Liu: China more than more than 10 enterprises is too much-Liu Jingdong-IT news Liu: China more than more than 10 enterprises is too much

Dormition of the Theotokos at the most glorious moments in 10 years in Beijing, not only integrating electrical contractor resources owned by Tencent, B2C level with the cat side by side, and the capital market with a market value of nearly $ 40 billion, Group CEO Liu Jingdong career and love of double harvest.

However, Jingdong have difficult times. Group CEO Liu Jingdong recently said in a speech in Central Europe, East of Beijing and was probably one of China's Internet industry over the last decade most companies and individuals in question.

Since 2007, Jingdong beginning right with the first round of financing, get $ 10 million, to year end's own logistics before the market with all kinds of questions. Liu said, "it is said that East is to mess things up, doing logistics is one of the most foolish decision, one day can take a business down with it. Over the years, always keeping the temperature constant is in the market for our various discussions. ”

Jingdong loss most much lost 1.7 billion a year. Liu said, and he is worried that in case of failure of tens of thousands of employees to do, but in the past decade Jingdong insisted is, if she thought it valuable thing is definitely going to do it, shall never be outside and around shareholders.

"The legal and cultural environment, fail in a business just because the team doesn't work, no other factor, everything else is excuses. "Liu said Jingdong greatest concern currently and should take the time to cultivate one's own team.

70% proprietary orders same day or next day

For a long time in the past, East put a lot of manpower and logistics to create logistics logistics and warehousing are also believed to be among the core competitive advantage of Jingdong, 2014 70% proprietary orders for the first quarter are all in the same day or next day delivery to consumers.

Liu said that Jing dong earlier this year over a three-to six-lane urban speed, hope that more orders are sent within 24 hours to the consumer, home credit card, payment in cash on delivery, returns can come back, face to face to the user fee.

In user experience and costs between East also has a great deal of consideration, such as 700 warehouses, its inefficient, to 500 billion will not be enough. Jingdong makes logistics system, the front end to provide the best customer experience at the same time, the back-end great demand to reduce logistics costs.

Jingdong's own logistics is very important factor is that the high cost of China's logistics, by 2013, the year of China's logistics cost to GDP 17-18%, compared with the European case and Japan making up over foreign logistics cost lower than China's $ 10%.

Jingdong's own logistics is another factor, in order to ensure the user experience in China over the years, the express is developing very rapidly, but low quality of service, joined the business and group interests contrary, offer great service to Flash as the hazard.

"All sectors, franchise model, I don't look good. "Liu noted that UBC just 35 years, almost every town has a UCC, the boss sitting charge joining fees, but so far there is no Starbucks in China.

Jingdong logistics costs account for sales revenue 5.8%

Jingdong logistics continues to invest, Jingdong warehouse integrated goods from consumers is getting closer, led the distance goods are getting shorter, faster and faster, more and more low cost. Liu said that the larger, logistics will be more obvious.

"Jingdong Mall logistics cost to our sales revenue was 5.8% last year and the year before and the first quarter of this year. "Liu pointed out that in 2013, Jingdong inventory turnover days was 32 days, compared with the inventory turnover days is dangdang to 70-90 days.

"When just 10,000 SKU, and mall management SKU number more than 2 million. When average payment term is more than 140 days, means more than 140 days to get money, funds turn-around twice a year. Jingdong Mall last year, accounts for only 39 days. ”

Liu said that the 39 days mean cash turnover can reach up to a dozen times a year, efficiency of the industry as a whole. Jingdong overall operating expense ratio is currently 10.3%, aside daily necessities and other products, whose may reach, if you put aside the technical cost of all electronic products cost rate probably only about 8%, 50% less than two of China's major home appliance.

"Why does a company losing money, you will have questions, and sometimes a fear of failure, fear, but also to insist on, eventually you will find the low price from cost control, cash flow comes from more efficient, products, prices, service and user experience. ”

E-commerce industry will also shuffle only 4 homes

Prior to the internal address, Liu mentioned theories of ten verses of sugarcane, say taxing e-commerce industry is inevitable in the future, platform-oriented e-commerce companies will lose the price advantage, Jingdong to earn is the "theory of ten sugarcane" in the second half profits.

The so-called "ten sugarcane theory" refers to, creative, design, development, manufacturing, trading, warehousing, distribution, pricing, marketing, after sales, in which the top 5 brands, 5 under after retailers, after retailers like Jingdong 5 links to create new value, and great potential for future development. Liu said that the yiniansansishigeyi couldn't make money.

In Central Europe in his speech, Liu recalled this theory, saying Beijing and Tung have done quite heavy, not willing to take the lightest model, is based on this ten-day sugar cane, this theory is only for retail and consumer products industries, not suitable for gaming, information and high-tech industries.

Industry profit fixed, ten sugarcane grow mature is cut down, the provisions on the length, originally a small cane, because too many competitors, leading to fierce competition in the industry, sugar cane is a little shorter, but industry consolidation, mergers and acquisitions.

Liu's judgment is that e-commerce companies that remained in his forties now only a dozen, 20 are already out, with more than more than 10 is too much, China has also retained three to four , once the industry was out when industries tend to be rational, reasonable profits of the e-commerce industry will eventually get it, sugar cane will be in the normal state, will once again become longer.

"We insist that, in this industry, doing more things, eating into the number of sections, the more industry more rational one day when you can have the ability and qualifications to get the industry's best interests. ”

Internal corruption will never weaken

Not long ago, Liu had just internal speech, reaffirming its commitment to the hated internal corruption and fake, Liu said, "If the Jingdong platform also fakes, cat Taobao is no difference, Jingdong value nor existence."

Liu talks about his early start to follow his staff, claiming it was expelled for coveting a small gain. "If that guy can always worked until now listed, earned wealth even if vigorous spending 100 million a year can cost more than 100 years. ”

In a speech in Central Europe, Liu importance of internal corruption and fake attitudes in East Beijing sold a fake, a fine of $ 1 million. Dealers based on financial data, penalties to dealers closed down so far.

"We put all the data available to the State administration for industry and commerce. We also own employees knife, who introduced by ABC three-level management personnel must not raise above, more than three times, and ABC all fired. ”