Dialogue with Jingdong Blues: Seize the entrance and compete with Taobao

The core of Jingdong next year is still to build core competitiveness. Jingdong has the desire to become an e-commerce importer, it must have an average growth rate higher than the industry, so Jingdong to maintain the necessary growth rate, keep up with the trend of industry growth.

The e-commerce industry competition in 2012 was undoubtedly brilliant. From Jingdong 6.18 sales promotion to Jingdong Suning 8.15 e-commerce wars, and then to Tmall double eleven online shopping promotion, the industry staged a drama. Behind the drama, the e-commerce industry is making final contests: snaking the entrance to the e-commerce industry and laying the foundation for entering the final giants.

Jingdong, one of the protagonists of the e-commerce drama in 2012, is undoubtedly running on this path. It not only expands channels to increase profitability, converts traffic into revenue, but also binds upstream upstream players to the banking industry by opening up logistics and launching financial services. Learn Amazon to build an ecosystem and prepare for the ultimate contend for Tmall.

So, is Jingdong able to snatch up its own e-commerce portal and how will it build an ecosystem? How will the e-commerce industry develop in the future? Around these topics, Tencent Technology and the Jingdong Mall Group CMO Lancome exchanges. Lan Yi stated that after several rounds of financing, the e-commerce industry has become very clear in the industry structure and is presenting an increasingly obvious phenomenon of the Internet dual economy: Taobao is much larger than Jingdong, and Jingdong is much larger than the third and fourth places. Lan Hao pointed out that at this time Jingdong can no longer return to do a vertical website selling electrical appliances, only to compete for e-commerce entrance.

The root cause of the dual phenomenon of e-commerce lies in the fact that Chinese people often cannot remember online shopping sites and search for search engines for trusted e-commerce sites. Therefore, users start by choosing low prices. Some e-commerce sites will suffer from lack of trust or forget because of the unpleasant supply chain system or lack of good word-of-mouth. Instead, users will search sites that Jingdong and Tmall believe are trustworthy.

Many vertical websites are unable to change this situation. E-commerce is the pursuit of growth by advertising, acquiring traffic and selling it to users. Taking the footwear B2C as an example, large-scale B2C websites such as Tmall and Jingdong have a large number of products. When traffic is introduced, users can select a large number of products, and even a single customer has a high unit price. If the footwear B2C advertises the same way, 200 people buying a pair of shoes will not earn the profits of 200 pairs of shoes, resulting in high operating costs and failure to continue.

Lan Hao pointed out that China currently has more than 200 million online shopping crowds, but in the future, like other Internet industries, it will also form two or three main entrances. Compared to Taobao, Jingdong's product source and service requirements will be higher. Therefore, Jingdong will be positioned as a high-quality online shopping portal. “When Jingdong becomes a member of the dualistic economy, it can bring value to customers. You say that Jingdong cannot live any longer and it has never been profitable. There is no such reason. The online profit model of retail is much more than offline. If you look at Amazon, you know that the domestic profit model is not non-existent, but depends on when the company develops, he said.

In the dual economy of the Internet, vertical websites will also face changes. Lan Hao said that there are still many vertical sites, such as buying shoes need to remember good music, music Amoy, buy cosmetics need to remember Le Bee, Jumei superior products, etc. In the future users will slowly forget many websites. This does not mean that the vertical e-commerce website will close down, but it will change itself.

One is the upstream branding: Some e-commerce sites will take the road of branding. For example, Le Tao transformed itself into a branded shoe and became an online branding company, leveraging Tmall's entry, platform, and traffic development. The other is specialization, contracting large B2C channels, such as Jiuxian.com with the development of Tmall, JD.com and Dangdang. Brewmasters gave commissions to Jingdong, and they specialized in division of labor. Another is that if a red child is sold to Suning Tesco, it will be good to buy and seek mergers and acquisitions.

Excellent purchase of CMO Xu Lei had publicly pointed out that excellent shopping network as a vertical service provider of shoes and clothing, sticking to the main station is not rational. Due to the relatively strong purchase plan of footwear products, the risk of inventory is relatively large. The price fluctuation of shoes and apparel products is also obvious. The price difference between the beginning of the season and the end of the season can be more than half. Entering each open platform does not mean blindly pursuing sales of a certain platform. It only expands the sales system through the platform, thereby improving the efficiency of goods turnover.

The e-commerce industry quickly staking the past. Many e-commerce companies no longer compete for so-called entrances, such as where the passengers are blasted to abandon the platform. Lan Hao said that it may be that one or two years ago, e-commerce companies still want to expand their brands. Now many e-commerce companies want to contract large-scale B2C channels, to make a certain category more professional, and to serve specific user groups better. Tell the investor a financing story. The new financing story has also changed, e-commerce companies no longer talk about their own comprehensive e-commerce website.

The rest of the game rules of the players have also changed, and the entreaties are no longer relying on slogans and advertising fees, but rather on the competitiveness of the e-commerce industry chain. For example, as many e-commerce companies invest as much in advertising, traffic comes in, they are incomplete compared to the category, category management is done well, internal management is doing well, prices are competitive, and the supplier’s strategy is not correct. Whether the goods can be delivered quickly, how the cost is, how well the IT system is done during the shopping process of the user, whether the user feels that the shopping process is simple enough, etc. It truly becomes a competition of comprehensive strength.

Jingdong Refined Operational Advertising Non-profit Highlights Next Year

After 9 years of rapid development, Jingdong began to rank operating costs and efficiency as the company's focus. Jingdong CEO Liu Qiangdong (microblogging) has set a goal to achieve quarterly earnings next year. This is the first time that Liu Qiangdong has officially issued a profit signal to the outside world. Although it did not disclose the timetable for the listing of Jingdong, in the eyes of the outside world, the pursuit of profit has itself released a strong IPO signal.

However, Lan Yi told Tencent Technology that the listing is not a goal, and if the stock is not profitable after listing, the stock will also become junk stocks. For Jingdong, the core of next year is still to build core competitiveness. Jingdong has the desire to become an e-commerce importer, it must have an average growth rate higher than the industry, so Jingdong to maintain the necessary growth rate, keep up with the trend of industry growth. Jingdong's other thing to do is to refine its operations rather than rely on short-term behavior to sustain rapid growth.

Jingdong has developed for many years and some management system frameworks have been preliminarily formed, but there are still needs to be further improved in terms of processes and regulations. As a company with a staff size of nearly 30,000 people, it is difficult to guarantee that every employee has a strong professional quality and can fully qualify for a job. Therefore, the training of employees and the improvement of professional skills are particularly important. JD.com will also improve its management system, make strategic predictions, and do a lot of business integration and classification. "Some businesses grow faster, some have to manage more carefully, and all aspects of profit are taken into consideration."

Lan Yi believes that Jingdong's goal is to build several core competencies to realize the strategy. The first is to define what Jingdong wants to achieve and what capabilities it has; second, what kind of ecological system should be clearly established. In the Jingdong system, self-operated and affiliated commodities should be well-ordered and planned according to their characteristics. For example, which are suitable for self-employed and joint ventures? It is necessary to select e-commerce companies that are consistent with JD.com's concept, such as service and customer experience, to develop with JD. Jingdong mainly builds ecosystems in three directions: the supply chain, especially the timeliness of delivery. JD.com will be more humane in terms of delivery, so that customers do not have to worry about it at all. In addition, it is to upgrade the IT system and to have integrated marketing capabilities. JD.com will continue to expand its product category and make open platforms an important strategic business.

Jingdong does not simply pursue scale in terms of open platform. JD.com aims to create a high-quality e-commerce portal. Whether it is self-employed or affiliated, it requires the guarantee of the quality and service of the merchant is the bottom line. Lan Hao said that the quality of the business must be sifted, and it should not be taken lightly. In addition, Jingdong must regulate the collection of commissions to prevent internal corruption. “Our attitude towards businesses is to respect the wishes of businesses and grow together. According to the business rules, we can obtain high quality market status through competition.”

Analysys data shows that in the second quarter, Jingdong’s sales from open platforms reached 3.5 billion. Analysts expect Jingdong to have sales of 14 billion yuan from third parties for the year. Through Jingdong's open platform, Jingdong can sell to advertisers through the sale of advertising space, open data analysis capabilities, development of promotional tools, warehousing and logistics services, online payment, and cloud services. Fee. Another source said that Jingdong's advertising revenue this year reached 200 million. Advertising and third-party commissions will undoubtedly be an important source of revenue for JD.

In this regard, Lan Yi said that advertising and third-party sharing are not part of Jingdong’s most important source of income, and everything is natural. Jingdong must first ensure that the user experience, Jingdong home most of the promotional information, if you receive too much advertising, it is impossible to not give the business ad location, which will make the event uncontrollable. On the contrary, users come to Jingdong to purchase goods, hoping to obtain the most accurate product information, and the price has no objection to let people know that to decide whether to buy or not to buy, Jingdong does not go for artificial things.

In addition, there are a limited number of third-party merchants in JD. Everyone has the opportunity to show off. JD.com is not desperately trying to create this kind of income model: that is, whether or not goods can be displayed is not based on how much advertising fees are displayed, but whether the service is highly rated, if the service is delivered. Very fast, customer evaluation is very good, do not buy Jingdong advertising can also be pushed in front, because this service and Jingdong quality entrance concept match. The reverse is true.

There are also merchants placing goods in Jingdong Curry and self-employed. During this process, Jingdong's advantages in building supply chain service competitiveness began to play a role. Merchants provide products, guarantee quality, and the remaining sales, payments, logistics, services, etc. are handed over to Jingdong. Compared with Amazon's profit from third-party open platforms and cloud computing, Jingdong’s profitability is mainly due to brand management and professionalism.

Lan Hao said that Jingdong has a very good grasp of the pace of operation of 3C products. Although it will not make big profits, it will not lose money, mainly relying on thin but stable gross margins. "For example, gross profit is 1 point, 10 billion is 1 billion, 1000 million is 10 billion, and the other is the speed of making money (inventory turnover rate). For example, commodities are sold out and sold for one month. Circle, a point of profit, a month to make 1 billion, earn 1 million, turn 12 laps a year, earn 12 1 million, 12 million, which is profit, but if you make a point in 20 days to make a point, a The year is 18 laps and it earns 18 1 million, which is 18 million, and it is all fight speed."

Learn Amazon is not worried about Suning Tesco

Jingdong Suning 8.15 After the e-commerce war, Jingdong entered a new phase. Although Dangdang, Suning, and Yi Xun provoked again and again, Jingdong was always in silence, but Jingdong’s private actions were constantly on-line digital music platform, application platform, push Taxi, lottery tickets, and tourism, through the opening of logistics and the introduction of financial services, are tied to the upstream players in the upstream banking industry. Recently, they announced that they have spent 4 billion yuan to build cloud computing centers. Jingdong is building an ecosystem.

Jingdong recently made an important step in cloud computing. It signed the Cloud Computing Center project investment framework agreement with Bayandaoer City of Inner Mongolia Autonomous Region and Suqian, Jiangsu Province, with a total investment of 4 billion yuan. Jingdong hopes that cloud computing will help solve three major problems, such as data processing, resource allocation, and logistics bottlenecks. In the future, the transition from “private cloud” to “public cloud” will be realized.

In the context of asking for profit in the next quarter, Jingdong continues to invest so heavily that it is surprising to the outside world. In this regard, Lan Hao pointed out that the current Jingdong not only does not have much pressure on the capital, but also more practical. Those with a few business operations will know that listed companies will lose money in the economic crisis, but people will find that their annual cash reserve losses are much higher than the previous year.

Not only that, JD.com is also hiring technical talents. Currently JD.com not only includes the underlying architecture, middleware, operating systems, but also more than 1,000 systems, including application systems, all of which are developed by us. These systems support the huge flow test of Jingdong Mall's system after 618 stores, Desert Storm and other promotional activities, but also for greater competition.

Currently Tmall and Jingdong have their own oligarchy characteristics. Although Jingdong and Tmall are very similar in PV, Jingdong has even surpassed Tmall in PV during 6.18, and Tmall still relies on Taobao's large and complete e-commerce system to surpass Jingdong. Talking about the platform for investment promotion, Lan Hao believes that the platform B2C has started to recruit a lot of business, and product expansion is very fast. Jingdong is under the control of a buyer. A buyer can only buy several commodities. Due to the quality control of merchants and commodities, the initial expansion is not that fast. However, the future B2C from the camp will be more competitive than the platform B2C, especially in terms of standardized product quality and supporting services.

"To sell Lenovo computers, for example, these standardized products Jingdong is purchased for 10,000 units. Those small computer businesses that open stores on the platform will not only have a lower purchase cost than Jingdong but will not have Jingdong's expertise and professionalism in business. In addition, the first three months of Lenovo's purchase with the Jingdong product team to directly open a product planning meeting, Jingdong has long planned how to sell the goods. Small traders need to deal with the competition with the big platform." Lan Yi said, the only advantage of small traders is not necessary to open Invoices wait until policy controls, e-commerce legislation, tax evasion, tax evasion and other interference factors decrease, the advantages will inevitably drop, and Jingdong can make it easier to make money.

At present, Suning Tesco is in a turbulent mood and has launched advertisements, mergers and acquisitions of red children and other websites. Vanke CEO Chen Nian (microblogging) once said in private exchanges that Jingdong Suning’s 8.15 incident has caused Suning to awaken and will exert greater efforts to e-commerce in the future. . Suning had also expressed that he would rather be willing to beg for a whole, but also to dismiss Jingdong. However, JD’s strategy began to “despise” Suning. A top executive who declined to be named told Tencent Technology: “We don’t comment on our opponents, we can see that the flow of the opponent knows it. It’s not a hierarchy at all.” Lan Yi also said that she was not worried about Suning’s special deal. fierce.

"The enterprise develops on its own, and whoever looks at it as an opponent every day. On the surface you say something, I say the opposite, you have to take it seriously and learn it. See where he is. You are short. You are back. Over-the-top research has made it clear that it will make sense to go home to make up for the shortcomings.” Lan Hao said that what Jingdong is concerned about is not what the media say, but about the internal affairs. If the customer experience is not good, then he apologizes and improves quickly, and if anyone maliciously compiles it. Jingdong quickly clarified. But who said something to Jingdong, such as regular media reports that Jingdong capital chain broke again quickly, Jingdong generally do not respond.

“I don’t believe that after we finished the second day, we really broke the capital chain. How many shops hang out to clear the big sale? The more people hang this banner, the more people did not see it. The day was closed, and today I don’t buy or dare. To this thing, more and more people are coming to buy it," concluded Lan Yi.