Consumers are "spoiled" and crazy promotions are still complaining

On the cover of the "entrepreneur" Liu on Weibo to the magazine editor New Wengwen expressed dissatisfaction: Dizzy! Can't an old cow Photoshop a picture for me? So ugly. : "Then the reward on Weibo," which brother if can help me PS handsome some words, send Samsung S3 one. "

BEIJING-East announced sales of 1.3 billion yuan. After the breakthrough of 10 billion yuan in 2010, the founder of Daiju East began to enjoy the fun of guessing. In 2008, there were more than 800 employees in Jingdong, currently 25,000. Liu said that at the end of 2012, the staff will reach 40,000 people.

Jingdong Mall has become China's independent corporate sales of the largest companies. According to Liu, the 2nd to 10th sales can not add up to more than Jingdong. If asked, Liu will reluctantly agree, 60 billion yuan is close to the Beijing East 2012 will reach the sales revenue.

But, like most Chinese companies, Jingdong Mall is still losing money, though Liu is reluctant to comment on rumours of a 2011-year loss of more than 1.1 billion yuan. Jingdong Mall 1 years ago completed the amount of 1.5 billion U.S. dollars in the third round of financing, but increased outside of its capital chain will be broken doubt, they claimed that only the market can be saved.

There is concern that Jingdong is combining the road of expansion and destruction, and will collapse faster than it has grown. The deeply stimulated consumer is worried: will all this suddenly disappear?

June 18 is Jingdong's shop celebration day, but also it's price promotion day, now, it unexpectedly become a lot of electric business Common festival, day cat , suning Tesco and other companies are selected in this day for the promotion of Beijing-east.

Both sales figures are not verified. Liu in this year's "6 18" on the day of the micro-blog said: "Electronic business data fraud is the industry's open secret." Immediately someone commented: East Brother this word curse also bring himself, true righteousness. "There's only one winner," Liu wrote on Weibo, "Consumers!" ”

But consumers look dissatisfied. They complain that Jingdong's goods are not much cheaper than usual, complaining that the amount of consumer subsidy paid by the cat is too small. They are not stingy with the use of the word "liar" for the electric dealers who are accustomed to seeing their faces. Of course, they may also be disguised customers.

They are complaining of "helplessly" place orders. In fact, it is e-commerce that allows Chinese consumers to truly experience the "God" feeling. In the summary of Liu, they enjoy "at home, goods to pay, fair, inexpensive" services, can be freely returned to buy goods, more importantly, this service is not due to the consumer's geographical, rich and poor differences and different.

Liu that the essence of consumer e-commerce is "pampered consumers", that is, an excellent user experience, which includes product quality, price and service. "Compete with anyone," he said. "You can win because of the user experience, the customer chose not to choose you because of the user experience." ”

Self-built distribution system:

A "stupid" choice.

In 2007, after getting the first investment (10 million USD), Daiju began to build its own distribution system. In the previous 3 years, Jingdong use of Third-party Express, service quality can not be controlled, the user is difficult to satisfy. "We want to find a best courier company to outsource. Liu found the Shun Fung Express. Cooperation quickly terminated: Shun Fung can achieve satisfactory delivery, but the price of Jingdong, impossible.

The decision to build a distribution team is at least a milestone in the history of Jingdong Mall. It met with numerous objections. In the era when electricity merchants invested heavily in advertising to get customers, Liu's choice seemed foolish.

It now appears that Liu's understanding of "acquiring customers" is far from profound. Liu judged that China's third-party Express level (including price) in 3 years will not meet the requirements of Beijing-east. 3 years, in a fast-growing market, for a company that determines the user experience, it is intolerable. In fact, until today, the third party Express is still not suitable for the needs of Jingdong, and the Beijing-East distribution has begun to provide third-party services.

Liu had shown a similar firmness in 2004, when he was founded in Beijing. When he found online sales grew far beyond the physical stores, he immediately shut down the existing 12 3C chain stores.

April 2010, the results of the construction of the original distribution. Beijing East announced the launch of "211 Time limit" service, delivery speed greatly increased the shock is far from advertising comparable, this year, Jingdong sales exceeded 10 billion yuan, compared to 2009 growth of 150%. "Excluding night breaks, our delivery time is only 4 hours." "Liu said.

Jing Dong Mystery

Why is the cost low?

Jingdong Logistics is axle-like

Liu criticized the domestic competitor heavy marketing not heavy user experience, heavy price war not heavy cost.

He takes the logistics as an example to explain why Jingdong cost is low. "The level of management makes a big difference. This is the biggest piece of our cost reduction. "Liu believes that the Jingdong logistics and the Shun Fung as the representative of the Consumer-to-consumer Logistics has a qualitative difference." The latter is grid-like, each point and a national point is interlinked, both send and receive, and Jingdong is wheel-like, one-way, from a point to more points, only send not accept. "Shun Fung's courier, at every point in the country must be redundant, at least 30%, including its vehicles, aircraft." ”

Why do you lose money?

As every month grows

Why is Jing Dong still losing money today?

"Valuable companies cannot be unprofitable." "If you want to make a profit, slow down a little bit faster," Liu said. "His explanation is that, as each month is growing, Jingdong distribution, customer service, warehousing needs three months ahead of the preparation, resulting in redundancy 20% to 27% staff, warehouse redundancy 30% to 40%." "The monthly composite growth rate of 8% companies is very scary, we are not just for today." If my annual growth rate slowed to 30%, 40%, I redundant 5% on it, and I dropped the cost of 20%. ”

Liu said

"I will always have a majority in the board. The Board of directors is the highest authority of the company, as a founder, not control the board of Directors, what are you doing? I don't believe any investor can take the place of me and make the company better. ”

"Investors if there is I can not avoid the need to discuss the listing with him, at least until after December 31, 2015." I have not promised any investors this time before will be listed. ”

"The pressure of continuous growth has been 8 years. The likelihood of a meltdown in the past 8 years has been real, with the total number of recruits more than the end of last year. In the past, I have always said that the biggest risk for Jingdong is the risk of corporate culture being diluted, which proves that we have the ability to manage and carry the pressure. I think the most dangerous time has passed. The number of new employees will not grow this year starting next year. ”

"Rebate site is of no value to me. Shandao is worthless. ”