Jingdong Zhang Construction: Current Situation And Trend Of E-Commerce

Director, policy research office, Jingdong group

Good morning, distinguished guests, leaders and entrepreneurs. I am a real cotton outsider.

To this podium, we can say that the heartbeat is accelerating, and we are scared.

I have been encouraging myself, the Internet has a word called cross border, and temporarily positioning itself as cross-border.

There are many Internet business people who are created by laymen, so I dare to teach my friends here today.

I report about four aspects:

First, the understanding of "Internet +", I guess Yang will have a more authoritative interpretation.

The second is to analyze the situation of e-commerce in China.

Third, the possible trend of B2B market.

Finally, we should make a brief advertisement, which is the case of Jingdong.

In the past, I have undertaken more research tasks of ministries and municipalities, but after the two sessions this year, we have received more research needs from the central enterprises.

There is a common topic of these demands, which is "Internet +".

My understanding of "Internet +" is so.

First of all, the core of "Internet +" is "+".

"+" stands for connection, and then produces a kind of interaction based on information technology. On the other hand, more importantly, the Internet brings the reconstruction of new social structure.

So I copied the phrase "connection, connection is a foundation" by Mr. Ma Huateng of Tencent.

The future "Internet +" ecosystem will be built on the basis of interconnection of all things.

Since last September, including the first half of this year, the national supply and marketing system has a great deal of action in expanding the field of operation and service, with high enthusiasm and extensive social mobilization.

This is what I want to learn.

In fact, we are also concerned about the decision of the CPC Central Committee and the State Council on deepening the comprehensive reform of supply and marketing cooperatives. We also mentioned in particular the innovative agricultural service methods and means, improving the circulation service level of agricultural products, building a comprehensive service platform for urban and rural communities, and steadily carrying out the integration of rural gold as the four tasks. In fact, these four tasks are exactly the business models that Chinese Internet companies strive to actively explore in the past 20 years.

Internet companies have always found a common problem in exploring and actively seeking solutions to these four aspects. If they do not control the Internet, do not have the advantage of controlling the supply side, and do not grasp the advantages of the real economy, it will be very difficult to carry out the work in this area.

No matter how the Internet develops, there is no root from the real economy.

That is to say, Internet + supply and marketing cooperatives or Internet plus cotton are actually consolidating and giving full play to our existing advantages, forming an integrated operation mode of online pactions, warehousing and logistics, and terminal distribution, so as to realize the integration development between online and offline businesses.

Of course, return to the old bank, and then think of the electricity supplier.

In fact, the development of China's electricity supplier is relatively late. In 2003, Taobao was founded. In 2004, the Jingdong was founded, and the B2C electricity supplier started. Then it pushed forward. In the 98 years before and after, the B2B electricity supplier appeared. The electricity supplier of enterprises to enterprises can push forward to 94 and 95 years, and the creation of Amazon and eBay.

The whole e-commerce development in China is only 10 to 15 years, and there are 20 years in the world. The biggest advantage is to play a connecting advantage, where to connect, that is, it can think of, or it can connect to the space, almost all connected.

In May, the State Council issued a comment on "vigorously developing e-commerce and accelerating the development of new economic power". This guidance is more profound or more comprehensive interpretation of the connotation of e-commerce.

I can simply read with you all the leaders and entrepreneurs.

In recent years, the rapid development of e-commerce in China has not only created new consumption demand, triggered a new investment boom, opened up new channels for employment and income increase, but also provided new space for public entrepreneurship and innovation.

Moreover, e-commerce is accelerating the integration with the manufacturing industry, promoting the pformation and upgrading of the service industry, giving birth to new formats, becoming a new force in providing public goods and public services, and becoming a new driving force for economic growth.

That is to say, e-commerce has gone out of the concept of tools and has become a connector, connecting to our traditional three carriages, demand, investment and export, also connected to employment, linking to innovation, connecting to investment, connecting to financial market, connecting to the entire traditional industry.

So no one can avoid it.

At present, we are concerned about whether it is the cotton industry, the supply and marketing industry, or the e-commerce related to agriculture. It may redefine the norms of future industry or agriculture related production. On the other hand, it directly penetrates into our industry 4 through services, including smart earth and smart city, intelligent community. So these so-called intelligent industries may re establish a new social structure with the development of supply and marketing, cotton, agriculture related e-commerce or the Internet.

Therefore, we are very pleased to see that in the supply and marketing cooperatives, or agriculture related areas in the development.

At the time, it is very suitable for its own characteristics. One is to develop B2B e-commerce. We are also concerned about not only domestic enterprises' pactions to enterprises, but also special emphasis on cross-border trade, so in B2B, especially in the cotton market, they actually have the characteristics of cross-border or cross-border and p regional, which is a resource that all Internet companies want.

The second task is to develop the electronic commerce of agricultural products, which is the hottest spot at present, including rural e-commerce.

Of course, we are also concerned about the arrangement of supply and marketing cooperatives, and are accelerating the construction of regional and professional e-commerce platforms. This is the trend of e-commerce in the future.

These are the simple ways to learn about cotton or supply and marketing systems.

Now I want to share with you the whole situation of e-commerce in China.

In view of the current e-commerce and several Internet data, I report to entrepreneurs.

On the first hand, we are very pleased to find that about 648 million of the total population of the country's population of 13. 4 billion has become Internet users.

China's Internet penetration rate reached 47.9%, nearly 50%.

Under such circumstances, our generation may be emigrants in the Internet industry. We have moved from the traditional mode of paction and lifestyle to the Internet.

But the generation that is later than us is born aborigines of the Internet, and the Internet has become their main way of life.

Look at the changes in urban and rural areas again.

The penetration rate of the Internet is even higher, reaching 62.8%, but the rural Internet penetration rate has increased to 28.8%.

Last year when we were doing research in rural areas, we found that the mobile Internet, including the Internet based on three networks convergence, was developing very fast in rural areas.

I have a case that I have always been obsessed with. At that time, I was in a backward village in Beijiao, Henan, where I was invited to participate in the symposium. The village head was holding a computer to attend the forum. When he left, the 58 year old village chief even had to add my WeChat.

It can be said that our Internet has penetrated into the field, and we can imagine what changes it will bring to our life and production in the future.

{page_break}

But from the receiver side, we also feel a change. In the past, we are concerned about the Internet is concerned about computers and notebooks, but in the past year, mobile phones and tablet computers have risen rapidly.

This is not terrible. What's frightening is that we have been concerned about a trend from last year, that is, broadcasting and television.

The broadcasting and television fields of our provinces and cities not only make IPTV Internet TV, but also do OTT, which is based on the box of Internet TV.

Therefore, triple play can become a natural behavior with the development of "Internet +".

In the future, terminals that can receive the Internet will not necessarily be notebooks, mobile phones, television or even screens. Adding a box is the entrance of the Internet. This is equivalent to turning the difficulty of the Internet from a professional technology into a simple application, so there will be greater development in our life.

Of course, we are also concerned about whether businesses, whether in office, production or trading, are increasingly relying on the Internet.

Nationwide survey shows that Internet companies account for 78.7%, that is to say, the vast majority of enterprises are using the Internet to carry out its normal operation and management.

There is also a data that China's e-commerce market in 2013, when the network retail sales of 1 trillion and 850 billion, surpassed the European and American markets, becoming the world's largest online retail market.

This data rose to 2 trillion and 790 billion in 2014, which only refers to the B2C market.

The total retail sales of consumer goods in the whole country was 26 trillion and 230 billion in 2014, that is to say, the retail sales of B2C accounted for about 10.6% of the total retail sales.

We suddenly thought of an enterprise, that is, WAL-MART, WAL-MART in the United States accounted for 10% share of the time there is a change, and upstream suppliers have a link, from capital, financial investment to strategic investment, the vast majority of suppliers actually become its twin brother, that is to say, as a retail enterprise has begun to extend upstream, downstream also more widely penetrated into the community.

So we are guessing that with the rapid development of Jingdong and Ali's B2C electricity supplier, their accumulated market share will exceed 10%. Will they affect upstream suppliers like WAL-MART and affect our community life? This seems to have an answer.

The current B2C business is essentially B2B2C, though

This one is more attractive, but we often ignore the influence of B2B.

We are also concerned about the expansion of Jingdong's rural capital business through Jingdong intelligence and Jingdong finance. Its real purpose is to expand the upstream industry chain and ensure the safety of supply sources.

In ensuring the safety of goods, the Internet has a saying that it is not for all, but for use.

"Not asking for everything" means that property rights and intellectual property rights are not pferred. This is the practice of light assets.

When the B2C electricity supplier is big enough, it can become an industry, and the industry will set a standard. After setting a standard, it may change the specifications of agricultural production and processing.

A very specific example, from 2008 to 2009, Jingdong built its own logistics, warehousing, and distribution itself. At that time, its own strength was very small, and it needed to butt the socialization logistics, including road pportation, including warehouses, but it was very difficult in the docking process, because e-commerce was a new form of business. Its own standards and traditional logistics could not be docked. Finally, the result was that it had to make up its mind to expand its self built logistics more vigorously.

But after 2012 and 2013, it seemed to be reversed. When its volume and business volume were large enough, many logistics enterprises found him docking and referred to his standards, and began to change their logistics system. Because they did not change the rules and logistics system, they could not only cooperate with Jingdong, but also could not cooperate with the electricity supplier enterprises, so this is the change of standard to the whole industry.

Of course, in fact, Jingdong logistics warehousing customers have begun to take orders. Why do they have more couriers than their warehouses and cars? When they are concerned about the B2C standard, they also suggest that our entrepreneurs pay attention to the change of B2B. In the whole country, the volume of e-commerce pactions has reached 17 trillion and 370 billion in 2014, and the growth rate is also very high, 28.6%.

In 17 trillion and 370 billion, the retail sales volume of the network is B2C 2 trillion and 790 billion. Most of them are B2C, but B2C is not only a paction, but also a reconstruction of business standards.

B2C market competition is relatively stable, or basically stable.

On the one hand, like Amazon, Dangdang, Gome, Suning, these retailers move to the Internet, which is basically monopolized by big enterprises.

Let's take a look at all the B2C market structure, and we will be even more scared. Where is the reason? The whole Tmall accounts for 61.4% of the total, plus 16.8% of Jingdong, that is, the B2C market, and 80% of the traffic is occupied by Tmall and Jingdong. So we have a traditional saying, "shop bully" or "crowded".

In fact, it is a bargaining power problem, so the traffic at the B2C terminal is becoming more and more concentrated and monopolized. It will have an imaginable impact on the upstream and downstream, so it deserves our attention.

We are also concerned about the evolution of technology. In the past year, the data released by Jingdong and Ali were particularly concerned. When Jingdong released data in the first quarter of 2015, it emphasized that mobile terminal customers accounted for 42%, and Ali shouted 50% of the paction volume last year.

So we can feel that the Internet from the PC office space is moving towards the mobile Internet.

The Internet of mobile terminals may be ubiquitous Internet, ubiquitous pactions, ubiquitous standards of living and production defined by the Internet.

So the whole Internet is the general situation.

Generally speaking, we have several understandings in the first place. The first understanding is that the Internet, like oil and electricity, is our universal law of survival.

Second, the Internet has developed over the past 10 years, especially e-commerce. What we talked about most in the past is that the real economy should embrace the Internet. The real economy should rely on the Internet to call the "+ Internet". With the "Internet +" rising to the national strategy, the idea may be reversed, that is, the Internet must embrace the real economy, and the Internet plus real economy must embrace the goal of two: no electricity, no business, no e-commerce, no way to do business.

But there will also be a phenomenon, no shop is not business, is the entity shop, production organization.

Therefore, e-commerce is going to move towards greater integration. A new role in finance is coming to the stage. Jingdong and Alibaba seize the B2C.

B2B according to our research, we report four aspects.

The first aspect is to go to platform and enterprise LED full channel mode.

At present, from the B2C side, there are three modes of electric business, one is the open platform represented by eBay and Tmall.

Businesses open shop, trade, deliver and service. They support platform operation and pay commission fees for platform management fees.

This represents a self operated electronic business, nor is it an absolute proprietary platform. In fact, it buys products and stores in its own name and sells them to consumers in the name of products.

Jingdong has done more thorough warehousing, distribution and customer service.

But in the past, we have neglected, or at the moment, a healthier way of doing business, such as millet, fan, apple and other similar e-commerce. It is both a brand manufacturer and a manufacturer, designer, and sells through various channels.

And marketing research may know that there is a common saying hunger marketing, hunger marketing is almost the same as millet and apple, that is, IPhone, iPad and millet always grab goods.

I specifically asked the executives of these enterprises, in fact, is not hunger marketing, because its products cater to the needs of the vast number of consumers, production capacity can not keep up with consumer demand, resulting in a shortage of supply, rather than subjective or active supply in short supply.

So we will assume that in the future, our HUAWEI, our cotton enterprises and garment enterprises will have enough influence in general. Once they have mastered what they used to be professional and now seem to be universal Internet trading technology, they will be an e-commerce platform.

Moreover, the e-commerce platform is open, which can be connected with the e-commerce platform in the society, and can be reasonably divided with the traditional existing channels.

Of course, it can also be sold on its own official website, such as HUAWEI and Haier.

This subversion of our past concept of doing business, in the past is to replace the intermediate link to get profits. The following B2B is not to destroy the intermediate links, but a synergy innovation with the intermediate links, improve efficiency, and more convenient connection and demand, this is also a trend.

Therefore, we are also concerned about several active B2B platforms in China, including China benefiting farmers network, wolfberry net and aquatic product network. They are also changing the way of operation, from the past to the middle link business, to cooperate with the intermediate links, to coordinate innovation and produce benefits.

This involves a platform, that is, every enterprise has its own platform, the spirit of the Internet is to go to the middle.

Second, we have been researching and studying the industrial chain of cellular connectivity. Future e-commerce and "Internet +" should be restructured and linked.

I sketchy a model of costume design based on human and big data.

One end of this picture is the entity store, that is, the actual person, by capturing the consumer's data to form the data of the human body and the demand data for the clothing. These data are submitted online to a cloud platform; and the other end of the graph is the garment design link, which obtains the customer needs on the cloud platform, and then orders the garment to the processing enterprise according to the customer's needs, so that the production and processing links are produced in mass production.

This is mass customization.

Many entrepreneurs are likely to pay attention to the red collar suit in Qingdao. It is said that there is no suit in the production line that is exactly the same. It is based on the customer's personalized demand. This case really represents the effect of the big data Internet.

Although we have repeatedly stressed that it is a customized mode, I personally believe that it is more a form of production and lifestyle than a customized mode.

I have an idea of drawing this picture, which requires us to pay attention to some unfair phenomena brought by "Internet +". It is called passing the ball, which is the person who was not in your line of sight, suddenly grabbed your front and occupied your eyeball.

B2C is trying to capture demand for personal consumption through various technologies.

In the second half of last year, the B2C electricity supplier was popular with one saying: when you go to the street, you see a person wearing very beautiful clothes that are very suitable for you. You can pick up your mobile phone and shoot it. When you take photos to your local store, it has been connected to an electronic business platform such as Taobao and Jingdong. It helps you find this product, you can place the order directly.

This is not imagination. It has already been realized, but popularization needs time.

So when downstream efforts to catch personal consumption demand, do we also need to pay attention to the B2B end?

At the party yesterday, our chairman mentioned that the products we eat now will indicate who planted the field, who will give fertilizer, who will manage the field, especially the rice in the northeast of Heilongjiang, and who will guide the agricultural machinery.

But our cotton has not yet been planted on the clothes and who picked the cotton. This kind of voice will become possible on the Internet and will be realized at the end.

There are two sentences which are very critical. In the interconnection of all things, enterprises are not the smallest unit of social economic activities, and individuals are the smallest cells of economic activities.

This is a new direction that I just talked about buying clothes on the street.

The key to the competition between enterprises and enterprises is the competition of supply chains. The supply chain is reconstructed by the Internet. If we do not have the right to speak, we may be mastered by others.

The third is the new ecosystem based on big data. The Internet is essentially a link. The core is data. This figure is my simulation. Whether it is Jingdong Ali or B2C, B2B electric business, it is more based on ICT. Based on cloud computing, big data and Internet of things, it has completed information. On the basis of information technology, it puts forward the content of "Internet +" and "Internet +". People pay more attention to it, that is, very active industry internet, Internet finance, and service Internet.

Its know-how is very simple, upstream is called supply chain finance, and the downstream is called consumer finance, and it plays a lot of chips, including product and stock price crowding, as well as payment means. It fully reflects the efficiency of online trust moving to the online market, and takes Jingdong's supply chain finance as an example. It is completely completed on the Internet. When the supplier submits loan demand, people and people do not meet each other. From submitting demand to getting loans, it only takes 3 minutes to complete online, because the traditional Internet and supply chain have all grasped the supply chain, grasped the cash demand of suppliers, the credit situation, grasped the market space, did not worry about not coming back, and did not worry about the supplier's dishonesty, so there was a 3 minute efficiency. Internet finance you may feel that crowdsourcing crowdsourcing B2B, talk about Internet Finance everywhere.

And the loan is 3 minutes. You can repay it any time after you receive it tonight.

Including public funding, last year, Jingdong's domestic public chips accounted for 30% of the total, and the activity was active in capturing an innovation, a technology and a new product, allowing consumers to pay their loans ahead of schedule through its traffic, and then encouraging this innovation to become reality as soon as possible, so it formed a structure of resources, investment, consumption and payment in advance, so it greatly promoted consumption innovation, so this is also the space for B2C. This is the most vivid Internet business we can see, that is, the industrial Internet, Internet Finance and service Internet.

The Internet that we just talked about should embrace the real economy, including our cotton, and eventually form a new ecosystem, including our popular AI and mechanical learning, including physiological science, and what it is completely applied to.

I saw an agricultural product called melon seedling production in northern Henan. It's very good. Recently, I was docking the resources of genes. Why should I butt up this resource? I suddenly discovered that the farmer was very serious and raised the melon seedlings very well. My only regret is that the seedlings and genes did not form a database. Without data, they could be surpassed and copied. This is the biggest risk.

I believe that the cotton industry also has a huge industry and a better foundation.

Not only is there a genetic problem in agricultural services, but there are more data to study. These are all things that big data can accumulate in the future.

The fourth aspect is cross-border. I do not mention much. This is also the hottest and the most difficult industry in China.

Why is it that the hottest does not improve? We bought the Express link.

Dunhuang network, China manufacturing network, global resources, ECVV, Lanting Pavilion gathering potential, E trade and ocean terminal, these B2B providers have the biggest problem. It has not formed enough global influence.

In the future, with the implementation of the opening policy of "one belt and one road" in all aspects, the cross border electricity supplier is likely to have the way of trade plus electricity supplier. While the trade side, we actually see that the data of cotton is very refined, so as long as it is easy to butt the electricity supplier in domestic and foreign countries, it solves the problem of customs clearance and logistics, and solves the problem of the efficiency of traditional trade mode.

Therefore, in the future, there will probably be a trade pattern of general trade and self operated e-commerce in the field of B2B, which may be the traditional trade resource base in China, including overseas warehouses and international logistics, including some industries and enterprises with international market dominance.

I just said that the fifth conjecture is that streaming video technology or promoting the iteration of electric business.

Electricity providers often have a saying that the Internet industry is not subversive, only iteration, that is, one generation surpasses another generation.

This way is two or three years, the change is very fast, we can say that the PC Internet has subverted the offline pactions, the mobile Internet may iterate the PC Internet. Later, we are concerned about the electric business enterprise such as Amazon, and the domestic broadcast and television three networks convergence, must be the video way is doing the electricity supplier.

I tried to find some pictures of the cotton industry. Unfortunately, I didn't receive them.

As far as I know, the video of the cotton industry is very good, and cotton trade is here. But in the past, videos used to be more monitoring and browsing, instead of forming pactions.

This picture can be imagined that it is a scene of small commodity trading. In the past, we need to pick thousands of goods and select goods in thousands of thousands of warehouses, and discuss what may happen in the future. Maybe in the US, Europe or India, we can see that in China or in a shopping mall in Europe and America, we can find a product through video search, and then complete the paction through negotiation.

What is the advantage? First, it is not only to improve efficiency, but also to save the flow of personnel in different places.

More importantly, when we are doing traditional physical stores and traditional pactions, the most painful thing is that we do not know which products the consumer has seen, until the last trading session, we can know what he has seen in the past.

At present, Jingdong and Alibaba, just from the moment you touch the net, track your whereabouts, and judge your data according to your whereabouts. The so-called big data mining is very accurate to push the goods you want to buy.

There are also Jingdong, including a distribution, your future orders, such as you in Xi'an, maybe next week you will buy a HP notebook, Jingdong is likely to buy it for you today, help you to HP shopping mall in Chongqing, two days to Xi'an warehouse, when you order, has sent you to Xi'an.

So when you browse the website, it estimates what your future needs.

Whether we are cotton trading or the traditional paction at the retail end, we only know what you have bought during the final payment process, and what we can see in the process can not be computerized.

So with video, you can catch this.

When you enter a store by video, you can capture what product you need in a few seconds, and you can pick it up on your own. It's a good way to pick products from tens of millions of products without you.

Therefore, the future video business may not only be the concept of shop search, but a technical means to restructure the production and paction mode.

Just now, there are five conjectures.

Finally, make a brief advertisement.

First, we can rejoice in the development of e-commerce. The Jingdong is actually very young. In 2004, it began to make electricity providers. In 2004, it made 10 million and 2010 32 billion 700 million, but in the 1 quarter of 2015, we were delighted that the volume of pactions reached 87 billion 800 million in the first quarter. From the perspective of net income, it was the largest retail enterprise in the country, and Suning was the largest retail enterprise. Suning made 109 billion 700 million last year, and Jingdong made 115 billion such pactions last year.

Second, its business is not limited to B2C pactions. We B2C is Jingdong mall, and B2B pactions, and Jingdong intelligence, through its incubator, in line with its smart standards, and gradually form a close financial relationship with upstream suppliers.

Of course, as well as finance, I especially emphasized the supply chain finance consumption, how the upstream finance can get the source of goods, and the downstream is to connect the high-end customers.

Jingdong realized 2 hours' service within 3 hours and 3 kilometers, mainly including fruits, flowers and fast food, including all aspects of life services, and of course cross-border import. It also includes exports of general trade + self operated electricity suppliers. It is overseas investment and acquisition of some overseas electric business platforms, so this is an example of Jingdong.

Ali is also the case now, and began to carry out upstream and downstream penetration, which is also a good way to preheat the B2C market.

I would like to share with you the biggest change brought about by e-commerce, that is, efficiency. I am the data copied from the treasure net. The stock rate of Jingdong is 34.2 days. Entrepreneurs can pay attention to all the consumer goods, industrial products and daily necessities that Jingdong is good at. The inventory of daily necessities for 34.2 days is still very amazing. Taking notebook as an example, there have been 7 days or even 2 days of inventory. Like traditional Zhongguancun stores, its inventory probably takes 2 months or even 3 months.

There are also 42.2 days of accounts, which can improve the efficiency of capital turnover.

In the final analysis, the Internet is a belief, no matter how busy it is, how the Internet thinking can not be separated from products, prices and services in the final analysis. That is to say, you can use logistics system, IT system and financial system, including your team, to improve your efficiency, reduce your cost, and ultimately provide your consumers with quality products, quality prices and quality services for your customers. This is a problem that is changing all the time. This belief is also destined to be the main body and future of the "Internet +" enterprise.

My report is here, "Internet +" has broken through the concept of tools, becoming an ecological and a universal technology. "Internet +" has brought infinite imagination to our industrial upgrading. I hope we can work together to create a new format. Thank you!