Top Jingdong, China'S "King Of Retail", Retail Industry Changing

In the conference call on the night of the earnings announcement, Liu Qiangdong, founder and CEO of Jingdong group, said that the Jingdong's third party platform would continue its culture, that is, a zero tolerance attitude towards fake products and heavy penalties and retreats for businesses trying to sell fake products on Jingdong platforms.

Therefore, the expansion of the number of businesses will be slower, far from being claimed as millions of sellers by some platforms.

From Liu Qiangdong's answer, it is easy to see that Jingdong will continue to adhere to the differential positioning and go its own way.

In the Internet industry's most valued user level, Jingdong did a good job last year.

In 2014, the number of Jingdong active users surged to nearly 100 million, reaching 96 million 600 thousand, an increase of 104% over the same period.

In March 3rd, the Jingdong issued a beautiful financial report and achieved a net income of 115 billion yuan in 2014.

Suning Yun's announcement of performance Bulletin released in February 28th showed that Suning's total annual revenue in 2014 was 109 billion 116 million yuan, which has been overtaken by Jingdong.

This also means that China's "retail king" has changed hands and Jingdong has successfully reached the top.

The key to Jingdong's success is the power of the Internet and the power of e-commerce.

In 2014, Jingdong's net income increased by 66%, while sunning only increased by 3.63% in the same period, of which only 24% of online business was accounted for, and the high growth of online business was still unable to offset the slump of offline business.

In the twinkling of an eye, the sea has changed to mulberry fields, and the Internet has changed the speed of the real world far beyond our imagination.

How many consumers are buying 3C and appliances now? They are not only used to buying 3C and appliances on the Internet, but also buying clothes and fresh food on the Internet.

Relying on better user experience, e-commerce is gaining popularity among more and more consumers and gaining the overwhelming advantage of offline retailing.

In the future, as life services become more and more closely integrated with the Internet, the new O2O form will continue to change the line.

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Can the Jingdong that has reached the summit maintain sustained, stable, healthy and high-speed growth? Let us take a look at its data:

Let's take a look at the more important data in the retail industry -- total paction volume (GMV).

In 2014, the total annual paction volume of Jingdong reached 260 billion 200 million yuan, an increase of 107% over the same period last year, which far outperformed the general trend.

According to the statistics of AI consulting, the growth rate of China's online shopping market in 2014 was 48.7%, that is to say, the growth rate of Jingdong was 2 times higher than that of the industry average.

If we analyze the quarter in detail, the total volume of Jingdong in the four quarter of 2014 will be 44 billion 100 million yuan, 63 billion yuan, 67 billion 300 million yuan and 85 billion 800 million yuan respectively, up 84%, 107%, 111% and 119% respectively, and the growth rate of the ring has also maintained a high growth rate.

What are the main reasons for the rapid growth of Jingdong GMV? We still need to find answers from the classification.

In 2014, Jingdong's self operated GMV was 159 billion 300 million yuan, an increase of 70% over the same period, and its performance is still very steady.

At the same time, the GMV of Jingdong's third party platform business also broke through 100 billion yuan, reaching 100 billion 900 million yuan, an increase of 217% over the same period last year.

Correspondingly, the traditional territory of Jingdong, that is, the 3C of household appliances, increased by 78% compared with the same period last year, while the GMV of daily goods and other products increased by 158% compared with the same period last year. The growth rate of the GMV was two times higher than that of 3C for household appliances.

From the earnings report, we can see that Jingdong has long been more than just home appliances 3C

It is becoming a comprehensive retailer covering the whole category, and Jingdong is not only a self operated retailer who buys and sells itself, but is becoming a platform retailer based on proprietary and third party integration.

In the past year, Jingdong has opened the door to a large number of third party businesses, and welcome them to open shop on Jingdong platform.

As of December 31, 2014, third Jingdong platforms have already entered 60 thousand businesses, further enriching the types of Jingdong products.

Meanwhile, Liu Qiangdong, founder and CEO of Jingdong group, said that the Jingdong's third party platform will continue its culture, that is, a zero tolerance attitude towards fake products and heavy penalties and retreats for businesses trying to sell fake products on Jingdong platforms.

Therefore, the expansion of the number of businesses will be slower, far from being claimed as millions of sellers by some platforms.

From Liu Qiangdong's answer, it is easy to see that Jingdong will continue to adhere to the differential positioning and go its own way.

In the Internet industry's most valued user level, Jingdong did a good job last year.

In 2014, the number of Jingdong active users surged to nearly 100 million, reaching 96 million 600 thousand, an increase of 104% over the same period.

What is the conversion rate when attracting more users? In 2014, Jingdong completed 689 million annual orders, an increase of 113% over the same period last year.

What's more surprising is that

The proportion of mobile orders increased rapidly. In the second quarter of 2014, Jingdong accounted for only 24% of mobile orders. In the fourth quarter, the proportion of mobile orders has risen to 36%. For a supplier whose price is still up to 378 yuan, the proportion of mobile orders has been commendable.

The reason is that in the past year, Jingdong has launched a number of mobile shopping platforms including WeChat, mobile phone QQ and micro stores in addition to vigorously developing Jingdong APP. It has extensively and deeply touched more user groups including three to six line city users. The number of users from these areas has increased significantly, coupled with the downward penetration of marketing activities and the rapid expansion of logistics coverage, Jingdong's ability to fulfill orders on mobile terminals has been continuously strengthened, and its effectiveness in mobile terminals has been remarkable.

Of course, if you are an investor in Jingdong, you will also be very concerned about the profitability of Jingdong.

According to us general accounting standards (GAAP), Jingdong still lost 5 billion yuan in 2014. The main reason for the loss is equity incentive fees and amortization expenses of intangible assets arising from the acquisition of assets and business related to strategic cooperation with Tencent.

Jingdong, which can better reflect the operation of Jingdong, is a non US general accounting standard (NON-GAAP). According to this calculation, Jingdong realized a net profit of 362 million 700 thousand yuan in the past two years, and has been profitable for the past two years.

Generally speaking, gross profit margin can reflect the cost control and management ability of a company well.

In the four quarter of 2014, Jingdong's gross margin increased steadily from 10% in the first quarter to 12.7% in the fourth quarter.

In the retail industry of "towing water in towels", the increase in gross margin is 2.7 percentage points.

Because Jingdong has such a large scale, it will squeeze enough profit margins for Jingdong.

Lao Ji also noted that the cost rate of Jingdong has been well controlled over the same period.

If this trend is developed, Lao Ji boldly predicts that Jingdong is expected to achieve GAAP's full year profit in 2015.