Jingdong Group CEO Liu Qiangdong has made a share inside. Liu Qiangdong mentioned the problem of the Internet vents, saying that "the wind is coming, the pigs fall down and die faster." Since Jingdong Group invested in Yonghui Supermarket, a bunch of supermarkets want to find Jingdong cooperation and hope to have a relationship with the Internet. Liu Qiangdong said that there is a very common saying in the Internet field that the wind will come and the pigs will fly. "I think if you are a pig, you have two choices. The first one chooses you to eat hard, sleep hard, grab the last days, and enjoy the blessing. On the second road, you eat less every day and thin yourself. A little, let the person who raised you kill you for a few days." Liu Qiangdong said, "What is the result of the pig flying? You are a pig, flying to the sky, it is crazy for ten seconds, but it falls faster and die." Liu Qiangdong believes that there is a big bubble in China's Internet industry. At present, in the private equity market, companies with a valuation of over US$1 billion have more than 50 companies in China. “I think that whenever the industry is crazy, it will be Something went wrong." The following is a record of the internal speech of Jingdong Group CEO Liu Qiangdong (the article was officially authorized by Jingdong): Jingdong's involvement in e-commerce should be considered relatively late in the Internet industry. In 2004, China's Internet e-commerce camp was already very large. At that time, when it got the C round of financing, the excellent sales to Amazon, Yi Xun, Taobao and other companies have been established. Earlier, we did six years of traditional business, and entered the Internet with thinking about traditional business. After 12 years, I found that the Internet is not related to the traditional industry. The value and economic laws of traditional business are fully applicable to the Internet. The wind is coming, the pig falls down and die faster During this period of time, the Chinese economy has downward pressure. Coupled with the popularity of the Internet in recent years, a large number of traditional business owners have come to cooperate with me. Especially after we invested in Yonghui Supermarket, there are a lot of supermarkets looking for us, hoping to follow Jingdong cooperation, they said that they must have a relationship with the Internet. I am curious why it must be related to the Internet? A CEIBS alumnus told me the truth, they feel connected to the Internet, and even pigs can fly. There is a very common saying in the Internet field that the wind is coming and the pigs will fly. I think if you are a pig, you have two choices. The first one chooses you to eat hard, sleep hard, grasp the last days, and enjoy the blessing. The second way, you eat less every day, walk more, exercise, thin yourself a little, let the person who raises you kill you for a few days, why do you have to fly? What is the result of the pig flying? You are a pig, flying to the sky, it is crazy for ten seconds, but it falls faster and die. I will tell you a true story. At the end of last year, there was a change in the business model of an Internet company. The old business did not want to do it. The boss did not want to expel these brothers. He had to pay a sum of money and talked with more than 30 brothers. Let's go out and start a business. I will invest 1.5 million yuan for you. The brothers really believed, and took 1.5 million yuan to start a business. Liu Qiangdong I met in March of this year. I thought that these brothers and the company had nothing to do with it. From then on, the brothers told him that they had already received the A round of $5 million investment. The previous investment of 1.5 million accounted for 70%. The stock, recently B round of financing to catch up, valuation of 2 billion US dollars! The original brothers made an app for selling used cars on the mobile phone. I asked to sell a few cars. He told me that I only sold at most two cars, or the employees bought them. China's valuation of 1 billion US dollars has exceeded 50 companies In the past 12 years, I have experienced three industry bottoms in the Internet, and I have been experiencing the third industry bottom in the past year. Dozens of companies that have received $50 million in financing across the Chinese Internet have a valuation of more than $1 billion. No one is listed today, but in the private equity market, companies with a valuation of over $1 billion have more than 50 companies in China. I think that whenever the industry is crazy, it will go wrong. The Internet has not violated the laws of the economy. We have seen that less than 10 of the Internet industry in China have been remembered today. As long as there are more than three giants in any industry, this industry is not healthy. The Internet is the same in the world. The world's first Internet accounted for 80% of the profits. What is the reason that other Internet companies have died? We also pondered for a long time. The final conclusion is that any business model must conform to the traditional economic law, so our view of the Internet is summarized as any kind of Internet business model. If we can not reduce the transaction cost of the industry and improve the efficiency of the industry, then the last Doomed to fail. Today, all Internet companies in China have a market value of more than 5 billion US dollars for five consecutive years, and there are only about three. If you can exceed the market value of more than 200 million US dollars for five consecutive years, it will be ten. If they are regarded as successful, all the Internet companies that survive today are bringing cost reduction and efficiency improvement to the industry. E-commerce is the convenience, and behind this convenience is the decline in transaction costs. It is the consumer who spends less time on this. 90% of mid-to-high-end consumers are shopping in Jingdong Then someone asked, what is the value of Jingdong? 90% of mid-to-high-end consumers are shopping in Jingdong, and all the things they eat and drink in Lhasa are bought in Jingdong. This is the habit of our customers. Jingdong's value is quality assurance, Jingdong delivery is fast, and the price is cheap. This is what everyone sees from the consumer level. We have been in the traditional industry for six years, so the e-commerce we do is different from the pure e-commerce business. Before Dangdang and Ali were all doing the pure Internet model, the so-called light asset model, everyone said that this model is the smartest. Jingdong is a model of heavy assets. We have more than 166 warehouses, 2043 districts and counties across the country, and even Sansha has a self-operated brand of Jingdong, with nearly 100,000 employees. Why did Jingdong do this? The real commercial value behind this is not only to consider the user experience, but to see an opportunity for China's social logistics costs to be extremely high. In 2014, the country announced social logistics costs accounted for 17.8% of GDP. Jingdong What do you mean? The profits of the entire Chinese manufacturing industry are not 17.8%, and our entire social logistics industry costs 17.8%. This figure is 7% to 8% in the EU, 5% to 6% in Japan, and 10% higher than in Europe and America. why? Because China’s goods are moving too many times. When designing the Jingdong business model in 2007, we found that there is a huge opportunity to go to Zhongguancun Computer City to buy a computer, which must be carried five times. Lenovo does not retail, it will find Digital China, Digital China does not contact end users, not retail, will find agents, agents are not retail, will find counter retail. After the computer was moved out of the Lenovo factory, it was first moved to the digital library of Digital China, moved from the warehouse of Digital China to the warehouse of the Beijing agent, and moved from the warehouse of the Beijing agent to the dealer warehouse. The warehouse is divided into the warehouse of each counter and finally sold to consumers. Everyone remembers that every time the goods are handled, they all cost, and they are depleted. When Jingdong Mall designed the business model, it decided to build its own logistics and adhere to the self-operated business model. We saw that the average number of handling of Chinese goods in the past was five to seven times. We have to reduce the number of handling by more than half, so we have to reduce the number of handling by more than half. When we design the national logistics system, the slogan is to reduce the number of items handled. This is the vision of Jingdong Logistics. Jingdong Mall model is to reduce costs and improve transaction efficiency Most of the electronic products of Jingdong Mall cooperated directly with the manufacturers, and they were produced from the factory gates of Lenovo. The next day they entered the seven warehouses of Jingdong, so everyone bought the computers in Jingdong Mall quickly. We hope to reduce the number of items handled. At present, JD.com is designing a new model. Our ultimate goal is to only carry twice. When the factory has not yet been produced, we will find the customer. After the factory exits the gate, it will not pass through the cofferdam of Jingdong. It will only be sent directly to the consumer's home through Jingdong Logistics, and even the warehouse will not be used. Therefore, whether the business model of Jingdong Mall can succeed depends on whether we can continue to reduce costs and improve transaction efficiency. We are listed, you can look at Jingdong's financial statements for the past three years, there are two sets of data, Jingdong is much better than Gome, Suning, Wal-Mart. The first set of numbers is the comprehensive expense rate. The overall cost rate of the entire Jingdong Group is about 12%, and the comprehensive expense ratio of Gome and Suning can reach 18.7%. what does this mean? It means that Gome and Suning will pay a cost of 18 yuan for every 100 yuan of electricity sold, and we are 12 yuan. The remaining 6 yuan, Jingdong part of the profit to consumers, part of the profit to the manufacturers, Jingdong hope that the Chinese brand manufacturers profits can be raised, we insist that only the Chinese brand is good, Jingdong Mall can be better. Jingdong Before 2008, Jingdong's inventory was very small, and the average net profit of the entire Chinese household appliance industry was less than 2%. Today, the net profit margin of the entire Chinese household appliance industry brand manufacturer has exceeded 5%, more than doubled, and consumers have received benefits. Manufacturers get the benefits, this is the value of Jingdong Mall, this is the business model of Jingdong. The second number, the inventory turnover rate. The business model of the entire Jingdong Mall is around the efficiency of the product, and the inventory turnover rate is a very important part of the logistics cost. The cost consists of two parts, one is the cost of direct handling, and the time when the goods are stored. The cost of staying in the warehouse is higher than that of the handling. For e-commerce and traditional retailers, the most important factor in measuring supply chain efficiency is the inventory turnover rate, which means that it takes an average of how many days it takes to sell each batch of goods. Also look at the financial reports of Gome and Suning. Their average account period is more than 100 days, which means that home appliance manufacturers have given a batch of goods to it, and it takes more than 100 days to get the money. Their inventory turnover days are about sixty or seventy days. Jingdong's inventory turnover days are only more than 30 days (JD's 2015 Q2 financial report shows that the inventory turnover is 35 days), and our internal internal operating efficiency has doubled compared with the traditional retail industry. This is actually incomparable, because the traditional retailer's warehouse SKU, that is, the number of products is only 10,000 to 50,000, and less than 50,000. Looking at these two sets of numbers, we know that our supply chain efficiency remains a very leading position in the industry. Jingdong Finance has established seven business segments, namely supply chain finance, consumer finance, crowdfunding, wealth management, payment, insurance, and securities. Innovative products such as Jingbaobei, Baizhi, Jingdong Wallet, Xiaojinku, Jingxiao Loan, equity crowdfunding, equity crowdfunding, crowdfunding insurance, and Jingdong Zhongchuang Ecosphere have been launched. Can we succeed in Jingdong Finance? Still around cost and efficiency, if our finance can't reduce the transaction cost of finance compared with traditional financial institutions, and can't improve the efficiency of finance, Jingdong Finance has no meaning. It is nothing more than a bowl of porridge in the industry. There is a bite to eat, but the value is limited. Jingdong Finance Based on this, we launched supply chain financial products - "Beijing Baobei" and "Jing Xiao Loan". First of all, we are lending fast. Everyone wants a loan. It only takes three minutes to receive our cash. Secondly, in terms of repayment, we can settle interest on a daily basis. You can continue to lend, and constantly, you can even set up automatic repayment. There is no loan officer in the whole loan process. There is no branch office. As long as the customer agrees, we don't need to sign any paper contract. We can know whether your product is rising or falling through data analysis. We can even calculate your profit. Exceeded or below the industry average profit. The same is true for Jingdong White Bar. The only payment method I use to buy things on Jingdong is Jingdong White Bar. With credit, you can pay after shopping in Jingdong, interest-free within 30 days, and the bank card can be automatically repaid. Ordinary credit cards have a maximum interest-free period of 50 days. Together, a good credit user can enjoy up to 80 days of interest-free shopping. Jingdong white strips make the value of credit production increase consumption, and users who use white strips increase consumption by 42%. This is enough. Credit promotes consumption and makes everyone dare to spend money. Equity crowdfunding is such a model that not only enables entrepreneurs to obtain financing faster, but also can raise people, raise intelligence, and raise resources. The ecosystem built by Jingdong is to make this model play a bigger role. There are already a lot of startup companies on the crowdfunding platform to cooperate with Jingdong Mall, Jingdong Home, Jingdong Payment, Jingdong Insurance, etc. In addition, the entrepreneurial enterprises have also built a community through the platform built by Jingdong Finance. The members of the community have also cooperated with each other to create a new project, which has been recognized by users and the capital market. These newly-increased projects, in turn, can further expand scale and product through Jingdong equity crowdfunding and product crowdfunding. On the one hand, they promote market consumption, and on the other hand, they also promote social employment. At present, according to the relevant measures of the China Securities Regulatory Commission, “equity crowdfunding†has been clearly defined as public, small, and public public fundraising. Therefore, the Jingdong Financial Dongjia Platform has changed its name to become “private equity financingâ€. The Dongjia platform was launched on March 31. Up to now, it has accumulatively financed more than 50 startup companies. The accumulated financing amount exceeds 550 million yuan, and the average financing rate exceeds 100%. It is now the best performing platform in the market. We never think that JD Finance can subvert traditional banks. We still hope that JD is the best partner of the bank. Our money comes from the banks. We are symbiotic with the banking system. Jingdong pushes "3F" strategy in rural areas I am a peasant and lived in the countryside until I was 18 years old, so my understanding of the countryside is relatively profound. China has a large product area that is upside down. The richer the place, the lower the price of products and services. The poorer the place, the more expensive the prices of products and services. Tibet has the same clothes, and the same electronic product is much more expensive than Beijing. Rural infrastructure conditions are weak, network penetration is low, and logistics is not smooth. Farmers make a living by selling crops. Rural sales are basically done offline, and channels are very limited. Many times, agricultural products cannot be sold or even burned in the fields. Not only was the production resources wasted, but the income of the farmers was also reduced. Therefore, we launched the 3F strategy in the countryside. Jingdong Rural The first is industrial products going to the countryside. We hope to smooth out the price difference between urban and rural products and services, so that each farmer can buy the best quality raw materials at the least cost. Only three national seed bases certified by the Ministry of Agriculture of China, one true seed from the seed base to the farmers, separated by the provincial seed station, county seed station, township seed station, etc., each increase of 10% to 20 %, the price of farmers getting their hands has multiplied. Therefore, we hope that we can use seeds, fertilizers, pesticides, etc., to use Jingdong's perfect logistics system to send them from the factory to the field, to ensure that the seeds are real, and to save farmers a lot of costs. The second is the peasant's finance. So far, China's rural interest rates, two-point profit and three-point profit are very common, and farmers' strong demand for finance is in conflict with low income. Although the income of Chinese peasants has improved qualitatively in recent years, due to the inertia of peasants' lives, almost every peasant has multiple borrowings in his lifetime. Therefore, we hope that, like Jingdong White Bar, through big data analysis, we will directly grant credit to farmers. You don’t have to pay for a penny. First, take the seed fertilizer and pesticides home and plant them. After making money, you will return with the benefits. And our interest rate is less than half of their average lending rate. Today we have brought financial services to hundreds of thousands of farmers, and we believe that this is valuable and valuable things can be successful. The third is Farm to Table, which is the fresh thing we have to do. Yonghui Supermarket has established a set of the best fresh supply chain system in China for more than ten years, directly from the field to the table. It is exactly the same as our strategy, so we invested in Yonghui. In the future, we may share a supply chain with Yonghui, one online sales and one offline sales. Jingdong Rural Finance Strategy is based on Jingdong's rural e-commerce. The scope of the “3F†strategy covers the production and sale of agricultural products from farmers, and the purchase of industrial products, agricultural materials and other items from the city after returning funds for consumption and financial management. And reinvestment, this is a complete rural economic industrial chain, Jingdong can provide a complete financial services for the entire rural industrial chain, accelerate and optimize the construction of the entire rural economic chain. Farmers' production, acquisition, processing, sales and other aspects will generate a large amount of capital needs. For example, in the procurement side of production materials, Jingdong not only uses its own channels to distribute affordable raw materials for farmers, but also provides farmers with credit sales and credit services; In the production of agricultural products, JD provides consumers with diversified services such as credit and technical training. At the product sales end, JD uses the channel advantage to open up the sales of agricultural products, and through various forms of credit and crowdfunding, to help farmers and enterprises develop. “Jingnong Loan†can apply without any mortgage, and can also provide a low interest rate for the benefit of the farmer loan, and the loan can be released as soon as possible. In addition, Jingdong Finance is also preparing for the Jingdong Chongqing Microfinance Company to better meet the rural credit needs. The “Pioneer Jingnong Loan†in the field of agricultural capital credit and the “Ren Shou Jingnong Loan†in the field of agricultural products credit respectively met the demand for production materials credit in the purchase of agricultural materials and the demand for agricultural products credit in the agricultural product purchase. Because credit cannot be assessed, it is difficult for farmers to obtain credit loans from traditional financial institutions. Faced with such problems, JD Finance chose to cooperate with the agriculture-related institutions to understand the credit level of farmers based on the big data information deposited by partners and e-commerce platforms, and to provide corresponding credit lines to control risks. This is my idea. Do everything around the Jingdong Group. We have all the things we have done in the past 12 years. We all ask a question. Do we use this Internet tool, use Internet properties, and can trade in the industry. Cost reduction? Can it bring about an increase in transaction efficiency across the industry? Concerned about surprises Marble Arts,Modern Fashion Marble,Marble Flower Vase,Marble Art Craft Fuzhou HuaRen International Imp&Exp.Co,Ltd , https://www.huarenstone.com
However, the number of SKUs managed by Jingdong today in the warehouse has exceeded 2 million, which is 70 to 80 times or even hundreds of times. That is to say, your product variety is 100 times its size, but your inventory turnover rate only uses half of it.
This is especially true for Jingdong Financial Equity Crowdfunding. Under the national policy of mass entrepreneurship and innovation, entrepreneurship can use the Internet and the trend of sharing the economy to reduce more transaction costs and information asymmetry, and make the success probability of entrepreneurship even greater.
Yes, we will do it. No, no matter how much money we make, we don't do it.