I went to JD.com and met Liu Qiangdong. Zhou Buqi mentioned the structural adjustment before he came up. This is a trivial matter. What is more important is the development of JD.com, which is to maintain the leading edge in the market under the current high-intensity competition.

JD.com needs to launch a new round of financing.

Zhou Buqi is more concerned about this, "I heard that the b2c market is becoming fierce again?"

"right."

Liu Qiangdong nodded.

Zhou Buqi said with a smile: "Lotte has come to compete. Jingtao can't beat Lotte in Japan. In our local market, it's no problem to win over Lotte, right?"

"Lekutian?" Liu Qiangdong shook his head, "No, they can't do it. They don't understand users at all. Their thinking and management methods are too traditional. The money is quite a lot, but it's meaningless. They won't live long. Don't talk about Lekutian.

It’s so cool, even Amazon can’t do it in China.”

Zhou Buqi asked: "Who are the main competitors?"

Liu Qiangdong said: "There are mainly three, and the most powerful one is definitely Dangdang. Then there is Yi Xun, a b2c e-commerce platform backed by Penguin. And there is Suning, which entered the market after transforming from a department store."

"Suning?" Zhou Buqi was a little funny, "Are you afraid of an e-commerce company that has transformed from a traditional industry?"

Liu Qiangdong pondered for a moment and then said frankly: "We each have our own advantages. Suning has been deployed offline for more than ten years, and like Gome, it has the best supply chain system for electrical products in the country. This puts us at a great disadvantage when competing.

.”

"Price factor?"

"right."

This is what Liu Qiangdong is most worried about and most powerless about.

Suning's offline business has been deployed for more than ten years, and it has established long-term cooperative relationships with major companies and distributors for more than ten years, which will give it a huge advantage in competition.

Such as Haier refrigerator.

For the same refrigerator, Suning's purchase price may be 1,800 yuan, while JD's purchase price must be 2,000 yuan. This makes the two sides compete with each other, and there will be a huge gap.

There is no way to engage in a price war.

For example, Suning's retail price can be set at 1,900 yuan. For every refrigerator sold, the gross profit can still be 100 yuan, which is quite satisfactory. The same cannot be said for JD.com, which sells at a price of 1,900 yuan, which is equivalent to a loss of 100 yuan.

, the more you sell, the more you will lose. However, it is not enough to sell less. If you sell less, there will be less traffic and the market share will be reduced.

This means that if JD.com wants to survive in this market, it must burn money like crazy.

How exaggerated?

In the previous life, JD.com raised US$1.5 billion from the capital market through several rounds of financing in 2011; in 2012, JD.com raised another US$300 million; in 2013, JD.com raised another US$700 million... When competing in the e-commerce market

, Jingdong actively or passively launched a series of crazy price wars.

Especially when JD.com and Dangdang are competing, it is most bloody. Liu Qiangdong publicly shouted that if JD.com’s book business dares to generate profits, all employees in the entire book business will be laid off!

Just risk your life and do it!

It was under this bloody sprint that JD.com emerged from the heavy siege in the B2C market and gained a firm foothold in the market.

Liu Qiangdong said solemnly: "Yixun has a strong traffic advantage with Penguin on its back. Suning has been operating offline business for more than ten years, and has the most powerful supply chain system in the bulk home appliance market, as well as cash flow support.

.Dangdang is almost the same. In two months, Dangdang will be listed on Nasdaq.”

"Yes, Dangdang is about to go public!" Zhou Buqi also suddenly remembered the news, "What's the inside story? How is the listing process going?"

Liu Qiangdong said: "It's not bad. Several of Dangdang's major investors are American investment institutions, so it's not troublesome to operate. It is conservatively estimated that Dangdang's market value can reach US$2 billion."

"Ahem..."

It feels a little uncomfortable if I don’t have Zhou Qi.

With his help, JD.com has achieved unprecedented success in this life. Not only has its logistics system been quickly built, its e-commerce business has also developed rapidly, and its share of the b2c market is even higher than that of Dangdang.

Dangdang’s market capitalization can reach US$2 billion. How much is JD.com’s market capitalization? How much money will it cost?

Of course, the market value of JD.com is definitely not as good as Dangdang, and there will be a big gap.

The main reasons are two points.

First, Dangdang’s financial reports are very good, and it makes considerable profits every year. JD.com is not good, and it is in a state of loss every year. Judging from JD.com’s current development momentum, it is unlikely to make a profit within 5 years.

Second, Dangdang has more users and higher traffic.

Even though JD.com is backed by Ziweixing, Dangdang has been developing for more than ten years and has a stronger brand. Most online shopping users trust Dangdang.

This is related to the current Internet environment.

It is only 2010, and it has not yet reached the era of universal access to the Internet. Online shopping is not a very popular online behavior. Generally, only mid-to-high-end users shop online. This means that the current e-commerce market is not dominated by traffic, but by traffic.

Brand leadership.

It will be different ten years later.

By 2020, it will be an era of online shopping for all. Those uncles and aunts may not even know what JD.com, Dangdang, and Amazon are, and they lack clear enough understanding and judgment about online shopping. Whoever pushes the most traffic will buy it.

Whose product is it? Even a live-streaming influencer with no brand or reputation guarantee can still sell a lot of products.

The most typical example is the recent battle between Baidu Youa and Taobao.

Taobao wins big.

Prior to this, most of Taobao's traffic came from Baidu. Baidu mistakenly believed that traffic could promote e-commerce, so it entered the market to compete with Taobao.

The conflict between the two sides is about to break out.

Taobao blocking Baidu is equivalent to cutting off Baidu's traffic source... As a result, after two years of development, Taobao is getting better and better, and Baidu has basically given up.

This is determined by the times.

The traffic model is actually an advertising model, which is easy to brainwash middle- and low-end users and has limited effect on high-end users. However, users in the current e-commerce market are very high-end and have strong independent judgment. The role of brand is greater than traffic.

In a few years, the domestic Internet industry will have further development, and online shopping will become a national trend. More and more mid- to low-end users will enter the market. This is an extremely large user group, and this type of user group is very large.

It is easy to rely on traffic, advertising and the so-called "good quality and low price" to fool the e-commerce model. Only then will the e-commerce model undergo fundamental changes, and the role of traffic will be greater than the brand. This is the rise of Pinduoduo and live streaming.

If we were to build Pinduoduo or live-streaming e-commerce in 2010... even if Ziweixing had unrivaled domestic traffic advantages, it would be impossible to do it.

The process of the times determines the basis for building a business model.

JD.com’s market share is higher than that of Dangdang. The so-called market share depends on the transaction volume.

Part of JD.com’s transactions comes from on-campus group buying. Excluding this business, JD.com’s sales are about the same as Dangdang’s.

Another more important point is that JD.com sells electronic products, and the retail prices of single products are very high. Dangdang sells books, and the retail prices of single products are very low, so Dangdang has more orders and is more recognized by the market.

Zhou Buqi pondered: "Yixun is not good. Traffic is important, but not the most important. Penguin's traffic is very large, but isn't Paipai also beaten by Taobao? Yi Xun is similar, traffic is not the current

The key factors that determine the success or failure of e-commerce still depend on service, reputation and corporate image."

"Ah?" Liu Qiangdong was slightly stunned, "Really? Among the three main competitors, Yi Xun, Dangdang, and Suning, I think the most powerful potential opponent is Yi Xun. They are a real Internet company."

Zhou Buqi was a little funny, "What about Dangdang? Isn't Dangdang an Internet company?"

Liu Qiangdong said decisively: "No!"

"Um?"

Zhou Buqi raised his eyebrows, not quite understanding.

Liu Qiangdong's lips curled up slightly, "I have read Dangdang's public listing materials. It contains the shareholding structure. The shares held by Li Guoqing and his wife exceed 70%! Even if the IPO is listed, their shareholding ratio will not be lower than

50%, how ridiculous is this? Dangdang is an Internet company, but it is subject to the thinking structure of the founder. The founder has a traditional mindset, so Dangdang can only be a traditional enterprise cloaked in the guise of the Internet, no different from Suning."

Zhou Buqi smiled and said, "It's true, Li Guoqing...Old Li still has Internet thinking, but he doesn't know much about finance, so he has to listen to his wife."

Liu Qiangdong shook his head, "There's no chance of a mom-and-pop shop!"

Zhou Buqi said: "Well, this is an opportunity for JD.com. The corporate thinking of the couple is too conservative. After all, the Internet is a technology industry, and such a high shareholding ratio will inevitably stifle technological innovation. If it wants to surpass Dangdang, JD.com must

Let’s start with two points. Dangdang is too conservative, and JD.com needs to be more open. No matter how many shares it holds, it is meaningless if the company is not big. JD.com’s goal is to be a super giant. To achieve this, JD.com must pay attention to the development of the technology field.

"

Liu Qiangdong sighed, "In the past few years, I have been busy building the supply chain system and improving the logistics system, and I have indeed neglected to cultivate the technical system."

Zhou Buqi smiled and said: "It's not too late to pay attention now. Lao Cheng told me that you want to purchase Oracle's system?"

When Liu Qiangdong saw Zhou Buqi and Cheng Binghao coming together, he basically guessed it.

It must be related to the requirements of Ziweixing Engineering Institute.

They do not want JD.com to go to Oracle for procurement, but to go to Ziweixing Engineering Institute to customize high-end outsourcing services.

In this regard, Liu Qiangdong explained, "I interviewed a person who is the vice president of technology in Oracle Greater China. I want him to become JD.com's CTO and comprehensively transform JD.com's architecture system. He knows Oracle very well.

The technical architecture of the company, so purchasing it directly from Oracle, he can get started faster and start working as quickly as possible."

"Technical vice president of Oracle Greater China?" Zhou Buqi was speechless, "How good can this be? If he were the global vice president of technology, that would be fine! Lao Cheng, how do you feel about comparing yourself to you?"

Cheng Binghao also has his own pride, "Definitely not as good as me! As the technical vice president of Oracle Greater China, if he joins Ziweixing... there is no guarantee whether he will be able to join the technical committee."

Lao Cheng is different, he is the vice chairman of the technical committee.

What year is this? It’s 2010.

The IT elites in Greater China are basically in local IT companies. The Silicon Valley giants have all been defeated. They are no longer as responsive as they were five or six years ago.

It can be seen that JD.com is still a bit low-spirited in the field of technology development. Or the foundation is too weak, and the best people are not willing to come.

(End of chapter)


Chapter completed!