to serve every niche market well.

Below the water, however, is JDs strong infrastructure. It is the 24-hour arrival of thousands of counties and towns realized by logistics capability, the extension of service capability from after-sale service to pre-sale and in sale service, and the realization of 0 yuan trial, Jingdong supermarkets buy expensive and compensate and regular purchase, fresh food only compensate but not return, mobile phone exchange for old and new, real-time delivery and so on under the huge transaction scale of 618.

With the support of basic services, build the ultimate services for the C-end, accumulate public praise, stimulate consumption, and then realize the healthy operation of the whole ecosystem, and continuously extend the tentacles. This is the basic logic of JDs development.

Driving force: technological innovation is the foundation

Under this logic, technology below the water surface becomes the key to competition, which is also the second main line of JD. With a huge industrial chain and scale, more than 5 million SKUs are distributed in more than 700 warehouses across the country, which need to meet the needs of nearly 400 million users anytime, anywhere, and achieve the same day or the next day. In the face of massive transactions and instantaneous inflow of traffic, JD needs a strong operation system to manage, a supply chain management technology to coordinate, and a digital to achieve higher efficiency. To deal with and deal with these problems, we cannot do without strong technical strength.

In 618 this year, JDs core business is fully launched into the cloud. JDs AI technology creates multiple shopping experiences for customers. The cumulative amount of internal + external adjustment of JDs neuhub platform has increased by 200 times compared with last years 618. Intelligent applications such as intelligent emotional customer service, content audit, intelligent writing, and large-scale, systematic and full process deployment are deployed in JDs shopping process Medium.

In the production process, Jingdongs technology makes consumption no longer a double blind test at both ends of production and consumption. With the help of digital technology, JD realizes the information exchange, resource sharing and innovation integration of the upstream and downstream of the industrial chain, helps consumers to provide product decision-making, and solves the whole life cycle operation problem of new products. At the same time, it also makes it easier for consumers to find more interesting new products and get a better consumer experience.

In the sales link, JD realizes the effective linkage between online and offline relying on technology. Jingdong life service 618 is a one-stop experience scenario of the whole process of goods + services customized for consumers. Consumers who buy tires can directly get the related services installed in stores, so that consumers can realize a better life without distance and time difference. In this service system with the most service scenarios, the longest consumption links and the most service demand elements, the technology enables the huge online traffic, coordinates the offline service supporting, and plays a strong supporting role for 618.

It can be seen that, with the giants taking over cities and land, the battle of e-commerce mode is gradually stepping into the battle of technology. Technology is the support of front-end service and management, and also the guidance of strategy. Technology affects the landing of product functions and the distribution and support of services. Obviously, JD understands the logic of this. Therefore, JD has made a continuous layout at the technical level, and the financing amount is mainly used for technology, which indicates that JD will definitely go on.

Pattern: adults can reach themselves

In addition to the continuous accumulation of technical strength, the key is the landing scenario of technology, which is the third logical line of JDs development. JD is not only self-supporting, but also building a technical service platform. In this platform, JD is the role of an enabler. If the so-called adult reaches self, a few years ago, Jingdong focused on reaching self, now it emphasizes adult, which is the pattern change of Jingdong.

In the first quarter of the epidemic, Jingdong reduced the turnover days of accounts payable to 51.7 days, 5.7 days shorter than 57.4 days in the same period last year. Shortening accounts payable means that suppliers and small and medium-sized businesses can quickly withdraw funds to supplement cash flow. In the tough cycle, JDs move helps brand makers and small and medium-sized businesses get through the difficulties. Moreover, Jingdong has introduced strong subsidy measures, including cost relief, financial and logistics support.

In this 618, the change of Jingdongs thinking is more obvious. Jingdong and Kwai Kwai have reached strategic cooperation. Jingdong no longer pursues the flow on the platform, but rather provides convenient services for users on the fast platform, allowing users to buy Jingdong products directly in the Kwai Po store. In June 16th, Zhang Yuqi, Hua Shao, Simba, Kwai and other star master were quick to bring goods to the Jingdong, and the goods were sold directly to 1 billion 420 million yuan per day.

It can be seen from these practices that JD is providing convenience for brand makers in an all-round way, helping small and medium-sized brands to overcome difficulties; providing valuable data for big brands, developing products more suitable for the market; breaking through the gap between platforms and providing convenience for users.

Jingdongs starting point has become to make the brand business strong. This change of thinking, in the short term, can not see the intuitive changes, but the consumer consumption structure is slightly different. But in the long run, JDs continuous assistance to the brand side will form a benign ecology and help more and more brand businesses to develop. The benefits brought by the sound ecology will further feed Jingdong and make it develop better. In fact, the logic is already working. In the first quarter of this year, the net profit attributable to the common shareholders of JD was 1.1 billion yuan, and the non net profit deducted was 1.205.6 billion yuan, an increase of 178.42% year-on-year, which has been the profit of JD for five consecutive quarters. Behind this obvious change is the return under the enabling logic. Today, JD is thinking about business logic based on the role of enablers. Under the scale of 100 billion, JD needs to build competitive differentiation with ecology. In this ecosystem, JD is an enabler, deconstructing and recombining its own technical capabilities, providing support and decision-making assistance for each sector, bringing better development opportunities for each high-quality brand side, and providing ultimate services for each user. Finally, we will make common profits and achievements. In the 17 years since its establishment and the 6th anniversary of its listing, Jingdong once again takes up the starting point of the next development cycle. Everything in the past is a preface. After the second listing, Jingdong did not stay on the merit list, but based on the role of the enabler, continued to work on technology, improved the ecology, and stepped forward to the next cycle. Source: blue whale Financial Editor: Zhong Qiming_ NF5619

Jingdongs starting point has become to make the brand business strong. This change of thinking, in the short term, can not see the intuitive changes, but the consumer consumption structure is slightly different. But in the long run, JDs continuous assistance to the brand side will form a benign ecology and help more and more brand businesses to develop. The benefits brought by the sound ecology will further feed Jingdong and make it develop better. In fact, the logic is already working. In the first quarter of this year, the net profit attributable to the common shareholders of JD was 1.1 billion yuan, and the non net profit deducted was 1.205.6 billion yuan, an increase of 178.42% year-on-year, which has been the profit of JD for five consecutive quarters. Behind this obvious change is the return under the enabling logic.

Today, JD is thinking about business logic based on the role of enablers. Under the scale of 100 billion, JD needs to build competitive differentiation with ecology. In this ecosystem, JD is an enabler, deconstructing and recombining its own technical capabilities, providing support and decision-making assistance for each sector, bringing better development opportunities for each high-quality brand side, and providing ultimate services for each user. Finally, we will make common profits and achievements.

In the 17 years since its establishment and the 6th anniversary of its listing, Jingdong once again takes up the starting point of the next development cycle. Everything in the past is a preface. After the second listing, Jingdong did not stay on the merit list, but based on the role of the enabler, continued to work on technology, improved the ecology, and stepped forward to the next cycle.