The secret of Jingdong mall    by Kitty Lily

The end of march magazine decided to do jingdong cover, I don’t think it is worth it, but early April LiuJiangDong before interview after I think is obviously undervalued jingdong. LiuJiangDong goal lies not only in 3C and home appliance, but big, past experiences let him mastery of detail robust enough, and he seemed to see the essential rule: the big efficiency and cost. But it said LiuJiangDong and jingdong success is obviously too early, even he still may fail, but if successful, jingdong value can be and taobao equate.

April 7, sales 11.4 million yuan.

LiuJiangDong staring at backend data, sighs, he more confident that achieve this year 40 billion yuan of sales target no problem, and so far the jingdong has enough support this volume.

This is the second time the jingdong mall one-day sales 10 million yuan, the last time is breakthrough on 24 December 2008, but as jingdong mall, chairman and CEO, then LiuJiangDong mood more is anxious not excited because this quantity has far exceeded the jingdong was the support ability, the most busy time, all the executives will shift to warehouse for help, and once again pack outbound, “easily passed”.

Between 2004 and 2008, sales of jingdong mall respectively for 10 million, 3,000 million, 80 million, 3.6 billion, 13.2 million, in other words, jingdong has maintained an average of four consecutive years of 340% LiuJiangDong compound annual growth rate in the plan, the astonishing speed will not because the expansion of the scale of and slow, he gave the jingdong 2009 and 2010 sales target set respectively for 40 billion and $100 billion yuan.

Even in “fast company” Internet field, it is still an amazing speed, but some extent, the speed of LiuJiangDong CCCS behind, to outside is still a stranger, people understand his entrepreneurial story, but doesn’t understand his inner evolutionary logic, of course, also can’t see this “stranger” ambitions.

How much is a LiuJiangDong of e-commerce, he had no Internet different background, 1998 to in zhongguancun venture to agency light magnetic products since 2001 rags, most time to do retail, in Beijing, shenyang, shenzhen were 12 home IT, digital products chain, 2003 before, he know of the Internet is only “QQ can bubble MM” level, if not sweeping the country the SARS epidemic, liu’s chain was forced to shut and suffered a crushing defeat, he doesn’t know what to do, and he e-commerce originally just hope that through the Internet to solve inventory just. Since 2004, liu began registered domains, develop e-commerce system, and gradually closed offline chain, concentrate on only do online, right now from the earliest B2C company amazon already in the past 10 years appears.

Now, this may not know after after sleep is not a good thing, may wish to analyse the development background, then the Internet in 2003 China’s netizens to 335,840 million number, once a pioneer of the B2C 8848 blatant failure, and already the excellence and dangdang still go in the imitation of the amazon road, 2004 with $75 million amazon acquisition excellence foray into China.

And logistics, credit, consumption habits these obstacles to the development of Chinese B2C several mountain also in 2003 by quietly moved before, in December 2002, China merchants bank began to extend credit card; In 2003, the express industry preliminary maturity; December 2003, ctrip.com listed on the nasdaq, this is after the dotcom bubble burst in 2000 in the United States of the first Internet companies listed in China (in fact, is a B2C e-commerce ctrip.com), it also means the beginning of new Internet boom. Perhaps can understand so, 2003, develop e-commerce external conditions basic mature, and LiuJiangDong exactly that are ready for it, this contributed to the rapid development of jingdong five years, but why is the LiuJiangDong? Why did the Internet layman in just five years, did China B2C e-commerce first?

“For retail, it doesn’t make any sense” pursuit of gross margin, in April, 2009 LiuJiangDong told the entrepreneur magazine heart, share “revealing a password”, his jingdong the first sentence and then banner brightly and most B2C e-commerce industry insiders sang FanDiao, almost all B2C e-commerce people think, do B2C must have higher gross margin just feasible. And in LiuJiangDong opinion, jingdong so-called B2C e-commerce, actually just do retail, and only two: the core retail chain improved efficiencies and cost drops.

1, supply chain efficiency, more than 100 years of evolution, from channels rural fairs, to department stores, to the supermarket chain, the essence of ascension is to promote the efficiency of supply chain, and constantly improve the turnover of stock and cash, this is the kingly way retail industry.

2, cost, gross margin is not important, if a circulation enterprises gross margin is demanding, only for proof that it cost is too high, it has no value chains, sooner or later, will be replaced.

As long as a retail enterprise can realize in both ascend, then it is competitive, even disruptive, “a department store as much as 50% of the Maori, wal-mart only 15%, but wal-mart’s market value than department stores why high so much? Is very simple, because the cost of a department store, the low efficiency, high gross margin to 50% to make money, but wal-mart just 15% ros can earn money.”

This kind of understanding of commercial law, prompting LiuJiangDong from original agents, steering retail chain, then turned to today’s network in less than 10 years, retail sales in the time LiuJiangDong through the modern channels, the three stages of development, from this Angle, jingdong is a specimen of cases, we can understand the evolution of the three formats track.

So far, LiuJiangDong lead jingdong development well, but what will be in the future? Everything will be up to his expectations?

About the Author

I’m Kitty Lily , which offers quality products such as Oil pumping unit Manufacturer, Drilling rig and tool Manufacturer, and many more. Know more , please visit oil pumping unit .
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