Jingdong'S Development Suffers From Internal And External Difficulties

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Aggressive business and its own business continued to suffer losses.

The group is carrying out a new round of adjustment. On the one hand, it is aligning itself with WAL-MART. On the other hand, it is a major adjustment of Jingdong's top management to counter Alibaba attack.

Just yesterday, Jingdong group announced the announcement of the organizational structure upgrading and personnel appointment, Jingdong integrated marketing resources, and the establishment of a marketing platform system. Xu Lei, vice president of Jingdong group, took the lead in reporting to the mall CEO Shen Haoyu.

Among them, the mall marketing department is run by Xu Lei, undertaking the functions of brand, marketing and operation; the head of the public relations department of the mall is held by Song Yang, and the real line reports to Xu Lei. Besides the advertising business, other functions of digital marketing business are pferred to the marketing department.

Jingdong mall research and development department is responsible for Masson, solid line to the mall CEO Shen Haoyu report, dotted line to group CTO Zhang morning report.

Xiao Jun will serve as the head of the X division, and report to Wang Zhenhui, head of the operation system, the dashed line to Masson.

Jingdong group also announced that Xiong Qingyun, vice president of Jingdong group, will serve as the chief brand officer of the mall. The real line will report to the mall CEO Shen Haoyu, responsible for brand investment, group brand standardization management, overseas brand promotion and other strategic projects.

Li Xi, vice president of Jingdong group, will be the head of the group's public relations. He will report to the group CPO LAN ye, who is responsible for the public relations between the group and the international market. The public relations of mall and finance will be reported to Li Xi by the per capita dotted line.

Xu Lei, Masson and Wang Zhenhui are over 5 years old in the Jingdong. They hold three core positions of Jingdong mall, Xiong Qingyun and Li Xi from foreign enterprises. They belong to the airborne faction.

This adjustment presents a major feature - the Westernization faction is marginalized, and the old team is reused.

Industry sources said that the adjustment is only a precursor of Jingdong's internal adjustment, and the future "Westernization faction" may further lose momentum in Jingdong.

Xu Lei and Masson have greatly increased their internal discourse power in the Jingdong.

Statistics show that Xu Lei joined Jingdong in 2007 and has been responsible for Jingdong advertising, public relations, brand, school enterprise marketing and so on.

After a brief absence, Xu Lei joined Jingdong mall again in 2013. He was fully responsible for the marketing work. Since the end of 2014, he was also the head of the wireless business department, and he is fully responsible for the R & D and operation of the wireless business.

After joining Jingdong, Xiong Qingyun was fully responsible for the work of Jingdong mall, and he worked full-time in the research and operation of wireless business.

Xiong Qingyun joined Jingdong in July 2015 and was fully responsible for the Jingdong mall marketing department. Previously, Xiong Qingyun was the vice president of P&G, Greater China, and vice president of the business department of Greater China.

Jingdong group said at that time that Xiong Qingyun was a benchmarking figure in professional managers of Chinese foreign-funded enterprises. Before joining Jingdong group, he served as vice president of P&G, Greater China, and was the highest local Chinese in the global position of P & G.

Li Xi, vice president of media relations and CI management, former SONY (China) Limited, joined Jingdong mall in January 2013 and served as senior vice president of public relations.

Today, Li Xi has been in the Jingdong group for 3 and a half years.

Jingdong said that this adjustment is aimed at further integrating marketing resources, strengthening research and development closed-loop, solid line rapid response, agile linkage, providing users with better service experience, and more flexible mechanisms to deal with market challenges.

Among them, the establishment of marketing platform system will help reduce the duplication of operations and product development departments, reduce communication costs between operation and acquisition, promote horizontal collaboration of all platforms, and form support for the business development of all sales and marketing departments in the mall.

The platform of the marketing platform is built up, and the proportion of mobile terminals is improved continuously. It can better integrate traffic and enhance user experience.

Compared with Xu Lei and Masson, these Jingdong mall's old team, Xiong Qingyun and Li Xi are "airborne faction", also known as westernization faction.

In this round of adjustment, Xu Lei's internal rights increased greatly in Jingdong, and its marketing platform including platform operation Department, platform research and development department, marketing, public relations department, advertising department and user experience design department.

Xu Lei not only took over many functions and powers from Xiong Qingyun and Li Xi, but also integrated some other departments and functions.

Masson actually controls the R & D Department of the mall. It only reports to the group CTO Zhang Chen. In addition, the Chengdu Research Institute has pferred to the mall R & D department, while supporting the research and development of the mall, it still needs to undertake the development functions of strategic R & D projects such as group technology innovation.

Although Xiong Qingyun was the chief brand officer of the mall, he reported to the mall CEO Shen Haoyu, but the real power market department had lost it.

The original public relations system of the mall was also separated from Li Xi, and the position of the head of the group public relations was somewhat promoted.

However, Lei Di asked Xu Lei himself and other senior executives, but the other side did not respond.

Jingdong's development suffers from internal and external difficulties

This is a forced adjustment of the Jingdong.

It is understood that Jingdong finance held second entrepreneurial concentration camps in April. Among the participants, Xu Lei revealed in his marketing experience that the biggest impact of mobile Internet on large companies is not the pformation of orders, users and channels, but the changes needed in the company's organizational structure.

So what exactly is the challenge facing Jingdong? The stock price continues to fall after the continued pressure from Alibaba.

Since June 2015, Jingdong's share price has fallen by nearly half, close to the issue price, and the highest market value evaporated 24 billion US dollars (about 150 billion).

Jingdong GMV/ revenue growth is also slowing down. Recently, senior analyst of APSAssetManagement in Singapore released a report on Jingdong's short selling, saying Jingdong was "extremely overvalued" and triggered the continued decline of Jingdong's share price.

Its main point is to question the business model of Jingdong's excessive pursuit of GMV.

In recent years, e-commerce companies have been losing money. Jingdong is a typical company that relies on GMV to achieve high valuation.

Jingdong said the report ignores the financial data and business facts disclosed by Jingdong, and uses a lot of wrong calculation methods and logical deduction to draw a conclusion which is totally inconsistent with the facts, which seriously misleads investors and the public.

However, market doubts have not been eliminated.

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In addition, Jingdong plans to issue $1 billion 500 million of bonds.

Standard & Poor's has awarded Jingdong's "BBB-" long term corporate credit rating with a stable outlook.

At the same time, S & P awarded the Jingdong "cnA-" Greater China credit rating system long-term rating.

For Jingdong's upcoming US dollar denominated preferred unsecured bonds, S & P also gives the "BBB-" long term rating and "cnA-" rating of the Greater China credit rating system.

And standard & Poor's and Fitch Ratings of Ali bond investment awarded "A+", Moodie awarded Ali's credit rating equivalent to "A1".

This is the highest credit rating of Chinese Internet companies.

Although Baidu, Tencent and Ali are issuing bonds, Ali's $3 billion loan agreement is double that of Jingdong.

However, it is speculated that Jingdong is short of money, and then there is a risk of closure if the cash flow problem occurs.

At present, there are lots of options for shorting Jingdong.

The bigger challenge comes from the business itself. It was launched on the second day of Jingdong's promotion in 6 / 18, and all the Lenovo phones on Jingdong's own store were all on the shelves.

In June 1st, Lenovo Group CEO Yang Yuanqing has just been the platform for Tmall Suning's strategic development. Tmall Suning's main purpose is to focus on 3C digital products Jingdong.

Hou Enlong, COO of Suning group, said publicly that "bayonets may be red."

The status of Westernization faction will further decline and reuse old teams.

Under heavy pressure, Jingdong had to adjust the management team, and the old team members such as Xu Lei and Masson were reused.

In fact, in June of this year, it was also rumoured that Jingdong mall CEO Shen Haoyu would leave after 6.18 major promotion.

This is the rumor that Shen Haoyu's resignation after joining the Jingdong again.

And Shen Haoyu has just met with WAL-MART CEO.

In August 1, 2011, Shen Haoyu resigned from Baidu and joined Jingdong as the first Chief Operating Officer (COO) of Jingdong mall.

Since then, as Jingdong mall CEO, so far, has been in Jingdong for nearly 6 years, has been Liu Qiangdong's right arm.

In the coming month, there will be a new round of adjustment in Jingdong mall. Shen Haoyu's position will not be ruled out.

A person familiar with Jingdong management said to Lei Di net that Jingdong has come all the way to "war". This way to the public market is much larger than that of Jingdong.

Those people said, "the hardships and gains and even lessons of this road are extremely valuable assets in the history of enterprise development and the history of commercial war, not written in textbooks."

Another person familiar with Liu Qiangdong said that in the face of Alibaba's fierce and fierce attack, Jingdong must be wolf like.

The key is fighting effectiveness, which is lacking by professional managers.

This is also an important reason for the loss of professional managers in today's Jingdong.

Another industry insider pointed out that we should divide people into old people, and send Westernization schools to local people. Such a structure is too two yuan. The old people can not do that. The newcomers are also good. The development of the company needs fresh blood, but the core and core should not be diluted.

It was not just the internal adjustment of Jingdong, but Alibaba also happened earlier.

On March 2015, on the third day of the Jingdong's 2014 earnings report, Alibaba announced a notice of appointment and removal of personnel to remove Wang Yulei (Qiao Feng) president of Tmall.

At the same time, Alibaba group unified its platform (Taobao, Tmall, Juhuasuan) for unified management, and Zhang Jianfeng was responsible for reporting to COO Zhang Yong at that time.

Behind the adjustment is the pressure from Jingdong.

Rumor has it that on Sunday, March 2015, Ma went to the Tmall office to inspect the circle, and found that not many people were working overtime.

Before long, the notice of personnel appointment and removal was formally issued in the form of mail.

The bigger adjustment took place in May 2015. Alibaba announced that Zhang Yong took over as chief executive of Ali group (CEO). At the same time, the president of Ali's first line business will take the lead after 70.

Former CEO Lu Zhaoxi served as vice chairman of Alibaba's board of directors.

Since then, under the leadership of Zhang Yong, Zhang Jianfeng and other young executives, the Alibaba has gradually reversed its declining trend and comprehensively suppressed Jingdong on the momentum. This includes a big stake in Suning, becoming the second largest shareholder of Suning, and on the eve of Jingdong 618 announced that Suning completed its stake in Alibaba.

Behind this Jingdong's internal adjustment, Liu Qiangdong is also deployed to cope with the attack from Alibaba and Suning.

Another strategy of Jingdong is to combine WAL-MART with the main assets of mall 1, including the brand, website and APP of "shop No. 1".

According to foreign media reports, WAL-MART may further increase its Jingdong recently. According to the terms of the terms of the paction, if Wal-Mart Store Inc raises the shareholding ratio of the Jingdong company to 10%, WAL-MART will get the observer seat of the board of directors of the Jingdong company.

The two companies also introduced a non competition clause in the equity investment agreement, which is valid for up to eight years.

Under the terms, Wal-Mart Store Inc and Jingdong can not set up or invest in business that has competition relationship with the other company.

Analysts believe that with the new round of Jingdong adjustment, and WAL-MART's stake in Jingdong, Jingdong + WAL-MART + Tencent against Ali + Suning pattern formally formed.

In the future, Alibaba and Jingdong will compete fiercely in the two pole competition.