The Tide Of E-Commerce Is Fading Away. Jingdong Mall Says It Will Not Abandon Itself.

"Public enemy" Jingdong

Rapid growth

Too early to become a "public enemy".

The wave of electricity supplier is declining. Jingdong is not listed yet. Is it really a nude swimmer?

If there is no rumor of war and death, is it Jingdong Mall (micro-blog)? Liu Qiangdong, founder and CEO of Jingdong mall group, will definitely say "Yes", but may secretly say "No" in her heart.

In 2012, rumors about the death of the Jingdong came on schedule.

Liu Qiangdong, who no longer claims micro-blog, did not hold his temper. After making a photo on April Fool's day, he began to fight against CEO on micro-blog (micro-blog) on micro-blog.

It seems that everything has not changed, but the old rivals have already opened up a gap with him in some sense. Jingdong mall is far ahead.

Third party data show that in 2011 Jingdong sales of 30 billion 900 million yuan, Dangdang net earnings report is 3 billion 550 million yuan.

AI consulting (micro-blog) analysis shows that the B2C market with independent sales is the largest, and Jingdong has a market share of 36.8%. If the platform B2C such as Taobao Mall (Tmall) is included, the market share will be 17.2%.

In the first quarter of 2012, Jingdong's market share rose again, with the figures above 50.1% and 22.7%.

But criticism is irresistible.

"Lu Zhenwang, an e-commerce observer," released the seven secrets of Jingdong on micro-blog, and proved that Jingdong has fallen into financial difficulties by using key financial indicators such as sales scale, gross margin and cash flow.

There are also reports that Jingdong's billion dollar logistics plan is mainly for "money".

A lot of power is in action.

It is reported that after the introduction of Gome, Tmall is in close contact with Dangdang, putting the B2C business entities as "solid" as entity manufacturers.

Suning, a household appliance giant in the traditional field, wants to build up its own momentum and make full use of e-commerce.

Maybe they have the same goal - encircling the Jingdong on the eve of IPO.

Their enemies, Jingdong, acted strangely.

First, there are strange categories such as lottery tickets, cars, tourist products, and so on.

Shen Haoyu from Baidu (micro-blog), Wang Yaqing from Oracle (micro-blog), and LAN ye from Acer (Acer) have brilliant resumes, but no one has e-commerce experience.

"Whether online or offline, we have become a public enemy in the retail industry."

Liu Qiangdong was in a good mood. He was neither impassioned nor angry.

He called these doubts "little murmurs".

"Unless Jingdong is completely open like Taobao, or the murmurs will persist for a long time, Jingdong will never give up its own operation."

He said to Chinese entrepreneurs.

"Noise" is not entirely from competitors, but also from a certain anxiety. A year ago, when Jingdong got $1 billion 500 million in financing, the entire e-commerce industry was immersed in "madness". B2C sprung up like mushrooms, but the growth of capital could be deformed by the capital fatness. The tide water was receding. Some group buying electric providers had exposed the naked swimming body.

An industry source said, "in 2012, a large number of electronic business funds were difficult, and some people would fall down in the latter half of the year."

Jingdong is the benchmark of the industry: it has the largest volume and sales volume of more than 30 billion yuan; it has the largest financing, and only 1 billion 500 million dollars for C round of financing, and it has the fastest growth rate and annual growth rate of 200%.

Its peers, especially those who are not listed, love and hate. If the Jingdong falls, the industry will suddenly cool down, and financing will become more difficult. At the present pace of development, Jingdong is like an expansive planet, which will swallow the market at any price at any time.

Maybe this is all about the whole.

The way out: what is Jingdong doing at the moment? Is its weird behavior because it is burdened with high speed running or is it about a "Super Company" strategy?

Truth

Beijing, Jingdong headquarters.

On the floor where Liu Qiangdong was located, many people gathered at the door, waiting for a long queue in front of security personnel waiting for the "claim" of the sales staff.

This is the place where Jingdong is most unlike Internet Co. It is impossible to see the front door of the computer in front of the computer.

Every day, a large number of purchase and sale agreements are reached here, and the negotiators who can not get the location can only whisper in the corridor.

Some of them did not forget to look around when they talked, because Liu Qiangdong had just moved around the office area.

You know, at this time, 6.67,0.09,1.37% (ZOL) office in Zhongguancun also gathered a group of dealers.

They demanded the withdrawal of Jingdong advertisements, and Liu also issued a protest against micro-blog.

Even without this storm, Liu's leisure is rare. He used to go to the front line a little while before, and sometimes he slept with the people in the warehouse.

"Over the past year, the biggest change of Jingdong is the expansion of service capacity."

Liu Qiangdong said.

He solved a "heart disease". In the past, Jingdong's biggest bottleneck was order processing capability, so Jingdong continued to invest in logistics and information systems for many years.

At the beginning of last year, the logistics coverage of Jingdong was only thirty or forty cities, covering more than 250 cities this year, reaching 360 by the end of this year.

Last year, five cities were able to achieve 211 time limit, and now there are 27 cities.

He said, "there is another kind of expansion.

In the past, Jingdong was still dominated by 3C products and a small number of hundred days. Today Jingdong has pformed into a comprehensive e-commerce company. "

The new categories of lottery tickets, train tickets, tourist products and cars are the external questions.

In the past, the vertical B2C category was roughly the same, the products were mostly standardized, and they didn't chase the user experience very much.

The user experience of cars is very important. Jingdong sells cars too far away. Although online shopping products are not uncommon, in this industry, Ctrip, eLong and other companies have been making intensive efforts for many years. How can Jingdong be professionally launched?

Doubts about the profitability of Jingdong are relevant.

Jingdong products sell cheaper than others, especially burn money. The cost of self built logistics is higher than that of the third party logistics, and they invest heavily in logistics.

Including the expansion of new products, each category has to invest a lot of money, whether it is profitable is unknown.

It makes people feel that Jingdong is eager to get rid of the whirlpool of low price, so they are hungry for food.

Liu Qiangdong disagrees. "When appropriate, we will announce the earnings report. We will know that gross margin is not equal to low profit. Jingdong has always been a low-cost company."

The impact of those new categories is exactly what Liu Qiangdong wants. "Jingdong category strategy is very clear, that is, to make fashion life platform."

The implication is that when consumers are accustomed to the impact of Jingdong, it will be easier to add new products.

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Wu Sheng, senior vice president of Jingdong mall, notes with ease: "brand expansion seems to be numerous and jumbled, but in reality it is scattered."

Because of 3C, Jingdong's customers are the consumers who are most willing to spend money online. "Since they are willing to buy thousands of 3C products online, it means they are willing to try something new."

Wu Yue, "why is Smart car not something else? Because Smart is most suitable for their temperament."

Similarly, buying lottery tickets online is their lifestyle.

Liu Qiangdong did not respond positively to the question of "professional operation", but according to exclusive data obtained by Chinese entrepreneur, Jingdong's tourism product turnover exceeded 2 billion yuan.

"It has nothing to do with 10 years, 20 years or 100 years, but the Jingdong is the first to achieve 2 billion, and the number has already shown that the user accepts it."

"I believe that figures mean everything, and I seldom analyze them from a very theoretical point of view."

He said that if the number was bad, it could be considered that the product failed.

He also said, "of course, what we are going to have in the future may fail. It doesn't matter. We use numbers to speak."

But this does not mean that there is no standard in the category expansion of Jingdong, on the contrary, it is clear to standard Liu Qiang Dong.

Like Zhou Hongyi (micro-blog), who keeps fixing computers everywhere, he often asks other people's online shopping habits, and knows much about the profits of many commodities, not just 3C.

"It doesn't matter if a category does not make money for the time being. As long as we cultivate the habit of our customers, we can make money later.

A box of Coca-Cola has only 8 yuan profit, a bag of Oreo biscuits 3 yuan 2, such a low price product can not make money for 100 years, Jingdong will never do it.

Wu Sheng disclosed that those highly specialized categories, such as tourism products, Jingdong chose to cooperate with the most professional partners in the industry.

These products come from another imagination space of Jingdong -- platform.

Whether it is Tmall or Amazon (micro-blog), and in the past and Jingdong face the competition, excellence,

The platform is regarded as a new starting point.

Jingdong POP platform is divided into 10 departments, classified by category.

Before the on-line lottery and other products belong to the virtual product department.

"Each has its own development plan, which is on the line separately. Initially it appears chaotic. It will gradually show the thread."

"Almost everything you can think of has (Planning)," said Zhang Shouchuan, head of the POP platform and vice president of Jingdong mall.

Earlier media reports showed that the POP platform's turnover in 2012 will reach 150 yuan.

Zhang Shouchuan said that the goals set by the Jingdong are relatively conservative.

"Expansion can be faster".

He said, "user experience is the most important measure of Jingdong POP platform, especially now we need to lay the foundation."

A mall seller revealed that his sales on Jingdong platform were three or four times that of other platforms, and warehouse management was stricter than Amazon (China).

But he also complained that Jingdong had a higher rate of return and some stringent service standards.

Unlike other platforms, the Jingdong POP platform provides a menu solution for businesses because of its self built logistics system.

Every link from warehousing to distribution is selected by merchants themselves and paid according to the corresponding standards.

Business is not to pay, that is, "one family, one talk". Every businessman has a special person docking.

He is not anxious to attract businessmen, but is seeking a balance between new products and Jingdong's self marketing products.

"I want to do things that can increase the added value of Jingdong mall. In short, the greater the difference between Jingdong and existing products, the more energy I use."

Zhang Shouchuan said, "the introduction of every shop and brand has our purpose, and we are not willing to participate in the special competition."

But since the platform has run, the access threshold has also been fine-tuning.

The platform has made strict regulations on registration time and registered capital, and has already been relaxed in some categories.

Zhang said, "mainly considering the needs of users, some seasonal products, such as special ornaments, will not be so high; but watches such products must be strictly audited qualification."

The bottom line of the POP platform is that it can not affect Jingdong's reputation that is hard to build up, otherwise it will kill the goose that lays the golden eggs.

Zhang Shouchuan added, "in a short time, the platform will not be fully open."

Public enemy

If we choose the best industry in the B2C industry, Jingdong is well deserved.

The history of its growth is a history of struggle.

It was born in Zhongguancun, where IT products compete fiercely.

When it was founded, it began to struggle frequently because of price and distributors in Zhongguancun.

Before 2006, Jingdong only had IT products, with sales of only 80 million yuan.

In 2008, more than 1 billion yuan was sold through category expansion, and the object of struggle began to upgrade to manufacturers.

Because of the destruction of the traditional price system, some manufacturers have publicly stated that they will not supply Jingdong.

Willing to cooperate with Jingdong manufacturers are few, only "2%", mostly small brands.

"Big brands, no one is working with Jingdong, they are looking for their agents, and even agents' two agents, they earn three or four percentage points in each link, so we don't have much profit."

Liu Qiangdong once recalled.

However, Liu Qiangdong firmly believes that if there is a big sales volume, we are not afraid of no supply.

By 2010, Jingdong had more than ten billion yuan in sales, and the overwhelming majority of 3C manufacturers had made direct supply.

Its rivals have been upgraded again, not only by traditional channel providers, but also by vertical B2C attacks such as Dangdang and so on.

During the war of words and fierce price war, Jingdong won a place in the book market.

From 10 billion yuan to 30 billion yuan, Jingdong took only one year to turn Gome, Suning and other traditional B2C giants such as Tmall into enemy, and Jingdong took only one year.

As a result of overturning many traditional retail prices, the Jingdong has actually become a public enemy in the retail industry.

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"We need to rebuild the new order, rebuild the whole value chain, force the whole industry to reduce costs, enhance the efficiency of competition, and force the whole industry to benefit consumers at a lower price, forcing the industry not to bully suppliers, not to supply too many gross margins and too high accounts to suppliers."

Liu Qiangdong's voice is very similar to Zhou Hongyi, another chairman of the Internet fighter, Qihoo 360. 360 is also a destroyer. It overthrows the traditional antivirus industry with free subtraction and wins more than 300000000 of the installed capacity, so it gets an extremely high valuation in the capital market.

"Unlike Taobao, it does not sell itself, it does not offend people. What Gome and Suning can you sell to my platform?"

Liu Qiangdong regrets, "regardless of e-commerce or offline sales, everyone feels that Jingdong is their enemy."

The growth rate of Jingdong is too fast, and the growth rate of traditional formats has declined sharply. Many people will attribute the reason to us, that is, Jingdong has robbed him of his share. If you weren't growing too fast, how could I be so miserable? "He commented," scolding and saliva attacks are not the market economy. Some companies even regard it as competitiveness. "

Liu Qiangdong has said that Jingdong profits are unsuspense, as long as the investment can be stopped; financing for gambling agreement is only limited to the first round, has long been over.

So what is the real reason behind the rapid growth of Jingdong? The answer is obvious - security.

As for the "encirclement and suppression" campaign, he had expected it. Last year he told the Chinese Entrepreneur: "it seems that billions of dollars are safer than rivals, but that does not make sense.

We must reach the absolute value of security so that we can deal with all contingencies.

This absolute value is 50 billion yuan, at that time Jingdong can make direct supplier supply.

50 billion yuan means that it can get financing beyond other B2C, which means product safety, which means no one is banned. It means that cash flow is safe, which means that all the internal mechanisms of talents and management are sound. It also means that any user can try when Jingdong subscribe to billions of users.

Liu Shuang, who was assistant to the president of Jingdong mall, said: "Jingdong's profit is not difficult at all. Cutting down the market cost and reducing the input of warehousing and logistics will immediately make profits.

But doing that means losing the future.

In the first stage, Jingdong relied on category expansion and high-speed growth to win; in the second stage, while expanding rapidly, Jingdong promoted the competition threshold by service.

When Jingdong built its own logistics industry, it was once ridiculed by the industry. Then it launched a 211 time limit on the basis of self built logistics. All competitors felt that such high operating costs could not last long, and even capital objected.

But now the 211 time limit has almost become the industry standard. Dangdang, excellent and No.1 stores are offering similar services.

"If you do B2C again, you can't do it at 211.

I lead the industry. If you don't follow, you will die. If you want to live, you must follow me, because I am the leader.

He said.

Jingdong will compete with Gome and Suning in the third stage.

Liu Qiangdong once said, "as long as they have stores every day, the Jingdong is less expensive than them."

But he also admitted that if both of them do e-commerce, the cost is almost the same.

The advantage of Jingdong is that it has first locked the best B2C users.

At this point, the competition is not a single product price who is lower. In the growth period of suning.com (micro-blog), Jingdong's personalized integrated service platform can strive for the lead time.

It is questioned that Jingdong's gross margin of 20% and its 50 day account are squeezing suppliers.

A financial analyst said that 20% of the gross profit margin was about half of the categories of household appliances such as traditional channels. Accordingly, the accounts in Gome and Suning financial reports were 120 days.

Liu Qiangdong is very dissatisfied. "Now everyone is scolding us. When we find that we are useless, we can only go back to honestly reduce the cost and reduce the selling price.

Either waiting for death or catching up, there is no other choice. "

The opponent he cares about is no longer a competitor in the field of electricity supplier. Perhaps he is also the real retail giant, WAL-MART and Carrefour.

In the traditional retail area, because of the control channel, these giants have huge precipitation funds brought by the account period, and they can expand easily.

Compared with traditional channels, the electricity supplier is still in a weak position, and there is no bargaining power. Perhaps Jingdong can become the first icebreaker.

The environment has also given Jingdong space. According to the China online shopping market data released by Eri consulting in 2011, the total annual online shopping volume is close to 800 billion yuan, an increase of 67.8% over 2010, but only 4.3% of the total retail sales of social consumer goods.

According to the estimated speed of Jingdong, 2012 can achieve "safe" 50 billion yuan sales.

He was more emboldened. Before facing false rumors, he would resentfully say, "it's a competitor."

Now he is calm. "I will not be entangled, but I am a bit sorry. After all, I have robbed others of their jobs." he said, "only tens of thousands of users enjoy your services. If the media criticize you, users will not dare to buy it.

But now we have tens of millions of users, each user can affect the decisions of several users around.

As long as the activity of the old customers is not declining and sales are still growing, I can think that the outside voice can be a small murmurs. "

Similar to the original Jingdong when it was lying on the computer every night. Now, Liu Qiangdong always pays attention to user data.

User experience has become the most important standard of Jingdong at present. All actions are based on the premise of not destroying user experience.

The failure of only one category expansion is also related to "please" users. Jingdong has launched a train ticket product and was later called for emergency stop.

"(failure) involves many industries.

Many people are saying that train tickets are not good enough to buy. The Jingdong wanted to surprise some of those who could not return home at the end of the year.

Liu Qiangdong is a little sorry.

De Man

With the goal of "Super Company", Jingdong has been advancing all the way.

But it's not that the Jingdong is perfect at the moment. Liu Qiangdong can sit back and relax.

The real challenge comes from the secret of rapid growth.

It can be said that Jingdong's "nuclear weapon" is Liu Qiangdong.

In the early days of the founder of the e-commerce company, he was the only one who came from the traditional field and had some knowledge of the Internet. The experience of Zhongguancun made him aware of the changing prices of IT products and the complicated supply chain.

For investors, he dares to challenge, no matter how much financing, he will occupy a board seat more than the capital. Otherwise, he will firmly say NO; no matter what new department stores or self built logistics, what is the capital's strong objection?

Moreover, he is not afraid of things. He dares to speak and is black and white.

He can open fire with Li Guoqing on micro-blog and open up executives because of "unremarkable" things. He responds that honesty is a matter of values and can not be tolerated.

"If I want to push things forward, it is definitely a strong push, that is, once resolutions are made, we decide to do this, which can be truly a mountain drain."

Without such a backbone, an annual growth of 200% would be impossible.

However, with one person's strength radiating over 10000 employees, management will naturally be a bit confusing.

This chaos is Chinese barbaric growth.

Around Liu Qiangdong, Jingdong formed a high-speed chariot. He led the way of thinking and behavior of the company. The information system of the company is still based on his own software architecture.

Another characteristic of his character, executive power, is "execution", which is "chaos". It is hard to imagine that a company with a staff of over 10000 will be late every day.

Of course, the growth of the Jingdong is also due to Liu Qiangdong's no big mistake, which can not be explained by "lucky".

He will drill the storehouse, deliver the goods to the user, handle the complaint, he knows the company like the palm of his hand.

In 2010, Jingdong originally planned to sell 10 billion yuan. He went out to attend a supply chain conference. He came back and said that we will do 10 billion 300 million this year.

In, the actual sales volume of Jingdong was 10 billion 200 million yuan.

However, for a company with the embryonic form of Super Company, Jingdong should not only resist the disadvantages brought by scale expansion, but also have to "get rid of it" at the same time of high-speed growth.

All these are forcing Jingdong to unify values and culture as soon as possible and rebuild management system.

The newly installed CXO level is Liu Qiangdong's solution.

This is a simple and feasible plan. According to the division of business modules, CMO is responsible for the acquisition and marketing, and the backstage related logistics, customer service and storage are managed by COO.

Liu Qiangdong himself emancipated from his specific business and was only responsible for three contents: team building, user experience and company strategy.

The adjustment of the organizational structure has no effect on the grass-roots employees.

Jingdong adopts the management mode of ABC. The grass-roots employees need to report to the direct leaders, and then report to the superiors by the leadership. As long as they are approved by two levels, they can be implemented, and the staff promotion is also subject to the approval of the two level leaders.

But in CXO, in addition to the CFO is the old Jingdong, the rest of the senior executives have no experience in e-commerce although they have a good resume.

"Our COO, Shen Haoyu, has never been in charge of the logistics, and it is very well managed now."

He said the executives joined the "fate" and were all because of a strange chance of understanding.

But they recognise the values of Jingdong and think that good service users have a future. "As long as they are approved, they will not worry about the future of the company."

Before joining Jingdong, Shen Haoyu served as senior vice president of Baidu. He joined in first because he was curious about new things. Two, because Jingdong and Baidu pursued fairness and efficiency.

Although he was equally dressed and casual, he was more "rustic" than the Baidu period, because he had to drill into Jingdong warehouses to understand his business.

"Adaptation is not very difficult. I am a person who likes learning."

In Jingdong, he is responsible for all backstage operations management and six branches. Before warehousing, sorting, distribution and after-sale, they belong to three departments. "For the first time, there is a special position management.

Thinking about how to improve efficiency and reduce costs without sacrificing customer experience is the core of my work.

He said.

This is a co-ordinated work method described in some textbooks, which is similar to that in secondary school textbooks.

Shen Haoyu used the word "interface" of a "search engine".

After the user orders, the whole process is linearized. He wants to straighten out these interfaces.

After the overall process of the background process, the distribution can reduce manpower use and improve distribution capabilities; inventory can speed up turnover, and reduce storage area and cost; correspondingly, order processing capability and service capability increase can reduce complaints and relieve customer service departments' pressure.

As airborne executives, Shen Haoyu, who first touched the retail industry, was most impressed by the complexity of retail sales.

He used to constantly refresh his order status when he was shopping online. Now these steps make him cautious.

Every link can be wrong, with tens of thousands of orders per day, even if the error of 1/1000 is also unbearable for Jingdong.

He said, "we must meet ourselves with higher standards, and we must be cautious and vigilant."

CMO LAN Ye is doing similar integration.

The Jingdong has established a cross category marketing team. Promotion is no longer limited to categories and manufacturers, but rather based on user needs.

Liu Qiangdong was also worried that the fast-growing Jingdong left little time for executives to adapt.