Competition Between Jingdong And Alibaba

202 billion 800 million dollars, 29 billion 200 million dollars, respectively.

and

The current market value.

If Jingdong has become the most feared opponent of Ma and Ali, it is still hard to convince. After all, Ali is Jingdong's market value of nearly 7 times.

But there is no doubt that Jingdong has become the most powerful challenger of Alibaba in China.

The dispute between Ali mode and the Jingdong mode has always been a topic of interest in the industry. Ma Yun and Liu Qiangdong are also different.

Jingdong in Ma Yun's eyes

Ma Yun mentioned Jingdong in a number of public occasions. It also proved that Alibaba began to attach great importance to Jingdong's competitor.

Well known

In the book "the true story of the Alibaba" written by media man Fang Xingdong, Fang Xingdong referred to Ma's view of Jingdong.

"The Jingdong will become a tragedy in the future. This tragedy is what I reminded you on the first day. It is not that I am stronger than he, but a question of direction. There is no way out.

Do you know how many people are in Jingdong now? 50 thousand people! Alibaba is growing up slowly, now only 23000 people.

The takeover adds up to 25000.

Do you know why I don't do express delivery? Now Jingdong has 50 thousand people, nearly thirty thousand or forty thousand warehouses, and 2 million parcels a day.

I now have an average of 27 million parcels per day. What concept? Ten years after China, there will be 300 million parcels every day. You have to hire 1 million people, then the 1 million people will die you, you try again? And its 60% income is in Zhongguancun and Taobao, it can not be so large on the Internet.

So, I told you again and again in the company, do not touch the Jingdong.

Don't rely on us when we die.

Ma Yun's words about "Jingdong will become a tragedy in the future, do not touch Jingdong" cause a great disturbance. Afterwards, micro-blog Ma Yun apologized.

Ma Yun said, I like to chat, aimless, boundless and boundless, and only the "mouth Shuang".

Over the years, I have said a lot of crazy words, nonsense and stupid bragging on many different occasions. I have also brought many problems and troubles to myself.

I didn't expect a friend to record the conversation again, but many of the words were exactly what I said, but the media made a headline that I criticized Jingdong, which spread very quickly.

It is not fair for everyone to talk openly and bravery among friends, especially for the Jingdong company, which may cause unwarranted trouble and confusion.

I would like to add some other thoughts to Jingdong: any business model is not perfect, and there is no really correct model.

Shoes that suit you are the best shoes.

It is best for us to be welcomed by our customers!!! If China's Internet has only one so-called correct mode, it is our sorrow and ignorance.

Of course, our entrepreneurs are coming out of the challenge every day.

Ma Yun finally made a public apology for the incident.

But aside from the factors that deliberately ignore his competitors, he also reflects some of his real views on the disadvantages of the Jingdong model.

Compared with ALI platform mode of light assets, Jingdong self marketing, self built huge storage base and logistics distribution system is very cumbersome.

With the increase of trading volume and expansion of personnel scale, enterprise management is easy to lose control.

Whether Jingdong will be able to continue to manage such a heavy business in the future will become the core reason for Ma's attack on Jingdong.

Ali in Liu Qiangdong's eyes

The listing of Jingdong is a landmark event of China's Internet industry in 2014, which means that Jingdong has the qualification to challenge Ali.

After the listing of Jingdong, Liu Qiangdong told reporters that he was confident that Jingdong would be more than Ali.

"The bottom line comes from user experience.

If we ensure that user experience is better than Ali in the next ten years, it will be more than it is inevitable. "

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While Ma questioned Jingdong's model, Liu Qiangdong did not show any weakness, and hit Ali's weakness.

"In fact, it is very easy to manage fake products online. It's very simple. A programmer spends a day in managing it."

In an exclusive interview with the Wall Street journal, Liu Qiangdong satirize Ali.

From Liu Qiangdong's words, he is proud of the product and service quality of Jingdong.

He compared Ali to the island coffee, is the franchise mode, the quality is not guaranteed; Jingdong is Starbucks's direct mode, quality and experience is guaranteed.

What Liu Qiangdong said is not unreasonable. The rise of Jingdong is actually a soft spot of Alibaba.

Many customers eventually moved to Jingdong from Ali platform due to the quick delivery of genuine products and distribution, and became loyal users of Jingdong mall.

So is the author.

In addition, Tencent strategic investment Jingdong, WeChat opened the first level access to Jingdong mall, also strengthened the confidence of Liu Qiangdong to lead Jingdong to surpass Ali.

Competition between market economy and planned economy

It is hard to conclude whether Ali mode and Jingdong mode are superior or inferior.

At present, Jingdong seems to be far away from Ali, but we must know that Jingdong is much later than Ali.

In addition, the true leader of the global electricity supplier Amazon is closer to the Jingdong model.

The future development of Jingdong is full of strength.

If you use the two economic concepts that you are familiar with to compare Ali with Jingdong mode, Ali mode is more like a market economy, and Jingdong mode is closer to the planned economy.

Ali adopted an open platform mode to mobilize small and medium-sized sellers throughout China to operate on its platform, just like the mobilization of tens of millions of ants and soldiers.

From the perspective of self interest, small and medium sellers will provide users with the lowest possible price and the best possible service without the need for Alibaba to interfere too much in price and service.

So, on Ali platform, the price is not the lowest, only lower, which is the result of market competition mechanism.

So a lot of users who are more sensitive to price will stay on Ali platform, because Taobao is their paradise for low price products.

In addition, the open platform mode enables Ali to carry a larger volume of pactions more easily and will not lose control due to scale expansion.

The Jingdong adopts the self marketing and self built logistics mode, which sets the price itself and controls the core link of the business.

In this way, to ensure fast delivery of quality products and distribution, Jingdong is better than Ali.

So those who are not particularly sensitive to price and have higher requirements for products and services will choose Jingdong.

But indeed, as Ma said, the proprietary mode will limit the volume of Jingdong's trading volume, and the proprietary mode will bring about a geometric growth in the size of personnel, giving Jingdong greater management pressure.

However, the two modes of Ali and Jingdong will surely co-exist for a long time, unlike the two sides who criticised each other.

Dragon tiger fight, two no harm.

Because of the strategic cooperation with ALI and Jingdong, the author also has very good friends inside the company.

So they are very familiar with two enterprises.

Ali and Jingdong are excellent Internet companies. They all have very good founders and employees.

Ma Yun's lofty pattern, Liu Qiangdong's courage is extraordinary, Ali's atmosphere is sagacious, Jingdong people are brave and straightforward.

In the two companies, the two sides are more fond of each other and learn from each other.

Just like Coca-Cola and Pepsi Cola, Nike and Adidas, Mercedes Benz and BMW and other great competitors.

Without Ali's exploration, there would be no Jingdong today.

Without the pressure of Jingdong, Ali will not achieve today's success.

Without Liu Qiangdong, Ma Yun might be sad to be alone.

Therefore, it should not be the feeling of "born Ma Yun, He Sheng Liu Qiangdong".

It is the creation of Ma Yun by the world that needs to create a Liu Qiangdong not to be too lonely.

Neither of the two men stopped moving.

Based on the future, Ma Yun proposed the double H strategy of Alibaba "Happy and Health".

Liu Qiangdong also raised the hope that Jingdong would one day become "the Jingdong of the people", achieving a trillion yuan in net income, over million in employment, and a grand goal of paying 10 billion dollars in taxes.

It is of little significance to discuss the pros and cons of the two sides.

There are two totally different modes of business in China, and two outstanding entrepreneurs are lucky.

In the future, Ma and Liu Qiangdong should not focus more on the competition in the domestic market, but dare to make a breakthrough in Google, Amazon and Facebook, in the next technology and business mode that focuses on the future.

This is precisely the lack of Chinese entrepreneurs.