Jingdong before the listing, Lei Jun Liu Qiang East torture What? This article is listed on the eve Jingdong Liu Qiang East and Liu, Li, Lei Jun and other bigwigs record at a meeting behind closed doors on the exchange, because of the value of listed Jingdong sensitive period, the article has not been issued to, now Jingdong listed, I think we can look at several business chiefs on Liu Qiang East 'sharp torture' a, i recommend black horse portrait, contemporary Longzhong splendid performance. Lei Jun also asked, 'Jingdong volume is so big, what is the biggest problem currently facing and the risks are,' Liu Qiang East is how to answer it? Is 何京东 courier will be invited signature home? Liu (chairman of Legend Holdings Ltd. ): Other services Jingdong online sales of its own products and platforms in which their respective advantages compared to, for example, customers buy Jingdong's own products, it is not a fancy service, brand reliability, ah, and platform It is "tales of the abyss cosplay " not the price of a dominant? please the customer's perspective to compare. Liu: Our entire platform products fall into two categories, one is the standardization of products, a class of non-standard products. 3C, cosmetics, milk, maternal and child are standardized products, standardized product groups of the seller no one can sell us, tens of thousands of home sellers total turnover accounted for only about 5% of Jingdong. Because we are organized, procurement planning, to anticipate consumer behavior, six hours home delivery, third-party seller product is delivered within two to three days, we provide on-site service, small sellers can not do on-site service. Jingdong self-service products, such as Lenovo notebook repair, consumers in our system registration, sales staff basically in two hours and 15 minutes to reach consumers at home, if it is relatively high gold credit Members, sales staff will bring a new Lenovo notebook on the spot to give alternatives, these small sellers can not provide the service, so by survival of the fittest, 95% of the market is Jingdong possession.
Non-standardized products we compete with other sellers. We take the first two years of self way to do clothes, result deficit mess, consumers are dissatisfied. Because the color of digimon cosplay clothing, size, season, and so is massive, brand numerous, we found that 70% of the product unmarketable problems exist, although very preliminary gross margin, but have lost a clearance to put money into it. Non-standardized products Jingdong can not do, the seller must be introduced. Now there are 60,000 sellers Jingdong, immediately over 100,000, each seller manage thousands of SKU, 6 万 sellers that tens of millions of scale. Jingdong self-schema can not manage such a large-scale clothing, so non-standardized products of non-platform sellers do better than us. Liu: Jingdong's business model is a very important feature is that you have your own logistics system, the proportion of logistics cost in itself, labor and equipment costs how much each Liu:? 70% of labor costs. Liu: high labor costs, it is the cause of many of the logistics company's employees are squeezed badly, bad corporate reputation. Do you have a huge logistics team to improve the treatment of employees will cost for the entire logistics operations greatly affected Liu:? Liu Zong's a good question. In fact, this problem is solved by information systems. Jingdong has a lot of labor, but certainly not by squeezing labor to enhance the company's vitality.
Our couriers in Beijing monthly deductions five insurance payments is 5600 yuan, the company also provides additional member for each delivery purchase commercial insurance and personal accident insurance 200 000. You may find that courier delivery is social standing customers out the door in the hallway signature, and Jingdong courier was invited inside the house signature, which fully reflects the trust of our users. If they are not happy with low incomes, they may steal, Mongolia, cheat. This year, we gave the courier a raise, we hope that our couriers income 30% cosplay costumes for sale higher than the market. We also offer accommodation with shoes, hats, gloves and other clothes. Jingdong dry for five years and distribution, 99% of the county bought a house in his hometown. We believe that they are not happy it will not provide good service to customers, and to make them happy is the core of high wages. Liu: A very important reason your pressure is not 45% of profits from financial services where it came good reputation Jingdong, Jingdong have a good brand of financial services themselves will produce greater profits. Liu: Our financial statements disclosed the figures logistics, express every single 8 dollars, four dollars warehousing, customer service dollar, the cost is very low. This is how to do it? Jingdong express different patterns and other courier companies, 'Stone one up' is a grid-like, ie each courier delivery and receipt, delivery personnel have time to wait, he never I do not know who to call to come in the next minute, the next minute the customer never know how many packages to send. Jingdong courier delivery not only orders.
Every night we each courier the next day to send the number of parcels, which will go through the community, including the shipping route through the information systems calculate, Beijing couriers can send three hundred parcels a day, far greater than the number of submittals other courier companies. That is why a high treatment couriers, but the reasons for the low cost and logistics. On the retail real money depends on technology Li (Baidu Chairman and CEO): Jingdong's main business is retail, just also spoke about the IOUs and loans and other financial products, I would like to ask the next five years or longer time, the profits of financial services to account for how much of the total profits of the Qiang East:? 45 per cent of global Wal-Mart net proceeds from the reinvestment of cash flows, the real net sellers of each store is 55%. Jingdong may be expected to be more daring, after ten years 70% of the net profit from financial operations. Li: Jingdong is a retail company, but it is also half financial companies. Liu: Retail is our means to get users and data. Retail to the consumer to bring a good consumer experience, consumers will buy me something every day, so I can get the user to obtain the data. But to really make money in retail rely on technology, which is never squeeze suppliers Jingdong reason. Li: Recently saw a technology patent, it can predict what goods the customer set, before goods orders had been issued under the customer. Barriers on the future of these patents will not be an obstacle development Jingdong Liu Qiang East:? Chinese companies went out was accused of, the problem is real. But from their own development, it Jingdong go earlier than the Amazon, our product sales orders than it forecast earlier last year, Jingdong 67% of orders are delivered within six hours of the hands of consumers, Amazon is doing in the United States do not to. We can, because we have to deliver the goods in advance by analyzing data from consumer nearest warehouse.
Amazon in the United States has no distribution system, Jingdong distribution system in China. They delivered it to predict the future with Fedex, UPS sorting center staging temporary, then sent to the homes of consumers, and we are the freight to our warehouse, the pattern is completely different. Recruitment, I have two criteria before allowing (China Iron and Steel Research Institute Group Chairman): ten thousand people gathered in Beijing, human resources including recruitment of talent, training, motivation, assessment and other issues people are very troublesome, your business distributed throughout the country, for the recruitment, control cadres and employees, including evaluation, motivation, human resources system construction there any trick Liu:? People are most difficult to control, Jingdong move a million people last year, this year is expected Job fifteen thousand people. Our recruiting philosophy can share with you, that the power of the values of our internal models. Our recruitment requirements are very strict, we interviewed executives an average of ten people or more to choose one, in line with the proportion of people Jingdong requires less than 10%. Our main consideration when recruiting two factors, one is the capacity, operational capacity, such as sales staff to sell the number of sales earned much profit. The second is the values, he is how to know themselves, and how do you know of others, how to treat the world, what is his attitude towards life. Our interview process has a measurement system, which we find a lot of professors design every year to adjust, transformation.
We want to test the interview, nor the ability, nor the values that we call 'scrap metal', this certainly can not be, not only the results, but also the values and we do not match. There is no good or bad values, and we look at the five core values of the Match Jingdong is. The second type is the values are matched, but the ability is not OK, which we call 'iron.' In fact, this kind of people usually can be found in the work, the interview may not be able to find, we will give him a job transfer and training opportunity, if not enough will be dismissed. Jingdong 80 percent of workers belong to the third category, scoring 60-80 points, which we call 'steel', this is our foundation. And 20% capacity and values are very high score called 'gold', which is the core of the company. Some people are strong, that is, the values do not match, such as a good sales staff to do some of the results, growing much faster than the company's growth, but it is not the same values, we call it 'rust.' Employees must resolutely get rid of rust, rust corrosive because they sabotage brought destruction will be greater. Hitler is rust. Why keep the proportion of twenty-eight it? Many companies listed after many employees left, partly because employees money, on the other hand, before listing a lot of people had a dream in mind, there is a strong, keep the company growing together but grow to a certain extent on psychological imbalance, and there must be a part of the crowd lost. Gold could reach 20% of the content is the key to decide the team is not stable. Our executives biannual assessment capacity values, common staff assessment once a year, by refreshing the year, eliminated, and finally left with the company are highly values match, also good people.
Strategy 'dictatorship' is the greatest risk LEI (millet Technology Co., Ltd. Chairman): Jingdong developed to such a large scale, what is the biggest problem currently facing and the risk is the second question, I personally optimistic about Jingdong mode owner? last Jingdong announced earnings after going public, the focus of my argument is with other enterprise business enterprise of high efficiency reflected in what areas. Jingdong on the entire distribution costs spent 10 percent of its turnover, they say you go Gome and Suning earnings, their efficiency is higher than Jingdong.
They find it more efficient and efficient e-commerce in the traditional distribution channels. I have not verified these data, but I think Jingdong efficiency is not there room for improvement Liu:? Let me answer the second question. As far as I know, Gome, Suning comprehensive cost rate is 15 percent, Wal-Mart, Carrefour is probably more than 20% of these are public earnings. Domestic simple super expense ratio is 20%, Jingdong is mixed, electronic products and we mixed in a super, so the cost rate is 10%, if the 3C products apart alone, the expense ratio is far below the 10 %. Come talk to the first question, large-scale enterprises the greatest risk, I think from the founder. Jingdong strategic dictatorship by me, our strategy can not be timely, or strategic mistake could lead to business failure, and I think this is the biggest risk. Source: CEO Letter