Basically in the entire Chinese Internet enterprise

"Over the past more than 10 years, I believe you should be aware that the most controversial companies and the most controversial entrepreneurs in the entire Chinese Internet business are the non-Beijing-east and me." "It is rare to see the founder and CEO of Jingdong Liu in public speeches or media interviews, so many people think he is low-key, but in the European Union international Business School 20 anniversary of the" Master Class "on the day, Liu with a not very low-key opening statement began the speech, and then he also frequently" The language is amazing.

Why does Jingdong have to build up a massive logistics? What is the core of the low cost operation of Jingdong? Why is it that Beijing east, which has been losing "hats" for years, has dared to march forward? Liu the answers to these questions without a low profile.

"Amazon admires our logistics."

Since 2007, after the first round of financing more than 10 million U.S. dollars, Dajian logistics began. At the time, Liu said, he had seen a huge opportunity in China's logistics. First, China does not like FedEx such a more mature courier logistics Enterprises; second, China's express cost is very high, last year, China's logistics cost accounted for 17% to 18% of GDP, and European countries and Japan's logistics costs are only its GDP of 6% to 7% and 5至6%; third, The joining mode of China's logistics service industry has caused the quality of logistics services to be very low. China's logistics of the various short board to the development of logistics opportunities in Beijing and east.

Liu said that the core of Beijing-East logistics design is "reducing the flow of goods". "Jingdong Logistics model is different from the traditional courier company." We do not express the company's work, the design concept is completely different. "In Liu's view, whether it is a" tee up "or Shun Fung, the pursuit of how to let the goods flow quickly. "is how to send a piece of goods from Beijing to Shanghai, both fast and cheap." Traditional courier company Logistics is doing this: each point in the receiving, each point in the delivery, which caused the logistics network is very complex.

The Beijing-East logistics model is very simple: from warehousing to consumers home, are point and point. Shanghai's distribution station and Beijing's distribution station does not have a dime relationship, Shanghai's distribution station will never receive a shipment to Beijing's distribution station. As a result, more and more warehouses have been built in Beijing and east, and the goods are getting closer to consumers, resulting in faster and cheaper costs. With the enlargement of scale, the advantages of Jingdong logistics model are more obvious. "The first quarter of this year, Jingdong 70% of the proprietary orders in the same day or the next day to reach consumers, in the first half of this year, three to six lines of urban logistics speed up, more orders are within 24 hours to the hands of consumers."

"Amazon is the leader of the global electricity business, but it does not have its own logistics; Amazon has so many innovative business models, but it admires Jingdong logistics." ”

Logistics is the "secret" of self-lowering cost

"According to the traditional circulation route, each item from the factory to the consumer hand to carry more than 8 times, it is because through a lot of intermediate ' hands ', so logistics cost is very high. Beijing East since the construction of logistics, hope to produce from the factory, and even did not produce, we can tell the factory, you give the goods to Jingdong, we have 86 warehouses in 36 cities, you give us how many goods per warehouse, from the factory can directly pull to our warehouse, the next day we will move the goods from the warehouse to the consumer's home. No agents, no distributors, no move from this warehouse to the warehouse. Because we carry less times, so the cost is very low, at the same time due to direct access to the end consumer hands, we operate very high efficiency. ”

According to the Beijing-East financial results, last year, Jingdong inventory turnaround days are 32 days, the average period is 39 days. Liu said that jingdong and "friends" (referring to a competitor) have done a comparison, "the other is also listed companies, inventory turnover days are 70-90 days, the average period is 140 days." ”

"The overall operating cost of Jingdong is only 8%, is the ' two big appliances ' (refers to Suning and Gome) operating costs half." We are relying on the organization, management, orderly flow of goods, from cost reduction. ”

To understand the "loss of money" thing

Most of the electricity dealers only burn money does not make money, Beijing east is the case, in the U.S. stock market after the announcement of the financial results, the current is only "meager profit." Liu Blushes has been in the loss of money, also said that the most miserable year loss of more than 1 billion yuan. "At that time many people asked me, you sleep, you are not afraid of it?" In fact, I am not afraid, sometimes I think, if the enterprise closed up how to do. I think that anyone who fails to start a business will end up in shame and pain. ”

However, Liu said, he later wanted to understand the "loss of money". "Why did Jingdong lose money?" I will question, even fear, fear, but eventually I persisted, because finally I found that: Beijing East can achieve low price is from the cost control, Jingdong cash flow from the efficient operation, Jingdong has a good front-end user experience. These are the Jingdong business model, which creates value for consumers and creates value for partners. Liu said that the company's long-term market capitalisation must be associated with the value created, as long as the value of doing something, will be able to get a good market value.

When will Jingdong make money? Liu that when the electric business industry tends to be rational, Jingdong has the ability and qualification to obtain the best interests of the industry. "I believe that in the future, there are two major consumer goods industries in the world." What agents and distributors, I'm sorry, eventually you do not exist, when the dead do not know, but death is inevitable. ”

"Don't talk to me about Internet thinking."

Xiaonian, a professor at Ceibs, said there was no such thing as Internet thinking. He said, ' Have you ever heard of steam engine thinking? Locomotive thinking? Internet thinking is not in foreign countries at all. "Do You (Liu) think that there is no such a popular internet thinking mode?" "In the question and answer session, a ceibs Emba threw the issue to Liu.

Liu said that before the professor (Xiaonian), I said in the company earlier, "We must not say how to call the Internet thinking, because it may be possessed." (known as the use of Internet thinking model) The core of millet success is the increase in supply chain efficiency, thereby reducing costs.

"Traditional sales of mobile phones through channels, brand dealers will not go directly to users, and the use of layers of wholesale way." Therefore, the past sales of mobile phone efficiency is very low, from the mobile phone production to build a good sales channel is about 15 days. And now these are the day to be done. For example, Jingdong has been working with mobile phone brands like this: A mobile phone brand has not been produced, in Beijing East pre-sale 2 minutes may be booked 300,000. Before the mobile phone needs to be sent to the Beijing-East warehouse, and then sent to the distribution station, and then sent to the hands of consumers; now Jingdong logistics can be done to skip the warehouse, directly to the distribution station, and then directly delivered by the distribution staff. Jingdong has reached 24-hour deliveries in hundreds of cities, even in some rural areas. Beijing hopes that over the next 5 to 7 years, 60% of the goods can be delivered directly from the factory door to consumers. ”

Wen/Tang Ye