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"Jingdong Is Going To Die" Is Just A Lie? Four Strategies To Meet The "Electricity Supplier War"

2013/5/14 14:08:00 31

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Jingdong Mall Liu Qiangdong Price War Jingdong Financing

> a href= "http://sjfzxm.com/news/index_cj.asp" > Jingdong mall < /a > after the completion of the fourth round of financing, the noise of "Jingdong is going to die" is almost extinct.

However, the external environment of Jingdong has not changed. The strong enemy is still on the back. What kind of cards does Jingdong hold? /p

more than half a year, Jingdong mall CEO < a href= "http://sjfzxm.com/news/index_cj.asp" > Liu Qiangdong < /a > lost more than 20 jin.

for his emaciation, you can make several conjectures: the price war of "815" can not afford to fight the Jingdong, he feels weak inside; the strong enemy makes him look like a snake in his back: Alibaba wants to build big logistics, Tencent is easy to launch strong attacks, Suning continues to die with Jingdong, or it is under the high speed speed, which tests the B2C company's internal strength and tests Liu Qiangdong's ability to control the chariot.

Of course, there can be another interpretation: for example, last year, Jingdong carried out the third round of organizational restructuring, matching the CXO management level, and relieved him from the specific business. This spring, with the completion of another round of financing, the rumors that the Jingdong had money and the capital chain was to break were not released as scheduled, and he relaxed. P

This time, Liu Qiangdong once again said to Chinese Entrepreneurs: "Jingdong is not planning to go public in two years".

for thin, the answer given by Liu Qiangdong is that he is exercising and keeps running.

For hard and persistent a href= "http://sjfzxm.com/news/index_s.asp" > electricity supplier war < /a >, good health is absolutely necessary.

2013, Liu Qiangdong set 100 billion online trading targets for Jingdong, and planned four strategic sections, namely, e-commerce, logistics platform, technology platform and Internet finance.

In other words, this year is the year of Jingdong's breakthrough. Achieving 100 billion goals means not only that the huge flywheel of Jingdong can be accelerated to millions of circles, but also like Alibaba Tmall, which means that it can turn second or third big flywheels.

In the same year, P has become the field of heavy capital and heavy assets. The Internet is at the turning point of "mobile change destiny"; users' tastes are more picky and their demands and habits are constantly changing.

Can Liu Qiangdong do what he wants? In the complicated game of electronic business, what kind of card does Liu Qiangdong hold in his hand?

First: $700 million /p >

Jingdong will die? The conjecture about capital chain and board of directors has been accompanied by Jingdong for ten years and has not been far away.

February 16th, Jingdong confirmed that it had completed the $700 million common stock equity financing. Investors were the Ontario Teachers Retirement Fund of Canada, the Kingdom Holdings Company from Saudi Arabia and some of the old shareholders.

this is the fourth round of financing of Jingdong.

So far, the total financing of < a href= "http://sjfzxm.com/news/index_s.asp" > Jingdong "/a" has been quite alarming, nearly 2 billion 300 million dollars.

Although Liu Qiang once again expressed Jingdong's "no bad money", Li Chengdong, an external business observer, also said, "Jingdong is not short of money", but this does not mean that Jingdong has no financial pressure.

Liu Qiangdong reviewed the dangerous moments in the Chinese entrepreneurs.

"Jingdong has never faced the need to break up the capital chain.

Of course, I did not sleep well during the financial crisis.

"P," he remembered the 2008, and it was rumored that the Jingdong had no money.

At that time he had a short period of entanglement. The fact was, "our shareholders will give us a lot of money, but we want to find a new venture and worry that the old shareholders take too many shares."

The implication is that the Jingdong, which later totaled $2 billion 200 million, did not only take it easy, but still control the entire board of directors.

character, Liu Qiangdong is not quite like the entrepreneur who investors like.

He is very tough and requires absolute control over the company and the board of directors.

When he negotiated with the investors, he responded to the growth question. "You asked me," how can I prove it? You can think for yourself.

The same is true for old shareholders. If I believe I hold it, I will not sell it if I do not believe it, nor can I sell it. I can also buy back these shares. "

investors may not like strong Liu Qiangdong, but the imagination of Jingdong is too tempting.

According to Jingdong's open data, Jingdong sales in 2010 amounted to about $1 billion 600 million, and sales in 2012 amounted to US $9 billion 700 million, with an annual growth rate of nearly 200%.

Please note that 2012 is a year when the electricity supplier is in a depressed environment. Many B2C and group buying websites have collapsed due to the fragmentation of the capital chain. Before the seven round of financing, the good customers also suffered from life and death.

Capital is starting to concentrate on leaders. Jingdong is the best choice.

to get new money, Jingdong will build a solid barrier.

700 million dollars is equivalent to 4 billion 400 million yuan.

Last year, there was news that Jingdong's logistics investment in 2013 would reach 3 billion 600 million yuan.

Liu Qiangdong did not deny such speculation. He told Chinese entrepreneurs, "apart from logistics, Jingdong will increase investment in new businesses and new technologies."

Jingdong investment in the past is to meet the electricity supplier itself, this year will start a new business attempt. "

It is reported that Jingdong is carrying out large-scale system upgrading and investing in big data, with an estimated amount of 1 billion yuan.

Liu stressed that he would not spend money freely.

"In the past, it often raised $10 million, and the annual sales volume was 10 million yuan.

Such a serious violation of the basic laws of Commerce has existed every year, and I think this year's phenomenon is almost impossible.

He said.

The meaning of is that the price war will bring losses, and Liu Qiangdong will not play like this.

In the past, the magic weapon of Jingdong's rapid expansion was the price war. Every expansion of a category was quickly cut into the market with low price. (of course, Liu said that the low price came from the high efficiency of Jingdong rather than the low price of burning money), and the difference caused by low price was subsidized by the market cost.

The most typical thing is to enter the book area with Dangdang World War I and 8.15.

he rethinks 815 classics.

"This is a coincidence. Inevitably, at a certain time, people will promote sales on a single day and compete for a short time.

This is a fair competition in the market. Nothing. It does not mean that it will not happen in the future, nor will it happen every day. "

He added, "such a small-scale war will never distinguish between winning and losing.

Come on, come on, walk away, come here, do not feel strange, do not feel sorry for leaving.

but competitors will not give up.

"Jingdong refinancing is bound to impose invisible pressure on many potential competitors including suning.com, Dangdang, Tencent, China and Amazon," said Mo Daiqing, analyst at the online retail division of China Electronic Commerce Research Center.

Liu Qiangdong is facing another group fight.

Not long ago, Yi Xun launched a price protection service in a targeted manner, claiming that it is "expensive to pay". If the price is reduced within 24 hours after the purchase, it will compensate the difference.

In terms of funds alone, Jingdong is slightly inferior to Tencent.

Although the volume of the fast and Jingdong is much worse, but Tencent's holding of fast and fast is a truly "rich two generation".

Tencent not only has strong financial strength, but also has abundant and nearly free flow in the QQ system, which can save a lot of market fees.

Bu Guangqi, CEO, confidently told the Chinese entrepreneur that under the premise of low-cost operation, few people could lose the Tencent.

Alibaba also has strong financial strength.

Although Ali manages businesses instead of commodities, it is not as good as Jingdong in terms of maneuverability. Alibaba on the platform line is unlikely to guide businesses to fight price wars, but this big guy is the strong enemy that Jingdong can not get around.

Jingdong needs Suning.

Over the years, Suning has the advantage of procurement cost, but as a listed company, price war may lead to a sharp fall in share prices.

In addition, Suning needs a lot of real estate investment return period of three to five years. Suning needs more electricity infrastructure than Jingdong.

second cards: user experience /p >

in the commercial world, Liu Qiangdong is "not stint".

As he described, in addition to disdain investors, there are competitors. He said, "we must face competition forever, every day, every year and every time, so the competition is not important."

, but he is very fond of users.

He did not hide his sense of crisis from the user experience. "The four or five big platforms left behind will be more and more painful, because competition will become more intense."

There are differentiated competition among platforms, but facing consumers, prices and services will still be the final decisive factor. "Jingdong must have a sense of anxiety, and a little bit of user experience may eventually die."

If the user experience of Jingdong is higher than that of friends (Liu Qiangdong calls competitors "friends"), then we can go to sleep.

in Jingdong, user experience is divided into three elements.

The first element is the product itself.

"P," Liu said, "until now, Jingdong still sells only genuine products."

In selling 3C products, Jingdong is the only company that has the initiative to provide invoices.

Last year, Jingdong provided one hundred million or two hundred million invoices for its customers. This is a great cost. After that, Lei Jun, the founder of millet, once disclosed that the cost of each invoice was close to 0.2 yuan.

second is the price.

Liu described the low price as "a policy that will not change in one hundred years".

However, because the Jingdong attracts much attention, it is almost impossible to achieve the lowest price.

Jingdong company COO Shen Haoyu understands that the low price is "competitive price".

It is unrealistic to rely on low prices and irrational low prices.

Losing money every day, resulting in no Jingdong, the user may be even worse.

What I agree with is the concept of "everyday low price". If we buy a few things together, it will be cheaper than others.

third is service.

In 2013, Jingdong made a series of plans for service upgrading.

this year, Jingdong set up a special department user experience department, which is directly responsible by Liu Qiangdong.

There are not many people in this department, the staff are very young, and all the departments of the Jingdong are pferred to the Department, all of them are "online shopping people."

Their work is to evaluate and test the user experience of Jingdong, and the results are reported directly to Liu Qiangdong.

Liu will ask relevant departments to make improvements at any time.

Liu Qiangdong is very confident. "We must be the first to compare with the competitors from these three angles.

Moreover, Jingdong should make efforts to ensure the gap between the open and the latecomers, especially in details.

2013, Jingdong should upgrade from "passive service" to "active service". Within one year, more than 90% customer service calls will be changed to active calls.

simple explanation of "active service" is that when the user has not found any problems, the Jingdong first finds problems and voluntarily provides services.

For example, because of the late arrival of the goods due to the weather, the Jingdong explained to the user even compensation in advance. When it was returned, there was no need for the tedious process. The user only needed to scan the two-dimensional code and automatically entered the processing flow.

Or pick up parts, pick up time, pick up people and other information to inform consumers.

this project is headed by Shen Haoyu.

He cited, for example, that Jingdong had few active services for abnormal orders, which were explained again by user calls.

"You imagine that the user doesn't call you, and the problem is solved automatically after two days. It's definitely not possible. If the user buys something, the order is abnormal, he will definitely find you, so it's better to find out the problem in time and take the initiative to call out."

However, Shen Haoyu is very concerned about the yardstick, "the pace of life is very fast, everyone is busy, marketing type of outgoing is easy to harass the users, the expansion of external calls must be cautious."

Shen Haoyu in Jingdong is responsible for warehousing, logistics, customer service and the three most closely related service sectors.

Recently, he has been sorting out "active services" internally, and has been running along with several city's distribution staff for several days to find out which processes can be improved and what services the users need.

"Future front-line distribution workers can undertake a lot of marketing work.

The goods are the company, and the people are also the company. This advantage is hard to compare with others. This advantage can be exerted by all users. "

Shen Haoyu often tells the front-line distribution staff, "you are the representative of Jingdong".

Technology investment of Jingdong 1 billion yuan is closely related to this. Active services rely more on systems and data.

If big data system is used, if the order is abnormal in some link, the system will alert and pmit the information directly to the call center.

Before coming to Beijing, Shen Haoyu met with the collation and excavation of big data. He prefers to be good at abstracting "people" as tools.

Jingdong combed the customer service knowledge base, when the user consulted some special commodities, the system automatically displayed relevant information.

He hoped that customer service personnel could not only solve problems, sell things, but also understand categories and products.

Those who are not familiar with customer service can only save and sort out the content pages that are consulted by relevant departments online, and some are placed directly under the merchandise page, so that users can get answers when shopping.

big data can manage users' expectations more reasonably.

Shen Haoyu thinks that the proportion of Jingdong's call in call still has room for improvement. He and many people around him often never buy customer service phone calls online.

"Users must repeat the calls because they do not solve the problem. Repeated calls increase both traffic and user experience.

Who is calling? When are they calling? What kind of problems are they facing? What are the problems? These data systems have, but have not been analyzed, "he said." our aim is to reduce unnecessary calls by data analysis, and once we call each of them, we will respond to each other and solve the problem. Once it is done, it will become productivity immediately, and immediately increase efficiency, save costs and improve user experience. "

Compared with Baidu, Tencent, Alibaba and other companies, Jingdong's big data started late.

Liu Qiangdong explained: "now is the right time. The data must be accumulated enough to produce meaningful results."

but the potential of Jingdong on big data has emerged.

Jingdong will provide data services to the upstream of the supply chain. The distribution of goods before experience is very large, and the cost of late shipment is very high. Big data service can help suppliers to allocate regional supply ratio, and even help manufacturers adjust production.

From a nationwide perspective, the user experience of Jingdong is indeed a good brand.

But Jingdong's user experience card is not unassailable, at least Jingdong can not do POP platform (open platform) user experience and self consistent platform.

In addition, because many cities rely on third party logistics for distribution, Jingdong still has difficulty in controlling its efficiency and effectiveness.

household appliances are looking for the weakness of Jingdong user experience in order to break through.

The Alibaba system has been promoting "small and beautiful" to merchants in order to achieve a personalized experience different from Jingdong.

Suning has the same price on line and online in cities like Beijing. For many users, on-site experience is always better than virtual experience on the Internet. Sunning is more likely to rely on physical stores to provide quality distribution and services.

The strategy of is aimed directly at Jingdong.

Bu Guangqi is to concentrate resources in order to break through in the local market, and then do the same in all key cities.

In Shanghai and East China, Yi soon began to deliver three delivery a day within 4-6 hours, and may also offer slow delivery and timing service. Many loyal users have been trained.

At present, the first tier cities are still the main areas of electricity supplier contribution. In 2013, eBay is expanding the market in Beijing and Southern China.

This kind of encroachment strategy, Liu Qiangdong's defense is to attack, and constantly improve the user experience.

third cards: logistics .

Reporters visited the mysterious Asia 1 library in April 2013 P.

Near the exit of Jiading District Expressway in Shanghai, a banner of Jingdong is hanging on a busy construction site. This is Jingdong Shanghai Asia first bank.

Among them, the first phase covers an area of 94 thousand square meters, the main structure has been capped, and the assembly work of the warehouse equipment is about to start. Next to it is the two or three phase land of the Asia first library, and the construction will follow.

After completion, the total area of Shanghai Asia 1 library will reach 230 thousand square meters.

at present, a considerable warehouse in China is basically used for bulk logistics, and e-commerce is not applicable.

Jingdong is an exception.

The middle part of the assembly plant is about 24 meters high, and it is divided into three zones.

One of them is completely operated by machinery, and only the operation station is reserved on the operation platform.

The other two areas are semi mechanized, but only 32 employees.

It is understood that the entire warehouse is customized for Jingdong.

by the end of 2013, the storage area of Jingdong will exceed 1 million square meters.

To expand storage capacity, Liu Qiangdong's abacus is to start with Jingdong's three operational indicators: the user experience at the front desk, the cost and efficiency in the background.

These indicators determine the profit and loss, and the decision of these indicators is logistics management.

March this year, Tencent CEO Ma Huateng said that the trend of future electricity providers is, "we are not making money in the standardization category products. We are making money by relying on open platform to run non standardized products such as clothing."

But Liu Qiangdong does not look at it. "It depends on the operation and management ability behind you.

At the same price, others lose money, and WAL-MART makes money, because WAL-MART achieves a low-cost and efficient supply chain, which is the core goal pursued by Jingdong. "

In terms of inventory turnover, Gome Suning is about 60-70 days and manages 10 thousand SKU.

Last year, Jingdong managed 2 million SKU, with an average inventory turnover of 28-32 days less than /p.

after the announcement of the $1 billion 500 million C round of financing, Jingdong mall announced that it would invest heavily in the construction of the "Asian first" modern warehousing center, and at the same time build 7 first-class logistics centers with an average investment scale of 600 million ~8 billion yuan.

According to the overall planning, Jingdong mall will invest tens of billions of capital in five years to build its own warehousing and logistics system.

Liu Qiangdong said: "(Asia First Library) because of the dragging on things, but at the end of 2013, the Shanghai library phase 1 was finally put into use. After the piling of Guangzhou one warehouse, the warehouse in Wuhan and Shenyang has already started."

Jingdong's warehousing layout is also constantly optimized.

In the original six regions, the Jingdong has added a storehouse, such as Ji'nan, Chongqing and Xi'an.

Put the best seller SKU closer to customers, and more long tail goods will be supplied by the central warehouse, which will enable Jingdong to greatly improve user experience without increasing the cost.

In addition, Jingdong continues to set up distribution stations. In some places, two level sub centers are set up to solve the balance between user experience, cost and efficiency.

Liu Qiangdong provided two sets of figures.

Vertical comparison, Jingdong from 2009 to now, logistics costs fell 50%, down 46% in 2012, and 2013 will surely exceed 50%.

Horizontal comparison of the absolute cost of logistics, "you spend 8.5 yuan, I only spend 3.4 yuan."

In addition, the price of Jingdong customers is higher, and logistics costs will be lower in sales.

So compared with Suning, Gome, Dangdang and Amazon, Jingdong logistics accounts for only half of their logistics costs.

"China's logistics land is the most stressful, more tense than residential land.

In the past, logistics did not make money, and local governments really had no incentive.

The first round of investment has been enough for Jingdong to spend 5000 mu of land for so long.

Electricity supplier investment will take another round every 7 years, so Jingdong will have another round of investment in seven years.

Liu Qiangdong said.

competitors are also entering the logistics war.

In July this year, Yi Xun's national warehousing and logistics center will be expanded from the current 6 to 16.

In Qingpu District of Shanghai, Yi Xun is building its own "big warehouse", covering an area of 270 thousand square meters, and closer to the urban area.

What is more worrying is Ma Yun. This year he combined with Guo Guangchang, Shen Guojun and others in the relevant fields with experience and advantages to launch a 10 billion logistics plan to achieve the nationwide coverage of the "ground network".

Liu Qiangdong is not worried.

"Logistics needs time to accumulate and optimize. Rome was not built in a day.

It doesn't matter how much money it has, that is, there are one trillion, and there is no way to build Jingdong logistics system within one year.

It's not that you have the money to have a warehouse, you can put the goods in it, the operation system management is the most complex, and the whole logistics construction is the fastest and it will take five years.

Shen Haoyu said that Jingdong from warehousing to distribution is done by themselves, and now the number of packages per day is very high, so it is very difficult for others to copy such a network.

Hundreds of billions of dollars can be made and done, but the only time that can not be crossed is the time needed for the process, and at that time Jingdong has already run far away.

Moreover, the premise of establishing self logistics is scale.

If the order quantity and the order density are not enough, the self logistics cost will be very expensive.

competitors have their own advantages.

Suning's logistics system is relatively mature, but it is more suitable for offline, easy to fast warehouse location closer to the urban area, and more conducive to fast delivery.

But there is still a big gap between them and Jingdong.

For example, warehousing, Jingdong and Amazon take the same way of random storage of goods, Yi Xun did not do so, Bu Guangqi said, "when the order is bigger, random storage can reduce the cost."

Fourth cards: management culture /p >

Liu Qiangdong said, "no one can defeat the Jingdong, and Jingdong can only be defeated by itself."

Indeed, management is a card that can not compare with others, but it is one of the destinies of Jingdong.

In the past, the rapid growth of Jingdong was like a chariot. P

Liu Qiangdong, the controller, has a keen judgement of the industry and a strong and seamless control over Jingdong.

But a firm chariot will also be dragged down by speed, and the Jingdong entering the big company must quickly bid farewell to the wilderness.

Liu Qiangdong's style has been influencing Jingdong. "Values can't be changed. Honestly, the culture of a company is also the founder's culture. Values are definitely my values."

As long as I do not move, the values of the company can not be fundamentally changed. "

Today, an order can still notify the company owner within 3 minutes, and it is communicated to the public.

but today, both inside and outside the Jingdong, the pattern is more complicated.

In 2004, when the Jingdong was online, there were only a few dozen employees. Now there are nearly 30 thousand employees, and the number of employees has increased by nearly 1000 times in the past ten years.

"Enterprise development to different scales, the style and mode of CEO management of a company will inevitably change.

If I do not change, then I am the bottleneck of Jingdong company.

He said.

2013 an important content of Jingdong is organizational adjustment, which is thoroughly combed in the business process and system process.

The system process is combed by Jingdong itself.

In the past, in order to meet the needs of the business at that time, many departments of Jingdong were piling up. This combing required space for development in the next five to ten years.

Some departments will be more subdivided, POP departments and group buying departments are split, warehouse departments and home appliances storage are divided into two departments.

At the same time, Jingdong is merging to make a unified plan for the large logistics system.

last December, Jingdong spent three months inviting third party companies to thoroughly sort out organizational culture and core values.

Now Jingdong is implementing cultural propaganda and landing.

Liu Qiangdong said: "for nine consecutive years, every year the number of new employees exceeds the number of old employees, which is inevitably a cultural breakdown, dilution, or even distortion."

A major change is the Jingdong's emphasis on "people".

In the past, the company was known for its strict management in the Internet industry. It worked six days a week, and there were many strict and strict management rules.

But at the beginning of this year's internal staff meeting, Liu Qiangdong said that in the next ten years, there was only one goal of his assessment, that is, the concern of Jingdong people, and the improvement of the "quality of life" of employees and the improvement of employee's "job satisfaction".

At the same time, Jingdong requires senior management to spend more time in corporate culture building to ensure team values are unified, rather than putting energy in the business level as in the past 90%.

Jingdong's employing principle has also changed quietly.

In the past few years, most of Jingdong's top executives have been introduced from outside, but now Liu Qiangdong is more willing to train executives from Jingdong.

He said that in the future, 70% of Jingdong executives will be promoted from within.

"P > this change, the front-line distribution staff also feel.

In the past, the distribution terminal interface was very unfriendly and needed four or five steps. Now the Jingdong Technology Department is optimizing the terminal and simplifying the operation steps to two.

Shen Haoyu said that optimizing user experience is not only for consumers, but also for Jingdong employees, suppliers and partners.

in the outside world, users also have intuitive feelings about the adjustment of Jingdong.

At the end of March, Jingdong announced the opening of its new short domain name jd.com, using metal dogs as a new mascot, although many people think that Jingdong "Metal Dog" is pointing at Tmall.

But Jingdong is showing its affinity to the outside world.