Jingdong Believes That China's Economic Slowdown Affects The Electricity Supplier Industry

Just as rival Alibaba Group Holding Ltd. (NYSE:BABA), Alibaba has fallen into a new wave of public opinion because of the issue of selling fake goods, China's second largest.

The group JD.com Inc. (NASDAQ:JD) Jingdong invited international media to visit its Beijing headquarters.

The media activities led by Jingdong mall CEO Haoyu Shen Shen Haoyu, in an interview, about Alibaba's accession to the International AntiCounterfeiting Coalition (referred to as IACC) international anti fake alliance, and then being kicked out by IACC, Shen Haoyu said this is very embarrassing for the Chinese electricity supplier industry.

In April, Alibaba joined the IACC, and subsequently encountered the withdrawal of other members of the IACC alliance, Michael Kors Holdings Ltd., NYSE:KORS (Gucci), Gucci Gucci and the US jewellery brand Tiffany & Co. (NYSE:TIF) Tiffany, and eventually Alibaba was removed.

However, in an interview with international media, Shen Haoyu did not show the consistent style of Jingdong and Alibaba. He admits that as a platform, the problem of counterfeit goods is more difficult than direct operation.

Jingdong is now pforming from the former 3C camp to a multi brand direct and platform mixed mode, and its competitors have always been a third party e-commerce platform, and brands and retailers are selling on Tmall.com Tmall and Taobao.com Taobao. They need to pay the sales promotion or marketing, advertising and data, technology and other expenses to Alibaba.

Shen Haoyu also said that counterfeit goods are still a major problem in the Chinese electricity supplier industry. He reiterated that Jingdong had a "zero tolerance" policy for counterfeit goods and its competitors.

It has always expressed "zero tolerance" for counterfeit goods.

Another issue of media concern is China's economic slowdown and Jingdong's own business problems.

In this regard, Shen Haoyu admitted that China's economic slowdown has affected the industry.

According to the data, as of the first quarter of March 31, 2016, Jingdong group GMV increased by 55% to RMB 129 billion 300 million yuan (hereinafter referred to as "Yuan"), or about 20 billion 100 million US dollars, slowing down compared with the four quarter 69%.

During the period, the 3C category GMV of electrical appliances and household appliances increased by 54% to 67 billion 500 million yuan, while the general merchandise category GMV, which was mainly clothing, was 61 billion 800 million yuan, an increase of 48%.

It is worth noting that the growth rate of the general merchandise category is almost half that of the four quarter, which shows that the apparel retail market is not only weakening online, but also slowing down at high speed on the Internet.

According to the statistics of China's National Bureau of statistics, in 2016 1-3, the total retail sales volume of the country was 10251 billion yuan, up 27.8% from the same period last year, of which the increase in clothing category was 16%, the lowest in three categories.

In terms of GMV growth, Alibaba's performance is even worse.

According to data, as of the first quarter of March 31, 2016, the fourth quarter of fiscal year, Alibaba GMV growth rate is only 23%, two consecutive quarters in low growth.

Unlike Jingdong Inc. JD.com, which is the product of 3C, Alibaba group is Tmall.com Tmall or Taobao.com.

The general merchandise category dominated by clothing accounts for the absolute proportion.

Therefore, in the extreme downturn of the apparel retail market, Jingdong's overall GMV growth rate reached 2.4 times that of Alibaba in 1-3 months of 2016.

However, for the future of the group, Shen Haoyu expressed confidence that Chinese consumers expected more genuine products, which coincided with Jingdong values.

Chen Zhang Zhang Chen, chief technology officer of Jingdong mall, said that the trend of online consumption in China is changing. Consumers are looking for a new stage of high quality and good quality products from the stage of buying cheap goods through electricity suppliers. "Prices are not always the most important now. More and more consumers are really concerned about quality problems, especially consumers who are rising channels."

To this end, Jingdong will mark the theme of "618 Carnival" this year.