Haoyu published a keynote speech on the future trends and opportunities of the electric business

August 28-29th, the revamping annual meeting in 2014 was successfully held in Beijing Kun Tai Hotel, during the two-day conference, the first day was three special sessions of mobile, channel and brand, the main venue was the next day. The theme of this annual meeting is "broken", that is, "broken, break, break", the aim is to break the plight of the traditional electric business thinking limitations, set up new ideas. Dedicated to create a platform for innovation in the electric business industry, from a professional perspective for the electrical business colleagues to solve the entrepreneurial process encountered in the most practical problems.

In the morning of 29th, the main venue, Jingdong Mall CEO Haoyu published "The future trend and opportunity of the electric business" keynote speech.

Jingdong Mall is a consumer-owned electric dealer, CEO Haoyu, do the retail want to do a long-term "product + operation" Two aspects must win, the electrical business model to reduce the movement of goods. In addition, Haoyu in the theme of the six future development strategy: Platform category expansion, for Third-party sellers to provide logistics, infiltration of the three or four-line city, the force mobile end, and offline retailer cooperation, diversification exploration of the last kilometer mode.

The following is the CEO of Jingdong Mall Haoyu speech Full text:

Very happy to have the opportunity to send the annual meeting, just now we old Liu said the first website to see Send generation, I do not know is not the first site, I went to the Jingdong also saw his send send the post to me, generally is bad things, customer service and so on. Some of the more enlightened industry views, I also often see, has not previously participated in the generation of the meeting, today is very happy to have the opportunity to have a relationship with you. The host said that I want to talk about the trend of the future, in fact, I am also very busy because of peacetime, so rarely come out, and rarely think.

Personal sentiment: Do a good job in retail "product + operation" both to win

Because we know that Jingdong is the operator of the self-employed, very bitter business, spend a lot of time every day on the company's operations, but also rarely looked up to the future, so I would like to talk about two simple things today. One for me, everybody knows I used to be in Baidu, Retail is a brand new industry, but retail we all contact, buy things generally from a retail channel to buy, so I said two points for the feeling of retail, and then from this to the retail two point of view, E-commerce to mobile business bring what? Or what does Jingdong bring to everyone?

Everyone is a distributor, the retail may know very well, the history of retailing, is that last year I was at a meeting outside, I heard one of McKinsey, he is a retail expert he said that the history of retailing is very interesting, more than 100 years ago, retail what is it? The history of a retail development is to reduce the consumer has to make a compromise of a historical, what do you mean? is to let the consumer, he wants to buy something, to make a lot of compromises, this compromise in the history of the retail development has been decreasing, or simply, to make consumers more and more convenient, he does not have to make compromises, he is less, he did less and more, is the retail progress, a model replaces another retail mode.

Like what did he do? Is the richness of the commodity, he wants to buy the thing not, the size is not, the color is not, likes the thing not, the commodity quality, does not know the commodity good, some uncertainty, the commodity price, he cannot buy some goods, but the same commodity may be cheaper and cannot find. Then pay and wait for the time, this very very important, in fact, with several previous items do not have a relationship, today to go out, want to drive out, go out, take the bus out this is to pay the time, and pay the time do not know to the place after this thing has not. There is more time to buy when you can get it. Of course, a lot of the line under the practice is actually got, took home, this is still a little, but some large and medium goods, such as furniture traditionally have to wait a long time, a variety of uncertainties, are he had to face some compromises. So in the overall retail progress, before e-commerce, no matter what kind of mail-order way, such as the chain of the way, are reducing the compromises they have to make, so that consumers are more convenient to buy things, said back to the electricity business is a new type of retail, He is in a very very many dimensions and level to further reduce the compromise faced by consumers, have to make compromises, such as the richness of goods, very simple, such as Jingdong, including the day Cat is also, this commodity, this shelf actually has no space limitations, the server is enough. Like now our Jingdong online SKU is TENS, the goods are very rich, what size and what color have. There is also a very important thing is to pay the time, no longer go out, on the computer can do, and the waiting time is greatly reduced, especially in the east of this case, of course, the next day up and so on. In fact, retail his nature and history is such a history, the electric dealer because he in very many dimensions greatly reduces the consumer to make the compromise he has progressed, therefore I advise everybody you to think your model time, you do the thing time, is not now the market pattern consumer buys the similar thing to make the compromise, It would be more convenient to reduce his compromise, if that would bring value.

Just now is the 1th sentiment, the retail is how the history, as well as the Jingdong model, progress and value. The second sentiment comes from my reading of the founder's book Rich America, which is actually about his history, what two things do retailers do? Play two roles, one is merchandiser, selection, pricing, about picking and selling things. The second is the operator, logistics management from the point of view of the Electronic Business Default management inventory services and so on. In fact, he said that the retailer is very simple, to do the two things well, to become a leading retailer, in fact, in the development of the years to do these two things well, and he said as a retailer leader, you have to do is to (English), this is what you do not think, if you do not do, You're not getting started, but if you're a retailer who really wants to earn 0.5 more points than others, one point, it must be a good one. I want to do today, from the angle of Jingdong, Jingdong is undoubtedly a very good (English), his supply chain management, customer service, logistics and so on, then in (English) above, we have to do further, we talk about your electric business when it is how to win, you are a good one. or (English) win it, (English) is the introduction of the total to do success, must be very good (English). Compared with the offline retailer, the Internet and this model can make you a retailer, an e-commerce retailer, and in many dimensions, doing better in both areas, and it's easy to understand. For example (English) is very important is a presentation, you walk into (English), so little place, he piled his head how to put, what place and so on these things, on the internet is like, do a lot of experiments can thousand people face, these are difficult to do online, you go into the shop to see into the store layout so that he entered the store layout like that is impossible. The selection is the same, can also be thousands of noodles, can do a lot of (English), can be different customers see things and products are not the same. In the same way, some time ago, Lao Liu said that on different occasions, he has so many years to understand the model of Jingdong is to reduce the movement of goods, you think in a traditional sales channels, you get a mobile phone before, the phone was moved several times? How many times has the goods been moved in the context of electronic commerce? Because moving is worthless. As in a warehouse, moving is worthless.

I have heard a word, a very famous word, when I first came to Jingdong, learning retail, learning supply chain management, read a book, the Japanese management of inventory very carefully and care, there is a saying that the more extreme, is the inventory is (English), no use, in the final analysis can not be 0 of the inventory, But this thing is in your warehouse, or it's not worth it being moved, and this process doesn't create any value. Then the point on this model to reduce the movement of goods, basically jingdong is the only support brand and jingdong between the consumer of a medium, moving very little basically brand of the library into our library, the next step is to go to your home on the road. Customer management is also, customer service is also, we know who you are, you know how to find me, so that our relationship with the offline retailer does not have, can not build up. So summing up this, I feel a little sentiment to do the retail two things, a merchandiser a operator, we talk about their business to see where they won, do a good job for a long time affirmation two must win.

Next, spend a little time, probably to tell you what Beijing East now think, Jingdong next strategy.

BEIJING-East future strategy: Continued category expansion for Third-party Sellers to provide logistics services

In a few ways, one is the continued expansion of the category. You know I started from 3C, now is a listed company, so we just out of the first, as a public company for the first time after the announcement of our performance, but also about our category expansion of things, in fact, now in our online sales of electric things are quite many, Of course in the past few years our expansion has also used a very constant progress, books, department stores, food, clothing, cosmetics and so on are exerting force, and the momentum is very good. To a large extent, we still take a large share of the store, two reasons, if not these two reasons may we relative proportion of other development faster, one is the mobile phone, mobile phone growth is very good, we all know, with the development of smartphones, mobile phones are in a new development, so we have a good share of mobile phones, It's good to sell. There are big appliances, since we started three or four years ago to intervene very high threshold of the electric business after doing very good, growth is very fast. That is to say in 3C this field we still have a few sub categories do well, not live things at home, food, fresh, fresh very hot, we have a shop every day to think about this problem, it is very difficult to do, I think it is as possible many electric business, platform-level enterprises, are also very want to intervene in such an industry, a category, very large, It means that his cold, there is no traditional 2 C, only 2 B, the last kilometer how to solve, very interesting things, very interesting category, waiting for us to do.

The 2nd is the platform business of the third party sellers. We also publish each quarter, presumably how many of our sites are from third parties, growth is also very fast, in fact, and the above mentioned category expansion has a relationship, some categories we are very difficult to do, in food, home, clothing above all do very well, and we achieve a very good category of complementarity, we have made some preparations in the organization, We have recently made adjustments, which means that we organize our financial organizations according to the category, our present organization, the same EP he is responsible for the electrical category, regardless of the self-employed, or third party is responsible for the same (British), let him better to see, which subcategories and which brands suitable to do, The whole category of perspective to consider this problem, which do open the platform of the way, which proprietary way to do. There is also a point to be mentioned, that is, the problem of open logistics, our big advantage is that we do our own logistics, we are self-employed to do business, and now and a lot of Third-party sellers open shop, to provide very competitive logistics services, you can come to the warehousing, if you do not choose to warehousing can also, I'll make you the last kilometer. Of course, we're on the whole model, or hope that the model of warehousing is the best, such experience and Jingdong logistics experience for the customer is exactly the same, warehouse with one service, can help you to do the user experience is very good, because end to end are controlled by the Beijing East.

BEIJING-East Future strategy: to enter the three or four-line city to make great efforts to move the end

The penetration of the three or four-line market is a very big strategy for us this year. As we have heard, Jing Dong in the countryside brush the wall, there are three things to do, the first choice, because three-tier city consumers like brand habits of the brand is not necessarily in Beijing Shanghai to sell the best brand, so the selection above our strength to see what kind of goods more suitable for these three-tier city consumers, but also said logistics, Now take our logistics deep into the three-tier cities, Jingdong from the logistics point of view is very large network, has now been covered to 1800 counties, the whole of China more than 2,800 counties, 1800 districts and counties are their own employees to send, have their own distribution station, a distribution station way into the three-tier city, there are warehouses, If the warehouse is close to the consumer service, logistics must be poor, dozens of warehouses nationwide, we have to open a new warehouse, the provincial capital city has opened similar facilities, so that many consumers can enjoy the day up or the next day to achieve such logistics services. Then marketing is what I mentioned just now, we brush the wall around, do some local people loved some activities to promote our brand introduction E-commerce to bring them convenience.

Hug move, this is the topic that everybody is very concerned about. As Jingdong, mobile also attaches great importance, just under the total also in exchange, his two mobile aspects do some things. For Jingdong, we move is a combination of right, or several things together to see. The first one is our app, the installed capacity is already very large, should be a daily new download activation is also a lot, should be published in the last quarter of the results also mentioned how many orders are from the mobile, this number is seen every month, rising every month. There are micro-letter, we and Tencent cooperation, in the micro-letter opened, found above opened a level of entrance, shopping is provided by the east, the entrance to pull new customers, promote a number of new products, help us to do some peacetime customers do not do, very helpful. The hand q also opened, the first level entrance of the hand Q also opened under the dynamic, just and micro-letter has a complementary, in fact, for Tencent Internal, the two products also have complementary, product, or he can reach the market has complementary, this can be very good to help Jingdong in the three or four-line city to obtain more customers. And our public number, his marketing, service and so on. There are a lot of assets that may move for us, maybe now we still explore, in different contexts, we look at the micro-letter and app different contexts, no one will open your app, just want to buy things, and open the micro-letter to look at shopping these two words how he thought, It would be very different to think of how we would consider pushing the electric dealer to him in such a context of social communication. Very interesting combination of examples, itself is not three four individual, is how to complement each other, how to promote each other, is that we have to do a lot of effort to do things.

The future strategy of Beijing-east: cooperation with offline retailers explore the last kilometer mode

Then offline cooperation, we do not O2O this word, the word we do not know exactly what the meaning, I think it is relatively simple we have to work with offline retailers. Because we know that there are actually very large inventories that are under the line, and a lot of these products are high-frequency purchase, and then the low value, this cause in fact, the whole social supply chain, if these goods from my total warehouse to hair is not economic unrealistic, we have 10 in Beijing, we know the land price of Beijing, The warehouse is basically in the five rings, or even six rings. In fact, these goods, regardless of the actual effect above or cost to say total warehouse hair certainly not suitable, how we do and the offline already existing these, because I am the retailer of these inventory cooperation, with the help of our website a lot of traffic, with the help of our website a large number of consumers, and with the help of our already very dense, Especially in the big city is very dense distribution network, Beijing has thousands of, a more dense place a square kilometer several of my distributor, such a situation is not this model can be done is to actively explore the issue. All of these practices must be (English), mobile-centric, he is high-frequency low value, see which do this order is the most appropriate. We are now doing the first step and the convenience store some cooperation, perhaps the media has some reports.

Another kilometer of the mode of diversification, now is also a hot topic, such as hackers, Cat house and so on, a very favorable attempt, the western E-commerce model of the last kilometer is very diverse, sent home, open the door this model is very single very expensive, consumers do not like. With the progress of technology, the progress of consumer concept, the last kilometer model we are exploring diversity. Beijing Everyone can see I introduce to you, should be Huilongguan, a very large residential area, then there are several more important subway stations, subway stations to put bicycles, every afternoon, especially late peak, you can choose this (English), buy a mobile phone what hard drive to get home, because you got off the subway, In general, in the military area, under the subway, you can see that your package take home, is actually in the West basically this is very good last kilometer of a model, in Beijing in some big cities we are now trying to encourage everyone to try.

In short, the above is a few of us, every day in the thinking of things, this year or the next two years some of the focus, so also share with you. And in the end, I'm going to say something to our investment department, send me a message before the meeting to shout for their voice, because the entrepreneurial enterprise is still very active, I think today you may have a lot of such ideas, if interested, can be considered from the perspective of the east and Beijing have cooperation in capital, Can contact us, we are now very open, various aspects can be considered, investment and mergers can be, you can find who contact? We can remember, we are responsible, we can find him. Thank you!